Florida Health Insurance Terms:
Define: "Commutation Right"
Privilege of a beneficiary to take unpaid income payments under a settlement option of an annuity or life insurance policy in the form of a lump sum. For example, if you as a beneficiary have a series of 20 income payments remaining, the present value of these payments can be commuted to a single lump-sum payment.
Commutation can also mean: The process of transferring current from one connection to another within an electric circuit. Depending on the application, commutation is achieved either by mechanical switching or by electronic switching.
News Article: More About: "Commutation Rights"
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