Also called the additional insurance option or the fifth dividend option. A party who is authorized by another party, the principal, to act on the principal s behalf in contractual dealings with third parties. Called a mandatary in Quebec. The portion of the insurance application in which the agent reports anything he or she knows or suspects about the proposed insured that is not reported by the applicant or proposed insured. In the United States, an organization which collects and disseminates data on life insurance markets.
Anniversary See policy anniversary .
Also called adverse selection or selection against the insurer. The party applying for an insurance policy. Application A form that must be completed by an individual or other party who is seeking insurance coverage. This form provides the insurance company with much of the information it will need to decide whether to accept or reject the risk. An agreement issued in conjunction with a conditional premium receipt that provides temporary life insurance coverage as of the date the insurer approves the proposed insured as a standard risk.