Life Insurance Illustration Questionnaire
Form whose purpose it is to help the agent and the prospective policyowner judge the validity of the insurance company's policy illustrations. This questionnaire's focus is on the nonguaranteed elements of the policy and how these nonguaranteed elements compare with the company's current experience. Some of the questions this questionnaire seeks to answer include:
- To what degree are the mortality rates in the illustration reflective of the true mortality rates that the company is currently experiencing?
- To what degree are the interest rates in the illustration reflective of the true interest rates that the company is currently experiencing? Upon what is the interest rate to be based (new money or portfolio average)?
- To what degree are the expense charges in the illustration reflective of the true expense charges that the company is currently experiencing? Are these expense charges significantly understated in the illustration?
- To what degree are the persistency rates in the illustration reflective of the true persistency rates that the company is currently experiencing? Are these persistency rates significantly understated in the illustration, thereby increasing policy cash value?
Popular Insurance Terms
Same as term Common Disaster Clause: wording in life insurance policies to determine the order of deaths whenthe insured and the beneficiary die in the same accident. For example, if the ...
Single policy under which one individual is insured. ...
Insurance record showing the amount of insurance coverage placed on any one location. ...
Termination of premium payments by an employer on behalf of an employee to an employee benefit plan. ...
Automatic adjustment applied to Social Security retirement payments when the consumer price index increases at a rate of at least 3%, the first quarter of one year to the first quarter of ...
Business involved in buying and selling securities and mutual funds. ...
Law by which many states attempt to regulate insurers who are unlicensed in those states. With a few notable exceptions, such as re insurers, insurance companies must be licensed in the ...
Coverage in which the face amount of a policy remains uniform, neither increasing nor decreasing for as long as the policy is in force. ...
Agreement establishing a trust for the named beneficiary under a life insurance policy. Upon the death of the insured, the trust has the legal obligation to pay the policy proceeds in the ...
Have a question or comment?
We're here to help.