Definition of "Tontine"
Early life insurance that provided benefits only to survivors who lived to the end of a certain period of time. In the mid-17th century, Lorenzo Tonti, an Italian, devised a scheme to raise money for the French government of Louis XIV. It involved a state lottery in which the oldest survivor would collect the pot. One woman, age 96, hit the jackpot shortly before her death. Tontine policies were introduced in the U.S. in the 1860s, but condemned in the Armstrong investigation in 1905 in New York State and subsequently outlawed everywhere 45 years later.
Popular Insurance Terms
Licensed agent's signature on an insurance policy. ...
Organization of over 300 property and casualty insurance companies whose mission is to investigate fraudulent claims and bring to justice those making such claims. ...
Clause listed after the general provisions of the insurance policy that requires the officers of the insurance company to sign their names in order for the contract to be completed. Most ...
Rule that concerns the distribution of the aggregate surplus among the policies in the same proportion as each respective policy has contributed to the surplus. ...
Measurement of the use of health insurance by employees of an insured employer, stated in terms of the average number of claims per employee. ...
Dollar limitations under the Internal Revenue Service code as follows: The elective annual deferral limit is $10,000. A highly compensated employee's annual compensation limit is $80,000. ...
Retention of all files of policies sold by the agent of record who, according to written agreement with the insurance company, has the exclusive rights to solicit renewals. ...
Life insurance rate determined by the valuation of company policy reserves. State regulators set strict standards for policy reserves to make certain that life insurers will have enough ...
Insurance company that is licensed by a state to market and service particular lines of insurance in that state. ...
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