Redetermination Provision
Provision found in current assumption whole life insurance policies under which the insurance company retains the contractual right to recalculate the premium (after a minimum period of time that the policy has been in force). However, the company guarantees that, at the least, a minimum interest rate will be credited to the cash value and, at the most, a maximum mortality charge will be subtracted. The resultant new premium may be greater than or less than the original premium. If the new premium is greater than the original premium, the policy owner may pay this greater premium, thereby retaining the original death benefit under the policy, or the policy owner may still pay the original premium, but the new death benefit will be lower than it was originally. On the other hand, if the new premium is less than the original premium, the policy owner may pay this lesser premium, thereby retaining the original death benefit under the policy, or the policy owner may still pay the original premium with the death benefit becoming greater than it was originally, or the difference in the new premium and the original premium can be added to the policy's cash value.
Popular Insurance Terms
In a liability insurance policy, provision for the payment of the insured's expenses as stated in the policy in three areas above the policy limit of liability: legal fees resulting from ...
Number of bits a modem can receive or send per second. ...
Frequency of premium payment; for example annually, semiannually, quarterly, or monthly. ...
Federal legislation passed in 1988 (repealed November 23, 1989) that significantly increased the benefit amounts provided under medicare, both Part A and Part B, in the following manner: ...
Group appointed by President Nixon in 1971 to study workers compensation laws under the authorization of the occupational safety and health act (OSHA). It issued sweeping recommendations to ...
The term elevator collision insurance or elevator liability insurance is included in business liability insurance policies in order to cover potential damages suffered by the elevator or ...
Method of vesting under the employee retirement income security act of 1974 (ERISA) that requires an employee to have 10 years of service with an employer to be vested. An employee who ...
Documentation of loss required of a policyowner by an insurance company. For example, in the event of an insured's death, a death certificate (or copy) must be submitted to the company for ...
Coverage on jewelry and precious stones on an all risks basis at any location subject to exclusions of wear and tear, war, and nuclear disaster. Each item must be specifically listed in the ...
Have a question or comment?
We're here to help.