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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
H
Hazard:
Any situation that increases or influences the probability of loss.
Hazardous Activities:
Any activity that increases one's risk of peril or danger. On an insurance application, scuba diving, aviation, sky diving, and racecar driving are examples of hazardous activities that are taken into account when an insurance company decides whether or not to accept the risk of insuring the applicant.
Human Life Value:
The quantitative value of the future earnings of a wage earner. By calculating the human life value, one may determine the amount of life insurance to purchase on an applicant. By determining the average income of a wage earner, the number of years the wage earner is going to work and the present value of the income of the wage earner, one can calculate the human life value of a wage earner.
I
Impaired Risk:
A person with a substandard physical condition such as a history of stroke or heart attack who would be a higher probability of risk for the insurer. An applicant who engages in hazardous activities could also be an impaired risk.
Indemnity:
The restoration of loss in the form of payment or replacement.
In-Force Business:
Cases on which the premiums are paid or are being paid as part of a life insurance company's business portfolio.
Inspection Report:
A report prepared by an inspection organization for the insurance company that summarizes the financial, physical, moral or other attributes of an applicant for insurance. Inspection reports are typically required for applicants applying for larger amounts of life insurance.
Insurable Interest:
The expectation of financial loss that can be covered by an insurance policy. For example, a person might have an interest in his or her home because the loss of it could cause financial hardship. A beneficiary must have an insurable interest in the life of the insured in order to be designated a beneficiary at the time of the application.
Insurance:
A mechanism for reducing the risk of many by contractually transferring the risk to an insurer, thereby pooling the risk in return for monetary considerations from the insured.
Insured:
The person who is covered by an insurance policy.
Insurer:
The party who offers protection to the insured as outlined in the policy.
Irrevocable Beneficiary:
A beneficiary who can be changed only through written consent from that beneficiary.
Issue Age:
Insurance age of insured used to calculate the premium of an insurance policy.
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