Insurance Questions and Answers

Endowment life insurance policies do not have investment risk or interest rate risk.  an endowment policy does not earn any interest throughout the term.

The Operative clause in an insurance policy sets outs the circumstances that must be present before an insurance company will pay out any claims to insured parties.

An insurance broker is a specialist in insurance and risk management. Brokers act on behalf of their clients and provide advice in the interests of their clients.

Fidelity Guarantee Insurance provides insurance against direct financial loss to companies arising out of the dishonesty of their employees.

A term assurance policy will be set up to last for a certain period of time (usually a specific number of years or until you reach a certain age): this is known as the term of the policy. A payment will only be made in the event of your death during that period.

Indemnity is a comprehensive form of insurance compensation for damages or loss and, in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to compensate the loss occurred to the other party (indemnity holder) due to the act of the indemnitor or any other party.

An actuary is a business professional who deals with the measurement and management of risk and uncertainty.

moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone else bears the cost of those risks.

There are several factors used to determine your life insurance premiums, including the following:

• Age is probably the single primary factor that determines your life insurance premiums. ...
• Gender. 
• Physical condition.
• Smoking. 
• Your medical history.
• Your family's medical history.
• Occupation.

A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay, the lender can cash in the life insurance policy and recover what is owed.

 'Surrender Value': It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity.