Compound Probability
Theory that the probability that two independent events will occur is equal to the probability that one independent event will occur times the probability that a second independent event will occur. For example, on a single toss of two dimes (each dime having a head and a tail), the probability that both will land on their tails is equal to 1/4 (1/2x1/2)
Popular Insurance Terms
Partial loss of such significance that the cost of restoring damaged property would exceed its value after restoration. For example, an automobile is so badly damaged by fire that fixing it ...
Time during which an assessment life insurance company has the right to assess policyholders if losses are worse than anticipated in the premium charged. ...
Endorsement to the standard fire policy increasing the insurance protection to an all risks basis. ...
Type of individual retirement account (IRA) allowed by the employee retirement income security act of 1974 (erisa) whereby contributions in the form of premium payments are made on a fixed ...
Independent agent membership group, originally mutual agents but today open to both mutual and stock agents. Association views are presented both nationally and locally on insurance ...
Documentation of physical fitness by an applicant for insurance. Usually this takes the form of a medical examination. Group plans (life, health, disability) require such evidence if the ...
Plan in which funds are withdrawn or income begins before the plan participant reaches age 59/2. An extra 10% early distribution tax on the taxable amount may have to be paid unless any one ...
Specified limit on the dollar amount of coverage for a given loss. ...
Provision in an insurance policy that permits an insured to cancel the policy and recoup the excess of the paid premiums above the customary short rate for the expired time. The clause also ...
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