Glossary Group: Glossary of Insurance Terms

In a assignment, the party to whom the property rights are transferred.

Assignment of an insurance policy to a creditor as debt guarantee. In the event the insured dies, the creditor will be entitled to reimbursement of the amount owed of the policy proceeds. The designated beneficiary will be entitled to any excess of the policy proceeds over the amount owed. Cancellation of the collateral assignment may be made only when the creditor so indicates in writing.

A life insurance policy or life annuity assignment, under which, the policyholder transfers all their property rights over it to the assignee.

A document that a collective or group insurance policy contracting party delivers to each insured within the group, and which describes the coverage offered by the group insurance contract and the rights of the group’s insured individuals under said contract.

A fee charged by the insurer if the contract holder withdraws more than the stipulated percentage in a year or before the term of duration stipulated in the contract.

It is the legal capacity to enter contracts.

Disease that manifests due to the presence of a malign tumor characterized by the uncontrolled growth and spread of malign cells to any part of the body, the invasion of tissue or leukemia, provided such condition has been diagnosed through a Pathological Report. Cancer will also include Kaposi sarcoma and Hodgkins disease.

A set of policies issued to insured individuals of the same age, same sex, and same risk class.

If the insured dies as result of an accident, the insurer will pay the designated beneficiaries an amount of money stipulated in the insurance policy.

An amount of money that the insurance company agrees to pay in accordance with the insurance policy when a specific loss occurs.