Definition and meaning of CONTESTABLE PERIOD :

CONTESTABLE PERIOD*: The time during which an insurer has the right to cancel or rescind an insurance policy if the application contained a material misrepresentation. (See Incontestability provision)

(Source: Insurance Information Institute )

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Definition and meaning of CONTINGENT BENEFICIARY :

CONTINGENT BENEFICIARY*: The party designated to receive the proceeds of a life insurance policy following the insuredÕs death if the primary beneficiary predeceased the insured. Also known as secondary beneficiary and successor beneficiary. (See Primary beneficiary)

(Source: Insurance Information Institute )

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Definition and meaning of CONTINGENT LIABILITY :

CONTINGENT LIABILITY: Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.

(Source: Insurance Information Institute )

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Definition and meaning of CREDIT LIFE INSURANCE :

CREDIT LIFE INSURANCE: Life insurance coverage on a borrower designed to repay the balance of a loan in the event the borrower dies before the loan is repaid. It may also include disablement and can be offered as an option in connection with credit cards and auto loans.

(Source: Insurance Information Institute )

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Definition and meaning of CREDIT RATING :

CREDIT RATING: See Bond rating

(Source: Insurance Information Institute )

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Definition and meaning of DECREASING TERM LIFE INSURANCE :

DECREASING TERM LIFE INSURANCE*: Term life insurance that provides a death benefit that decreases in amount over the policy term. Contrast with increasing term life insurance.

(Source: Insurance Information Institute )

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Definition and meaning of DECLINED RISK CLASS :

DECLINED RISK CLASS*: In insurance underwriting, the group of proposed insureds whose impairments or anticipated extra mortality are so great that an insurer cannot provide insurance coverage to them at an affordable cost. Also known as uninsurable class. Contrast with preferred risk class, standard risk class and substandard risk class.

(Source: Insurance Information Institute )

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Definition and meaning of DEDUCTIBLE :

DEDUCTIBLE: The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

(Source: Insurance Information Institute )

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Definition and meaning of DEFERRED ANNUITY :

DEFERRED ANNUITY: An annuity contract, also referred to as an investment annuity, that is purchased either with a single tax-deferred premium or with periodic tax-deferred premiums over time. Payments begin at a predetermined point in time, such as retirement. Money contributed to such an annuity is intended primarily to grow tax-deferred for future use.

(Source: Insurance Information Institute )

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Definition and meaning of DEFINED BENEFIT PLAN :

DEFINED BENEFIT PLAN: A retirement plan under which pension benefits are fixed in advance by a formula based generally on years of service to the company multiplied by a specific percentage of wages, usually average earnings over that period or highest average earnings over the final years with the company.

(Source: Insurance Information Institute )

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Definition and meaning of DECLARATION :

DECLARATION: Part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums and supplemental information. Referred to as the Òdec page.Ó

(Source: Insurance Information Institute )

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Definition and meaning of EMPLOYERÕS LIABILITY :

EMPLOYERÕS LIABILITY: Part B of the workers compensation policy that provides coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law. (See Exclusive remedy)

(Source: Insurance Information Institute )

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Definition and meaning of CRIME INSURANCE :

CRIME INSURANCE: Term referring to property coverages for the perils of burglary, theft and robbery.

(Source: Insurance Information Institute )

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Definition and meaning of CREDIT SCORE :

CREDIT SCORE: The number produced by an analysis of an individualÕs credit history. The use of credit information affects all consumers in many ways, including getting a job, finding a place to live, securing a loan, getting telephone service and buying insurance. Credit history is routinely reviewed by insurers before issuing a commercial policy because businesses in poor financial condition tend to cut back on safety, which can lead to more accidents and more claims. Auto and home insurers may use information in a credit history to produce an insurance score. Insurance scores may be used in underwriting and rating insurance policies. (See Insurance score)

(Source: Insurance Information Institute )

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Definition and meaning of CRITICAL ILLNESS, CI INSURANCE :

CRITICAL ILLNESS (CI) INSURANCE*: A type of individual health insurance that pays a lump-sum benefit when the insured is diagnosed with a specified illness. Also known as critical diagnosis insurance. Contrast with specified disease coverage.

(Source: Insurance Information Institute )

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Definition and meaning of CROP-HAIL INSURANCE :

CROP-HAIL INSURANCE: Protection against damage to growing crops from hail, fire or lightning provided by the private market. By contrast, multiple peril crop insurance covers a wider range of yield reducing conditions, such as drought and insect infestation, and is subsidized by the federal government.

(Source: Insurance Information Institute )

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Definition and meaning of CURRENT ASSUMPTION WHOLE LIFE INSURANCE :

CURRENT ASSUMPTION WHOLE LIFE INSURANCE*: See Interest-sensitive insurance

(Source: Insurance Information Institute )

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Definition and meaning of DEFINED CONTRIBUTION PLAN :

DEFINED CONTRIBUTION PLAN: An employee benefit plan under which the employer sets up benefit accounts and contributions are made to it by the employer and by the employee. The employer usually matches the employeeÕs contribution up to a stated limit.

(Source: Insurance Information Institute )

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Definition and meaning of EXPENSE RATIO :

EXPENSE RATIO: Percentage of each premium dollar that goes to insurersÕ expenses including overhead, marketing and commissions.

(Source: Insurance Information Institute )

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Definition and meaning of FLOATER :

FLOATER: Attached to a homeowners policy, a floater insures movable property, covering losses wherever they may occur. Among the items often insured with a floater are expensive jewelry, musical instruments and furs. It provides broader coverage than a regular homeowners policy for these items.

(Source: Insurance Information Institute )

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Definition and meaning of FLEXIBLE PREMIUM :

FLEXIBLE PREMIUM*: A premium payment method sometimes offered in connection with annuities and with some types of life insurance that allows the contract owner or policy owner to alter the amount and the frequency of payments, within specified boundaries defined by the insurer and the law.

(Source: Insurance Information Institute )

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Definition and meaning of FLOOD INSURANCE :

FLOOD INSURANCE: Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents. Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy. (See Adverse selection)

(Source: Insurance Information Institute )

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