Life Glossary Set G-J

Front 1

Grace period

Back 1

A period of time after the premium due date during which premiums may still be paid, and the policy and its riders remain in force.

Front 2

Group Life

Back 2

Life insurance provided for members of a group.

Front 3

Hazard

Back 3

A circumstance that increases the likelihood of a loss.

Front 4

Hazard Moral

Back 4

The effect of a person’s reputation, character, living habits, etc. on his/her insurability.

Front 5

Hazard Morale

Back 5

The effect of a person’s indifference concerning loss has on the risk to be insured.

Front 6

Hazard Physical

Back 6

A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth.

Front 7

Implied Authority

Back 7

Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.

Front 8

Indemnify

Back 8

To restore the insured to the same condition as prior to the loss with the intent of loss or gain.

Front 9

Insolvent organization

Back 9

A member organization which is unable to pay its contractual obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.

Front 10

Insurability

Back 10

The acceptability of an applicant who meets an insurance company’s underwriting requirements for insurance.

Front 11

Insurable Interest

Back 11

A financial interest in the life of another person; a possibility of losing something of value if the insured should die. In life insurance, insurable interest must exist at the time of the policy application or policy issue.

Front 12

Insurance

Back 12

A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured) against a loss by a specified future contingency or peril in return for payment of a premium.

Front 13

Insured

Back 13

The person or organization that is protected by insurance; the party is to be indemnified.

Front 14

Insurer

Back 14

An entity that indemnifies against losses, provides benefits, or renders services (also known as “company” or “insurance company”).

Front 15

Insuring Clause

Back 15

A general statement that identifies the basic agreement between the insurance company and the insured, usually located on the first page of the policy.

Front 16

Intentional Injury

Back 16

An act that is intended to cause injury. Self-inflicted injuries are not covered under accident insurance; intentional injuries inflicted on the insured by another are covered.

Front 17

Investigative Consumer Reports

Back 17

A report similar to consumer report, but one that also provides information on the consumer’s character, reputation and habits.

Front 18

Issue Age

Back 18

The individual’s age when a policy is issued.

Front 19

Joint life

Back 19

A single policy that is designed to insure two or more lives.

Front 20

Juvenile life

Back 20

Any life insurance written on the life of a minor.