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
Section of the insurance company that administers claims for the losses incurred by the insured. ...
Allocation of monetary resources to equities. ...
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Estimate of maximum dollar value that can be lost under realistic situations. For example, a fire or other peril occurs, but a sprinkler system works and a fire department responds in good ...
Factor considered in determining amount of life insurance to purchase in order that funds will be available to pay the emergency expenses following the death of a family member. ...
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Written contract between an insured and an insurance company stating the obligations and responsibilities of each party. ...
Individual in charge of an insurance company agency. The manager is an employee of the company and is usually compensated on a salary-and-bonus basis, the latter relating to premium volume ...
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