TERM INSURANCE

ADDITIONAL TERM INSURANCE OPTION*
An option available to owners of participating insurance policies under which the insurer uses a policy dividend as a net single premium to purchase one-year term insurance on the insured’s life. Also known as fifth dividend option.

Insurance Industry Blacklist / Cars Database Allegedly Used To Avoid Homeowners Who Filed Claims
(CBS) Dave Swaffer's vista California home is his greatest joy but also his biggest problem. He's lived in his five bedroom home for 15 years. But, as CBS News Correspondent Sandra Hughes reports, after using his homeowners insurance for broken water pipes, State Farm dumped him. After being turned down, Swaffers says he had a total of 46 denials, either through an agency or directly from the company, before finding insurance. The reason Swaffer couldn't get insurance after State Farm dropped him is a secret of the insurance industry called the CLUE system: the Comprehensive Loss Underwriting Exchange. Originally it was used to help companies detect fraud. But now it's being used against consumers to blacklist them for making any claim. "But everyone knows you are going to have to claim, that is the reason you buy insurance in the first place," says Swaffer. "You shouldn't lose your coverage because you filed a claim."