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
Inquiry conducted by a committee of the legislature of the State of New York in 1905 that looked at abuses of life insurance companies operating in the state. This study led to stricter ...
Guarantee by a reinsurance company that payment for losses incurred by a third party will be made even though that third party has no contractual arrangement with the reinsurance company. ...
Actuarial procedure used to determine the cost of protection of a cash value life insurance policy on an annual basis. This cost of protection is developed by the following steps: Cash ...
Cooperative organization among insurers that rates and prepares new policy forms according to guidelines and regulations of the state insurance department. Loss experience, collected ...
Same as term Master policy: single contract coverage on a group basis issued to an employer. Group members receive certificates as evidence of membership summarizing benefits provided. ...
Coverage for property damage caused by untimely discharge from an automatic sprinkler system. This coverage, available through an endorsement to the Standard Fire Policy, typically excludes ...
Type of proportional reinsurance under which the ceding company (primary insurer) cedes a portion of the face amount of the life insurance policy it has underwritten to its reinsurer. The ...
Workers' premiums in a contributory employee benefit plan. ...
Coverage protecting future profits to be earned from a manufacturer's inventory. A manufacturer may lose all or part of an inventory of finished goods due to a peril such as fire and still ...
Have a question or comment?
We're here to help.