A time period during which payment must be made and the policy is in effect.
Insurance Encyclopedia
Grace period liability
Insurer’s responsibility for insurance claims that are incurred during an insurance contract’s grace period.
Graded commission
A schedule of commissions payable to agents. The commission amount varies based on the category or amount of the policies written.
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A reduced commission justified by the size of the premium.
Graded commission scale
Payment schedule that lists the amount of money paid to an insurance agent for selling and servicing an insurance policy that is high for the first year and has a lower renewal commission for subsequent years.
Graded death benefits (Life Insurance)
Most commonly seen in life insurance policies written for children; this type of death benefit increases over time. At first, the amount of the benefit paid out may be less than the policy’s face amount.
Graded Expense
A reduced expense item for the insurance company justified by the size of the premiums.
Graded level commissions
Payment schedule that lists the amount of money paid to an insurance agent for selling and servicing an insurance policy that has the same commission percentages for premium increments of first and renewal years.
Graded premium (Life Insurance)
A premium that is a lower amount in the beginning of the contract and increases.
Graded premium whole life insurance
Type of whole life insurance in which premiums are increased once or at a certain time such as every 3 years until the premium reaches a specific level.
Graded schedule scheme
Pension scheme under which benefits are related to earnings in each year of membership. An alternative term is salary grade scheme.