Glossary Group: Glossary of Insurance Terms

Clause that describes the conditions that the policyholder must meet in order to reinstate a lapsed policy (that is no longer in force).

A life insurance, health insurance, and life annuity that allows the policyholder to pay a renewal premium within a grace period established after the premium due date.

In a life insurance policy, a clause that offers the policyholder or the beneficiary several options regarding the way the insurance company will distribute the life insurance policy proceeds.

In a life annuity, it itemizes and describes each one of the pay out options that the contract holder may choose.

Clause that specifies that the insurer will pay a determined benefit amount if due to an accident, the insured loses some of their limbs, vision in any of their eyes, or life.

An insurance policy clause that limits the time within which an insurer is entitled to void or challenge the contract on the grounds of important misrepresentations contained in the policy application.

Clause that governs the payment of policy proceeds if the insured dies as a result of suicide.

An additional individual health insurance policy clause that specifies that no benefits will be granted by any claim resulting from the condition specified in said clause.

A clause included in the majority of collective or group for individual and collective disability income policies. It grants the insurer the right to require an insured who has filed a claim for disability income to be examined by a physician chosen and paid by the insurer.

Clause that describes the measures to be adopted by the insurer to adjust the life insurance policy benefit amount in case the insured’s age or sex have been misstated.