Archive

22 May Dividends

A return to the policyholder of excess premium over losses and expenses at the end of the policy period. Dividends are authorized by the board of directors, and are payable to all participating policyholders of a specified class....

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22 May Direct Loss

A loss where an insured peril is the immediate cause. If a windstorm blows off a house’s roof, the windstorm is the insured peril that caused the direct loss or damage....

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22 May Depreciation

A decrease in a property’s value over time due to wear-and-tear or obsolescence. Depreciation is used to determine actual cash value at the time of a loss. (See ACTUAL CASH VALUE.)...

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22 May Decreasing Term Life Insruance

This is a type of term insurance in which the face value decreases in scheduled steps from the date the policy comes into force until expirations. The premium remains unchanging. Intervals between decreases are usually monthly or annually....

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22 May Death Claim

When a policy holder dies, the person entitled to the proceeds must complete certain forms giving due proof of death and establishing the claimant’s right to the payout. When filed with the company, the company is said to have received a death claim....

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