|
valuation
mortality tables
Mortality tables developed and published as industry-wide
standards for computing the values of policy reserves. These
tables usually have wide margins of safety, indicating much
higher rates of mortality than do the tables that insurers
use for calculating premiums.
Top
| Back
valuation premium
The net annual premium used to calculate reserves. The valuation
premium is most often used to describe the GAAP net premium.
Top
| Back
valued contract
A contract under which the amount of the benefit is set in
advance. A life insurance policy is a valued contract. See
also contract of indemnity.
Top
| Back
variable annuity
A form of annuity policy under which the amount of each benefit
payment is not guaranteed and specified in the policy. The
amounts of the benefit payments fluctuate according to the
earnings of a separate account fund.
Top
| Back
variable life
insurance
A form of whole life insurance under which the death benefit
and the cash value of the policy fluctuate according to the
investment performance of a separate account fund. Most variable
life insurance policies guarantee that the death benefit will
not fall below a specified minimum. A minimum cash value is
seldom guaranteed. Because the policy owner assumes investment
risk under variable life insurance policies, these products
are considered securities contracts. In the United States,
variable life insurance policies must be registered with the
Securities and Exchange Commission (SEC), and only agents
who have passed the National Association of Securities Dealers
(NASD) examination may sell this product. In Canada, variable
life insurance policies are considered life insurance contracts,
and agents do not need a special license to sell these products.
See also investment-sensitive life insurance.
Top
| Back
variable premium
life insurance
See indeterminate premium life insurance.
Top
| Back
variable universal
life insurance
A form of whole life insurance that combines the premium and
death benefit flexibility of universal life insurance with
the investment flexibility and risk of variable life insurance.
Because the policyowner assumes investment risk under variable
universal life insurance policies, these products are considered
securities contracts. In the United States, variable universal
life insurance policies must be registered with the Securities
and Exchange Commission (SEC), and only agents who have passed
the National Association of Securities Dealers (NASD) examination
may sell this product. In Canada, variable universal life
insurance policies are considered life insurance contracts,
and agents do not need a special license to sell these products.
Also called flexible premium variable life insurance and universal
life II. See also investment-sensitive life insurance.
Top
| Back
vested benefit
In pension and employee-benefit terms, a benefit that a plan
participant is entitled to receive if the participant leaves
the plan. By contrast, nonvested benefits would be forfeited
by the participant upon leaving the plan. A participant's
benefits become vested after a certain number of years of
participation in a plan.
Top
| Back
void contract
A contract that is not valid. For example, a life insurance
contract that lacks insurable interest is void for reasons
of public policy.
Top
| Back
voluntary employees'
beneficiary association (VEBA)
See 501(c)(9) trust.
Top
| Back
voluntary plan
termination
The curtailment or termination of a pension plan with the
curtailment or termination being initiated by the plan sponsor.
Contrast with involuntary plan termination. See also distress
termination and standard plan termination.
Top
| Back
|
