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
Exchange, in insurance, of an adequate consideration (premium paid by an insured) for the promise of an insurance company to pay benefits in the event the insured incurs a loss. ...
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Physiological or psychological condition that prevents an insured from performing normal job functions. ...
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Comparison of the cost of a solution and the economic benefits that would accrue if the solution is put into effect. This analysis is a prerequisite to the installation of an employee ...
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