Life Settlement Glossary
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- temporary life insurance agreements
- A legal agreement that grants conditional temporary coverage between a life insurance company and a policyowner while a policy is being underwritten.
- term life insurance
- A temporary form of life insurance designed to cover a time horizon that is statistically shorter than the insured's underwritten life expectancy.
- terminally ill
- For life and viatical life settlements, an insured whose life expectancy is under two years.
- tertiary market
- The sale of a life settlement policy from one investor to another.
- transparency
- Within the life settlement industry, the full disclosure of all aspects of a life settlement including all offers received and anticipated or actual commissions paid.
- treaty reinsurance
- A standing reinsurance agreement between a reinsurance company and a ceding life insurance company.
- trust agreement
- A legal agreement where a grantor transfers property to another person or organization who administers the property for the benefit of a third person or persons.
- trustee
- An the individual responsible for fulfilling the requirements of a trust agreement.
- twisting
- A prohibited insurance sales practice whereby a life insurance agent induces a policyowner to replace a life insurance policy when such action is contrary to the policy owners best interest.