Application – A declaration of information from a person applying for life insurance. It helps the life insurance company assess the acceptance of risk. The information provided in the application will be used to decide an applicant`s insurance classification and premium rates. Policy – The legal document printed with the terms of the insurance contract issued to the policyholder by the Company. Reinstatement – Restoration of the original premium payment status of an expired policy after payment of all unpaid premiums and policy loans by the policyholder with interest and presentation of satisfactory proof of insurability by the insured. Standard Risk – The classification of a person applying for a life insurance policy that meets the physical, occupational and other standards on which normal premium rates are based. Expand your training with our Distance Learning Center webinars. In these courses, you`ll earn credits for a variety of certifications, including SHRM, HRCI, CCP, and more. The following provisions must be complied with in conjunction with the terms and conditions for amending main and supplementary contracts as well as supply chain contracts, which must remain in full force and effect.
In cases where subsequent CCS approvals are required, additional contracts are signed within two months of such approval. Underwriting – The process by which a life insurance company determines whether it can accept a life insurance application and, if so, on what basis, so that the correct premium is calculated. Premium – The payment or one of the periodic payments to which a policyholder consents for an insurance policy. Depending on the terms of the policy, the premium may be paid in a single payment or in a series of regular payments, per .B. annually, semi-annually, quarterly or monthly. The premium charged reflects expectations of losses, expenses and prospects for success. Insurable interest – For persons related by blood, an essential interest justified by love and affection, and for all other persons a legitimate and substantial economic interest in the pursuit of the life of the insured. When purchasing life insurance for another person, an insurable interest rate is required.
Proof of insurability – A statement or proof of your health, finances or place of work that helps the insurer decide if you pose an acceptable risk to life insurance. Reduced Payment Insurance – A form of insurance that is available as an unexpired option. It provides for the continuation of the initial insurance plan, but a reduced amount, without additional premiums. Participating policy – A life insurance policy in which the company agrees to distribute to policyholders the portion of its surplus that its board of directors determines is not necessary at the end of the fiscal year. The distribution is used to reduce the premium paid by the insured. Non-participant – A life insurance policy where the company does not distribute any portion of its surplus to policyholders. Until the earlier date( (i) the reinsurer is able to manage reinsured policies on its computer systems, or (ii) until the expiration of the transitional service contract (the “System Conversion”), in the event that a reinsured policy is completely disfigured in accordance with the terms of this policy (each, an “annuity”), the Company will convert this reinsurance policy into one or more additional contracts. Policy proceeds – The amount actually paid for a life insurance policy upon death or if the policyholder receives a payment on return or due date. Disclosure Statement – A settlement form required by New York Financial Services Regulations to be issued to any applicant considering replacing one life insurance policy with another. Life expectancy – The probability that a person will reach a certain age according to a certain life table.
This is the starting point for calculating the pure costs of life insurance and pensions and is reflected in the basic premium. Expiry rate – The rate at which life insurance policies terminate due to non-payment of premiums. If the policies expire before enough premium payments are made to cover the costs of the advance policy, the company must compensate for this loss to the remaining policyholders. Therefore, the expiration rate affects the cost of the policy. Certain annuity – A contract that provides income for a certain number of years, regardless of life or death. Non-expiry – One of the options available when the policyholder stops paying premiums for a policy with a present value. The options available are to take the current cash value or use it to purchase extended-term insurance or reduced-payment insurance. Addendum – An agreement between a life insurance company and a policyholder or beneficiary under which the company retains at least part of the cash amount payable under an insurance policy and makes payment in accordance with the billing option chosen.
A supplementary contract or a pension whose duration of payment depends on the life of the beneficiary. Annuity – A contract that provides regular income at regular intervals, usually for life. Risk Classification – The process by which a company decides how its life insurance premium rates are adjusted based on the risk characteristics of the insured persons (p.B. Age, occupation, gender, health status) and then applies the resulting rules to individual claims. An addendum is a contractual agreement between a life insurance company and a policyholder or beneficiary. Additional contracts are used to establish the terms of payment of a life insurance policy by a life insurance company. There are several ways to pay for life insurance. These contracts therefore identify the respective payment method and comply with the terms of each party to the agreement. Substandard risk – Classification of a person who applies for a life insurance policy and does not meet the requirements established for standard risk. An additional premium is levied on low-quality risks to ensure the likelihood that such a person will have a shorter lifespan than a standard risk. Agent – A state-approved representative of the insurance company who obtains and negotiates insurance contracts and provides services to the policyholder for the insurer.
An agent can be an independent agent representing at least two insurance companies, or a direct author who represents and sells policies for a single company. Policyholder – The person who holds a life insurance policy. This is usually the insured person, but it can also be a relative of the insured, a partnership or a partnership. Many people choose to receive their life insurance policies in installments. In such cases, the amounts of instalments may be agreed in an additional contract. For example, a beneficiary may decide that they want to be paid $1,000 a month by the life insurance company. The insurance company could then enter into an additional contract with the beneficiary that reflects this method of payment. Then the insurance company would be required to pay the money until the entire policy is paid. Cash Value – The amount available in cash upon voluntary termination of a policy by its owner before it becomes payable on death or maturity.
The amount is the present value shown in the policy less redemption fees and outstanding loans and any interest. Enhanced rate annuity – An additional percentage of interest credited to an annuity in the first year it is in effect. The additional amount is higher than the interest rate to be credited from the second year and the remaining years in which the pension is in effect. The additional rate is paid in the first year to attract new policyholders. False indication of age – The falsification of the applicant`s date of birth on the insurance application. If the coverage is discovered, it will be adjusted to reflect the correct age based on the premium deposited. Beneficiary – The person named in the policy who receives the insurance proceeds to the death of the insured. . . . .
