I got a life!
The policyowner temporarily assigns a life insurance policy to a creditor as collateral for a loan.
What is a collateral assignment?
Premiums for this type of coverage are typically lower than for individual policies.
What is group disability insurance?
An insurer will only compensate an insured to the extent that the insured has suffered an actual financial loss.
What is the principle of indemnity?
This says that if the insured dies within 2 years by suicide, then the death benefit will not be paid.
What is the suicide exclusion?
This allows the policyowner to borrow the cash value.
What is a policy loan provision?
This document describes the group disability plan.
What is the Summary Plan Description?
For P&C and liability insurance, it exists at the policy inception and at the time of the loss.
What is an insurable interest?
A modification or change to a life or health insurance policy.
What is a rider?
A policy that pays dividends.
What is a participating policy?
The percentage portion of the premium paid by the employer.
What is the portion of the disability income subject to income tax for the employee?
This makes an insurance contract voidable because the insurer would not have issued the policy if not for the false information.
What is a material misrepresentation?
The tendency of those who most need insurance to seek it.
What is adverse selection?
Cash, reduce next premium, accumulate at interest, paid-up additions, apply toward term insurance, or convert to a paid-up contract.
What are options for taking life insurance dividends?
Often, short-term group disability benefits will begin when this ends.
What is sick leave?
A "take it or leave it" contract.
What is a contract of adhesion?
The first dollars in a loss that the insured is responsible for paying.
What is a deductible?
Lump sum, interest option, fixed-period option, and fixed-amount option.
What are life insurance settlement options?
Usually, long-term group disability benefits end at this time.
What is normal retirement age?
This insurance policy provision describes exactly what person or property is being covered.
What is the declarations section?
(Amount carried / Amount required) * covered loss - deductible = amount insurer pays
What is the coinsurance formula?