Life Insurance Illustration Questionnaire
Form whose purpose it is to help the agent and the prospective policyowner judge the validity of the insurance company's policy illustrations. This questionnaire's focus is on the nonguaranteed elements of the policy and how these nonguaranteed elements compare with the company's current experience. Some of the questions this questionnaire seeks to answer include:
- To what degree are the mortality rates in the illustration reflective of the true mortality rates that the company is currently experiencing?
- To what degree are the interest rates in the illustration reflective of the true interest rates that the company is currently experiencing? Upon what is the interest rate to be based (new money or portfolio average)?
- To what degree are the expense charges in the illustration reflective of the true expense charges that the company is currently experiencing? Are these expense charges significantly understated in the illustration?
- To what degree are the persistency rates in the illustration reflective of the true persistency rates that the company is currently experiencing? Are these persistency rates significantly understated in the illustration, thereby increasing policy cash value?
Popular Insurance Terms
Procedure in which investment income is paired with each life insurance policy according to the time frame in which the premiums for that particular policy are received. ...
Time interval between the date benefits end under Social Security and the date these benefits resume. For example, survivor benefits are paid only as long as the parent (if less than age ...
Branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for ...
Provision of liability policies and the liability sections of package insurance policies, such as the personal automobile policy (pap), that pay medical expenses without regard to fault. ...
Specified limit on the dollar amount of coverage for a given loss. ...
Falsification of a material fact in such a manner that, had the insurance company known the truth, it would not have insured the risk. A material misrepresentation gives an insurance ...
Agreement of two or more insurance companies to provide a product or service. ...
Monetary value of the reputation of a business. Goodwill is an intangible asset and thus may be difficult to measure. ...
Continuing on an indefinite basis. ...
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