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Lesson 14 - Glossary II
Introduction of the Host
Mr.Harikumar is a freelance journalist with rich experience gained from
working with leading periodicals and dotcoms. His association with leading
financial portals has contributed greatly to his ability to deal with
classroom sessions in the financial sector, especially investments. Currently,
he is a columnist with some of the well known publishing companies. Some
of his published works on mutual funds and insurance have got wide acclaim.
Class Schedule
Once a Month
GLOSSARY II
Absolute Liability: Liability for damages even in the absence of proof for negligence.
Accumulation period: The time between the first payment of premium and the first disbursement of benefit under deferred annuity scheme.
Adjustable Insurance: A kind of insurance which allows the policyholder to change the terms of the policy such as policy value, premium, period, etc.
Annuitant: The insured to whom the annuity is payable.
Bad faith: The assumption that the insured has taken the policy without disclosing all material or relevant facts essential.
Benefit Period: The period during which major medical benefits are paid to the insured after the deductible is satisfied. (An amount which a policyholder pays to claim the insured amount).
Book value: The purchase price minus depreciation.
Cancellation: The discontinuance of a policy before its normal period of insurance, say 5 years, 10 years, etc.
Capital Gain: The amount of profit realized from sale of assets.
Cash Surrender Value: The amount payable to the insured in cash when the policy is surrendered before maturity of death.
Cession: The amount of insurance ceded by an insurance company to the reinsures.
Claims Adjustor: A person who acts as a professional agent to settle claims.
Contingent Beneficiary: The person authorized to receive the benefits of insurance at the death of the primary beneficiary.
Deferred Annuity: A kind of annuity which implies payment of income to the insured starting at a future date.
Effective Date: The date on which the insurance under a policy begins.
Eligibility Date: The date on which a person becomes eligible to apply for group life insurance plan.
Exclusions: The conditions stated in the policy under which the insurer will not be liable to pay damages to the insured.
Face Value: The value for which insurance is taken and is specified in the policy.
Family Policy: A life insurance policy providing insurance on all or several family members in one contract.
Fixed Annuity: The annuity for which amount is paid in fixed sums.
Group Annuity: A pension plan which provides for payment of annuities at retirement to a group of people.
Group Insurance Policy: A master policy usually issued to an employer, covering a number of people (employees).
Independent Agent: An agent who works for more than one insurance company on commission basis. He is not attached to any one particular insurance company.
Lapse: The discontinuance of an insurance policy owing to non-payment of a premium.
Life Annuity: A policy which provides income during the entire life of the insured.
Loss: The amount of damage which the insurer compensates for.
Master Policy: The policy issued to the employer, which covers the lives of a group of persons working under.
Negligence: Failure on the part of the insured to use common sense which could avoid a mishap.
Nonparticipating Policy: A policy which does not provide for the payment of a dividend.
Overriding Commission: The additional commission paid to an agent apart from his fixed remuneration.
Pension Plan: A scheme conceived by the employers with a view to providing a specified sum to their employees after retirement.
Policy Loan: The amount which the insurer agrees to lend to the insured as a loan on the basis of the insured amount.
Reinstatement: The revalidation of coverage under a policy which has already lapsed.
Reinsurance: The ceding of a specified sum by an insurance company to one or more other insurance company (s) to absorb the effect of loss.
Renewal: Resuming the coverage of the policy after a given period by extending the contract for another specified period.
Will: The legal declaration made by an insured with regard to passing of his property or assets to another person(s).