Field underwriting occurs when an agent gathers pertinent information about the proposed insured and reports that information on the application blank so the home office underwriter can make an underwriting decision. Contrast with career average benefit formula. An organization that helps to channel funds through an economy by accepting the surplus money of savers and supplying that money to borrowers, who pay to use the money. Insurance companies are financial institutions. A financial institution that borrows money on its own account and loans money to other borrowers.
Insurance companies are financial intermediaries.
A lump sum payment by an insurer to a disabled insured that extinguishes the insurer's responsibility under the disability contract. Also known as a buy-out or commutation. Back first-dollar coverage Medical expense insurance under which no deductible or coinsurance is applicable to covered expenses. An amount paid to an insurance agent based on a policy's first annual premium amount. The trust must meet certain federal government requirements.