Field Underwriting Procedures

Applicant or proposed insured

is a person who requests or seeks insurance from and insurer.

Premium

the money paid to the insurance company for the policy of insurance.

Insured

the person covered by the policy of insurance who may or may not be the applicant or policy owner.

Policyowner

the person who is entitled to exercise the rights and privileges in the policy and who may or may not be the insured.

Beneficiary

the person who receives the benefits from the policy of insurance.

Agent/Producer

A person who acts for another person or entity known as the principal with regard to contractual arrangements with third parties. a legal representative of the insurance company.

Insurance policy

a contract between a policy holder (and /or the uninsured) and an insurance company which agrees to pay the insured or beneficiary for loss caused by specific events.

Agent/ agency contract

a contract that is held between an insurer and an agent/ producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held personally liable to the insurer for breech of contract.

Life Insurance

a coverage upon a person's life and granting, purchasing or disposing of annuities.

Death Benefit

the amount paid when a claim is issued against a policy of insurance. (face amount/face value/coverage)

Insurer

the company who issues a policy of insurance.

Insurance transfers

the risk of loss from an individual pr business entity to an insurance company, which in turn spreads the cost of unexpected losses to many individuals. If there were no insurance mechanisms the cost of the loss would be borne solely by the individual who suffered the loss.