A life insurance term referring to an extra risk which is at its greatest at the inception and then decreases, e.g. tuberculosis after treatment.
Insurance Encyclopedia
Reduction
See: fracture manipulation .
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A lessening in the amount of benefits paid out under a certain policy due to a particular condition.
Reduction for Health
A decrease in the benefits in a Health insurance policy because of a specified conditions. For example, benefits may be reduced because a disability is caused by a specific condition.
Reduction formula
Provision in an insurance policy that reduces the level of life insurance to another amount of coverage. This situation can occur when the insured reaches a specific age or retires.
Reduction of Risk
Taking steps to reduce the probability or severity of a possible loss. For example, installing alarms and sprinkler system to reduce the risk of fire loss to a building. One of the four major risk management techniques.
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One of the major risk management techniques. Taking precautionary measures to reduce the likelihood of a loss, or to reduce the severity of a possible loss; for example, installing a security system.