The fact that the person effecting the insurance must suffer a financial loss at the death of the proposed insured. For the policy to be issued, both the owner and beneficiary must have an insurable interest. Insurance A system whereby individuals and companies who are concerned about the potential for loss pay premiums to an insurance company which, in turn, will reimburse those individuals and companies in the event the loss occurs. Member companies adhere to a uniform set of standards and ethical market conduct principles that apply to the sale and service of individually sold life insurance and annuity products. This NAIC program consists of a series of ratios calculated from figures shown in company annual statements and is designed to give state regulators a prompt indication of possible financial problems.
Statements can be quarterly or semi-annual.
There is a nominal service charge. To avoid commingling of money, payments on variable and annuity products cannot be combined with payments on other products. Insured The person whose life is covered by the insurance contract. The total insurance benefit is not paid out until some specified date in the future, but there are limits as to the length of time a principal sum may be held. The rate of interest credited on a policy's cash or account value.