BeNew Insurance

Triple Net Lease In a triple net lease, the tenant pays for building maintenance, property insurance, and property tax in addition to monthly rent. A triple net lease is a commercial lease agreement in which the tenant is responsible for three expenses in addition to rent: -Building maintenance -Property insurance -Property tax To accommodate the additional expense, a triple net lease typically has a lower base rent than a standard lease (also known as a gross lease). Triple net leases are not common in residential real estate. However, they are common in commercial real estate, particularly in multi-unit structures such as strip malls. A triple net lease is also known as an NNN (net, net, net) lease. Triple Net Leases Often Come With Specific Insurance Requirements. The tenant typically must carry general liability insurance and property insurance at a minimum. A small business with a low risk profile may be eligible for a business owner’s policy, which bundles these two types o...

Premium Undercutting Premium undercutting is the practice of an insurance company offering clients unrealistically low premiums in order to gain a competitive advantage. This is often done by secretly offering lower premiums to certain clients, or by offering lower premiums for certain types of policies. Premium undercutting can have a number of negative consequences for the insurance industry. It can lead to: -Insurers being unable to pay claims when they are due. -A decrease in the quality of insurance products. -An increase in the cost of insurance for consumers. -A loss of confidence in the insurance industry. It must be emphasised that the practice is not only unethical but criminal, as the insurance regulatory bodies are against such practice and may revoke a defaulting insurer's licence for such practice. Companies practicing premium undercutting then raise their prices to control levels in the long-term to recoup their losses. Research has proven most companies practici...

Exclusion Rider An exclusion rider is an endorsement or provision in an insurance policy that lists the perils or hazards that the insurer will not cover. Policyholders can purchase supplemental policies to fill the coverage gaps caused by these riders. The intent of exclusion rider is to exclude or restrict coverage for a known pre-existing medical condition or a condition that predisposes you to a potential disability, hazardous activities, certain types of property (jewelry), damage caused by war. There are some of the reasons why an insurance company might include an exclusion rider in a policy: to reduce the risk of loss, to protect against fraud, to comply with regulations. This Clause directly tell policyholders to be aware of which perils or hazards their policy will not cover or they may face unexpected financial burdens from a non-covered loss. For example, many plans will not provide benefits for disabilities arising from being in a war, participating in a riot, commi...

Injury Injury in insurance refers to any physical harm that a person sustains as a result of an accident, negligence, or intentional act. In insurance, injuries are typically covered by two types of policies: Bodily injury liability insurance; covers the medical expenses and lost wages of someone who is injured in an accident that you are responsible for. This type of insurance is typically required in most states. Personal injury protection (PIP) insurance; covers your own medical expenses and lost wages, regardless of who is at fault in an accident. PIP is only available in some states. In addition to bodily injury liability and PIP insurance, there are a number of other types of insurance that can cover injuries, such as: -Workers' compensation insurance. -Professional liability insurance. -Disability insurance provides income. The specific types of injuries that are covered by insurance vary depending on the policy. However, most policies will cover the following types o...

Automatic Benefit Increase An automatic benefit increase rider is a provision in a disability insurance policy that automatically increases the monthly benefit amount by a specified percentage each year for a predetermined period of time. This rider can help to ensure that your disability benefit keeps pace with inflation, so that your income replacement is not eroded over time. The percentage increase and the length of time for which the increases are made vary from policy to policy. Some riders may increase the benefit by 3% each year for five years, while others may increase the benefit by 5% each year for three years. An automatic increase in benefit provision dictates the exact percentage by which the policyholder's monthly disability payment would increase for a predetermined amount of time. Because it increases the coverage amount, the addition of this rider increases the premium as well. The idea is that it would help offset inflation so that the monthly benefit agreed ...

Financial Underwriting It is the process of assessing whether the proposed sum insured and product are reasonable when considering the possible financial loss to the client. It is a critical part of the insurance process, as it helps to ensure that the insurer is not taking on too much risk. Financial underwriting empowers underwriters to effectively evaluate whether the coverage applied for makes sense within the overall context of the specific case. Financial underwriting is difficult since it involves an almost in byfinite number of situations. Any set of rules or guidelines will have a certain amount of fluctuation from the norm and should be viewed as only a beginning point or a point of reference. The purpose of financial underwriting is to: protect the insurer from financial loss, ensure that the applicant is able to afford the insurance, provide the applicant with the right amount of coverage. The role of financial underwriting in the insurance process is to: screen out...

Whiplash Whiplash is a neck injury that is caused by a sudden, forceful movement of the head. It is often caused by a rear-end car accident, but it can also be caused by other types of accidents, such as a fall or a sports injury. In recent years, there has been some controversy surrounding whiplash claims. Some people believe that there is an epidemic of fraudulent whiplash claims, and that these claims are driving up the cost of car insurance. However, there is no clear evidence to support this claim. Whiplash claims are one of the most common types of personal injury claims. For example in the United Kingdom, whiplash claims account for over £2 billion in insurance payouts every year. When someone makes a whiplash claim, they are essentially claiming compensation for the pain, suffering, and loss of earnings that they have experienced as a result of their injury. In order to make a successful whiplash claim, the claimant will need to provide evidence of their injury, such as...

Actual Damages In insurance, actual damages are the monetary losses that a policyholder experiences as a result of a covered event. These losses can be either economic or non-economic in nature. -Economic damages are those that can be easily quantified, such as medical expenses, lost wages, and property damage. -Non-economic damages are those that are more difficult to quantify, such as pain and suffering, emotional distress, and loss of enjoyment of life. Examples of atual damages: -Medical expenses -Lost wages -Property damage -Pain and suffering -Emotional distress -Loss of enjoyment of life The money award that the defendant pays to the injured plaintiff to cover the actual costs of the plaintiff’s loss or injury. Also called compensatory damages. This loss may be from lost sales, lost licensing revenue, or any other provable financial loss directly attributable to the infringement. Insurance policies typically cover actual damages, up to the limits of the policy. However,...

Joint Life Insurance Also known as "second to die" or survivorship life insurance. Based on two people with an insurable interest (married couple or business partners) and doesn't pay until both people die. Typically used by high net worth individuals to lessen the estate tax burden on inheritances. These are usually family members or financial dependents. A joint life insurance policy covers two people but it usually only pays out one sum of money, on the first policyholder's death. Joint life insurance can be worth considering if you are married or if you live with your partner, especially if you have children. In some cases, it can also be useful for business partners. Joint Life Policy will be an asset of the firm and deceased partner has a right to share any profit or loss on such policy. So, any claim which is received by the firm on the death of a partner is divided among the partners and credited to their capital accounts in their profit sharing ratio. ...

Paramedical Exam A medical exam required as part of the life insurance underwriting process where a paramedical professional takes blood and urine samples. A paramed exam is an exam done by a medical professional and is used to gather data about your medical history and current medical status. They may take measurements, like height, weight, and blood pressure, & the exams. The exam may also include the collection of blood, urine, oral fluid, and an EKG and/or X-ray, depending on the insurer's underwriting guidelines for your age and insurance amount. Some Life Insurance policies do not require a paramed exam or interview. These policies are often referred to as “simplified issue” or “non-medical” policies. In these cases, you may be asked a few medical questions, and the policy is issued if your answers deem you eligible for the product. These type of policies are excellent for buyers that are in good health…but may be overweight, don’t like needles, or just don’t want t...

Future Purchase Option Rider A future purchase option (FPO) rider is a feature of some long-term disability insurance (LDI) policies that allows policyholders to increase their coverage periodically, or as their income increases, without having to go through medical underwriting. This means that even if your health deteriorates over time, you can still increase your coverage without having to prove that you are still insurable. The FPO rider is typically available for a limited period of time, such as 10 or 20 years. Once the FPO rider expires, you will need to go through medical underwriting if you want to increase your coverage. The cost of the FPO rider will vary depending on your age, health, and the amount of coverage you want to increase. However, it is typically a small price to pay for the peace of mind of knowing that you can increase your coverage without having to worry about your health. It is a way of keeping benefits on pace with inflation, based on increases in a p...

Policyholder The person(s) or an organization in whose name an insurance policy is held. They are the one who pays the premiums and is entitled to the benefits of the policy. The policyholder is also the only person who can make changes to the policy, such as adding or removing coverage or changing the beneficiaries. In some cases, there may be multiple policyholders on a single policy. For example, a married couple may be co-policyholders on their home insurance policy. In these cases, both policyholders have equal rights and responsibilities under the policy. Note that a beneficiary is not a policyholder. A beneficiary is an individual who receives the death benefit of a life insurance policy. They may or may not also be the policyholder. A single life insurance policy can have multiple beneficiaries but only one policyholder Policyholders are also responsible for making sure their premiums get paid. Examples to illustrate policyholder: A wife that purchases a term life insur...

Attending Physician Statement (APS) The APS is a report written by the insured’s doctor that documents his or her past and current health history. Insurance companies use this report to review applications for insurance and/or to evaluate benefit eligibility, in the event of a claim. An Attending Physician Statement form (APS) is one of the main ways that an insurance company obtains information about your medical status. An APS may be requested by insurance companies when you apply for short term disability (STD) benefits, long term disability (LTD) benefits, or a life insurance waiver of premium. APS typically includes the following information: -Your medical history, including any past or current illnesses, injuries, or surgeries. -Your current medications and treatments. -Your doctor's assessment of your overall health and fitness. -Any limitations that you may have as a result of your health condition. An Attending Physician Statement should be completed by a practicing ...

Disability Insurance Disability insurance is a type of health insurance which pays the insured a monthly benefit, replacing earnings lost from an accident or sickness that prevented them from working and earning an income. The primary purpose disability insurance provides benefits to replace lost income when an insured becomes unable to work because of illness and/or injury. It is designed to replace a percentage of your income if the unexpected happens. In some jurisdictions, individuals can obtain disability insurance from the government through the Social Security System. The good thing is disability insurance is available through both public and private programs. There are two main types of disability insurance: short-term and long-term. Short-term disability insurance typically pays benefits for a period of 3 to 6 months, while long-term disability insurance can pay benefits for a period of up to 2 years or even longer. Some of the variables affecting the cost of disability...

Coordination of Benefits (Benefits Integration) Coordination of Benefits (COB) is a provision in most health plans that allows families with two wage earners covered by health benefit plans to receive up to 100% coverage for medical services. COB rules determine which plan is primary for you, your spouse and your dependent children. An insured, while disabled, may receive benefits from other sources, such as workers’ compensation, disability benefits received from other employer-sponsored plans, or auto insurance benefits. However, benefits payable under an individual plan may be reduced by other sources of income. Coordination of Benefits allows two people with coverage who are married or in a common-law relationship to be covered as dependants by each other's plans. Eligible expenses can be submitted under both members' certificate numbers, providing greater reimbursement (up to 100%) to the family. There are two main types of COB: Primary-secondary: This is the most c...

Disability Benefit Disability benefit in insurance refers to the financial assistance that is provided to an individual who is unable to work due to a disability. This type of insurance can be purchased from private insurance companies or through an employer. The monthly benefit received by the insured to help replace lost earnings during his or her period of disability. Disability is the umbrella term for any or all of an impairment of body structure or function, what qualifies as a disability is a limitation in activities (the tasks a person does), or a restriction in participation (the involvement of a person in life situations). There are two main types of disability benefits: short-term and long-term. Short-term disability benefits typically last for a period of 3 to 6 months, while long-term disability benefits can last for several years or even indefinitely. The 3 main types of disability are; intellectual, physical, sensory and mental illness. This can be broken down i...

Inspection Report An inspection report is a report generated by an insurance company regarding the details of a specific risk. Inspection reports are designed to examine the risk from a moral, physical, and financial perspective. It is conducted by an insurance company or its representatives. The purpose of an inspection report is to gather information about the condition, value, and potential risks associated with the person or property being insured. For example in the life or health insurance context, inspection reports generally mean a medical examination of the applicant conducted by a doctor or medical professional. Insurance companies perform inspections for various reasons and they differ based on the elements type of Policy cover. It gives the companies a well-founded basis with their decisions for every insurance application and claims of policy holders. Based on the findings in the inspection report, the insurance company can make informed decisions about the terms o...

Elimination Period An elimination period, also known as a waiting period, is the length of time between when an illness or disability begins and when a policyholder can begin receiving benefits from their insurance policy. During this time, the policyholder is responsible for paying for all costs associated with their illness or disability. The length of the elimination period is typically 30, 60, 90, 180, or 365 days. In other words, it is the length of time between the beginning of an injury or illness and receiving benefit payments from an insurer. For example if you were in a car accident that left you unable to work, and you filed a claim 30 days after the accident, the elimination period would begin the day of the accident Insurance premiums and elimination periods have an inverse relationship. The shorter the elimination period, the higher the premium will be; the longer the elimination period, the lower the premium will be. The purpose of an elimination period is to ...

Living Benefits Rider living benefits rider is an optional add-on to a life insurance policy that allows the policy owner to access a portion of the death benefit while they are still alive. This can be helpful if the policy owner needs money for medical expenses, long-term care, or other financial needs. A living benefit ride provides additional coverage on your basic life insurance policy that provides supplementary benefits and protection to you, sometimes at an extra cost. For example, if you're terminally ill, an accelerated death benefit rider may pay out a portion of your death benefit while you're still alive. There are two main types of living benefits riders: Terminal illness riders allow the policy owner to access a portion of the death benefit if they are diagnosed with a terminal illness that is expected to result in death within a certain period of time. The amount of money that can be accessed and the length of time that the policy owner has to live vary d...

Limitations (Policy Limit) A limit is the highest amount your insurer will pay for a claim that your insurance policy covers. Think of it this way: It's like filling up a fishbowl. Policy limits are typically expressed as a monetary amount, but they can also be expressed as a percentage of the insured value If you file a covered claim, your insurance policy will pay up to a certain amount. You're responsible for any expenses that exceed the limit. For example, a car insurance policy with a liability limit of $100,000 means that the insurance company will pay up to $100,000 for damages caused in an accident. If the damages exceed $100,000, the policyholder will be responsible for the remaining amount. Policy limits or insurance policy limits are basic provisions of insurance policies set by any insurance company. The policy limit caps how much compensation or benefits an insurance company will pay in the event of a claim. In order to keep costs reasonable, your insurance ...