Glossary
A
Account Value
With respect to a Policy, the balance in the cash account.
Account Value Basis
The basis upon which the Account Value is calculated for a Policy, i.e., whether the Account Value is expressed gross or net of any applicable Policy Loan.
Account Value Date
In an Illustration or a VOC, the date as of which a particular value is stated (e.g., Account Value, Surrender Value).
Admin Menu
A collection of pages which allow a User with the User Role of Client Administrator or Data Administrator to change parameters affecting the performance of the Client's account in ClariNet LS.
Age Basis
The basis by reference to which the Insured's Attained Age is calculated; either ALB (Age Last Birthday) or ANB/ANBm (Age Nearest Birthday). ANB is the most common basis for Policies issued after 1995. ANB calculates the exact number of days from the reference date to the previous and next birthday and uses whichever is closest on that basis to determine age. For ANBm, if we are more than 6 months after the last birthday, use the next birthday as the age, otherwise use the previous one.
Application
A form completed by (or on behalf of) the initial owner and the Insured(s) when applying for a new life insurance Policy.
B
Beneficiary
The person or entity (e.g., a trust) which is entitled to receive the death benefit upon the maturity of the Policy.
Carrier
The insurance company which promises to pay the Net Death Benefit to the Beneficiary. Note that this company may change over the term of the Policy as a result of mergers or business transfers.
C
Case
A collection of different objects related to a single life insurance policy, such as a Policy, one or two Insureds, Illustrations, Verifications of Coverage and one or more Premium Schedules.
Case Reference
A unique code which you assign to each Case in ClariNet LS, either manually or automatically.
Case Summary
Accessed by clicking on the View icon next to a Case, this contains all of the information on the Case in a series of tabs.
Cases Menu
A collection of functions and tasks affecting Cases, accessed in the Menu Bar. These include creating a new Case and uploading data on new or existing Cases.
Cash Surrender Value
At any time and with respect to a Policy, the Account Value minus the then applicable Surrender Charge.
Charges
The administrative charges levied by the Carrier on a Policy, on a monthly, quarterly, semi-annual or annual basis or on premium payments. The Per Policy Charge, Per Unit Charge and Percent of Premium Charge are all included within Charges.
ClariNet LS
ClearLife’s Life Settlements product.
Client
Sometimes known as Subscriber. A company which has taken out a subscription to one or more modules in ClariNet LS. A client to ClariNet LS is a company, partnership or other entity that has entered into a subscription agreement for ClariNet LS with ClearLife. Each client can have a single user or multiple users, depending on the modules to which it subscribes.
Client Administrator
A designated User who is responsible for creating new Users, deactivating Users and changing their User Roles.
Closing
A module within ClariNet LS. It enables Closing Transaction functionality and Contract Package generation.
Closing Event
A step in the process of a Closing Transaction. Certain Closing Events are included in ClariNet LS by default (e.g., Closing Started, Price Allocation, Closing Complete) and others can be defined by the Client within the Closing Checklist.
Closing Transaction
A Transaction which is created after either a Received Transaction of a Sent Transaction has reached the Transaction Event "Bid Accepted". The Closing Transaction covers the legal and administrative process of documenting the sale of the Policy from one Owner to another and the registration of that sale with the Carrier. It is made up of a series of Closing Events.
CRM
A dataset within ClariNet LS which includes contact information for Companies and People connected with a Client's Cases. The CRM is controlled by the Client.
D
Death Benefit
The amount of money payable by the Carrier to the Beneficiary upon the maturity of the Policy.
Death Benefit Type
The method of calculation of the Death Benefit for a Policy. Options are Face Amount plus Account Value, Face Amount plus Surrender Value (both referred to as Increasing in industry parlance), Level or Return of Premium. Note that some Policies offer the option to switch between Level and Increasing during the term of the Policy. Switching will affect the level of Premiums required to keep the Policy in force.
Document Miner
Document Miner is a powerful tool that allows data extraction from a variety of document types, including PDFs, Microsoft Word documents, and HTML files. This feature is designed to make it easy to extract data from large collections of documents, saving time and effort in manual data entry.
E
Essentials
A module within ClariNet LS. It covers core Case management, Transactions and basic reporting.
F
Face Amount
The basic amount of insurance cover on a universal life policy. Note that the Death Benefit can be a higher amount, if the Death Benefit Type is set to something other than "Level".
G
GCR
An abbreviation for the Guaranteed Crediting Rate.
Go Column
The rightmost column in any Cases list. Includes icons to carry out tasks with respect to the Case and its associated Transactions.
Guaranteed Crediting Rate
The minimum rate of interest which the Carrier guarantees to pay on the Account Value throughout the term of the Policy. At any time, this may be less than or equal to the Non-Guaranteed Crediting Rate.
H
Help Menu
Links from the Menu Bar to these Help pages, ClearLife's privacy policy for ClariNet LS and other information.
Home Page
The web page which appears immediately after you log into ClariNet LS. It can be customized by clicking on the "Customize Home Page" link under the User menu.
I
Illustrated Age
In an Illustration, the basis upon which Insured ages are expressed - either at the start of the Policy Year or - more usually - at the end of the Policy Year. Note that the age will also be determined by reference to the Policy's Age Basis.
Illustrated Premium Mode
The Premium payment frequency which is assumed in an Illustration: Monthly, Quarterly, Semi-Annual or Annual.
Illustration
A document issued by the Carrier which illustrates the performance of the Policy under certain assumptions as to Premium payments, Loads and COI charges.
Illustration Date
The date of an Illustration. Note that this may differ from the Account Value Date.
Individual
With respect to ClariNet LS, a natural person who is designated as an Individual in the Client's CRM.
Initial Account Value
In an Illustration, the Account Value as of the Account Value Date.
Initial Surrender Value
In an Illustration, the Cash Surrender Value as of the Account Value Date.
Insured(s)
A natural person (or persons) whose life is insured under the Policy.
Insureds Menu
A collection of tasks affecting data held on Insureds in a Client's account.
Issuing Carrier
The Carrier which originally issued the Policy.
L
Last Event
The most recent Transaction Event or Closing Event to have occurred with respect to a Transaction referencing that Case.
Liability Management
A module within ClariNet LS. It allows multi-layered capital structures to be modelled against Portfolios to assess the probability of default.
M
Maturity Age
The Attained Age of an Insured by reference to which the end date for Monthly Deductions is calculated. Typically this will be the Policy Anniversary immediately after the Insured becomes the stated age (determined by reference to the Age Basis of the Policy). For Policies referencing two Insureds, it is typically the age of the younger Insured at issue which determines the Maturity Age.
Menu
A collection of tasks and functions affecting a particular aspect of a Client's data in ClariNet LS. Menus include: Cases Menu, Insureds Menu, Portfolios Menu, Admin Menu, Help Menu, News Menu and User Menu.
Menu Bar
The blue bar at the top of each page in ClariNet LS.
N
Net Death Benefit
The Death Benefit minus the balance of any outstanding Policy Loan.
News Menu
Links to the library of Release Notes for ClariNet LS and other information published by ClearLife.
NGCR
An abbreviation for Non-Guaranteed Crediting Rate.
Non-Guaranteed Crediting Rate
The current rate of interest which is paid by the Carrier on the Account Value.
O
Organization
With respect to ClariNet LS, a non-natural person (e.g., a trust or corporate) which is designated as an Organization in the Client's CRM. Note that only Organizations can be the counterparty to a Transaction.
P
Payout Type
First to Die = either insured died (Primary or Secondary is irrelevant) Second to Die = both insureds died
Per Policy Charge
An administrative charge levied by the Carrier on a Policy. Typically expressed as a dollar amount. As the charge is per policy, it does not change with the amount of coverage.
Per Unit Charge
An administrative charge levied by the Carrier on a Policy. Typically expressed as a dollar amount per US$1,000 of coverage - thus, for a US$5,000,000 face amount policy, the actual charge will be the PUC multiplied by 5,000.
Policy
A life insurance policy, being a contract between the Owner and the Carrier under which the Carrier promises to pay the Net Death Benefit to the Beneficiary upon the death of an Insured. For a Policy insuring two Insureds, this may be the first or the second Insured to die, depending on the terms of the Policy.
Policy Anniversary
The anniversary of the Policy Date. Changes in COI rates and Surrender Penalties typically occur at or just prior to a Policy Anniversary.
Policy Date
The start date for coverage on the Policy. Usually - but not always - the same as the Policy Issue Date.
Policy Form
The generic terms and conditions for the Policy (i.e., those terms which are not customised for the initial Owner and/or the Insured(s)).
Policy Issue Date
The date on which the Policy was issued. This date does not drive any characteristics of the Policy - that is done by the Policy Date, which may differ from the Policy Issue Date in situations where the Carrier agrees to adjust the Policy Date to "save age" and reduce the first year's Premium.
Policy Loan
An amount equal to or less than the Cash Surrender Value of the Policy which is borrowed by the Owner. The Policy Loan amount increases with interest at the Loan Accrual Rate and the loaned Cash Surrender Value continues to earn interest, albeit at the Loan Crediting Rate (which may be lower than the Non-Guaranteed Crediting Rate then in effect). Any Policy Loan must be repaid upon maturity of the Policy.
Policy Loan Accrual Rate
The interest rate at which interest is charged on the balance of any Policy Loan.
Policy Loan Crediting Rate
The interest rate at which interest is earned on the original amount of any Policy Loan.
Policy Number
A reference number assigned to the Policy by the Issuing Carrier. It is usually stated on the front of the Policy Form and on the Policy Schedule.
Policy Schedule
Sometimes know as the "data pages", this is attached to the Policy Form and represents the specific terms and conditions of the Policy which relate to the initial Owner and/or the Insured(s), such as the Policy Number, Face Amount, Charges and Policy Date.
Policy Year
The period of one year from and including one Policy Anniversary to but excluding the next Policy Anniversary.
Portfolio Management
A module within ClariNet LS. It covers probabilistic, deterministic and stochastic pricing and risk analysis for Portfolios, Actual to Expected analysis and additional reporting.
Portfolios Menu
Links to a list of your Portfolios.
PPC
An abbreviation for Per Policy Charge.
Premium Schedule
In life settlements industry parlance, this refers to a list of amounts and dates for Premium payments on a Policy. In ClariNet LS, the Premium Schedule also includes a list of associated Net Death Benefit amounts and therefore covers two of the three cashflow legs included in the valuation of the Policy (the third being the Fees leg, which is derived from the selected Fees Template).
PUC
An abbreviation for Per Unit Charge.
R
RAP Amount
For a Policy with a Required Annual Premium, this is amount of the required premium for each Policy Year during the RAP Number of Years.
Received Transaction
From the perspective of a Client, the process of received a Case from a third party (which may be another Client). A Received Transaction is defined by a series of Transaction Events.
Required Annual Premium
Carriers will on occasion impose a minimum level of premium that must be paid into the Policy in the first x Policy Years after issue. This is done to ensure that the Carrier can recoup its initial costs through deductions based on the Premium Expense Charge. Typically, the RAP Amount must be paid in each Policy Year for the RAP Number of Years to keep the Policy in force. The RAP is typically set at a level which will exceed monthly deductions during the period for which the RAP is effective.
S
Sent Transaction
From the perspective of a Client, the process of sending a Case to a third party (which may be another Client). Also defined by a series of Transaction Events.
Servicing Carrier
The insurance company which is designated on the Servicing tab as being responsible for the servicing and maintenance of the Policy. The Servicing Carrier must be an Organization in the Client's CRM which has the CRM Role "Carrier".
Single Policy Pricing
A module within ClariNet LS. It covers probabilistic and deterministic pricing and risk analysis for single Policies, custom reporting and additional Users.
Status
With respect to a Case, this is the ownership status of the Case. Options are: OWN (Owned), PEND (Maturity Payment Pending), MAT (Maturity Payment Paid), SOLD (Sold) or SURR (Surrendered). The Status of a Case is determined by reference to data on the Cost/Maturity/Disposal tab in the Case Summary.
Status Date
In a Case List, the date as of which the last Transaction Event or Closing Event occurred with respect to the Case.
Subscriber
A company which has taken out a subscription to one or more Modules in ClariNet LS. A client to ClariNet LS is a company, partnership or other entity that has entered into a subscription agreement for ClariNet LS with ClearLife. Each client can have a single user or multiple users, depending on the modules to which it subscribes.
Surrender Charge
With respect to a Universal Life Policy, a charge made for surrendering the Policy at a particular point in time. The Surrender Charge for each Policy Year is set out in the Policy Schedule and/or the Policy Form.
T
Transaction
A business process which may result in a change in the ownership of a Policy. A Closing Transaction, a Sent Transaction or a Received Transaction.
Transaction Event
A step in the process of a Sent Transaction or Received Transaction, such as Submitted, Received, Bid or Bid Accepted.
U
User
An individual who works for a Client and has a user login to that Client's account on ClariNet LS.
User Menu
A collection of tasks relevant to the User, including customizing the User's Home Page and changing the User's login details.
V
Verification of Coverage
Information concerning a Policy which is correct as of a stated date. Information may include such factors as the Account Value, the Cash Surrender Value, the amount of any outstanding Policy Loan and the most recent Premium payment. A Verification of Coverage may be verbal (where the information is derived from a telephone conversation with a Customer Service Representative of the Carrier) or written (where the information is presented in written form by the Carrier, usually in response to a written request for such information from the Owner).
VOC
An abbreviation for Verification of Coverage.
W
Withdrawal
A process through which excess Cash Surrender Value can be withdrawn from the Cash Account, resulting in a reduction in both the Account Value/Cash Surrender Value and the Death Benefit.