lines of insurance, major

Dictionary of Insurance Terms for: lines of insurance, major
lines of insurance, major

five primary sectors of insurance coverage. Their purposes are:

  1. life insurance-provides income to a beneficiary in the event of the death of the insured.
  2. health insurance-provides two types of coverage: (a) Medical Expense, which indemnifies an insured for hospital, physician, and related expenses; (b) Disability Income, which provides a source of income for an insured in the event of partial or total disability. It is generally felt that this source of income should approximate at least 50% of earnings prior to a disability.
  3. annuity -provides monthly income to an annuitant for life.
  4. property insurance-indemnifies an insured for damages or destruction of property.
  5. liability insurance-covers damages on behalf of an insured who becomes legally obligated to pay because of actual (or alleged) negligent acts and omissions.
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