Definitions
A contract that transfers the risk of a financial loss from one party to another
What is Insurance?
Gives the policyowner a period of time to return a policy for any reason within 10 days of the delivery of the policy
What is a Grace Period?
Uncertainty about whether a loss will occur
What is risk?
Sets forth the insurer's promise to pay benefits upon the insured's death
What is an Insuring Clause?
Reduction in the value of an asset
What is loss?
The life insurance policy and a copy of the original application
What is the Entire Contract Provision?
A state of mind or careless attitude
What is a Morale Hazard?
The restoration of a lapsed policy as originally purchased
What is the Reinstatement Provision?
The risk assumed by the insurer and the amount that the insurer is responsible to pay out at any given time
What is Exposure?