WAITING PERIOD – 1) Also known as ELIMINATION PERIOD – A period of time between the period of DISABILITY and the start of DISABILITY INCOME INSURANCE BENEFITS, during which no BENEFITS are payable; 2) the length of time an employee must wait from his/her date of employment or application for coverage to the date his/her […]
UMBRELLA LIABILITY – INSURES LOSSES in excess of amounts covered by other LIABILITY INSURANCE POLICIES; also protects the INSURED in many situations not covered by the usual LIABILITY POLICES. UNALLOCATED BENEFIT – A POLICY PROVISION providing reimbursement up to a maximum amount for the cost of all extra miscellaneous hospital services but not specifying how […]
TABLE OF MULTIPLES – The life expectancy figures provided by the INTERNAL REVENUE SERVICE to be used in calculating the exclusion ratio for life contingent ANNUITIES after June 30, 1986. Separate tables provide the figures for JOINT AND LAST SURVIVOR ANNUITIES, ANNUITIES that contain a refund or minimum payment guarantee and for ANNUITIES that pay […]
SAFE HARBOR – Rules that, if followed, will guarantee compliance with the law. SAFE RATE – An INTEREST RATE provided by relatively low-risk INVESTMENTS such as well-secured first MORTGAGES or high-grade bonds. SALES CONTRACT – Also known as PURCHASE AGREEMENT or PURCHASE CONTRACT – The CONTRACT through which the seller and buyer agree to the […]
QUADRANGLE – Used in the GOVERNMENT RECTANGULAR SURVEY METHOD of LAND description, a square-shaped LAND area, twenty-four miles on each side containing sixteen TOWNSHIPS. QUALIFICATION PERIOD – The period during which the INSURED must be TOTALLY DISABLED before becoming eligible for RESIDUAL DISABILITY BENEFITS. QUALIFIED IMPAIRMENT INSURANCE – A form of SUBSTANDARD or special class INSURANCE which […]
PACKAGE MORTGAGE – Commonly used in new home sales for major appliances and floor coverings, a form of MORTGAGE which includes the financing of PERSONAL PROPERTY with the financing of REAL PROPERTY. PACKAGE POLICY – A combination of two or more individual POLICES or COVERAGES into a single POLICY as a HOMEOWNERS POLICY combines LIABILITY, […]
OBLIGATED RENT – Also known as ACTUAL RENT and CONTRACT RENT. The amount of consideration paid as RENT under the terms of a LEASE – in contrast to economic rent. OBLIGEE – The person into whose favor an obligation is entered. OBLIGOR – 1) one who has engaged to perform some obligation; 2) one who […]
NAMED PERILS – Coverage in a PROPERTY policy that provides protection against LOSS from only the perils specifically listed in the POLICY – such as windstorm, fire, smoke and theft – rather than protection from physical LOSS. NATIONAL APARTMENT ASSOCIATION (NAA) – An organization of apartment owners, with local chapters in metropolitan areas, hat provides […]
MAIL ORDER INSURER – A type of INSURANCE company that sells POLICIES through the mail or other mass media, eliminating the need for AGENTS. MAINTENANCE – Activities required to compensate for WEAR AND TEAR on a property. MAINTENANCE FEE – An assessment by a Homeowner’s Association or a Condominium Owner’s Association to pay the costs […]
LABOR-MANAGEMENT RELATIONS ACT OF 1947 (TAFT-HARTLEY ACT) – This law controls conditions under which an employer may pay any money to a representative of employees. LACHES – To delay a person’s legal rights with the possibility of causing the negligent party’s lawsuit. This can be caused by someone giving false information then denying it later […]
