Dictionary

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Immediate Annuity

A lump-sum Annuity on which the income payments to the annuitant are to begin at once and continue for the life time of the annuitant. Immediate annuities have no “accumulation” period.

Imports And Exports

A category of the Inland and Ocean Marine Nationwide Definition, which is made up of risks eligible for Marine insurance.

Improvements and Betterments

Additions or changes made by an insured to a building that may or may not be owned by him. Cost arising from these changes may enhance values and thereby require special insurance consideration.

In-Patient

A patient admitted to a hospital as a resident patient.

Incontestable Clause

Provides that after the policy has been in force a certain length of time, the company can no longer contest it or void it, except for nonpayment of premiums. The time period is usually two years. In other words, Life and Health policies are “contestable” for the first two years, and “incontestable” thereafter. However, Health policies are always contestable for fraud!

Indemnify

To restore the insured financially after a loss, or to make them “whole.” For example, a Basic Medical Expense policy might cover your room and board in the hospital up to $1,000 a day. If your bill for one day is $900, the company will pay it all. However, if your bill is $1,100, the company will only pay $1,000. The company will pay the policy limit or the amount of the claim, whichever is less.

Indemnity

Insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss. The intent is to cover the amount of the actual loss only and to avoid paying amounts that allow someone to profit from a loss situation. This is known as the Principle of Indemnity.

Indirect Loss

Loss that is a result or consequence of a Direct Loss.

Individual Contract

A contract of Health insurance made with an individual that covers her and, in certain instances, specified members of the household. In general, any insurance policy except Group or Blanket.

Industrial Life

Life insurance generally with a face amount of less than $1,000, with premiums collected weekly by the producer in person. The grace period for this type of insurance is 28 days. Also known as “Home Service” Life insurance. There are three types of Life insurance: Ordinary (which includes Whole Life, Term and Endowment), Group and Industrial.