Amount At Risk
- difference between the face value of a permanent life insurance policy and its accrued cash value. The pure cost of protection is based on this difference. For example, if the face value of a lifeinsurance policy is $100,000 and the cash value is $80,000 then the net amount at risk is $20,000. From the Internal Revenue Service perspective, a corridor of protection or net amount of risk must beapparent in a life insurance policy if the policy is to retain its tax advantaged treatment.
- in property and liability insurance, the lesser of the policy limit or the maximum possible loss to the insured.
Popular Insurance Terms
Same as term Ceding Company: insurance company that transfers a risk to a reinsurance company. ...
Property and/or liability coverage for a municipality. Municipalities are responsible for maintenance of through ways as well as a myriad of public services. Liability insurance for ...
Complete coverage for hospital and physician charges subject to deductibles and coinsurance. This coverage combines basic medical expense policy and major medical policy. ...
Exceptions and limitations of coverage; that is, the maximum amount of insurance coverage available under a policy. ...
Early type of no-fault automobile insurance developed by two law professors, Robert Keeton and Jeffrey O'Connell. Its basic premise is that for many accidents it is impossible to place the ...
Coverage primarily for the liability of an individual or organization that results from negligent acts and omissions, thereby causing bodily injury and/or property damage to a third party. ...
Amendment to the law that requires companies that manage retirement plans to permit terminating participants to directly transfer any plan distribution to the individual retirement account ...
Procedure in employee benefit plans to calculate life insurance and retirement benefits to which an employee is entitled. ...
Entitlement to pension benefits without a reduction, even though an employee is no longer in the service of an employer at retirement. For example, under the ten year vesting rule, an ...
Have a question or comment?
We're here to help.