The right of a person covered by a collective or group insurance policy to their basic group coverage into an individual life insurance coverage.
Glossary Group: Glossary of Insurance Terms
Entire contract clause
It defines the documents that constitute the contract between the insurance company and the policyholder.
Pre-existing condition clause
Individual and collective or group health insurance clause that establishes that the insurer will not pay benefits for a condition that existed before the effective date of the policy until the insured has been covered under the policy for a certain period of time.
Assignment clause
It describes the role of the insurer and the policyholder before the policy assignment.
Succession beneficiary clause
It stipulates that if the policyholder does not designate a beneficiary, then the insurer will pay the policy proceeds in a preferential order set forth in the contract.
Classification by claims experience
A method to establish collective or group insurance premium rates in which the insurer considers prior claim and expense experience of the group in particular.
Manual classification
A method used by insurers to calculate the premium rates of the collective or group insurance without considering prior expense and claim experience of that group in particular.
Combined classification
A method to calculate the collective or group insurance premium rates that uses a combination of the classification by claim experience and manual classification.
Types of policies
All the policies of a certain type or all the policies issued to a specific group of insured individuals.
Assignment
An agreement under which each one of the parties transfers some or all their property rights over a particular asset to the other party.