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Life and Health basics
Terms in this set (5)
Entire contract clause
What contract clause prohibits the agents/producers from changing the wording in the policy?
A plan for spreading risk/uncertainty of possible financial loss over a large number of people so that the cost to any one person is small.
Needs created by premature death
Final expenses, survivor protection, estate protection, estate creation, and education expenses.
Law of large numbers
This law combines a large number of homogeneous like units, the insurer is able to make predictions of possible losses.
Insurance companies used to pay death claims immediately so that they do not run out of money.
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