What is the term used to describe a group's ability to pay premiums and renew group coverage?
Asked by: Mike Abernathy | Last update: February 11, 2022Score: 4.1/5 (66 votes)
The group's ability to pay premiums and renew coverage impacts policy issuance, called persistency. In the case of group employer plans, employers are required to pay at least some portion of the premiums; therefore, the group policies are likely to be kept in force.
What type of group insurance plan allows the policyowner to pay the minimum amount of premium for anticipated claims and the insurer pays the excess?
Minimum Premium: An agreement is made between the policyowner and the insurer in which the policyowner pays the minimum amount of the premium for anticipated claims, and the insurer pays the excess.
What type of group health insurance plan is self-funded but an insurer processes the claims?
In ASO arrangements, the insurance company provides little to no insurance protection, which is in contrast to a fully insured plan sold to the employer. As such, an ASO plan is a type of self-insured or self-funded plan. The employer takes full responsibility for claims made to the plan.
What is group term insurance how do the premiums on group term compare to premiums on individually purchased term insurance quizlet?
How do the premiums on group term compare to premiums on individually purchased term insurance? Group term insurance premiums are usually lower than the typical premiums an individual would pay because the insured receive a group discount.
What term is used for replacing insurance policies?
"Churning" is defined as replacing insurance policies for the sole purpose of making commissions.
Does Ability Grouping Work?
What is the term used to describe an insurer whose policy is affected by replacement?
(d) “Existing insurer” means the insurer whose policy is or will be changed or terminated in such a manner as described within the definition of “replacement.”
What is insurance terminology?
Premium: This is a fixed amount that the policyholder pays the insurance company in return for insurance. ... The premium is an important aspect of an insurance policy. 7. Payment Term/Mode: The payment term or mode refers to the different ways in which you can pay the premium to the insurance company.
What is term insurance What factors determine the premium for term insurance?
The factors that determine the premium for term insurance include: Gender, length of time covered. Wit decreasing term insurance: A relatively high level of insurance is provided in the earlier years when it is most needed.
What is the clause that describes the method?
What is the clause that describes the method of paying the death benefit in the event that the insured and the beneficiary are both killed in the same accident? Common Disaster Clause: if both the insured and beneficiary die in a COMMON accident, the insurer proceeds as if the insured outlived the beneficiary.
What factors determine the premium for term insurance?
- Your Age. Age is one of the major factors while deciding the premium for life cover. ...
- Gender. ...
- Occupation. ...
- Residential Region. ...
- Lifestyle & Health. ...
- Add-on Benefits & Features. ...
- Policy Term.
What is a self-insured group?
A self-insured group health plan (or a 'self-funded' plan as it is also called) is one in which the employer assumes the financial risk for providing health care benefits to its employees.
What does self-funded mean in health insurance?
Self-insurance is also called a self-funded plan. This is a type of plan in which an employer takes on most or all of the cost of benefit claims. The insurance company manages the payments, but the employer is the one who pays the claims.
What is the difference between ASO and TPA?
The difference between TPA & ASO is like a Buick & Chevy (a different name badge). ... Thus was born the ASO (Administrative Services Only) marketing term for the TPA look-alike. As years passed, many insurers acquired interest in TPAs and placed their self-funded business in those independent-named TPA firms.
What term is used to describe the action of satisfying official requirements?
What term is used to describe the action of satisfying official requirements? noncovered services. ... Examine the list of services and determine which one would most likely be considered a noncovered service.
What does the word level in level term describe?
What does the word "level" in Level Term describe? the face amount. What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death?
What is the term used to describe an insurer that Cannot pay its claim obligations?
When an insurer can no longer meet its financial obligations when they are due, the insurer is considered to be: Insolvent.
What is the term for how frequently a policyowner is required to pay the policy premium?
D. Grace period *The grace period is the period of time after the premium due date that the policyowner has to pay the premium before the policy lapses (usually 30 or 31 days). The purpose of the grace period provision is to protect the policyholder against an unintentional lapse of the policy.
Which two terms are associated directly with the premium?
Which two terms are associated directly with the premium? Level and flexible. A level premium is one in which the premium payment never changes. A flexible premium is found in universal life policies where the insured changes their premium payment.
What is the term for how frequently a policyowner is required?
Terms in this set (29) What is the term for how frequently a policyowner is required to pay the policy premium? Mode. According to the entire contract provision, what document must be made part of the insurance policy? Copy of the original application.
What does level refer to in a level term insurance?
While there are several kinds of term life insurance, most term life policies are level term. “Level term” simply means that your premiums, or payments, and death benefit stay the same throughout the entire policy.
What is the difference between term and whole life insurance?
Term life insurance provides coverage for a set period of time, typically between 10 and 30 years, and is a simple and affordable option for many families. Whole life insurance lasts your entire lifetime and also comes with a cash value component that grows over time.
What is convertible term life insurance?
Key takeaways. Convertible term insurance lets you “trade in” a temporary policy for a permanent one. Converting can make sense if you want the benefits permanent life insurance offers. Converting part of your policy can help you meet your goals and manage your budget.
What do you understand by terminology?
Terminology is a general word for the group of specialized words or meanings relating to a particular field, and also the study of such terms and their use. This is also known as terminology science.
What is regulatory mechanism in insurance?
Regulating a margin of solvency. Adjudicating disputes between insurers and intermediaries or insurance intermediaries. Supervising the Tariff Advisory Committee. Specifying the percentage of premium income to finance schemes for promoting and regulating professional organisations.
What does DCC stand for in insurance?
The direct loss and defense and cost containment (DCC) ratio of stand-alone cyber insurance policies in the United States grew sharply by 28 percentage points between 2019 and 2020. In 2020, the ratio now stood at 73 percent.