Benchmark Surplus
Additional amount of surplus from an additional amount of capital necessary to act as a supplement to the cash flow in the event unforeseen contingencies occur that disrupt or impair the cash flow necessary for the insurance company to make future benefit payments for which it has received the premiums. BENEFICIARY designation by the owner of a life insurance policy indicating to whom the proceeds are to be paid upon the insured's death or when an endowment matures. Anyone can be named a beneficiary (relative, non-relative, pet, charity, corporation, trustee, partnership). A primary beneficiary is the first-named beneficiary, who must survive the death of the insured in order to collect the proceeds. A contingent or secondary beneficiary will receive the proceeds if the primary beneficiary does not survive the insured. A revocable beneficiary (primary or secondary) can be changed by the policy owner at any time. An irrevocable beneficiary (primary or secondary) can be changed by the policy owner only with the written permission of that beneficiary. Naming an irrevocable beneficiary removes the policy from the estate of the insured, who thereby gives up incidences of ownership for estate tax purposes. If a beneficiary is convicted of murdering the insured, the beneficiary cannot collect the death benefit. The insured's estate would receive the benefit.
Popular Insurance Terms
Dwelling insurance is how it’s called the most obvious coverage type under the homeowner’s insurance umbrella. It deals with the damages done to the physical structure of the ...
Additional amount of life insurance above that provided by the employee benefit plan (standard group life plan) that may be chosen by the employee. A limit is usually placed on this maximum ...
Methods of handling policyholder dividends. In a participating life insurance policy, dividends are paid to the policy owner according to which of the following options is selected: applied ...
Trade association of property and casualty insurance companies that do not have membership in a rating bureau. These companies do not follow standard rates and forms authored by a rating ...
In many property insurance policies, a requirement that the insured carry insurance as a percentage of the total monetary value of the insured property. If this percentage is not carried, ...
Account that is similar in form to the health plan flexible spending account (FSA) with contributions to this account used to reimburse employees who are parents for expenses at a ...
Arrangement by which a policy owner authorizes an insurance company to draft his checking account for premiums due on an insurance policy. The drafting is usually monthly, persistency of ...
Means of funding permitted under the employee retirement income security act of 1974 (ERISA). The administrator of a pension plan can comply with required minimum funding standards by ...
New rule entitled "Employers Accounting for Postemployment Benefits," which requires advanced recognition of nonretirement benefits, health insurance continuation, and severance pay. ...
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