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Insurance Glossary - V

Variable Annuity
An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor.

Variable Annuity
An annuity under which the benefit varies according to the investment results of a life insurance company's separate account (usually invested primarily in common stocks).

Variable Life Insurance
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.

Verbal Threshold
In no-fault auto insurance states with a verbal threshold, victims are allowed to sue in tort only if their injuries meet certain verbal descriptions of the types of injuries that render one eligible to recover for pain and suffering.

Vested Commissions
Renewal commissions payable to the writing insurance agent or his estate, whether or not he remains with the company.

Vesting
A provision that a pension participant will, after meeting certain requirements, retain a right to all or part of the accrued benefits, even though the employee may leave the job before retirement.

Viaticum Settlement
Payment of a portion of the proceeds from life insurance to an insured who is terminally ill. Also known as a viatical settlement.

Voluntary Market
The market where one seeking insurance obtains insurance in the open market with no help from the state, through an insurer of his or her own selection.