Definitions

Covers administrative and mortality and expense risk costs.

The guarantee that if an Annuity contract owner dies before annuitization (the switchover from the savings to the payment phase) the beneficiary will receive the value of the Annuity that is due.

An agreement similar to an insurance policy for other insurance products such as auto insurance.

Covers the cost of customer services for owners of variable annuities.

The period during which the owner of a Deferred Annuity makes payments to build up assets.

A life insurance product that pays periodic income benefits for a specific period of time or over the course of the Annuitant’s lifetime. There are two basic types of annuities: deferred and immediate: Deferred annuities allow assets to grow tax deferred over time before being converted to payments to the Annuitant. Immediate annuities allow payments to … Read more

The conversion of the account balance of a Deferred Annuity contract to income payments.

Covers the cost of administering an Annuity contract.

Mechanisms used to fund self-insurance. This includes captives, which are insurers owned by one or more non-insurers to provide owners with coverage. Risk-retention groups, formed by members of similar professions or businesses to obtain liability insurance, are also a form of self-insurance.

Alternative to going to court to settle disputes. Methods include arbitration, where disputing parties agree to be bound to the decision of an independent third party, and mediation, where a third party tries to arrange a settlement between the two sides.