Allocated benefits refer to the payments in a defined-benefit pension plan, where benefits are distributed to participants as premiums are received by the insurance company. This ensures that employees are guaranteed a pension at retirement, even if the firm ceases operations.
In automobile insurance, 'assigned risk' refers to a classification of drivers to whom insurance companies will not issue policies voluntarily due to their high-risk profile, commonly resulting from a history of accidents or violations. These individuals are assigned to insurance companies by state law and are required to pay higher premiums.
The insured's age at a specific point in time, often used to determine premiums and eligibility in insurance policies.
An impound account is a fund set aside by a lender for the future payment of various required expenses like property taxes and insurance premiums. These accounts are typically used in mortgage agreements.
Insurance premiums are the amounts paid to an insurance company to cover potential hazards. These payments can have tax implications and differ in deductibility based on whether they are made by businesses or individuals.
The section of a property and casualty insurance policy that details the parties involved, policy duration, premium requirements, insurance limits, insured property specifics, considerations, covered perils, and policy assignment conditions.
The Law of Large Numbers (LLN) is a mathematical principle that states that as the number of exposures increases, the results become more predictable and closer to the expected outcomes.
Medicare Medical Insurance, also known as Medicare Part B, is an optional coverage offered to all Medicare Part A beneficiaries that aids in paying for physician services, outpatient care, home health services, durable medical equipment, and some preventive services.
A payroll deduction refers to the reduction of the amounts paid to a worker from their gross earnings to cover various costs, such as taxes, savings, pension contributions, union dues, and insurance premiums. The paycheck reflects the gross pay minus these deductions.
Policy cost refers to the expenditure incurred as a consequence of a policy determined by the management of an organization, such as insurance premiums based on policies like key-man insurance.
A periodic, typically monthly, payment required by an amortizing loan that includes escrow deposits. Each periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.
In the context of underwriting risks, 'unique impairment' refers to specific factors that differentiate an applicant from a standard applicant, and may include conditions or characteristics that adversely impact life expectancy or risk profile.
Variable Life Insurance is a type of life insurance policy where the face value and death benefit can fluctuate based on the performance of investments chosen by the policyholder. The value can increase or decrease but never falls below a guaranteed minimum.
