Optional Modes Of Settlement
Definition of "Optional modes of settlement"
Choice of one of the following available to a life insurance policy owner (or beneficiary, if entitled to receive a death benefit in a lump sum at the death of an insured):
- INTEREST OPTION death benefit left on deposit at interest with the insurance company with earnings paid to the beneficiary annually.The beneficiary can withdraw part or all of the principal of the death proceeds, subject to any restrictions the policy owner may have placed on this option.
- fixed amount option death benefit paid in a series of fixed amount installments until the proceeds and interest earned terminate.
- fixed period option death benefit left on deposit with the insurance company with the death benefit plus interest thereon paid out in equal payments for the period of time selected.
- life income option death benefit plus interest paid through a life annuity. Income continues under a straight life income option, for as long as the beneficiary lives; or whether or not the beneficiary lives, under a life income with period certain option.
Popular Insurance Terms
worth of each accumulation unit at the end of each valuation period for a variable annuity. This value is similar to that of the net asset value for a mutual fund. ...
In property insurance, a stipulated agreement between the insurance company and the insured that the amount of insurance coverage under the policy is sufficient to be in compliance with the ...
Computer system established by London trade associations for processing insurance policies. The work of LIMNET involves the notification and settlement of insurance policy claims. ...
Record of losses, whether or not insured. This record is used in predicting future losses and in developing premium rates based on expectation of insured losses. ...
Decision in the absence of a plaintiff or defendant at the specified court time. ...
Process of distributing the costs associated with losses and risks over a number of insureds. ...
Property coverage for damage or destruction of structures in the course of construction. For example, the standing frame of a house destroyed by fire would be covered. ...
Insurance company's investment in mortgages that have defaulted (mortgages in default) divided by its adjusted surplus account. The smaller this ratio, the more financially sound the ...
Reserves required by state regulators. Because regulators must assure that an insurance company remains solvent and that it can pay future claims, they set conservative standards for ...
Have a question or comment?
We're here to help.