Glossary

Provides coverage for losses beyond the limits of underlying property-casualty, homeowners, or auto insurance policies. Whilst the umbrella policy offers coverage against losses over the dollar amount in underlying policies, it can for example, additionally protect an insured against libel, vandalism, slander or invasion of privacy.

Is a contract under which premiums and contributions are deposited into a fund, rather than being used immediately, to purchase annuities for the benefit of participants in a plan.

Is an estimated projection of death rates utilized by actuaries for the purpose of calculating insurance premiums or pension obligations. It can also be called the Mortality Assumption. The assumptions are determined by actuaries, using the most up to date mortality tables and adhering to strict guidelines set by regulators.

Is the person that evaluates the risk associated with issuing a life insurance policy on the life of an individual. He or she determines the coverage and premium rates (within set parameters) that will be offered to the applicant.

Is the process of classifying applicants for insurance by taking into account characteristics such as age, gender, health, occupation and, in some instances, hobbies. Individuals with similar characteristics are classified into groups and charged a premium based on each group’s level of risk.

Is the maximum amount of coverage an insurance company can issue automatically without seeking additional reinsurance.

Is a risk for which insurance coverage is not conventionally available.

Is the value of one share in a variable account.

Is a type of permanent life insurance, issued primarily in the United States of America, which allows the insured, after the initial payment, to pay premiums at varying times and in varying amounts, subject to certain minimums and maximums. Any premium payments in excess of the current cost of insurance are credited to the cash value of the policy and are, in turn, periodically credited with interest. Should a policyholder wish to increase the death benefit, the insurance company will usually require the policyholder to furnish satisfactory evidence of continued good health. Can also be known as Adjustable Life Insurance.