Full Preliminary Term Reserve Plan
Method of valuing a reserve under which a life insurance policy, from an actual point of view, combines one-year term insurance and a one-year deferred plan. Here the net premium is sufficient only to pay first-year death claims. For example, a 10-pay life insurance policy issued at age 30 would be viewed actuarially, for full preliminary term reserve plan purposes, as one-year term insurance at age 30 plus a nine-pay policy issued at age 30 but deferred to age 31.
Popular Insurance Terms
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Rating system under which a specific premium rate, rather than a manual or class rate, is assigned to each unit of exposure. ...
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Soliciting of customers for the purchasing of an insurance product. ...
Death from other than accidental means. ...
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