Insurance Glossary: Page 4

Medical: A document completed by a physician or another approved examiner and submitted to an insurer to supply medical evidence of insurability (or lack of insurability) or in relation to a claim.

Medical Expenses: Reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral expenses. (The insurance company defines what is reasonable.)

Misrepresentation: Act of making, issuing, circulating or causing to be issued or circulated an estimate, an illustration, a circular or a statement of any kind that does not represent the correct policy terms, dividends or share of surplus or the name or title for any policy or class of policies that does not in fact reflect its true nature.

Modified Premium Policy: (See Graded Premium Policy)

Mortality Charge: The charge for the element of pure insurance protection in a life insurance policy.

Mortality Cost: The first factor considered in life insurance premium rates. Insurers have an idea of the probability that any person will die at any particular age; this is the information shown on a mortality table.

Mortality Rate: The number of deaths in a group of people, usually expressed as deaths per thousand.

Mortality Table: A table showing the incidence of death at specified ages.

Non medical Insurance: A contract of life insurance underwritten on the basis of an insured's statement of his health with no medical examination required.

Occupational Hazard: A condition in an occupation that increases the peril of accident, sickness, or death. It usually will mean higher premiums.

Offer and Acceptance: The offer may be made by the applicant signing the application, paying the first premium and, if necessary, submitting to physical examination. Policy issuance, as applied for, constitutes acceptance by the company. Or the offer may be made by the company when no premium payment is submitted with the application. Premium payment on the offered policy then constitutes acceptance by the applicant.

Original Age: The age you were when you bought the policy.

Other Insured Rider: A term rider covering a family member other than the insured that is attached to the base policy covering the insured.

Ownership: All rights, benefits and privileges under life insurance policies are controlled by
their owners. Policy owners may or may not be the insured. Ownership may be assigned or
transferred by written request of current owner.

Para-Med (Paramedical) Examination: The medical examination of an applicant for Life Insurance.

Para-Med (Paramedical): A physician, nurse, or para-med appointed by the medical director of a life insurance company to examine applicants.

Permanent Life Insurance: A term loosely applied to life insurance policy forms other than
Group and Term, usually Cash Value Life Insurance, such as Whole Life Insurance.

Policy: The printed document issued to the policyholder by the company stating the terms of
the insurance contract.

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