Month: September 2020

Life Insurance Contractual Provisions

Life insurance policies contain numerous contractual provisions. This section discusses the major contractual provisions that life consumers should understand. Ownership Clause; The owner of a life insurance policy can be the insured, the beneficiary a trust or another party. In most cases, the applicant, insured and owner are the same person. Under the ownership clause, …

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Homeowners Insurance Full Details By Experts

Homeowners insurance is the second largest line of personal insurance for property-liability insurers, behind auto insurance. Most insurers writing homeowners policies are multi line insurers who also sell personal auto and life insurance. Over 500 companies sell homeowners insurance across the United States, and the market shares of the leading insurers within each state generally …

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Types of Private Insurers

Participating Whole Life and Policy Dividends

Most whole life policies are participating policies, which means that the policy can and usually does pay annual dividends. All whole life and term policies sold by mutual insurers are participating policies. Some stock insurers also sell participating policies. Participating whole life insurance policy premiums are based on conservative assumptions. Because the insurer’s actual operating …

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Term, Endowment and Whole Life Insurance Full Details

Term Insurance; About 20 percent of the life insurance policies sold in the United States in 2000 were term policies, but these policies represented 42 percent of the amount of death protection purchased. A term policy provides a death benefit over a fixed term, usually one year or five years. Term insurance typically provides pure …

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Life Insurance Product Overview

There are two types of life insurance; term and cash value policies. Term insurance simply provides death protection. If the insured dies during the policy period, the beneficiaries receive the amount of coverage purchased. In contrast, cash value policies bundle death protection and savings accumulation. When purchasing a cash value policies bundle death protection and …

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PIP Benefits and Limitations On Tort Liability with Compulsory No-fault

The magnitude of required PIP benefits for medical expenses and loss of income varies widely across states with compulsory no-fault laws. For example, the minimum amount of total benefits for medical expenses and loss of income is less than $100000 in Colorado, and unlimited in Michigan. Like first-party medical payments coverage in states without no …

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Should Tort Liability Be Limited with No-fault Laws?

No fault Compared to Tort Liability; Under fort liability systems for auto accidents, drivers who cause accidents can be sued for damages by injured parties under a negligence standard. For the reasons, discussed in the previous section, most drivers are required to pay at least part of the costs they impose on others. Under a …

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Overview of Auto Loss Exposures and Insurance

Over 35 million auto accidents occur annually in the United States, killing more than 4000 people and producing well over $100 billion in economic loss. Personal auto insurance which protects against many losses associated with auto accidents, is the largest line of property-liability insurance term of premium volume, with year 2000 written premiums of $120 …

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