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Mutual of Omaha
Life and Health
Term | Definition |
---|---|
Adverse Selection | insuring of risks that are more prone to losses than the average risk. |
Agent/Producer | a legal representative of an insurgence company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer. |
Applicant or proposed insured | a person applying for insuance |
Beneficiary | a person who receives the benefits of an insurance policy |
Death benefit | the amount paid upon the death of the insured in a life insurance policy |
Insurance policy | a contract between a policyowner(an/or insured) and an insurance company which agrees to pay the insured or beneficiary fir loss caused by specific events |
Insured | person covered by the insurance policy; may or may not be the policyowner |
Insurer | the company who issues an insurance policy |
Lapse | policy termination due to nonpayment of premium |
Life insurance | coverage on human lives |
Policyowner | the person entitled to exercise the rights and privileges in the policy |
Premium | the money paid to the insurance company for the insurance policy |
Know this! | Insurance is the transfer of risk. insureds' losses are transferred over to the insurer |