New learning

An accident is a sudden, unforeseen and involuntary event caused by external and visible means. Insurance companies can define the term accidental injury in the context of the term 'Accident'

A co-payment is a cost-sharing requirement under a health insurance policy that provides that the insured will bear a specified percentage of the admissible costs. A co-payment does not reduce the sum insured.

Life insurance payable to the policyholder, if living at the end of a specified period, called the maturity date, or to a beneficiary if the life insured dies prior to that date.

The period (usually 30 or 31 days) following the premium due date, during which an overdue premium for a life insurance policy may be paid without penalty. The policy remains in force throughout this period.

Permanent life insurance payable on the death of the life insured whenever that occurs. Premiums are typically fixed under the contract and payable until the death of the life insured or for a specified number of years

Insurance that provides financial protection for persons who become unable to care for themselves because of a chronic illness, disability, or cognitive impairment, such as Alzheimer's disease.

Life insurance that provides coverage throughout the insured's lifetime, provided premiums are paid as stated in the policy, and also provides a savings element through the accrual of a "cash value".

Sometimes called an extra-risk policy, this is an insurance policy issued at a higher than standard premium rate.

A form of paid-up life insurance available as a non-forfeiture option. It provides insurance payable at the same time and in the same manner as the original policy, but for a reduced amount.

The several ways, other than immediate payment in cash, that the policyholder or beneficiary may choose to have life insurance policy benefits paid.

An insurance company with share capital. Management is directed by a board elected partly by the shareholders and partly by the participating policyholders, if any. The shareholders share in any company profits.

A risk that cannot meet the normal health requirements of a standard insurance policy. Protection is provided in consideration of a waiver, a special policy form, or a higher premium charge.

An arrangement whereby an employer undertakes to provide health benefits to employees outside of an insurance contract. The plan may be administered by the employer or by an insurance company or other organization.

Permanent life insurance where premiums (less expense charges) are credited to an investment account from which periodic charges for life insurance coverage are deducted and to which income is credited. Usually, the policyholder can vary the amount and timing of premium payments.

A life insurance or annuity contract under which benefits are not fixed but vary with the market value of a specified group of assets

The tendency of individuals who believe they have a greater than average likelihood of loss to seek insurance protection to a greater extent than do those who believe they have an average or a less than average likelihood of loss.

The total premiums generated from all policies written by an insurance company within a given period of time.

Charts that show the death rates an insurer may reasonably anticipate among a particular group of insured lives at certain ages.

An unpreventable accident or event that is the result of natural causes; for example, floods, earthquakes, or lightning.

A sinkhole is a localized depression in the surface topography, usually caused by the collapse of a subterranean structure, such as a cave. Although rare, large sinkholes that develop suddenly in populated areas can lead to the collapse of buildings and other structures.

insurance issued to a creditor (lender) to cover the life of a debtor (borrower) for an outstanding loan.

Coverage for numerous perils

Amount of your claim that you agree to pay before the insurer pays the rest. Choosing a higher deductible will decrease the cost of your insurance premiums because you agree to pay for a larger part of your loss

Any great upheaval that causes sudden and violent changes, as an earthquake, war, great flood, etc.

Things you know that could affect an insurance company's decision about whether to insure you and what price (premium) you will pay. For example, if you are applying for life insurance, you must tell the insurer if you smoke. If you do not tell the insurer about material facts, the insurer could cancel your policy and refuse to pay any claims.

An exchange through which insurer’s trade "standardized catastrophe units."

The party designated to receive proceeds of a life insurance policy following the insured’s death if the primary beneficiary predeceased the insured.

An arrangement in several non-life insurance categories where a portion of the insured loss is borne by the policyholder, and only the remainder by the insurer (sometimes also referred to as ‘excess’)

A rider that provides for additional cover in the event of a disability or dismemberment due to an accident.

Additional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment- based insurance plans for staying on through its term. Loyalty additions are paid as a percentage of the sum assured, with the amount depending on the insurer’s financial performance

A discount given on renewal of cover in select non-life insurance categories (usually, vehicle, health and house) to policyholders for not making a claim in the preceding year

An option in a term plan under which the policyholder is guaranteed at the end of the term a renewal of his cover without having to provide evidence of insurability. In effect, a policyholder won’t have to pay a mark-up in premium on account of any adverse medical condition.

A stipulation in life policies according to which no death benefits will be paid if the policyholder commits suicide during a specified initial period, usually the first year of the policy

The amount payable to a policyholder under an investment-based plan if he survives the policy term. Typically, it is the sum assured plus returns (guaranteed additions/bonus) accrued

A rider that waives the premiums payable on the base policy and other riders in certain circumstances, mostly related to death, disability or injury

The process by which an insurer puts back into force a life insurance policy that has been terminated for non-payment of premiums Over insurance: When an article or property is covered for more than its fair value

Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss.

Policies that cover property loss and liability arising from pollution-related damages, for sites that have been inspected and found uncontaminated.

Damaged property an insurer takes over to reduce its loss after paying a claim. Insurers receive salvage rights over property on which they have paid claims, such as badly-damaged cars. Insurers that paid claims on cargoes lost at sea now have the right to recover sunken treasure

A coverage that protects businesses engaged in electronic commerce from losses caused by hackers.

Certain causes and conditions, listed in the policy, which are not covered.

Risk class, in insurance underwriting, is a grouping of insureds with a similar level of risk. Typical underwriting classifications are preferred, standard and substandard, smoking and nonsmoking, male and female.

Having sufficient assets-capital, surplus, reserves and being able to satisfy financial requirements-investments, annual reports, examinations to be eligible to transact insurance business and meet liabilities.

A provision in some insurance contracts which enables an insurance company to waive the collection of premiums while keeping the policy in force if the policyholder becomes unable to work because of an accident or injury. The waiver of premium for disability remains in effect as long as the ensured is disabled.

Life insurance which might be kept in force for a person's whole life and which pays a benefit upon the person's death, whenever that might be.

In health insurance, the number of days for which benefits are paid to the named insured and his or her dependents. For example, the number of days that benefits are calculated for a calendar year consist of the days beginning on Jan. 1 and ending on Dec. 31 of each year.

A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy.

Fee paid to an agent or insurance salesperson as a percentage of the policy premium. The percentage varies widely depending on coverage, the insurer and the marketing methods.

The scope of protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, living and death benefits are listed.

Term life insurance coverage that can be converted into permanent insurance regardless of an insured's physical condition and without a medical examination. The individual cannot be denied coverage or charged an additional premium for any health problems.

A circumstance that increases the likelihood or probable severity of a loss. For example, the storing of explosives in a home basement is a hazard that increases the probability of an explosion.

Bungee jumping, scuba diving, horse riding and other activities not generally covered by standard insurance policies. For insurers that do provide cover for such activities, it is unlikely they will cover liability and personal accident, which should be provided by the company hosting the activity.

In life and health insurance, a policy covering a mortgagor with benefits intended to pay off the balance due on a mortgage upon the insured's death, or to meet the payments due on a mortgage in case of the insured's death or disability.

The individual trained in evaluating risks and determining rates and coverages for them. Also, an insurer.

Expenses, including net commissions, salaries and advertising costs, which are attributable to the production of net premiums written.

Details the underwriting practices of an insurance company and provides specific guidance as to how underwriters should analyze all of the various types of applicants they might encounter. Also called an underwriting manual, underwriting guidelines, or manual of underwriting policy.

A life insurance policy rider providing for payment of an additional cash benefit related to the face amount of the base policy when death occurs by accidental means.

The printed form which serves as the contract between an insurer and an insured.

he party who is being insured. In life insurance, it is the person because of his or her death the insurance company would pay out a death benefit to a designated beneficiary.

Party that provides insurance coverage, typically through a contract of insurance.

The amount of money paid to the beneficiary when the insured person dies.

Term life insurance on which the face value slowly decreases in scheduled steps from the date the policy comes into force to the date the policy expires, while the premium remains level. The intervals between decreases are usually monthly or annually.

A beneficiary that cannot be changed without that beneficiary's consent.

Term life insurance in which the death benefit increases periodically over the policy's term. Usually purchased as a cost of living rider to a whole life policy
Exclusions Specified hazards listed in a policy for which benefits will not be paid.Expiry The termination of a term life insurance policy at the end of its period of coverage.

The amount of insurance provided by the terms of an insurance contract, usually found on the first page of the policy. In a life insurance policy, the death benefit.

Termination of a policy upon the policy owner's failure to pay the premium within the grace period.

The average number of years remaining for a person of a given age to live as shown on the mortality or annuity table used as a reference.

A death benefit, the dollar amount of which does not vary.

An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured.

The charge for the element of pure insurance protection in a life insurance policy.

The number of deaths in a group of people, usually expressed as deaths per thousand.

A table showing the incidence of death at specified ages.

Insurance providing payment if the insured's death results from an accident.

A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year, without evidence of insurability. Also called yearly renewable term.

Your attained age is one of the factors life insurance companies use to determine your premiums. The older you are, the greater chance you'll die while you are covered - so the higher your premium.

A procedure for making the effective date of a policy earlier than the application date. Backdating is often used to make the age of the consumer at issue lower than it actually was in order to get lower premium. State laws often limit to six months the time to which policies can be backdated.

The person designated to receive the death benefit when the insured dies.

A temporary insurance policy that expires at the end of a specific time period or when the permanent policy is written. A binder is given to an applicant for insurance during the time the complete policy paperwork is being completed.

Money that is paid to the insured upon settlement of a covered claim. Often found with Hospital Income Programs, "cash benefits" are paid directly to the insured rather than the doctor or the hospital directly.

The equity amount or "savings" accumulation in a whole life policy.

Notification to an insurance company that payment of an amount is due under the terms of the policy.

Given to policy owners when they pay a premium at time of application. Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt.

A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. After that time has lapsed, normally two years, the policy cannot be contested. Example: Suicide.

Person or persons named to receive proceeds in case the original beneficiary is not alive. Also referred to as secondary or tertiary beneficiary.

Another word for insurance. Insurance companies use the term coverage to mean either the dollar amounts of insurance purchased or the type of loss covered (coverage for theft)

Assignment means legal transference. A method by which the policy holder can transfer the rights, ownership and interest in the policy to another person. An assignment can be made by an endorsement on the policy document or as a separate deed. Assignment can be of two types: Conditional and Absolute

A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children, including those born after the policy is issued.

Risk depends on the need for insurance, state of health, personal habits standard of living and income of insured person. Moral hazard is the risk factors that affects the decision of the insurance company to accept the risk.

he payment of sum assured in installments to the insured person which has become due under a money back policy.

A family floater policy is issued with a single sum insured covering number of individuals of the same family. Simply put, it is a one premium and one policy for all members of the family.
The cover can be used by any member of the family any number of times. For example, there are four members in your family- you, your spouse and your two children. You purchase a floater policy with a sum insured of Rs 500,000.
This means that if you fall sick and utilize Rs 200,000 in treatment- the balance Rs. 300,000 can be utilized by any member of the family including you. Your total expenses across the family would however be capped at Rs. 500,000.

A pre-existing disease is any ailment or disease that a person is already suffering from at the time of purchasing health insurance.

A branch of knowledge which deals with mathematics of insurance. It is used in the evaluation of various risks, premium fixation commensurate with the risks and also provisions relating to unexpired risks, unexpired liabilities etc.

An expert in statistics and a mathematician in the insurance field. Conducts extensive statistical studies. Calculates insurance risks and premiums and reserves. Involves in the preparation of various annual reports in compliance of regulatory requirements.

Any event not caused or contributed to by man. Some sudden and irresistible acts of nature that could not reasonably have been foreseen or prevented, such as floods or exceptionally high tides, storms, lightning, earthquakes etc. constitute Act of God Perils.

The proportion of loss that the insured bears in respect of any health claim. This will be in two forms, namely, Amount of excess, which will be mentioned either as a fixed amount or a percentage of the sum insured or the claim amount. Time excess by which the insured will not be entitled to the claim relatable to a specific period (usually number of days) stated in the policy.

The portion of the premium which is the property of an insurance company, based on the expired portion of the policy period. For example, an insurance company is considered to have earned 75 percent of an annual premium after a period of nine months of an annual policy has elapsed.

A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependents. Coverage occurs under a master policy issued to the employer or association.

The value payable to the policy holder in the event of his deciding to terminate the policy before the maturity of the policy.

Life insurance usually without medical examination, on a group of people under a master policy. It is typically issued to an employer for the benefit of employees, or to members of an association, for example a professional membership group. The individual members of the group hold certificates as evidence of their insurance.

Period between the date of subscription to an insurance-cum-pension policy and the time at which the first instalment of pension is received. Such policies generally prescribe a minimum and maximum limit on the deferment period.

A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children, including those born after the policy is issued.

The restoration of a lapsed policy to in-force status. Reinstatement can only occur after the expiration of the grace period. The company may require evidence of insurability, and will always require payment of the total amount of past due premium.

Day care treatment refers to medical treatment, and/or surgical procedure which is: - undertaken under General or Local Anesthesia in a hospital/day care center in less than 24 hrs. Because of technological advancement, and - which would have otherwise required a hospitalization of more than 24 hours. Treatment normally taken on an out-patient basis is not included in the scope of this definition. [Insurers can, in addition, restrict coverage to a specified list].

A deductible is a cost-sharing requirement under a health insurance policy that Provides that the Insurer will not be liable for a specified rupee amount of the covered expenses, which will apply before any benefits are payable by the insurer. A deductible does not reduce the sum insured. [Insurers to define whether the deductible is applicable per year, per life or whether per event and specific deductible limits would be applied].

A dependent child refers to a child (natural or legally adopted), who is financially Dependent on the primary insured or proposer and does not have his / her independent sources of income. [Insurers can add additional criteria relating to age, marital status, education and disablement].

Domiciliary hospitalization means medical treatment for a period exceeding 3 days, for an illness/disease/injury which in the normal course would require care and
Annexure – I treatment at a hospital but is actually taken while confined at home under any of the following circumstances: - the condition of the patient is such that he/she is not in a condition to be removed to a hospital, or - the patient takes treatment at home on account of non-availability of room in a hospital.

The policyholder / applicant make a false statement of any material (important) fact on his/her application. Like not revealing the health related problems.

Certain causes and conditions, listed in the policy, which are not covered. Coverage providing four types of benefits (medical care, death, disability, and rehabilitation) for employee job-related injuries or diseases as a matter of right

A sudden and severe disaster causing a very large loss or series of losses.

Errors and omissions is a claim for financial injury by alleging a product failed or the company failed to perform services, causing a loss of use of tangible or intangible property

An insured has bought so much coverage that it exceeds the actual cash value (or the replacement cost) of the risk or property insured. For the insurance company over insurance might constitute a moral hazard.

Claims advocacy is to produce outstanding customer service to the clients and guiding them through the claim process. This means acting as your advocate to obtain the best possible result for you, navigating the maze of insurer requirements and obtaining satisfactory resolution

Product recall is a request on discovery of safety issues, to return to the manufacturer a defective batch or an entire production of a defective product. This is to limit liability for corporate negligence and to improve or avoid damage to publicity. Recalls are costly which entail replacing the recalled product or paying for damages caused in use. This is possibly less costly compared to indirect cost of loss of brand name and reduced trust in the manufacturer.

Cyber Risk are exposures like technology, digital data and computer hacker risks to the integrity of information and corporate intangible assets. As businesses continue to turn to virtual organizations, connected information systems, and outsourcing damages and security breaches to one computer can potentially lead to meaningful financial losses throughout an entire networking community.

Upstream Energy are assets engaged in the exploration and production phase of the energy industry Co-insurance: Cost-sharing arrangement between an insured person and the health insurance company in which the insured person is required to pay a percentage of the cost for the health care services received

Proof of physical condition. This may be provided through physician records or by the results of an Examination

The ability for an individual to transfer from one health insurer to another health insurer with regard to pre-existing conditions or other risk factors

An irrevocable transfer of complete ownership of a life insurance policy or an annuity from one party to another. Contrast with collateral assignment

Refers to losses or events that are not covered by the insurance policy

A permanent life insurance plan that provides life insurance and includes a cash value with a wide range of investment options for tax-sheltered growth of the cash value

This is the period of time that the policyholder has to review an insurance policy and return it to the insurer for a full refund of the paid premium Broker: An insurance broker is a sales representative who sells various types of insurance on behalf of several insurance companies

Premises where a person lives

An injury, a sickness or a condition that existed before the date that an insurance policy takes effect Territorial rating: A method of classifying risks by geographic location to set a fair price for coverage. The location of the insured may have a considerable impact on the cost of losses. The chance of an accident or theft is much higher in an urban area than in a rural one, for example.

The possibility that a person may act dishonestly in an insurance transaction

The rate at which sickness and injury occur within a defined group of people. Insurers base health insurance premiums in part on the morbidity rate for a proposed insured’s age group

This theory enables the insurance company to predict potential losses based on a study of the insured’s previous loss experiences.

Insurance cover of the loss of any limbs or eyes, etc. in the event of an accident. It also generally covers compensation to the policyholder’s dependents in the event of death

Event caused by nature that is so unpredictable as to be unavoidable, for example, the timing and location of earthquakes or floods. Acts of God are normally insured against as a matter of course.

Person who calculates losses in insurance claims, also called a loss adjuster

A form of alternative dispute resolution where an unbiased person or panel renders an opinion as to responsibility for or extent of a loss.

Involvement of banks in the traditional insurance market.

Transfer of an insurance (or part of the risk covered) from one insurance company to another for a premium, not necessarily with the knowledge of the policyholder.

A policy designed to provide coverage under a single limit for two or more items (e.g. building and/or contents), two or more locations, or a combination of items and/or locations.

A false, incorrect, improper, or incomplete statement of a material fact, made in the application for an insurance policy.

It is a type of Transit insurance designed to protect the shipper of the goods against financial loss if the goods are damaged or lost.

A statement of coverage issued to an individual It is a proof of insurance. Generally, it is issued for Motor and Marine insurances.

Fee charged to a policyholder when a life insurance policy or annuity is surrendered for its cash value. This fee reflects expenses the insurance company incurs by placing the policy on its books, and subsequent administrative expenses. Annuity - An agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period.

A charge that covers such annuity contract guarantees as death benefits.

Interest in property such that loss or destruction of the property could cause a financial loss.

The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.

The return received by insurers from their investment portfolios including interest, dividends and realized capital gains on stocks. It doesn't include the value of any stocks or bonds that the company currently owns.

The ratio of the number of life insurance policies that lapsed within a given period to the number in force at the beginning of that period.

In life and health insurance, a policy covering a mortgagor with benefits intended to pay off the balance due on a mortgage upon the insured's death, or to meet the payments due on a mortgage in case of the insured's death or disability. Premium - The price of insurance protection for a specified risk for a specified period of time.

The amount of the premium that has been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.

The automatic re-establishment of in-force status effected by the payment of another premium.

Emergency care means management for a severe illness or injury which results in Symptoms which occur suddenly and unexpectedly, and requires immediate care by a medical practitioner to prevent death or serious long term impairment of the insured person’s health.

Grace period means the specified period of time immediately following the premium due date during which a payment can be made to renew or continue a policy in force without loss of continuity benefits such as waiting periods and coverage of preexisting diseases. Coverage is not available for the period for which no premium is received.

Intensive care unit means an identified section, ward or wing of a hospital which is under the constant supervision of a dedicated medical practitioner(s), and which is specially equipped for the continuous monitoring and treatment of patients who are in a critical condition,
or require life support facilities and where the level of care and supervision is considerably more sophisticated and intensive than in the ordinary and other wards. Annexure – I

Inpatient care means treatment for which the insured person has to stay in a hospital for more than 24 hours for a covered event.

Plan name, Life assured name, Proposer name, Address, Policy term, premium paying term, frequency, Method of payment like ECS, credit card, salary deduction etc, signature of proposer and life assured, sum assured, premium and rider details.

Waiver of premium (WoP) rider, Term assurance rider, Accidental death benefit (ADB) rider, Long term care rider, Guaranteed insurability rider, Critical illness rider etc.

A hospital means any institution established for in- patient care and day care treatment of sickness and / or injuries and which has been registered as a hospital with the local authorities, wherever applicable, and is under the supervision of a registered and qualified medical practitioner AND must comply with all minimum criteria as under:
Has at least 10 inpatient beds, in those towns having a population of less than 10, 00, 000 and 15 Inpatient beds in all other places;
Has qualified nursing staff under its employment round the clock;
Has qualified medical practitioner (s) in charge round the clock;
Has a fully equipped operation theatre of its own where surgical procedures are carried out
Maintains daily records of patients and will make these accessible to the Insurance Company’s authorized personnel

Term life insurance that renews on an annual basis. The premiums typically increase every year on the policy anniversary date of the policy.

The payment, or one of the regular periodic payments, made to purchase an annuity. Same as a premium for life insurance.

A statement of information made by a person applying for insurance. It identifies the plan and the amount applied for, the life insured and the beneficiary, and provides other data useful in evaluating the risk.

Specified hospital, medical and miscellaneous health care expenses that will be considered in the calculation of benefits due under a health insurance policy.

Insurance issued in conjunction with indebtedness that provides for the payment of debt(s) owing to contractually specified creditors when the insured is diagnosed with a contractually specified critical illness.

Insurance issued in conjunction with indebtedness that provides for the payment of loan installments while the borrower is disabled.

A plan where benefits are predetermined by a formula and employer contributions depend on the cost of the benefit minus the employee's contributions, if any.

A plan where contributions by employees and the employer are fixed and the benefits depend on the contributions and their earnings.

A contract providing annuities at retirement to a group of people in a pension plan. Usually, it is issued to an employer for the benefit of employees. The individual members of the group hold certificates as evidence of their annuities.

A GMWB is an option that annuitants can purchase for their retirement annuities. This specific option gives annuitants the ability to protect their retirement investments against downside market risk by allowing the annuitant the right to withdraw a specified percentage of their entire investment each year until the initial investment amount has been recouped or, in some cases, until death, if later.

A health insurance contract provision in which the insurance company must renew the policy, but premiums may be raised by class. This means that the increase applies to all policyholders in a particular group, rather than to one individual policyholder.

A form of health insurance that provides a stipulated daily, weekly or monthly indemnity during hospital confinement.

Coordination of the disability income insurance benefit with other disability income benefits, such as Canada and Quebec Pension Plans.

The choices available in a life insurance policy to a policyholder if he or she discontinues premium payments on a policy that has accumulated a cash value. The choices are usually to take the cash value in cash, to apply the cash value to purchase "reduced paid-up insurance" or "extended term insurance", or to use the cash value as security for a loan against the policy to pay the premium or premiums due ("automatic premium loan").

A professional person trained in mathematics, statistics, and legal-accounting methods, and principles of the operation of insurance, annuities and retirement plans. An insurance company actuary determines, on the basis of existing experience, the monetary value of risk presented by age, sex, health and lifestyle factors.
As an example, an actuary can determine the extra cost of risk presented by a cigarette smoker and present the findings to the insurance company to help compute the extra premiums a smoker will pay.

For life insurance purposes, the age in years of an applicant or insured. Some companies us the age at the last birthday, while others use the age at the nearest birthday, prior or succeeding.

One method of insurance rating which rates people their age as of their last birthday, with such rating held until the next birthday. If your policy is approved at your current age (prior to your next birthday), you will be rated at your current age (as opposed to age nearest birthday).

A method use by some insurance companies to compute an insured’s age as that nearest the closest birthday. Therefore, if the insured has passed six months after the last birthday, he or she is considered to be one year older (as opposed to age last birthday).

Anyone who solicits insurance or aids in the placing of and delivering of insurance policies and/or the collection of premiums on behalf of an insurance company.

A form supplied by the life insurance company and usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. The form is signed by the applicant and becomes part of the insurance contract if a policy is issued.The application is reviewed by an insurance company underwriter to consider whether the requested policy will be issued and, if so, in what classification and at what premium rate.

The yearly report of an insurer to insurance regulators, showing assets and liabilities, receipts and disbursements, and other financial data.

A person during whose life an annuity income is payable, usually the person receiving the income.

A contract that provides income payments at regular (typically monthly) intervals, usually for a specified period or for the lifetime of the annuitant. Incomes payments may begin right away or be postponed to some future date.

The person who is to receive the insurance proceeds at the death of the insured.

A form of paid-up life insurance available as a non-forfeiture option. It provides continued protection for the full face amount (less any policy loan outstanding), but only for a limited period of time.

The signed transfer of the benefits of a policy to another party by a policy owner. If the insurance company is given due notice of the assignment, the policy benefits will accrue to the person named as assignee. The company does not guarantee the validity of an assignment.

A benefit in a life insurance policy providing for the payment of an additional amount equal to the face amount of the policy in case of death by accident.

A form of health insurance that provides payment in the event of death or loss of one or more bodily members (such as hands or feet) or the sight of one or both eyes as a result of an accident.

The process by which an insurer determines whether or not, and on what basis, it will accept an application for insurance.

A provision in a health insurance contract by which the insurer and insured share, in a specific ratio, the covered expenses under a policy. For example, the insurer may reimburse the insured for 80 per cent of covered expenses, the insured paying the remaining 20 per cent of such expenses.

A living benefit product that provides lump-sum cash payment on the first diagnosis of one of several contractually specified critical illnesses or events.

A benefit added to some life insurance policies providing for waiver of premium and sometimes payment of a monthly income, if the insured becomes totally and permanently disabled.

A Critical Illness is a serious possibly terminal disease, which is strictly defined by the insurer. Conditions such as cancer, multiple sclerosis, major organ transplants are deemed as Critical Illness. Most critical illness policies provide for the payment of a lump sum benefit if the policyholder is diagnosed as suffering from one of a number of specified terminal conditions.

A floater policy is issued with a single sum insured covering number of individuals. Simply put, it is a one premium and one policy for all members of the family. The cover can be used any member of the family any number of times. For example, there are four members in your family- you, your spouse and your two children. You purchase a family floater policy with a sum insured of Rs 500,000. This means that if you fall sick and utilize Rs 200,000 in treatment- the balance Rs. 300,000 can be utilized by any member of the family including yourself. Your total expenses across the family would however be capped at Rs. 500,000.

A report provided periodically by the reinsurer detailing the reinsurance premiums and/or reinsurance losses and other pertinent information with respect to specific risks ceded under the reinsurance agreement.

The amount of eligible expenses a covered person must pay each year from his/her own pocket before the plan will make payment for eligible benefit.

The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all.

Insurance that pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work.

The insurers profit on the insurance sale after all expenses and losses have been paid. When premiums are not sufficient to cover claims and expenses, the result is an underwriting loss. Underwriting losses are typically offset by investment income.

Companies ability to pay the claims of policyholders. Regulations to promote solvency include minimum capital and surplus requirements, statutory accounting conventions.

The selling of insurance in multiple areas to multiple policyholders to minimize the danger that all policyholders will have losses at the same time. Companies are more likely to insure perils that offer a good spread of risk. Flood insurance is an example of a poor spread of risk because the people most likely to buy it are the people close to rivers and other bodies of water that flood.

Insurance bought by insurers.

The reinsurance bought by reinsurers to protect their financial stability.

Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss.

An insurer that sells exclusively via the Internet (currently not available in India).

The amount of the premium that has been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.
Note:The above information is meant for understanding various terminologies used in insurance industry. The definitions/meaning may vary/differ to a certain extant for some terminologies some time from insurer to insurer.

Period between the date of subscription to an insurance-cum-pension policy and the time at which the first installment of pension is received. Such policies generally prescribe a minimum and maximum limit on the deferment period.

Fraudulent use or taking of another's property or money which has been entrusted to one's care.

A type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance

A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer an emotional or financial loss, if any untouched event occurs. Without insurable interest, an insurance contract is invalid.

Person who is considered an under-average or impaired insurance risk because of physical condition, family or personal history of disease, occupation, residence in unhealthy climate or dangerous habits.

The age at which the receipt of pension starts in an insurance-cum-pension plan.

Policies entitled to bonus, which is paid at the time of claim-death or maturity one with-profit policies.

A plan found in group insurance that gives recognition in premium costs to the specific claims of the particular group being insured.

The person an insurance company appoints to determine the value of an insured's claim for loss recovery.

Selection against the insurer. The tendency of less desirable exposures to loss, such as people in poor health, to try to purchase insurance protection at standard (average) rates. One possible result of asymmetric possession of information.

A requirement in an insurance policy that the insured pay a portion of a claim if an inadequate amount of insurance was purchased.

A contract where the benefit is paid on the happening of an event which is not based on the life of individuals. Insurable events may be occurrence of fire, burglary, sickness, loss of property or goods, damage due to accidents, etc.

A Policy Lapses if the Premium due is not paid within the Grace Period.

An insurance policy entitled to bonus. Also called as With- profit Policy.

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