Definition: Fidelity in English is a verb meaning to be completely truthful or bound by trust, especially when it involves money. It often refers to ensuring that assets or debts are paid or handled with integrity and honesty. The word can also refer to the practice of keeping promises or agreements as written. For example, "the company was found to have overstated its financial reserves."

Fidelity

Definition: The word "fidelity" is a term used in the field of business ethics to describe the extent to which an individual or company will adhere to its commitments, promises, or agreements under any circumstances. Fidelity in insurance can refer to the belief that an insurer will uphold their obligations and ensure that all claims are promptly and accurately resolved. The definition of "fidelity" in insurance involves a commitment by the insured to pay for losses according to the terms of the policy. This commitment is known as the "underlying principle," which obligates the insurer to act as intended when it issues insurance policies. If the insurer fails to uphold their obligations, they may be liable for any damages or losses that may have occurred. In addition to being a commitment by the insured, fidelity in insurance also refers to the process of ensuring that all claims are properly handled and accurately resolved. This involves providing adequate information, documentation, and support to the insurer so that they can make decisions about the claim quickly and efficiently. Failure to follow these procedures may lead to disputes or other issues with the policy. Overall, fidelity in insurance is an important principle in the field of insurance law because it ensures that claims are handled appropriately and promptly, which is essential for the proper operation and management of the insurance industry.

fidelity in insurance

Definition: Life insurance fidelity refers to a type of life insurance policy that provides financial protection to the policyholder's dependents if they die during or after a specified period of time following the death of their insured parent, grandparent, spouse or child. It typically includes an annuity, which is a monthly income stream provided by the insurance company when the policyholder's beneficiaries receive benefits. The term "life insurance fidelity" has several definitions depending on its application: 1.

Term life insurance fidelity

: This type of policy provides financial protection only if the insured person dies during a specified period after death of their parent, grandparent or spouse. 2.

Permanent life insurance fidelity

: In this case, the policyholder's dependents receive benefits for life (or more if the policy is designed to provide income in addition to death benefits) beyond the term of the policy. 3.

Term life insurance with a deferred annuity fidelity

: This type of policy provides financial protection when the insured person dies during or after a specified period, but the policyholder receives an annuity after their death that continues indefinitely. The annuity is paid out at a later date if the insured person lives beyond the term. 4.

Term life insurance without an annuity fidelity

: This type of policy provides financial protection when the insured person dies during or after a specified period, but does not offer an annuity upon death. 5.

Life insurance with deferred benefits

: This type of policy provides financial protection while the insured remains alive by providing income in addition to death benefits until their death. 6.

Life insurance without deferred benefits

: This type of policy provides financial protection only if the insured person dies during or after a specified period, and does not offer any benefit once they die. Overall, "life insurance fidelity" is a type of life insurance policy designed to provide financial protection in the event that an insured person dies while the policyholder remains alive. It offers both immediate income and longevity benefits.

life insurance fidelity