| A | B |
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| Actuary | Insurance company expert in the “mathematics” of insurance, annuities, and financial instruments. |
| Benefit | The amount of money paid by an insurer when an insurance claim is approved. |
| Claim | A request for payment under the terms on an insurance policy. |
| Commissions | Money paid to brokers for Policies they sell. |
| Compliance | Area of an insurance company which Ensures all products sold are approved In the states in which they are sold. |
| Dividends | Money periodically paid to Stockholders of a company Which represent their share Of the company’s profits. |
| Enrollment | Period wherein employees may Purchase insurance coverage. |
| Financial Services Industry | Composed of insurance companies, Mutual funds, credit unions, trust Companies, pension funds, banks, Savings & loans, investment banks, And brokerage firms. All of these Types of businesses manage money, Manage investments, provide insurance, And create the market wherein Investments are bought and sold. |
| Fraternal Benefits Society | Type of insurance company which Offers social benefits and insurance Coverage to their members who share A common religious, ethnic, or Vocational background. |
| Insurance Policy | A written document that contains the terms of the contractual agreement between the policy owner and the insurance company. |
| Mutual Insurance Company: | Type of Insurance Company which is Owned by the individuals who have Purchased insurance coverage. |
| NAIC | National Association of Insurance Commissioners |
| Premiums | The payment(s) required by an insurer to put an insurance policy in-force and to keep it in-force. |
| Stock Company | Type of Insurance company which is Owned by its stockholders who have Purchased ownership shares in the Company. |
| Underwriting | The process of assessing and classifying the degree of risk which a proposed insured represents. |
| Annual Report | Summary of activity on the policy At one year intervals – from policy Anniversary to Policy Anniversary. |
| Beneficiary | The person designated to receive the Proceeds of a life insurance policy. |
| Ceding Company | Insurance company who seeks Another insurance company to Accept part of the risk for either An individual or a group. |
| Contingent Beneficiary | Person or persons designated by Policy owner to receive death benefit Of policy if Primary beneficiary(ies) Predeceases the Primary insured of The policy. In VWB the Amount for each must be designated in percentages rather than specific Dollar amount(s). Not to exceed 100%. |
| Contestability Period | Specified period of time wherein The insurance carrier can contest The policy (to decline payment). |
| Contract | The written agreement between an Insurance company and a Policy holder. |
| Evidence of Insurability | Proof of good health. Required By some applicants to furnish to An insurance carrier in order for the Underwriters to determine if the applicant represents an acceptable risk and insurance coverage can be issued. (AKA health questions.) |
| Expenses | Cost the insurer will incur when Issuing an insurance policy. This Amount is a factor in pricing of Insurance premiums. |
| Expired Policy | Term referring to Term Life policy Policy has reached the end of specified term; Policy not longer in-force; No benefits payable; May not be reinstated. |
| Expiry Date | Date Term policy will terminate |
| Face Amount | Amount of coverage (as stated in the life insurance policy) which is payable at death when an insured dies. |
| Face Page | A.K.A. “data page”. Page contained In all insurance policies which Outlines the coverage purchased And represents the insurance Company’s promise to provide the insurance. |
| Fixed Amount Settlement Option | Type of payment of a death claim Wherein the beneficiary of a life Insurance policy chooses to Receive a series of payments for a specified amount. |
| Fixed Option Settlement | Type of payment of a death claim Wherein the insurance company Pays the death benefit of a policy Over a specified period of time, And the full benefit is guaranteed To be paid by the end of the Specified period of time. |
| Free-Look Period | Period of time after an insurance Policy is issued wherein the policy Owner may elect to cancel the Policy and receive a refund of any Premiums paid |
| Grace Period | Period of time after the premium Is due but not paid when the Insurance coverage remains In-force. |
| Guaranteed Issue | Issuing coverage without requiring applicant to furnish medical evidence of good health. |
| Incontestability Provision | Specified period of time wherein The insurance carrier’s right to Decline to pay the death benefit Of a life insurance policy. This Provision is a part of the insurance Contract. |
| Insurable Interest | A condition wherein the person applying for an insurance policy And/or the person who is to receivethe Benefits of an insurance policy will suffer a genuine loss or detriment in the event the insured dies. |
| Insured | Person is covered by the terms And conditions of an insurance Policy. May or may not be the owner of the contract. |
| Interest Settlement Option | Type of payment of a death claim wherein the proceeds from a life Insurance policy are invested by the insurance carrier and invested. The beneficiary subsequently receives checks on the interest earned. |
| Investment Income | Amount of money an insurer earns On the premium dollars which have been invested. This is a factor used In the pricing of insurance policies. |
| Irrevocable Beneficiary | Beneficiary designation wherein the Beneficiary designation may NOT be Changed without the written consent Of BOTH policy owner and the Irrevocable beneficiary(ies). |
| Lapse | *Policy goes out of force due to non-payment of Px’s; *No benefits payable; *May typically be reinstated with UW approval; (based upon product and plan) |
| Life Income Settlement Option | Type of payment of a death claim of A life insurance policy wherein the Insurance carrier purchases an annuity for the beneficiary. The Income from the annuity is paid to the beneficiary. |
| Limited Payment Policy | Type of premium payment schedule for Whole Life policies wherein policyowner pays premiums for a specified period of time or until the insured reaches a specified age after which premiums are no longer paid. |
| Lump Sum Settlement | Type of payment of a life insurance Death claim wherein the proceeds Of a policy are paid to the Beneficiary of the policy in one Lump-sum check. |
| Misstatement of Age | Provision of an insurance policy Which details the actions which May be taken if the applicant’s age Is misstated on the application. |
| Modified Premium Policy | Modified Whole Life policy wherein the policy provides (1) the amount of the premium changes at some time during the life of the policy or (2) the face amount of the policy changes during the life of the policy. |
| Mortality Table | Table used by actuaries to predict The rate of death for people of like ages. |
| Payor | Person designated to pay the Premiums of an insurance Policy. May not be either the Contract. |
| PLANE | Method of enrollment in VB wherein employees are enrolled over a state of the art laptop computer. |
| Policy Owner | Person who purchases the Insurance contract who is the Legal owner of the contract. May Not be the insured or the payor. |
| Policy Provisions | The statements outlined in the Insurance contract which describe The operation of the insurance Contract. |
