Assessable Mutual
Assessment mutual company that operates on a statewide basis or in more than one state. Assessable or assessment mutuals operate by taking a cash deposit, or premium, from members in exchange for insurance protection. If the company's losses and expenses exceed these deposits, the company can assess members for additional monies to cover losses. These companies are commonly used by a group of local farmers or merchants in a small geographical area. Some states have specific laws governing these mutuals. For example, they might be limited to a certain type of business or have a maximum dollar limit for each risk.
Popular Insurance Terms
Contract first written in 1918 that provided the basis for modern-day property insurance, both personal and commercial. Forms and endorsements must be added to complete the policy and ...
Relationship of the frequency of illness, sickness, and diseases contracted by individual members of a group to the entire group membership over a particular time period. ...
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Coverage usually provided under the commercial general liability insurance (CGL); it can also be purchased separately. ...
Payment of premiums before their due date. In pension plans, premium payments are allocated to the payment of future benefits prior to benefits becoming payable. ...
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Period when the accumulated assets in an annuity are returned to the annuitant. An annuity may be purchased either with a single payment or with many payments over the life of the contract. ...
Same as term Final insurance: premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
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