In marine insurance, a term used to define the act of an insured giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss. The health insurance company is referred to as a carrier. Your products term is outlined in the product disclosure statement. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Actuary a professional trained in the mathematics of insurance and risk management, including the calculations of. Life insurance resource center glossary of life insurance terms. The insurance handbook reflects this diversity of subjects and issues. Whole life insurance life insurance that may be kept in force for the duration of a persons life and pays a benefit upon the persons death. Glossary of compensation terms bureau of labor statistics. Whole life life insurance that may be kept in force for a persons entire life and that pays a benefit upon the persons death, whenever that may be. Here is some of the basic terminology for life insurance.
Life insurance terms glossary american family insurance. Bradley drake, sidley austin llp 35 the completion of a successful merger or acquisition involving insurance companies requires careful planning and specialised skill sets to deal with the many important ways insurance companies differ from other. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on. Life insurance and annuity products are not bank products, are not a deposit, are not insured by the fdic, nor any other federal entity, have no bank guarantee and may lose value. To study the difficulties encountered in decision making while buying a life insurance policy 8.
Insurance glossary understanding common insurance terms. It is the proposers or life insured s age at the time of filling the proposal form or entering into a contract. Glossary of health coverage and medical terms this glossary defines many commonly used terms, butisnt a full list. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned. Upon maturity of such type of life insurance policy, account value is provided to the policy owner as maturity value.
Glossary of health coverage and medical terms page 1 of 4. Every industry has its own jargon, and the health and life insurance business is no. An individual life insurance provision that grants the insured the right to rescind the insurance contract within a given period after the policy is actually delivered to the insured. The named beneficiary receives the proceeds and is thereby safeguarded from the. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only. Policy life insurance proceeds paid to the nominee or the beneficiary on account of death of the life insured. Browse our life insurance glossary of common terms intelliquote. Life insurance glossary of common terms we recognize you are looking to make the best decisions for you and your family by comparing online insurance quotes.
An option that potentially allows for a terminally ill person to receive their death payment while still alive. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. For disability insurance, the beneficiary may be the same person as the insured. Benefits are paid only if something happens to you within that specified period, known as a term. Glossary of life insurance terms department of financial. Glossary 747 covered by long term care insurance policies up to a percentage e. In the early years after a block is opened, claims are generally low. It is not meant to be all inclusive or provide legally binding definitions. A benefit that provides for the payment of a portion of the death benefit prior to an insureds death should the insured be diagnosed as. Producers acting as agents are not only categorized by their function in the industry but also by the line of insurance they sell.
This type of insurance costs less than whole life insurance, and so, in general, pays the. Glossary of commercial insurance terms commercial insurance is divided into two main categories. Below are definitions for some of the more commonly used terms and how. Term life insurance provides life insurance coverage for a designated period of time. Life insurance with critical illness as above but also pays out on diagnosis of certain medical conditions as laid out in the policy, i. A form of life insurance combining whole life and an equivalent amount of term, with the term expiring at a stated future date, usually at 65 years of age. Whole life insurance policies also provide taxdeferred buildup of cash value, payable upon surrender or payment default. Metlife bangladesh life insurance, health, group savings. Merge multiple pages together, include coapplicant information. For an explanation of any of these terms, please refer to the glossary.
It has been aptly said that life insurance offers the safest and surest means of. Insurance terminology north american training group, inc. Life insurance glossary know more about life insurance. Life insurance glossary insurance compare insurance. Life insurance glossary complete list of life insurance. Here are a few definitions of life insurance which need to. Acquisition costs all expenses directly related to acquiring insurance or reinsurance. Beneficiary the beneficiary of the policy is the person or entity that receives the benefits. Arizona department of insurance 100 north 15th avenue, suite 261 phoenix, az 850072630 starting july 1, 2020, we will. If an accident occurs that causes the death of the insured, this is the benefit that is paid to the beneficiary. G period of time after the due date of a premium during which the policy remains in force without penalty. Glossary of reinsurance terminology term definition accident year experience reinsurance experience calculated by matching the total value of all losses occurring during a 12month period with premiums earned for the same period. Agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer.
Use this informative health and life insurance glossary to understand the definitions of many commonly used insurance terms. To analyse the benefit for which they have purchased a life insurance policy 6. In a wider context casualty insurance may cover all non life insurances. This should be equivalent to paid premiums, in most instances. See page 4 for an example showing how deductibles, co insurance and out of pocket limitswork together in a real life situation.
Learn insurance industry vocabulary that will help you better understand your insurance policies. Insured the persons covered by the insurance policy. Iec, developed the general insurance code of practice the code. It covers salaries, medical examinations, building rent, underwriting, advertising, printing costs, agency expenses and premium taxes. An option that allows the policyholder the right to buy additional life insurance at specific times in the future, without having to answer questions about his or her health. Offer available to insuranceline customers who complete an application for a life insurance, income protection or funeral insurance policy between 20 november 2017 and 30 june 2020 inclusive and are issued with a policy with a commencement date prior to 00.
Insurance quotes health insurance glossary of terms. The insurance company that agrees to pay losses of benefits. To speak with a representative about your ira or investment account, contact us monday friday between 8 a. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. The book begins with basic information on the various types of insurance, including auto, home, life, annuities and longterm care.
Tort a private wrong, independent of contract and committed against an individual, which gives rise to a legal liability and is adjudicated in a civil court. These general definitions are provided for educational purposes. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. To analyse the feature of insurance policy that attracted their purchase 5.
A study on consumer behaviour on life insurance products. An agent can be independent agent who represents at least two insurance companies or a direct writer who. An individual plan can cover you andor any of your eligible family members. Insurance glossary india a to z terms of insurance. Glossary of life insurance terms arizona department of. A life insurance plan is a contract that is held between an insurance firm and the policy buyer. Guaranteed rate the minimum interest rate that the insurance company promises to pay to a policyholders cash value. Qualifying life event a change in your life that can make you eligible for a special enrollment period to enroll in health coverage. Limitedpay life is designed so that the premiums for coverage will be completely paidup well before age 100. The term property insurance includes many lines of available insurance.
Generally, life and health insurance agents represent the insurer to the buyer with respect to the sale of life and health insurance products. Ashare variable annuity a form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge accelerated death benefits a life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. Glossary of health insurance terms december 12, 2008 a active life reserves funds held by an insurer to pay future claims incurred by individuals covered by a nongroup policy. Common health insurance terms and definitions wps health. It is a request by the nominee of a life insurance policy to the insurer for the payment, as per the terms of the policy, on the death of the life assured. Generally, permanent insurance has fixed premiums and death benefits. Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. Various rights which may be exercised under the policy contract by the policy owner. Examples of qualifying life events are moving to a new state, certain changes in your income, and changes in your family size. Glossary of life insurance terminology gerber life insurance. Agent the insurance company representative who sells policies on behalf of the insurer. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law.
We feel it is important for you to be informed about the rates available to you in order to make intelligent decisions about your coverage. The term of your life insurance is a defined period of time for which the your policy is valid for. The code is a selfregulatory form of regulation, that is, the insurance industry, not the government, is. Columbus life insurance company naic code 99937, cincinnati, ohio, is licensed in the district of columbia and all states except new york. The insurance company evaluates the underwriting risk based on the insureds physical condition and, in some cases, financial condition. Insurance concerned with the insiders legal liability for injuries to others or damage to other persons property. Most life insurance policies continue to provide cover until this term ceases, provided the policy is renewed each year. Event which causes a loss of extraordinary magnitude, such as a hurricane or tornado.
Please note this glossary is intended for guidance only and you should read your policy wording and definitions or consult your financial adviser for further clarification. A health insurance policy you buy directly from a health insurance company or broker rather than through an employer. Advance directive legal document that provides ones family and physicians with written instructions regarding ones preferences regarding medical treatment in. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Maximum amount on which payment is based for covered. Following a sharp increase in inso lvencies during the 1980s, the na tional association of insurance. Empower ira, investing and life insurance empower retirement. Concept, nature and scope if a child, a spouse, a life partner, or a parent depends on you and your income, you need. A variation of whole life insurance that charges a level annual premium and provides a level, guaranteed death benefit to the insureds age 100 and will endow for the face amount if the insured lives to age 100. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list.
These expenses get lumped into what you pay, and are used to calculate dividends and premium rates. This glossary is based in part on an earlier one, glossary of. The company is authorized to transact business within these lines of insurance. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan or health insurance policy. All are extremely important but on this first page, we have tried to explain in plain english what the most important and common terms mean. A glossary section contains over 500 entries, including over 100 life insurance definitions provided by. Premiums the monthly or annual amount that you must pay in order to have the insurance coverage. It is the proposers or life insured s age when the policy matures or the contract comes to an end. Arizona department of insurance 100 north 15th avenue, suite 261 phoenix, az 850072630 starting july 1, 2020, we will be the department of insurance and financial institutions difi. Term life insurance is a basic policy with no additional components, such as a cash value, but it is generally the best life insurance policy option for most people due to its lower cost.
The difference reflects the insurers expenses for operating the plan. This glossary will continue to grow featuring areas such as life insurance, term policies, annuities, variable life, universal life and more. Insurance definitions, dictionary, glossary and terms. The insurance contracts act allows an insurer to avoid. Insurance handbook insurance information institute. To analyse the satisfaction level on the life insurance policy purchased 7. Here, youll find plainenglish definitions for 33 of the most common insurance terms. Yet every day, its becoming more and more important for health care consumers to have at least a basic knowledge of the industrys terminology. Its okwe know as well as anyone that the language of health insurance can be hard to understand. A type of permanent life insurance policy that offers the lowcost protection of term life insurance as well as a savings element, which is invested to allow for cash value to build up over time. The amount of your death benefit depends on your life insurance policy.
When making decisions about health coverage, consumers should know the specific meanings of terms used to discuss health insurance. Term insurance in which the death benefit increases periodically over the policys term. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. In the case of life insurance, the beneficiary and the insured would be different people. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Term life insurance life insurance that provides protection for a specified period of time.
The beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured. Adjustable life insurance age at entry age at maturity age limits annual premium annuity annual premium payment mode annualised premium. Seymour alter is a licensed life insurance agent in all 50 states, including the district of columbia, and his resident state is california. National insurance crime bureau october 12, 2015 1 nicb insurance acronym, organization and term list the following is a list of insurance related acronyms, organizations, and terms that may be encountered during an investigation. The alte leipziger life insurance society archives around 15 million incoming and outgoing documents every year. Invitations for application for life insurance on are made through spectrum direct insurance services, inc. Glossary of group insurance terms benefits division. Is the optional benefit payable on the death of the insured as a result of an accident. The incoming documents in particular represented a challenge due to the many different formats received through alte leipzigers various channels such as email, fax and the agents portal. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. Life insurance coverage concerned primarily with the protection of an insureds business or vocation.
Unlike term insurance, whole life insurance provides insurance coverage for the lifetime of the insured. Browse our life insurance glossary of common terms. Consumer glossary national association of insurance. Life insurance terms glossary life insurance definitions when it comes to protecting what matters most, life insurance is an easy and proactive way to ensure youre financially taking care of. Nicb insurance acronym, organization and term list index. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Generally refers to a life insurance policy used to fund a business continuation plan also see buysell insurance. A type of life insurance policy where a trust company is named as the beneficiary and distributes the proceeds of the policy under the terms of the trust agreement. To make an informed and hasslefree decision when you purchase your next life insurance policy, make sure to read through this glossary of life insurance definitions to better understand what the various terms mean. Also, the insurer can be any company whose primary business is selling insurance to the public. Life insurance is a protection against financial loss that would result from the premature death of an insured. Life insurance glossary of terms compare the market. Face amount the dollar amount that the insurance policy would pay out upon the death of the insured. Life insurance mergers and acquisitions also ma y be motivated by regulatory considerations.
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