A person with a substandard physical condition such as a history of stroke or heart
attack who would be a higher probability of risk for the insurer. An applicant who
engages in hazardous activities could also be an impaired risk.
The restoration of loss in the form of payment or replacement.
Cases on which the premiums are paid or are being paid as part of a life insurance
company's business portfolio.
A report prepared by an inspection organization for the insurance company that summarizes
the financial, physical, moral or other attributes of an applicant for insurance.
Inspection reports are typically required for applicants applying for larger amounts
of life insurance.
The expectation of financial loss that can be covered by an insurance policy. For
example, a person might have an interest in his or her home because the loss of
it could cause financial hardship. A beneficiary must have an insurable interest
in the life of the insured in order to be designated a beneficiary at the time of
A mechanism for reducing the risk of many by contractually transferring the risk
to an insurer, thereby pooling the risk in return for monetary considerations from
The person who is covered by an insurance policy.
The party who offers protection to the insured as outlined in the policy.
A beneficiary who can be changed only through written consent from that beneficiary.
Insurance age of insured used to calculate the premium of an insurance policy.
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