Yield On Assets
Annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be paid out in death benefits or other types of claims, they invest it to achieve a yield adequate to meet these obligations. Yield is also important to the policy owner of life policies that include a specific investment element. For example, some annuities and cash value life insurance policies pay a yield that approximates the market rate the policyholder could get elsewhere. While other contracts, such as a variable annuity and variable life insurance do not guarantee a specified yield, they pay one based on the performance of the underlying investments.
Popular Insurance Terms
Tort of wrongful physical confinement of an individual. This is not restricted to physical confinement but includes any unjustified limitation of another's freedom of movement. If an ...
Employer, association, labor union, or other group ...
request by an insured for indemnification by an insurance company for loss incurred from an insured peril. ...
Early payout of anticipated death benefits from a rider attached to an existing policy or from a separate policy. The purpose is to allow the terminally ill insured an additional source of ...
Automatically extended reporting period of five years, during which claims may be made after a claims made basis liability coverage policy has expired, provided these claims are the result ...
Coverage for furs owned by a furrier, or a customer's furs in the care, custody, and control of the furrier. Coverage is on an all risks basis except those specifically excluded: wear and ...
Property and casualty coverage that indemnifies automobile dealers if a dissatisfied customer demands a refund within the period of time allowed under the Uniform Commercial Code. This ...
Length of time required to amortize the excess expenses of acquiring a given group of life insurance policies. In acquiring a policy, a life insurance company may incur expenses (such as ...
Policy used to provide the funds necessary for buy-and-sell agreements whereby an income payment or a series of income payments are paid to the buyer of the disabled partner's interest ...
Have a question or comment?
We're here to help.