It is a trust account created for the exclusive benefit of a person and their beneficiaries, the trust must be a bank, investment company, brokerage, or any similar organization.
Archives: Glossary Terms
Valid contract
A contract that is legally enforceable.
Unilateral contract
A contract in which only one of the contracting parties assumes legally enforceable promises.
Void contract
A contract that was never enforced legally.
Closed contract
Policy that specifies the benefit amount payable in case a covered loss occurs, regardless of the cash amount of the loss incurred.
Bilateral contract
A contract in which both parties assume legally enforceable promises when entering a contract.
Basic collective or group insurance contract or parent policy
An insurance contract that insures several persons.
Voidable contract
A contract under which one of the parties is authorized to avoid its obligations under the contract without incurring in civil liability under the law.
Contract
A legally binding agreement among two or more parties.
Collective or group contracting party or policyholder
The person or organization that decides which types of collective or group insurance coverage will be contracted for the members of the group, negotiates the collective or group insurance contract terms with the insurer, and purchases the collective or group insurance coverage.