When one bond is cancelled and another issued to take its place and the first bond has a discovery period, the surety Company is exposed to the possibility of loss equal to the aggregate sum of the two bonds.

The total liability a reinsurer has accumulated from different policies taken on from different ceding companies that were all affected by the same disaster.

The sum of probabilities.

Any physical or psychological disability that results from the combined effects of repeated injuries or illnesses. Although each injury or illness may be minor at the time it occurs, the cumulative effect over time can lead to claims for physical or psychological disabilities.

In maritime law, medical expenses paid by a vessel owner or operator to crew members disabled by illness or injury suffered during a voyage.

Also known as “interest sensitive” whole life, current assumption offers flexible premium payments that are indexed to current interest rates. The insurance company sets a minimum and maximum premium and then increases or decreases the premium within that range depending upon interest rates. Thus, premiums are reduced during periods of high interest rates and increased during periods of low interest rates. The amount of life insurance remains unchanged.