Dividend Illustration
Picture of future dividends that the insurance company expects to be allocated to a specific block of policies. The accuracy of this picture depends on the actual future mortality, investment, and expense experience being the same as that of the projected dividends. One way to judge the validity of the projected dividends is to ascertain the dividends that the company has actually paid out in the past and the dividends that it is currently paying out. Although this is not a guarantee of future payments, it can be a strong indication of future payouts.
Popular Insurance Terms
Form of substandard ratings that shows additions to standard premiums to reflect physical impairments of applicants for life or health insurance. The additions reflect the greater ...
Costs associated with the selling of a new insurance policy to a policyholder. The costs include the acquisition commission as a percentage of the first year's premium, underwriting ...
Publication that lists premiums charged for products sold by an insurance company. A manual also has underwriting guidelines for agents. A life insurance rate manual includes minimum ...
Clause in an insurance policy stipulating that the benefits under the policy will accrue to the right of the insured. For example, if the insured leaves a violin at a repair shop and that ...
Risk management tool to determine risk exposure and to help spread the risk. A risk manager considers a business firm's individual exposures separately. As the number of exposures ...
Donation of amount "A," made by donor X to a charity. The charity agrees to pay donor X an amount ("B") for the rest of donor X's life. Since the donation is used to fund an annuity, only a ...
Agreement of two or more insurance companies to provide a product or service. ...
Modified premium used to calculate cash surrender values in excess of that required by the naic: standard NON FORFEITURE LAW. ...
Contract that details coverage for business property losses in three specific areas: Coverage A (Building). All buildings on the site are covered with no coinsurance requirement and on a ...
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