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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Payment by the insurance company to the insured for the actual expenses incurred by the insured, such as medical expenses. ...
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State law that stipulates the establishment of required reserves for claims made basis liability coverage contracts, removes the excess statutory reserves, and directs that all amounts that ...
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