The premium deposit paid by a prospective policy holder when an application is made for an insurance policy. It is usually equal, at least, to the first month's estimate premium and is applied toward the actual premium when billed. Typically, a partial endowment is paid at the end of the term period. In many cases the partial endowment can be applied toward the purchase of a new term policy, or, perhaps, a whole life policy. A decrease in the value of property over a period of time due to wear and tear or obsolescence.
Depreciation is used to determine the actual cash value of property at time of loss.
System that reimburses health cared providers fixed amounts for all care given in connection with standard diagnostic categories. A marketing method where insurance is sold without the services of an agent. Potential customers are solicited by advertising in the mail, newspapers, magazines, television, radio, and other media. The industry term for a company which uses its own sales employees to write its policies. Sometimes refers to companies which contract with exclusive agents.