Also called “credit insurance” but not to be confused with outstanding balance life insurance
Health insurance that provides a stipulated daily, weekly, or monthly payment to an insured person during hospital confinement, without regard to the actual confinement expense.
A policy that provides protection to a policyholder and/or his or her family; sometimes called personal insurance as distinct from group and blanket insurance.
Insurance coverage that repays the outstanding balance on loans in default beyond a specified period, regardless of the cause of default
One name for life insurance policies sold to middle and low-income customers in small policy amounts with weekly or monthly premium collection at the policy owner`s home.
Risks faced by insurer as a consequence of offering insurance. For example, insurers risk experiencing losses on their portfolio if claims or administration costs exceed expectations or if premium revenues fall below expected levels.
A financial reliance you have on someone (such as a spouse) or something that can be covered by insurance. For example, you need an “insurable interest” in someone in order to buy a life insurance policy on that person`s life.
The conditions that make a risk insurable are (1) the peril insured against must produce a definite loss not under the control of the insured, (2) there must be a large number of homogeneous exposures subject to the same perils, (3) the loss must be calculable and the cost of insuring it must be economically feasible, (4) the peril must be unlikely to affect all insureds simultaneously, and (5) the loss produced by a risk must be definite and have a potential to be financially serious.
A risk management system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (a premium), offers an opportunity to share the risk of possible financial loss through guaranteed compensation for losses resulting from certain perils under specified conditions.
The policyholder – the individual(s), businesses, other organizations or entities protected by an insurance policy in case of a loss or claim.
Insurance coverage that repays the outstanding balance on loans in default due to death of the borrower
The termination or discontinuance of an insurance policy due to non-payment of a premium. Lapsed policy A policy terminated for non-payment of premiums.
Concept that the greater the number of exposures (for example, lives insured), the more closely will actual results approach the results expected from an infinite number of exposures. Thus, the larger the number of people in the insured risk pool, the more stabile the likely results of risk event occurrences.
The average number of years of life remaining for a group of people of a given age according to a particular mortality table.
A policy that is issued to an employer or trustee, establishing a group insurance plan for designated members of an eligible group.
Hazard arising from any non-physical, personal characteristic of a risk that increases the possibility of loss or may intensify the severity of loss for instance bad habits or low integrity. An example might include failing to properly care for an insured goat because it is insured, thereby increasing the chance it will die of disease.
Insurance in which the Michigan payday loan solutions ownership and control is vested in the policyholders, who elect a management team to conduct day-to-day operations.
Group insurance plan under which the holder of the master policy does not require the insured to share in the cost of the policy.
The practice of subcontracting work to outside individuals or firms. Many insurance activities are effectively and efficiently outsourced, such as sales and service, actuarial evaluation, and even some risk (to reinsurance).