Archives: Glossary Terms

It is a decreasing temporary insurance plan designed to provide a death benefit amount corresponding to the decreasing amount owed to a mortgage.

Insurance with the same features and benefits as the individual whole life insurance, except that it insures two lives under the same policy.

Classification of proposed insured that present a probability of loss significantly lower than the average.

It does not entail the possibility of earnings, either there are losses or there are not.

It is the class for proposed insured persons who, after presenting too high a risk to be covered by the insurer, are rejected or denied for the coverage sought.

The proposed insured persons who have a loss probability that is significantly higher than average, but are still considered insurable.

A false statement that would have an effect on the insurer’s evaluation of a proposed insured and which, had the correct information been known, the insurance company would not have issued the policy or would have issued the policy on a different basis.

A statement made by a contracting party that will void the contract if it is not essentially true.

A false or deceitful statement in an insurance application.

A false statement made with the intention to induce the other party to enter a contract and which induced the innocent party to enter the contract.