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3 Cards in this Set
- Front
- Back
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Reserve |
The amount that when increased by future premiums on outstanding policies and interest on these premiums will enable the company to pay the future death claims and cash surrender that will a rise because of those contract of insurance. |
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Rider |
A form attached to a policy that modified the condition of the policy by expanding or decrease it's benefits or excluding certain conditions from coverage. Most riders such as (double indemnity) will drop off a life policy automatically at age 65. Most riders are added at policy issued but they may also be added later on with the mutual consent of the parties. Also known as an endorsement. |
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Risk |
The uncertainty if loss that exists whenever more than one outcome is possible. In the area of life insurance death is certain but time of death us uncertain. Risk is also known as the chance of loss. Remember only pure risk is insurable. Pure risk is the chance of loss without any chance for gain. |
