Life Expectancy
Probability of one's living to a specific age according to a particular mortality table. Life expectancy is the beginning point in calculating the pure cost of life insurance and annuities and is reflected in what is known as the basic premium. The probability of living longer has continued to increase in the U.S., and thus the pure cost of insurance continues to decrease. This is reflected in a declining premium rate. Increasing life expectancy is critical to the cash value projection in current assumptions life insurance products, such as universal life insurance and variable life insurance.
Popular Insurance Terms
Reductions in the value of property due to physical damage or destruction. ...
Provision found in current assumption whole life insurance policies under which the insurance company retains the contractual right to recalculate the premium (after a minimum period of ...
States that allow the placement of surplus lines only with insurance companies that the states have approved. ...
Insured losses that have occurred but have not been reported to a primary insurance company. These types of claims have a tremendous effect on a reinsurance treaty, which may be showing a ...
Fire that spreads substantial destruction. ...
Same as term Occurrence Basis: coverage, in liability insurance, for harm suffered by others because of events occurring while a policy is in force, regardless of when a claim is actually ...
Total of operating income plus realized capital gains (losses) from investment and underwriting operations minus federal income taxes. ...
basic feature of the social security act under which benefits paid are associated with the employee's earnings that have been taxed during the employment period. ...
Act that makes the liability cost for cleanup joint and several. Even if a party is only partially responsible for losses inflicted, that party may be liable for the payment of the total ...
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