Insurance Terms: Introduction

2. The business professional who analyzes probabilities of risk and risk management including calculation of premiums, dividends, and other applicable insurance industry standards.
4. A person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate.
7. A written contract ratifying the legality of an insurance agreement.
9. The party(ies) covered by an insurance policy.
12. An economic device that transfers risk from an individual to a company.
13. Life insurance payable only if death of insured occurs within a specified time or before a specified age.
14. Termination of a policy due to failure to pay the required premiums.
15. A type of life insurance that has both a permanent life insurance and an investment component. Upon the death of the insured person, the life insurance company makes a payment to the beneficiary. The investment component accumulates a cash value that the policyholder may withdraw or borrow against.

1. An insurance policy for which all premiums have been paid and the coverage is still effective.
2. An individual who sells, services, or negotiates insurance policies either on behalf of a company or independently.
3. The numbers of years for which the insured person is covered by an insurance policy.
5. Uncertainty concerning possible loss by a negative or unexpected event.
6. A form of protection from risk that guarantees payment upon the death of the policyholder.
8. A percentage of premium paid to agents by insurance companies for the sale of policies.
10. The person in actual possession of the insurance policy.
11. The periodic payment required to keep an insurance policy in force.