The face amount of Life insurance written.

The services provided by an insurer, such as providing claim forms and processing claims, when the insurer is not the party funding the loss payments. See also Self Funded Plan.

Policies written for business purposes, such as key employee, sole proprietorship, partnership, and corporation.

The date on which a person’s age, for insurance purposes, changes. In most Life Insurance contracts this is the date midway between the insured’s natural birth dates. Health insurers frequently use the age of the previous birth date for rate determinations. On the date of age change, a person’s age may change to that of the last birth date, the nearer birth date, or the next birth date, depending upon the way in which the rating structure has been established by that particular insurer.

(1)An agreement among part-owners of a business which says that, under stated conditions, i.e., disability or death, the person withdrawing from the business, or his heirs, are legally obligated to sell their interest to the remaining part-owners, and the remaining part-owners are legally obligated to buy at a price fixed in the agreement; (2) a similar agreement between an owner or part-owner of a business and a non-owner, such as a key employee.

A statement of expected mortality rates based upon data accumulated in 1868 from a large number of insured persons. This table was widely used by life insurers until the 1950s to establish rates.

See Chartered Life Underwriter.

The difference between the face amount of a Whole Life Insurance contract and the cash value which it has built up. The net amount at risk declines throughout the life of the contract, while the policy reserve increases along with the cash value. It is the amount the insurer would have to draw from its own funds rather than the policy reserve were the contract to become a death claim.

A form of annuity contract which provides that, if at the death of the annuitant installments paid to him have not totaled the amount of the premium paid for the annuity, the difference will be paid to a designated beneficiary in a lump sum.

An annuity which was purchased by the payment of annual premiums for a specified period of time.