Nonforfeiture Provision
Value in life insurance policies that entitle the insured to these choices:
- to relinquish the policy for its CASH SURRENDER VALUE. (Note that in the beginning years the cash value may be minimal because ofexpenses such as agent's commission, premium tax, and the cost of putting the policy on the insurance company's books.)
- to take reduced paid-up insurance instead of the cash surrender value.
- to take EXTENDED TERM INSURANCE for the full face amount instead of the cash surrender value.
- to borrow from the company, using the cash value as collateral.
Popular Insurance Terms
Excess coverage over the first layer of medical insurance to provide for catastrophic medical payments. The first layer may be either group or individual medical insurance, or an individual ...
Same as term Friendly Fire: kindling intentionally set in a fireplace, stove, furnace, or other containment that has not spread beyond it. Property insurance does not protect against damage ...
Group that, with the exception of the government, establishes the standards for all financial accounting and reporting for the various entities in the United States. The standards enable ...
Date at which an insurance policy goes into force. ...
Rate-making division of insurance services offices (ISO) for inland marine insurance coverages of member companies. ...
Additional Living Expense Insurance is a type of coverage present on several types of Homeowner’s Insurance that reimburses additional costs caused because of the insured’s ...
Portion of reinsurance premium received by the reinsurer that relates to the unexpired part of the reinsured policy. ...
Coverage for negligent acts or omissions of an operator of a motel or hotel resulting in bodily injury to guests and damage or destruction of a guest's property. ...
Initial reserve plus the terminal reserve divided by two for any year of valuation. ...
Have a question or comment?
We're here to help.