Sex Discrimination
Classification of insured life and health risks based on the sex of the proposed insured. Gender has long been one of many factors in classifying, accepting, and rating risks. For example, because experience shows that women live longer than men, life insurance rates for women are lower. By the same token, annuity payments are lower for women because it is expected that they will be paid out for more years. On the other hand, women have sometimes paid lower rates for auto insurance. Insurance rating by sex became an issue in the early 1980s when many women charged that it was discriminatory. They demanded through unisex legislation to be rated no differently. Although insurers have resisted it, individual states have passed laws prohibiting the use of sex in risk classification.
Popular Insurance Terms
Judgment decision by the insurance agent concerning whether or not to submit an application. The decision is based on the agent's familiarity with the insurance company's underwriting ...
Ratio of the company's investment in noninvestment grade bonds dividend to its adjusted surplus. This ratio shows how vulnerable the company's surplus is to the market fluctuations in ...
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Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Measure of the sensitivity of the insurance company's liability to changing policy surrender distributions. ...
Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...
Detail showing distribution of property coverages written by an insurance company. Illustrates a potential danger of concentration of insured risks. ...
Clause in some disability income insurance policies under which there is a maximum an insured can receive from all sources of disability income benefits. For example, the clause may ...
Representation of ownership rights such as stocks. ...
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