Definition of backdating insurance coverage
Actuary: A professional person trained in mathematics, statistics, and legal-accounting methods, and principles of the operation of insurance, annuities and retirement plans.An insurance company actuary determines, on the basis of existing experience, the monetary value of risk presented by age, sex, health and lifestyle factors.Therefore, if the insured has passed six months after the last birthday, he or she is considered to be one year older (as opposed to age last birthday).Agent: Anyone who solicits insurance or aids in the placing of and delivering of insurance policies and/or the collection of premiums on behalf of an insurance company.Assignment: The signed transfer of the benefits of a policy to another party by a policy owner.If the insurance company is given due notice of the assignment, the policy benefits will accrue to the person named as assignee.The application can either beapproved as applied, which means the health class and premium approved matches the original quote; or; approved other than applied, which means your health class and premium will differ from your original quote.This is usually due to information attained by the medical examiner and/or underwriter, which places the applicant in a different health class than what was applied for. An insurance company will sometimes request you list your total assets and liabilities on the application to help them evaluate, in conjunction with your income, your need for the amount of death benefit applied for.
The application is reviewed by an insurance company underwriter to consider whether the requested policy will be issued and, if so, in what classification and at what premium rate.
In some cases, the insurance company will permit agent contracting paperwork to be submitted along with the first application in that state.
Approved: A term referring to an application for life insurance being approved and accepted by the insurance company.
Some companies us the age at the last birthday, while others use the age at the nearest birthday, prior or succeeding.
Age last birthday: One method of insurance rating which rates people a their age as of their last birthday, with such rating held until the next birthday.
Take note that if this benefit is exercised, it will reduce the actual death benefit by the amount of Accelerated Death Benefit paid.