Designed to adjust policy benefits in relation to the change in the economic climate. The majority of such riders are tied to changes in the Consumer Price Index (CPI). The amount of insurance may be automatically increased, without evidence of insurability, at predetermined periods for a maximum amount.

A supplemental reserve that Life insurers are required to show in their balance sheet if the gross premium charged on a class of insureds is less than the net level premium reserve or modified reserve.

An accident in which two or more persons are injured.

A group life insurance contract whereby a creditor is protected in the event of death of the insured prior to the indebtedness being paid in full.

A situation in which the insured and the beneficiary appear to die simultaneously with no clear evidence of who died first.

A form of Business Insurance in which each party to a mutual agreement (usually to buy out a disabled or deceased co-owner) insures each of the other parties.

A clause sometimes added to a Life Insurance policy that provides a means for the insurer to distribute the proceeds of the policy in the event of a common disaster.

The ratio of total deaths to total population during any given period. See also Mortality Rate.

The right of a beneficiary to receive, in one sum, the unpaid payments remaining under an installment option which was selected for the settlement of the proceeds or values of a Life Insurance policy.

The funding and disbursement of pension benefits as they become due. Also known as “pay-as-you-go.” In the long run, this is the most costly method of funding pension plans.