Annual renewable term insurance is a type of term life insurance that provides coverage for one year at a time with the option to renew annually.
A transfer of the legal right under a life-assurance policy to collect the proceeds, initiated by notifying and receiving agreement from the life insurer.
Insurance against an eventuality, especially targeting events that must occur such as death. Commonly related to life assurance, it provides a guaranteed payout upon the occurrence of the insured event.
A beneficiary is a person or entity who is designated to receive benefits or assets from trusts, wills, insurance policies, or other financial instruments.
Business Liability Insurance provides financial coverage against liability exposures that a business may encounter. This insurance includes various policies tailored to specific areas of operation, ensuring comprehensive protection for different industries.
Coverage providing funds for maintenance of a business as closely to normal as possible in the event of a loss of a key person, owner, or partner.
Collateral assignment is the designation of a policy's death benefit or its cash surrender value to a creditor as security for a loan. If the loan is not repaid, the creditor receives the policy proceeds up to the balance of the outstanding loan, and the beneficiary receives the remainder.
A provision in a will or insurance policy that states how property should be distributed if both the insured (or will-maker) and their beneficiary die in the same event or within a short period of each other.
Comprehensive Glass Insurance is a specialized type of insurance policy that provides coverage for damage to or loss of glass components within a structure. This type of insurance helps to mitigate the financial burden associated with repairing or replacing glass windows, doors, and other structural glass elements.
Cumulative liability is the total of the limits of liability that an insurer or reinsurer has outstanding on a single risk. It includes all contracts from various insurers and covers all lines of coverage for that risk.
Duration of benefits refers to the period over which disability income insurance provides financial support to an eligible policyholder following an illness or injury causing disability.
A fixed premium is a payment for insurance coverage that remains the same throughout the entire premium-paying period.
A fortuitous loss is a loss occurring by accident or chance, not by anyone's intention, and is covered under insurance policies that provide protection against unpredictable, uncontrollable events.
A period of time provided in most loan contracts and insurance policies during which default or cancellation will not occur even though payment is past due.
Hazard insurance is a form of insurance that protects property owners against damages inflicted by certain risks, such as fires, storms, and other natural disasters.
An incontestable clause is a provision in an insurance policy that prevents the insurer from voiding coverage due to fraud or misstatement by the insured after a specified period.
Individual life insurance provides coverage for a single life, as opposed to group life insurance, which covers multiple lives collectively. This type of insurance offers personalized policies tailored to the specific needs and circumstances of the individual.
An independent broker who searches for the best insurance coverage at the lowest cost for the client. Insurance brokers do not work for insurance companies but for the buyers of insurance products.
An insurance limit is the maximum amount an insurance company will pay under a policy for a covered loss.
Interest earned on dividends from a participating life insurance policy left on deposit with the insurance company and subject to taxation.
A component of a business liability policy that provides coverage for bodily injury or property damage liability to members of the public while on business premises.
The specific day when a financial obligation, such as a bond, bill of exchange, or insurance policy, comes due for payment, marking the end of its term.
Mental Health Insurance policies provide coverage for psychiatric and psychological care, counseling, and often substance abuse treatment, helping individuals manage and afford necessary mental health services.
Falsification of birth date by an applicant for a life or health insurance policy. If the company discovers that the wrong age was given, the coverage will be adjusted to reflect the correct age according to the premiums paid in.
A provision in many property insurance policies that automatically distributes coverage over insured property at various locations in proportion to their value.
Property Coverage encompasses various types of insurance that protect policyholders from losses relating to their property. These losses can be direct or indirect, and coverage can vary based on criteria such as peril, property type, person insured, duration, limits, location, hazard, and type of loss.
Reinstatement refers to the restoration of a lapsed insurance policy, typically due to the nonpayment of premiums after the grace period. This requires the policyholder to meet certain conditions.
An insurance policy type in property and casualty insurance that covers the cost required to replace damaged property with items of similar kind and quality, without accounting for depreciation.
Single Premium Life Insurance (SPLI) is a type of life insurance coverage where the policyholder makes a one-time lump sum payment to fully fund the policy. After this initial payment, no further premiums are required for maintaining the coverage.
A seller's agent is a real estate professional who represents the seller in a property transaction. They have a fiduciary duty to act in the best interest of the seller.
The surrender value is the sum of money given by an insurance company to the insured on a life policy that is canceled before it has run its full term. The amount is calculated approximately by deducting from the total value of the premiums paid any costs, administration expenses, and charges for life-assurance cover up to the cancellation date.
An additional amount of money added to payments made on the maturity of an insurance policy or on the death of an insured person due to profitable or surplus investments by the insurer.
Title insurance is an insurance policy that protects the holder from loss sustained through defects in the title. Mortgage lenders virtually always require borrowers to buy a mortgagee's policy of title insurance. The premiums paid on a business title insurance policy are normally tax deductible.
Unoccupancy refers to the absence of people from a given property for at least 60 consecutive days. Many property insurance policies suspend coverage after a structure has been unoccupied for this period due to increased risks of vandalism, malicious mischief, or other hazards.
