Definition of "Conversion privilege"

Michelle Baker real estate agent

Written by

Michelle Bakerelite badge icon

Real Broker LLC

Right of a certificate holder to convert group life or group health insurance to an individual policy without a physical examination to furnish evidence of insurability. Usually this must be done within 31 days of termination of employment. Under group life insurance, conversion is made at the employee's attained age rate, which can be prohibitively costly in later years. Many term life insurance policies can be converted to a whole life policy at the insured's attained age, with no physical examination required.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Method by which each member of an insurance pool shares in each and every risk written by the other members of the pool. ...

Resident patient of a medical installation. Previously, health insurance benefits were limited to in-patient care. Today health insurance policies provide an extensive list of out-patient ...

Accounting rule found under the Generally Accepted Accounting Principles (GAAP) that prohibits the insurance company from restating assumptions that it made for interest earned, expenses ...

Person who has been authorized by the insurance company to pay a loss (s) incurred by the insured. ...

Rider attached to an ordinary life insurance policy that allows the policy owner to deposit excess premium payments into a separate account from which they can be withdrawn to meet premium ...

Small face amount life insurance policy. ...

Fee paid to an insurance salesperson as a percentage of the premium generated by a sold insurance policy. ...

Legislation in a number of states requiring insurers to pay the face amount of a fire insurance policy in case of total loss to a dwelling (or sometimes another specified type of building), ...

Minimum degree of injury or loss for which an injured party can sue, even though covered by no fault automobile insurance. Traditionally, an accident victim had to prove the other driver ...

Popular Insurance Questions