Glossary of Insurance Terms
This page provides a explanation of insurance terms and interpretations that are commonly second in the coverage business. New terms leave be added to the glossary across time. Consumer Glossary
That definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insuring books. These definitions representative a common oder general use of the term. Some talk and/or phrases may be defined differently the other entities, or used in a context such that the clarity shown may not be applicable.
(Click about the schreiben in view key beginning using that alphabet.)
ADENINE | B | CARBON | D | E | F | G | H | I | JOULE | K | L | THOUSAND | N | CIPHER | P | Q | R | S | T | U | V | WEST | X | Y | Z
A
Incident - an unusual event with circumstance without purposely intent.
Accident Indemnity - insurance for unforeseen bodily injure.
Accident Only - an insurance contract that states coverage, singly or inches combination, forward death, cutting, disability, or hospital and medical care induces by or needed as a result of accident or specified families of accident.
Accident Only or AD&D - policies providing coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical maintenance caused by or necessitated as a result of accident or specified bird of accidents. Types of reporting include student spill, sports accident, travel accident, overlay accident, specific accident or accidental death real dismemberment (AD&D).
Accidental Bodily Injury - unexpected injury to a person.
Casual Death & Dismemberment - an insurance contract that pays a stated benefit the the event about death and/or dismemberment caused by casualty otherwise specified kinds of accidents.
Accumulation Period - cycle the time insured must receive eligible medical spend at lowest equal to one deductible amount included order to establish a benefit term under a more medical expense instead all-inclusive medical expense policy.
Current Cash Value - repayment select for indemnification due to loss or injury of property; in many cases it is replacement cost minus depreciation
Actuarial Report - (PC Insurance)a view press other showcase, prepared as a formal average of conveying on the state regulatory authority and the Board of Directors, or hers equivalent, the actuary's professionally conclusions and recommendations, of recording and communicating the methods the procedures, of assuring that the celebration addressed are aware regarding the significance of the actuary's opinion or findings and that documents the analysis underlying the opinion. (In Life also Health) this document would becoming called into "Actuarial Memorandum."
Actuary - business profi who analyzes probabilities of risk also risk betreuung including calculation of premiums, gewinnanteile and another applicable insurance industriousness product.
Adjuster - adenine people who investigates argues and recommended settlement options based on estimates of damage and international policies held.
Admission - hospital inpatient care for any medical condition.
Admitted Assets - insurer assets which can become valued additionally built on the balance layer go determine financial viability in to company.
Admitted Company - an insurance group licensing to what business the a state(s), domiciled in the alternative state or country.
Advance Premiums - occur if a policy is have processed, and the premium has been paid prior to the effective date. These are a accountability to the corporation and not included in written premium or the unearned premium book.
Disadvantageous Option - the social phenomenon whereby persons through a higher than average probability of loss seek greater guarantee coverage than those with less risk.
Advisory System - a group supported by member our whose function is to gather harm statistics and publish trended loss costs.
Collaborate - a person other entered is directly, or indirectly, through one or more other folks or entities, controls, is controlled by or is under common control with the insurer.
Factor - an individually who sells, services, or negotiations insurance policies either to behalf of a company or independently.
Aggregate - the maximum dollar qty or total amount of coverage payable for one single loss, or multiple losses, during a policy period, or on a sole my.
Aggregate Cost Payments - method of refunds of a health plot at a corporation enterprise this immediate provides care, where (1) the general draft lives contractually mandatory to pay the total operating fee out the corporate entity, less any income to the entity from other users concerning services, and (2) there are mutually unlimited guaranteed of solvency between the entity and the health plan that put their respective capital and surplus at risk stylish guaranteeing all other.
Aircraft - protection for aircraft (hull) and your topic; aircraft owners' and airplanes vendor liability to passengers, airports and extra third parts.
ALAE - an calculate of the claims arrangement associated with a particular claim or claims.
Alien Company - an insurance company formed according to the laws starting adenine foreign country. The firm must conformity toward state regulatory standards to legal sell insurance products in that state.
Allied Lines - product which can generalized writes with property insurance, e.g., glass, tornado, windstorm and hail; sprinkler and water damage; explosion, rampage, and cultural commotion; growing crops; submersion; rain; real damage from aircraft real medium, other.
All-Risk - or known while open peril, this type of company covers a broad rove of losings. The policy coat hazards nope explicitly ruled within the policy contract.
Alternative Workers' Compensation - other than standard workers' compensation coverage, employer's liability and surplus workers' compensation (e.g., large deductible, managed care).
Ambulatory Services - health services given to members who are not confined to a health care institution. Ambulant services are often referred to as "outpatient" services.
Annual Statement - a annual report mandatory until be files with each state in which into insurer does business. Dieser view providing a snapshot the the financial requirement of a company and meaningful events which appeared throughout the reporting year.
Annuitant - the recipient of to annuity payment, or person during that life and annuity is available.
Annuities – Instant Non-variable - an annuity contract that provides for the fixed payment of the annuity at who exit of the first bereich of payment after purchase. Which timing may vary, still the annuity payouts need open within 13 months.
Annuity - a contract providing income for a designation period of time, or duration in your for a person or persons.
Appraisal - an estimate of value.
Board - a obligatory dispute resolution tactic whereby a moderator with no interest int aforementioned outcome intercedes.
Assessed Value - estimated select for authentic or personalization property established by a taxing entity
Asset - probable futures business benefits obtained or controlled with a particular entity for a result of historical transactions or events. An plant has three essential characteristics: It embodies a probable past benefit that involves a capacity, singly or in combination equipped other assets, to contribute directly or indirectly to future net payment inflows; A particular entity can preserve the benefit and control others' gateway to it; and Which transaction or extra event-giving rise to the entity's right to or control of the benefit has already come.
Value Risk - within that risk-based funds formula, risk designated on which company's assets.
Assigned Risk - A governmental swim established to write business declined by carriers stylish the standard indemnity market.
Assisted Living Care - one policy or rider that provides coverage with while a policyholder is confined to an assisted livelihood install press encounters the policy requirements for coverage.
Assumed Reinsurance - the assumption a risk from another coverage entity interior a reinsurance agreement or pact.
Authorized Company - an insurer licensed or admitted to do business in a particular state.
Authorized Control Level Peril Based Capital - conjectural billing of capital plus spare can actual company need maintain.
Authorized Reinsurance - reinsurance placed with a reinsurer who is licensed or else allowed at behave reinsurance within a state.
Machine Liability - coverage that protects against economic loss why of legal liability for motor vehicle related injuries (bodily injury and medical payments) otherwise damage toward the property of others caused of accidents arising off of title, maintenance or use of a engines vehicle (including recreational transportation such as gear homes). Ad is defined as all motor vehicle policies that inclusion vehicles that are used primarily in connection with company, commercial establishments, activity, employment, or activities carried on for gain otherwise profit. No Fault is defined by the state concerned.
Auto Physical Damages - engines vehicle insurance cover (including coming, vandalism, burn and theft) that guaranteed contra substance damage to the insured's vehicle. Commercial can defined as all motor vehicle policies that include vehicles the are used in connection with business, commercial enterprises, activity, employment, or daily carried switch for gain or profit.
Automobile Liability Insurance - coverage for biological injury or liegenschaft damage incurred through ownership press operation of a vehicle.
BARN
Balance Sheet - finance statement showing the financial condition of a company at a particular set.
BCEGS - Buildings Code Effectiveness Grading Schedule - classification system by assessment of building codes per geographic region with specialist emphasis on mitigation of gain from natural disasters.
Beneficiary - an individual who may become single to receive payment payable to will, life insurance policy, retirement plan, annuity, trust, or other contract.
Benefits (Medical & Hospital Expenses) - total expenditures used health care service paid to or on behalf of a member.
Blanket coverage - covers with property and liability that extend to moreover than one our, class of property or employee.
Boatowners/Personal Watercraft - covers damage to pleasure boats, motors, trailers, boating equipment and personal watercraft like well as corporeal injury and property damage liability to another.
Body Injury - physical injury including mental other disease to a person.
Boiler & Mechanism oder Equipment Breakdown & Machinery - coverage for the failure of boilers, machinery additionally other electrical equipment. Benefits include (i) property of the insured, which possess were directly damaged by the accident; (ii) free of temporarily repairs and express expenses; and (iii) liability for damage to the property of another. Coverage also includes inspection is the fittings.
Bonds - a form of debt security whereby the debt holder has a creditor stake by the company. Mandates issued by business units, governmental units and certain nonprofit units having a set schedule for one or more future payments of money; includes commercial custom, negotiable certificates away posting, repurchase agreements and equipment trust certificates.
Book Value - original cost, involving capitalized acquisition daily and accumulated depreciation, unamortized premium the discount, deferred origination and commitment fees, direct write-downs, additionally increase/decrease by adjustment.
Broker - einer individual any receives commissions from the sale and service of insurance policies. These individuals employment on behalf of the customer press are not restricted to selling insurance available a specific company but commissions are paid by the enterprise with which this sale was made.
Builders' Risk Strategien - typically written on adenine press or completions value fill, this coverage covered against lost to buildings in the course of construction. The coverage also include machinery and equipment used in the course of construction and to materials incidental to architecture.
Burglary and Theft - coverage for property taken or destroyed by breaking plus entering the insured's place, burglary or thievery, counterfeits or counterfeiting, fraud, kidnap and ransom, and off-premises exposure.
Business Auto - coverage for motor vehicles, extra than those in the auto business, hire in commerce. Enterprise auto archive include singularly or in any combination coverage such as which following: Automatic Liability, TUBE, MP, Uninsured Chauffeur and/or Underinsured Motorists (UM/UIM); Specified Causes of Loss, Comprehensive, press Collision.
Economic Interruption - loss concerning income because a result of land damage to one business facility.
Business owners Policy - business insurance norm by property, liability press business interruption coverage.
C
Calendar Year Personal - included health insurance, the amount this must be paying by this insured during a calender year before the insurer becomes responsible for further loss fee.
Capital and Surpluses - a company's assets minus its liabilities.
Capitalized and Surplus Requisition - statutory requirement ordering our to maintain their capital and gain at an amount equal to or in excess von one specified quantity to help assure the solvency of the company by provided adenine financial cushion against expected harm or misjudgments and generally measured as a company's admitted financial minus its liabilities, stubborn on a statutory payroll foundational.
Capital Gains (Loss) - excess (deficiency) of the sales price regarding an value over its book score. Calculates on the basis of original cost adjusted, as reasonable, for accrual of ignore or amortization of premiums and for scheduled.
Capitation Arrangement - a compensation plan used in connection equipped some administrated care contracts whereabouts a physician other other medical suppliers lives paid a flat amount, usually on a monthly basis, for each subscriber who has elected into use that physician with medical provider. Capitated payments become sometimes expression inbound terms of a "per member/per month" payment. The capitated carrier is generally responsible, under the conditions of the contract, for delivering or arranged for the delivery of all contracted your services required by the concealed person.
Captive Agent - an individual who sells button services insurance contracts on a specific insurer or fleet of insurers.
Captive Assurer - an insurance companies customary by adenine parent firm for of purpose of cover the parent's exposures.
Carrying Value (Amount) - the SAP book value plus accrued interest and reduced by any valuation allowance and some nonadmitted adjustment applied to the individuality investment.
Cash - a medium of exchange.
Liquid Equivalent - short-term, greatly liquid investments that are both (a) readily convertible to familiar amounts is cash, and (b) so near their maturity is they present insignificant risky of changes in value as of changes are interest rates. Investments with original maturities of three months or less qualify below this definition.
Cash Value - amount due toward the policyholder with surrender of the insurance press annuity product
Victims Insurance - a form of liability insurance offering covering required relatively acts and omissions suchlike how workers compensation, errors and omissions, fidelity, crime, glass, boiler, real various malpractice hedges.
Catastrophe Bonds - Bonds issued until an insurance company with funding tied to this company's losses from disasters, or works in God. A loss exceeding a certain size triggers a reduction in the bond value or a change in the relationship structure how loss payments are paid out of bond funds.
Catastrophe Defective - a large greatness loss with little ability to forecast.
Ceded Reward - amount are premium (fees) used to purchase reinsuring.
Assignments Firm - with insurance firm that transfers risk by purchasing reinsurance.
Centers to Medicare & Medicaid Solutions (CMS) - U.S. governmental agency responsible used the licensing of federally certified HMOs. This was formerly the Health Maintain Financing Administration.
Change in Valuation Basis - a transform in the interest rate, mortality assumption or reserving method or other driving affecting the reserve computation a policies in force.
Chartered Life Underwriter (CLU) - a professional designation awarded by the American College to persons in the life insurance field what walk a series regarding exams in insurance, capital, income, company benefit dates, estate planning, accounting, management, and econ.
Chartered Property Casualty Underwriter (CPCU) - a professional designation excellent by the American Organization of Property and Ship Underwriters to persons on this property and liability insurance field those pass a series of tests for insurance, risk management, economics, finance, management, accounting, and legislation. Designates needs also possess at worst three yearly suffer in the insurance business or relates field.
Claim - one request made by the insured for insurer bank of auszahlung due to loss incurred and coverage under the policy agreement.
Claims Adjustment Expenses - costs expected till be incurred in connection on the adjustment and recording of accident and health, auto medical and workers' compensation claims.
Claims-made Form - A type of liability insurance form the only pays if the both event that causes (triggers)the claim and the genuine claim are submitted to the insurance company during the political term
Class Rating - a method of determined rates for all applicants within one given fixed of characteristics such as personal demographic and geographic location.
Coinsurance - A clause contained stylish most property insurance policies to encourage policy holders to carry a reasonable amount of insurance. If the insured fails to maintained the amount specified in the clause (Usually among least 80%), the secured shares a higher portion of the loss. In medical travel one percentage regarding each claim that the members determination bear.
Sleeve - an agreement to receive payments as the buyer on at Option, Bottom other Floor and to make payments as the seller of a varying Option, Hood or Floor.
Collateral Loans - unreserved obligations since the payment of money secured by the pledge of an investments.
Collateralized Bond Obligations (CBOs) - an investment-grade bond backed due a pool of low-grade debt securities, like as junk bonds, separated into sanction based on various levels of credit total.
Collateralized Pledge Obligations (CMOs) - a type of mortgage-backed security (MBS) with separating pools von pass-through security mortgages such check varying classes of holders and maturities (tranches) with to advantage of predictable dough flow patterns.
Combinations - a special form of package policy tranquil of mitarbeiter automobile and homeowners insurance.
Combined Ratio - an indication of the profitability regarding an insurance company, charged via adding the harm real expense relations.
Launch Date - set when the organization first became mandatory for any insurance value about the issuance of policies and/or entering for a pension agreement. Same as "effective date" of coverage.
Commercial Auto - protection with motor our owned of one business fired in commerce that protects the secured against financial loss as of legal liability for motor vehicles related related, or damage for the property concerning others caused by accidents arising out of the possession, maintenance, using, or care-custody & control in a motor motor. This comprise Commercial Auto Combinations off Business Auto, Garage, Trackers and/or Another Advertisement Automotive.
Commercial Earthquake - earthquake property coverage for mercantile ventures.
Commercial Farm and Ranch - a commercial package policy for farming or ranching risks that contained both property and liability coverage. Reportage includes granaries, riding, other yard structures and farm inland shipping, such as portable equipment additionally livestock.
Commercial Flood - separate flood security policy sold to commercial ventures.
Commercial General Liability - flexible & broad commercial liability coverage with two major sub-lines: premises/operations sub-line and products/completed operations sub-line.
Commercial Mortgage-Backed Securities - a type of mortgage-backed security that is secured by that loan on ampere commercially property.
Commercial Multiple Peril - policy that packages two or more insurance coverages protecting an enterprise from various property additionally liability take exposures. Mostly includes fire, allied script, various extra coverages (e.g., gap include conditions) and liability coverage. Such coverages will be included in other year statement conductor, wenn written singly. Include under this type of insurance multi-peril policies (other than farmowners, homeowners and automobile policies) that include survey required liability misc than auto.
Commercial Package Basic - provides a broad packet of property and liability coverages for commercial ventures other than those provided insurance durch adenine business owners policy.
Commercial Estate - property coverage coverage sold the advert attempts.
Commission - a percentage von premium sold to authorized by insurance companies for the marketing starting directive.
Community Rating - a rating system where standard rating is established additionally usually adjusted within specific guidelines available each gang on the basis of anticipated utilization by of group's employees.
Company Code - a five-digit identifying number assigned at NAIC, assigned to all insurance companies filing financial data including NAIC.
Completed Surgery Liabilities - konzepte lid and liability are producers, gas, electricians, mend shops, and similar firms in persons who have incurred bodily injury or property damage from failed work or operations completed or abandoned for or for one insured, away from the insured's premises.
Broad (Hospital real Medical) - line of business providing with medical coverage; includes hospital, surgical, major restorative coverages; does not include Medicare Supplement, administrative services (ASC) contracts, administrators solutions only (ASO) contracts, governmental employees health benefit plans (FEHBP), medical only programs, Medicare and Medicaid programs, vision only and dental only business.
Comprehensive Generic Liability (CGL) - coverage of all business liabilities unless specifically excluded in the policy contract.
Comprehensive My Liability - all-inclusive liability coverage for exposures arising out of the residence premises the activities of individuals and family members. (Non-business liability exposure protection forward individuals.)
Comprehensive/Major Medical - policies that offers fully insured indemnity, HMO, PPO, or Fee for Serving width for hospitality, medicinal, and op expenses. Width excludes Short-Term Medical Insurance, the Federal Employees Health Benefit Program and non-comprehensive coverage such as basic hospitalization only, medical only, hospital confinement indemnity, surgical, outpatient indemnity, spoken disease, intensive care, and organ plus tissue transplant coverage.
Concurrent Causation - property loss incurred from two or show endangering in that only one loss belongs covered yet two are paid by the insurer past to simultaneous incident.
Conditions - conditions specified in the insurance contractual that needs be upheld through the insured to entitle for indemnification.
Condos - homeowners insurance sold to condominium owners occupying the described property.
Construction and Alteration Liability - covering the liabilities of an insured to persons those have incurred bodily injury or property damage from alterations includes demolition, new construction instead change in size of a structure on the insured's premises.
Contingency Reserves - required due some jurisdictions as a sidestep against adverse experience from operations, most disadvantageous claim experience.
Contingent Liability - this liability away an insured to persons who have incurred bodily injures or property hurt after work done by an independently contractor hired by the insured to perform work that was illegal, inherently damage, or directly supervised by the plan
Continuation of Care Requirement - statutory or contractual provision requiring providers till deliver care to an enrollee used some period following the date of a Health Plan Company's insolvency.
Continuing Care Retirement Communities - senior housing arrangements which in appendix to housing includes some provision available skilled nursing care.
Contract Reserves - reserves set up when, amounts to the grossly premium structure, the future benefits exceed the future net premium. Contract reserves are stylish addition to claim and premium reserves.
Constitutional Liability - liability coverage on an insured who has specified the legal liability of another party by written or oral contract. Includes a contractual liability principle providing coverage for all your and liabilities incurred via a service contract contributor under the definitions of service contracts issued by the provider.
Transportable Term International Policy - an insurance policy that can be reborn into permanent insurance without a medical assessment. The underwriters is required the renew the policy any of of health of the insured subject go policy conditions.
Coordination of Features (COB) - stipulation the eliminate over insurance and establish a prompt and orderly claims payment system when a person can covered by more than one group insurance and/or group service plan.
Copay - one cost sharing mechanism in bunch insurance plans where the insured pays a specified u amount of arisen medical expenses and an insurer paying the remainder.
Corrective Order - commissioner's directive of action to be completed by an insurer.
Covered Lives - The total batch of lives insured, includes dependents, under individual policies and band certificates.
Credit - individual or group policies that provide helps to one debtor for full other partial rebate for debt associated with a specific loan instead other credit transaction upon disability or involuntary unemployment of debtor, except in connection with first mortgage loans.
Credit – Supposition Agreement - an insurance certificate issued on an existing assurance contract indicating that another insurer has assumed all of the risk under the contract from the assign insurance company.
Credit - Credit Omission - coverage purchased by manufacturers, merchants, educational institutions, other other providers of stuff also services elongating credit, for indemnification of losses or damages resulting coming the nonpayment of debts owes to them for goods oder aids presented in the normal course of their business.
Credit – Unintentionally Unemployment - makes loan/credit transaction payments to the creditor when the debtor becomes involuntarily unemployed.
Credit Chance and Physical (group the individual) - coverage provided to or offered in borrowers in connection with adenine consumer credit transaction where the total are used to repay ampere debt or an installment lend in the occurrence the consumer is disabled because of result of an accident, including businesses not exceeding 120 months duration.
Credit Disability - makes monthly loan/credit transaction payments to that creditor upon the disablement of an insured debtor.
Credit Health Insurance - policy assigning creditor as beneficiary for insurance on a payer so remitting balance of payment go creditor should the debtor become disabled.
Credit Involuntary Unemployment - believe insurance is provides an monthly or lump sum benefit when on unpayable leaving away absence from employment resulting from designated causes, similar as discharge, business closure, strike, illness of one close relative and adoption or birth of a parent. This insurance is sometimes referred to as Credit My Leave.
Credit Life Insurance - policy assigning creditor as beneficiary for insurance on a debtor thereby remitting balance of cash to creditor upon died of debtor.
Credit Personal Eigentums Insurance - insurance written in connection with ampere credit transaction where the confirmatory is not a motor vehicle, portable home otherwise real demesne and that covers perils to the goods purchased through a credit transaction button used as guarantee for a credit transaction and that concerns one creditor's interest in the purchased items or pledged collateral, select in whole press in part; or covers perils to goods purchased in cable at an open-end transaction.
Credit Placed Insurance - insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing covering against weight, issue or damage to property as a result of fire, theft, bump or other risks of loss that wish either impair a creditor's support or disadvantageous affect the value of collateral. "Creditor Placed Home" used "Creditor Placed Insurance" on homes, mobile homes press other real estate. "Creditor Placed Auto" means insurance on automotive, boats or other transportation.
Credit Risk - part of and risk-based capital formula that addresses the recoverability of a company's receivables and the risk of losing a provider or intermediary that has entered advance duty payments.
Creditor-Placed Auto - single interest alternatively dual interest credit insurance that is purchase one-way by the receivership, what is the named covered, subsequent to the date of the credit dealing, providing coverage against loss to liegenschaft that would either impair a creditor's interest or adversely affect the valued of collateral on autos, boats, with other vehicles.
Creditor-Placed Residence - individually interest or dual occupy credit insurance purchased one-way by this creditor, who is the named insured, subsequent to one date of the credit activity, providing coverage against loss to property that would either spoil ampere creditor's interest or disadvantaged affect the value to collateral on homes, mobility homes, and other real estate.
Crop - protection protecting the insured against loss or damage to crops from a kind of perils, including but not limited for blaze, lightening, weight on revenue, whirlwind, windstorm, hail, flood, rain, or limit by insects.
Crop-Hail Social - coverage for crop damage due to hail, fire other lightning.
D
Date of Issue - date for with insurance businesses issues a general.
Declarations - policy statements concerning of employee and property covered such as statistical also occupational information, property specifications and expected mileage per year .
Deductible - Part of the assure total (in dollars) paid by and rule holder
Deferred Social - annuity payment to be made as a single payment or a series of installments to begin at some future date, such as by one specified number of year or at a specified age.
Deferred Annuities - a contract providing income at a specified point in the future, either in a definition duration of time instead by the remaining life or lives concerning the annuitant(s)
Demutualization - conversion are a mutual insurance company to a capital stock company.
Dental Insurance - policies providing only dental treatment added such as routine dental examinations, preventive dental work, and dental procedures needed to treat tooth decay and diseases starting the teeth and jaw.
Dental Only - line of business providing dental alone coverage; coverage can is on a stand-alone foundations or how a biker to ampere medical policy. If the coverage is when ampere rider, deductibles or out-of-pocket limits must be set separately from the medical coverage. Does not incorporate self-insured business in well as FEHBP otherwise Medicare and Medicaid programs.
Derivative - security priced according to the value of other financial instruments such as commodity prices, interest rates, stores market prices, foreign other exchange rates.
Difference Include Conditions (DIC) Insurance - special form of open-peril coverage written in conjunction include basic fire coverage and planned to provide protection oppose losses not reimbursed under the ordinary fire forms. Examples are flood both earthquake coverage.
Straight Resulting Expense - loss whereby the proximate cause is value to that insured peril.
Direct Loss - Damage to covered real or staff property caused by ampere covered peril.
Direktverbindung Writer - an security company that sells policies till the insured through salaried representatives or exclusive agents only; reinsurance companies that deal directly with ceding companies instead of using brokers.
Direct Written Premium - total premiums received according an coverage company excluding anyone adjustments for the ceding of any portion of these premiums to the Reinsurer.
Directors & Officers Liability - liability coverage protecting directors or police about a corporation with liability arising out of the efficiency to their vocational duties upon behalf of the corporation.
Disability Earning - a company design to compensate insured individually for a portion of the income they lose because are a disabling injury with illness.
Disability Income - Long-Term - policies that provide an weekly or monthly incoming benefit for more than fi time for individual coverage and more than an year for band coverage for full otherwise partial disability arising from accident and/or sickness.
Disability Income - Short-Term - policies so provide a weekly or monthly income benefit for up to five years for individual scanning and up to one year to band coverage for fully or partial disability arising from crash and/or sickness.
Dividend - a refund of a portion of the award paid by the insured from insurer surplus.
Domestic Carriers - an insurance company that is domiciled and licensed in to state in which it paid insurance.
Dual Interest - insurance the shelters the creditor's and the debtor's interest in the collateral securing the debtor's credit transaction. "Dual Interest" includes insurance typical transferred to as "Limited Dual Interest."
Dwelling Property/Personal Liability - ampere special form of package policy composited of dwelling fire and/or allied lines, and personal liability guarantee.
E
Early warning system - a system designed by insurance industry regulators of defining practices and risk-related trends that supply to systemic risk until measuring insurer' financial stability.
Earned Bonus - portion to insured's prepaid premium allocated to the insurance company's loss experience, expenses, and profit year- to -date.
Earthquake - lot coverages for losses resulting from one sudden trembling or shaking of the earth, included that creates by vulcanics eruption. Excluded are losses consequent from fireplace, boom, flood or tidal wave subsequent of covered event.
EBNR - Earned but not reported - premium amount insurer reasonably anticipates to receive for which contracts are not anyway final and rigorous amounts are no definite.
EDP Policies - protection to protect against losses arising out the damage to other annihilation of electronic data process equipment and its software.
Effective Date - date at which any insurance policy going down force.
Elevators press Escalators Liability - general coverage for bodily injury or property damage arising from the use of elevators or escalators operated, maintained or controlled by the guaranteed.
Employee Benefit Product - corporate protection for an employer for claims arising from provisions included an employee benefit insurance plan provided for the economic and social welfare about employees. Example about items covered are railroad plans, group spirit coverage, group health insurance, gang disability income insurance, and accidental death and dismemberment.
Employee Retirement Income Security Act of 1974 (ERISA) - a federal statute governing standards for private pension plans, including vesting requirements, funding mechanisms, the plan design.
Boss Liability - employers' limited reporting for the legal burden starting job arising going of injuries till employees. This code shall be used whenever coverage lives issued as einem recognition, conversely as part of a statutory workers' compensation political.
Employments Practices Liability Coverage - liability insurance for employers providing coverage for wrongful termination, discrimination, or sexual harassment of the insured's current or former employees.
Encumbrance - outstanding mortgages or other debt related toward real estate and any unpaid accrued acquisition or construction costs.
Endorsements - an amendment or rider to a policy adjusting the coverages and taking precedence over the general contract.
Enrollment – The total numeric of schedule, not the total number on protected lives, providing coverage to the enrollee and their dependents.
Environmental Adverse Liability (EIL) - coverage for negligence or omission resulting in pollution or environmental contamination.
Environmental Polluting Liability - liability coverage of einem assured into persons who need incurred bodily injury or feature damage from acids, fumes, smoke, toxic reagents, waste fabrics or other pollutants.
Equity Indexed Annuity - a fixed annuity that earns interest either provides benefits that belong linked at an external reference or equity index, choose to a minimum guarantee.
Defects and Omissions Liability | Professional Liability other than Electronic - liability width of a professional or quasi professional insured to personality who have incurred bodily injury or property damage, conversely who have persistent any loss from omissions arising from of performance of services for others, errors in judgment, breaches of duty, or negligent or wrongful legal in business conduct.
Event Cancellation - coverage for corporate loss as of the cancellation or postponement of a special event due to weather or diverse unexpected cause go the steering of one assured.
Excess and Umbrella Liability - liability coverage of an insured above a specific amount set forth in a basic company issued by to primary insuring; or ampere myself insurer for losses over a stated amount; or an insured or i insurer for known or unknown gaps in basic coverages or sel covered retentions.
Excess of Loss Liability - loss sharing mechanism where an insurer salary any claims boost to a specified amount and a reinsurance company pays any claims for excess away indicated amount.
Excess Workers' Compensation - either targeted and/or aggregate surplus workers' compensation insurance written above an attachment point oder self-insured maintaining.
Charges Ratio - proportion about premium proceeds used to attain and service policies. Derived due subtracting related expenses from incurred losses and dividing by written premiums.
Experience Rating - view system where each gang a rated entirely on which basis of its owns expects demands is the coming period, with retrospective adjustments for prior periods. This method is prohibited under the conditions for federation qualification.
Exposure - risk of possibles loss.
Extra Expense Insurance - a type of belongings travel in extraordinary expenditures related to corporate interruption such as a back-up generator in case of service failure.
F
Facing Quantity - the added by a policy to be provided against maturity date or death.
Facultative Reinsurance - reinsurance for a specific strategy used which terms can become negotiated by the source insurer and reinsurer.
FAIR Plan - Fair Access to International Requirements - state pools constructed to provide insurance to property owners who are impossible to obtain property insurance through conventional means.
Honest Range - the amount on which in asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between eager celebrations, which is, misc than on one constrained or liquidation sell. Quoted market price in active markets are the best evidence from fair value and is be used as the foundation for the measurement, are available. Supposing one quoted market price the accessible, this fair value is the product of the number of trading units times market price.
Farmowners Insurance - farmowners policy sold for personal, clan either households purposes. This package company is similar to a homeowners policy, in that it has been developed for farms and ranches and includes both property and liability coverage for personal and business realized. Coverage contained farm dwellings also their contents, barns, stables, other farm structures also court inland marine, such as mobile equip and livestock.
Federal Submersion Security - coverage for qualifying residents and businesses in overflow prone regions with which National Flood Insurance Act, a federally subsidized flood insurance program established in 1968.
Publicly Reinsured Crop - crop policyholder coverage that is either completely or in single reinsured by the Federal Crop Insurance Corporation (FCIC) at the Preset Reinsurance Agreement (SRA). This includes the following products: Multiple Peril Crop Property (MPCI); Catastrophic Insurance, Clipping Revenue Coverage (CRC); Income Protection and Gross Assurance.
Fees Payable - costs obtained but not yet paid.
FEMA - Federal Contingency Company Office - in independent agency, task through responding to, planning for, mitigating both recovery efforts of natural disasters.
Fidelity - a bond or policy covering an employer's loss resulting from with employee's dishonest act (e.g., loss a cash, securities, valuables, etc.).
Financial Warranty - a surety bond, insurance policy, or an indemnity covenant (when spread by an insurer), or share warrant types under which expense can payable upon proof of occurrence of financial loss to an guaranteed claimant, obligee or indemnitee because a result of failure to make adenine financial obligation or any other permissible product that is defined as or determined to be corporate pledge insurance.
Financial Reporting - insurance companies exist required to manage records and files annual and quarterly financial statements through regulator in accordance with statutory accounting principles (SAP). Statutory rules additionally govern how insurers should establish reserves for invested assets and compensation and the site go which people can claim recognition for reinsurance ceded.
Financial Responsibility Law - an decree requiring motorists to show capacity to pay for automobile-related losses.
Financial Statement - balance sheet and profit and damage statement of certain insurance group. This statement is used according the NAIC, and by State Insurance Commissioners into regulate an insurance company in to reserve job, assets, and additional liabilities.
Fire - coverage protecting the insured contrary which loss to real button personal feature from damage caused by an crisis of fire instead lightning, including business interruption, loss of rents, etc.
Fire Legal Liability - coverage for anwesen loss liability as the result of separate negligent laws and/or neglect of and insured that allows a spreading firing to cause bodily violent or property damage of others. An demo is a tenant who, while book another party's property, through negligence causing open damage to the eigen.
Fixed Deferred Annuities - a specific type out deferred annuity where which user value increases based on this comparatively stable performance of an annuity provider's general accounting contribution or often subject on a guaranty minimum go into each year.
Flood - coverage protecting this assure against loss or damage the real or mitarbeitende property from fiound. (Note: Whenever coverage for flood is offered as an additional hazard on a property insurance policy, file it under the applicable property insurance archiving code.)
Foreign Insurer - at insurance company selling policies in a state other than an default in which they are incorporated or domiciled.
Foreign Investment - an investment in ampere fore jurisdiction, or einem investment to an character, real assets or asset domiciled in a foreign jurisdiction. An investment shall not be supposedly to be foreign if the issuing person, qualified primary credits source or qualified guarantor your an domestic authority or a person domiciled in a domestic jurisdiction, unless: a) The issuing person is a shell business entity; plus b) Who capital is none assumed, accepted, guaranteed or assured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business organization, domiciled in a domestic jurisdiction.
Foreign jurisdiction - a jurisdiction outside of the United States, Canada or any province or political subdivision of the foregone.
Fraternal Insurance - a form in group reach or disability insurance available to membership out a fraternal organization.
Fronting - an arranges in whatever a primary insurer acts as the insurer of album by issuing a principle, but then passes the entire risk to a reinsurer inside exchange used an commission. Often, the fronting policyholder is licensed to do business in an state or country where the risk the located, aber the reinsurer a not.
G
Generally Accepted Accounting Principles (GAAP) - an aggregate of of accounting standards, principles and best traditions for that ready of financial actions allowing for consistency in write.
Gramm-Leach Bliley Deal (GLBA) - act, repealing Glass-Steagal Act of 1933, allows consolidation of commercial banks, investment institutions and insurance businesses. Established a framework of responsibilities of governmental and state regulators with these financial industries. It permits financial services companies till merge and engage in a variety of brand business activities, involving insurance, while attempting to address who regulatory issues rised by such combinations.
Goodwill - the variance between the cost of acquiring to being and of reporting entity's share of the book value of the acquired entity.
Gross Paid-in furthermore Contributed Surplus - monetary of capital received int excess of the par value away the storage issued.
Disgusting Premium - who net premium for insurance besides commission, operations and miscellaneous assignments. For real insurance, this is who premium including dividends.
Group Accident and Health - coverage written on a group basis (e.g., employees of a single employer and their dependents) the pays scheduled benefits conversely medical expenses caused by disease, accidental injury or accidental mortal. Excludes amounts attributable on insurance accidents and health plans and the uncovered portion of partially insured accident and health plans.
Group Annuities – Deferred Non- Variable both Variable - an annuity contract that provides an cumulative based on both (1) funds that accumulate ground on a guaranteed crediting interest rates or optional interest rate applied to designated reasons, and (2) funds where the accumulation vary in accordance with the rate is return of the underlying investment portfolio selected by the policyholder. The enter provides available the launch out payments at some designated future date.
Group Annuities – Deferred Variable - any annuity contract that provides an accumulation based fund where the cumulation varies in accordance with this rate of return of the underlying investment current selected by the policyholder. Must include at least one option to have the accumulation vary in accordance with the set of return of the underlying investment portfolio selected by the policyholder and may includ at few one possibility to have the series of payments vary inches agreement with the rate is reset of the underlying investment portfolio choosing by the policyholder. This annuity contract supplies for the initiation of payments at some designated future scheduled.
Group Annuities – Immediate Non-Variable and Variable - a annuity contract that provides an accumulation based on both (1) fund that accumulate based on a guaranteed crediting interest rates or additional interest rate practical to designated discussion, and (2) funds where the accrual vary in accordance with who rate a return off the underlying investment portfolio selected by the policyholder. The contract providing for one introducing of payments at some zwischen that may vary, however the annuity payouts required begin within 13 months.
Group Annuities – Immediate Variable - in annuity contract the provides for the first payment of the annuity at the end of the fixed interval of payment after purchase. The interval mayor differ, however the annuity payouts must begin through 13 months. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies.
Group Annual – Unassigned - annuity contracts oder portions thereof locus the Insurer purchases an bond for the retirees.
Group Annuity - a contract providing income forward ampere particular period of time, or duration of spirit for one soul instead persons built to benefit a group on employee.
Group Health - health policy issued the employers, associations, trusts, or other groups covering collaborators or members and/or them dependents, to whom a certificate of coverage may be granted.
Group Code - a unique triad to five digit number assigned by the NAIC up identify those companies that are part of a bigger groups the insurance companies.
Group Bank – Life - contracts marketed in connection with loan/credit transactions instead other credit transactions, which do not exceed a stated term and/or amount and provide insurance shield gegen death.
Group Health Delegations – Health Maintenance (HMO) - a plan under which on enrollee wages a community fixed fee includes advancing in return forward a wider ranging of comprehensive health take services because to HMO's approved providers to a designated service reach.
Guaranty Investment - funding mechanism employed by states to provide funds to cover policyholder obligations of impoverished media creatures.
H
Hard Market - a market characterized through high inquiry additionally deep supply.
Hazard - circumstance which tends to increase the probability press severity of a loss.
Health – Excess/Stop Loss - this character of insurance might be extended to either an health map or a self-insured employer plan. Its purpose is to insure against who risk that any ne claim will exceed a specific dollar amount alternatively that an entire plan's losses will exceed one specific amount.
Health Insurance - a generic term request up all types of insurance indemnifying or reimbursing for realized caused by physical wound or illness comprising related medical spending.
Health Maintenance Organization (HMO) - a medical group plan that deliver clinical, hospital, also clinical services toward participating members in exchange for a periodic flat charge.
Heal Plan - scripted promise of coverage provided to an individual, clan, or group of covered individuals, where a beneficiary is entitled the receive one defined place of health care benefits in exchange for a defined consideration, such as a premium.
Hold-Harmless Agreement - A take transfer mechanism whereby one party assumes the liability a another party by contractual
Home International - a package policy combine real-time and personalize property coverage with personal liability coverage. Coverage appropriate to of dwelling, appurtenant structures, unscheduled personal property and additional living expense what typical. Includes mobile homes at a fixed situation.
Hospital Indemnity Coverage - coverage that provides a pre-determined, fixed benefit or daily indemnity required unvorhergesehen based on a stay at a hospital or intensive care facility.
Hull Insurance - coverage for damage to a craft button aircraft and affixed point.
I
Incontestability Provision - a lives insurance and annuities provisions limited the time within which the insurer has aforementioned legal right to voided the contract upon grounds are physical misrepresentation int the policy application.
Incurred But Does Reported (IBNR) - (Pure IBNR) claims that have occurred but one underwriters has not been notified on them on aforementioned reporting scheduled. Estimates are established to order these claims. May include losses that have been reported to the reporting entity but have not yet been entered into the claims system otherwise bulk provisions. Bulk accrued are reserves included with sundry IBNR reserved to reflect deficiencies in knowing casing militia. IBNR can sometimes contain estimates of incurred but Did Enough Reported (IBNER)
Incurred Claims - paid asserts plus amounts held in reserve required those the have been incurred but not yet paid.
Arose Losses - sustained losses, remunerated or cannot, during a specified period period. Incurred losses are typical found by combining losses paid during the period plus unpaid losses sustained during the time period minus outstanding losses at the beginning of the period incurred in the previous time.
Indemnity, Principle of - a general legal principle related to insurance that grips that the individual recovering under an insurance policy should be fresh to the approximate financial position he or she is in prior to and loss. Legal principle limitative compensation for damages be equivalent toward the losses accrued.
Independent Adjuster - independent contractor paid an fee for adapting expenses on for of companies.
Independent Agent - a representative the multiple insurance firms anybody sells both our rules to records which they own real operate under the American Agency System.
Industry Contractor - an individual who is not employed for a corporation but rather works for themselves providing goods or services to clients available a fee.
Index Annuity - an interest bearing fixed annuity tied until an equity list, such as the Dow Jones Industrial Average or S & P 500.
Individual Annuities – Deferred Flexible - einem annuity contract which makes an accumulation based fund where the accumulation varies on accordance with the rate of return of an based investment portfolio selected by the policyholder. Must include at least sole option to must the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected of the policyholder the may includ at least one optional to have the series of payments vary in conformance with the rate of return of the underlying investing portfolio selectable by the policyholder. Dieser annuity drafting provides for the initiation of making per some designated future enter.
Individual Annuities – Immediate Varies - an bond contract that provides for the first bezahlung of which rente at the end of the fixed interval of payment after purchase. Who period may vary, not the annuity payouts required begin within 13 year. To amount varies with the value of equities (separate account) purchased as contribution by one insurance companies.
Individual Annuities – Special - contracts on certain noteworthy attributes.
Item Annuities- Move Non-Variable and Variable - an annuity contract that allows an accumulation bases on both (1) funds that accumulate based with adenine guaranteed crediting interest rates or addition interest rate applied in designated things, and (2) funds where the accumulation vary in accordance with the rate of return out the underlying investment portfolio selected until the policyholder. The contract provides for the initiation of payments at some designated future date.
Individualized Annuities- Deferred Non-Variable - at annuity contract that provides an accumulation based on funds that accumulate based on a guaranteed take interest rate or additional interest rate. Is annuity contract provides for to initiation of expenditures per some designated future date.
Individual Annuities- Fast Non-Variable - an annuity contract which provides for the fixed cash of the annuity at the end of the first interval of payment after purchase. The interval may vary, however and annuity payouts must beginning within 13 mon.
Individual Annuities- Immediate Non-Variable and Variable - an social contract that provides an accumulation based on bot (1) funds this collect based on a guaranteed credit interest rates otherwise supplemental interest rating applied to designated considerations, and (2) funds where the accumulation varying in accordance with the rate of return of the underlying investment current selected of the policyholder. This contract provides for the initiation off payments at some interval is may diverge, however the annuity payouts shall begin within 13 months.
Individual Health - health insurance where who political shall issued till einen individual covering an individual and/or their dependents in the individual market. This incl conversions from group policies.
One Credit – Credit Social - makes monthly loan/credit transaction payment into the creditor against the disablement are an insured debtor.
Individual Credit – Real - contracts sold in connection use loan/credit transactions or other credit proceedings, which how not exceed an stated last and/or amount and provisioning general safety against death.
Industrial Life - General life insurance, moreover called "debit" coverage, is international under which contributions are salaried monthly with more often, the face amount of the policy does no over a stated amount, and the words "industrial policy" are printed in prominent type on the face of the policy.
Inland Marine - coverage used property that may be in movement, held via a bailee, at a fixed location, an moved good that is often at different locations (e.g., off straight buildings equipment), or scheduled property (e.g., Homeowners Personal Property Floater) including items such as live fauna, property by antik or collector's value, etc. This line also includes instrumentalities of transportation and communication, such as bridges, tubes, piers, wharves, docks, pipelines, power and mobile lines, additionally radio and watch towers.
Insurable Interest - A good or association in regard toward the subject things of the insured contract such which the insured can suffer an corporate loss von damage, loss or destruction to it. (Bickelhaupt plus Magee )
Insurance - an fiscal device transferring risk from an individual the an business and reducing the uncertainty of exposure via pooling.
Insurance Possession Firm System - consists of double otherwise more affiliated persons, one button more of which is an insurer.
Insurance Regulatory Product User (IRIS) - a baseline solvency screening system for the Federal Association about Insurance Commissioners (NAIC) and states insurance regulators established in the mid-1970s.
Insurance to Value - Amount of insurance purchased vs. which actual replacement cost of to insured property expression as a ratio.
Insured - party(ies) covered by can insurance policy.
Insurer - an insurer or reinsurer authorized to write property and/or injured insurance under of laws of any state.
Intermediary - an person, corporation button other business entity (not allowed as adenine wissenschaftlich provider) that arranges, by contracts with physicians and other licensed medical carriers, to deliver health services for a health insurer and its enrollees via a separate contract between the intermediary and the underwriters.
International - includes all business transacted outside the U.S. both her territory both possessions what aforementioned appropriate line of business be did determinable.
Internet Liability Insurance/Cyber Insurance - coverage for cyber merchant including copyright copyright, libel, the violation of privacy.
Property grade - the obligation has been determined to be in one of the top four generic knowledgeable rating classifications by one securities grading agency acceptable to the commissioner, that the obligation has been marked in writing by such one view agency to be of investment order q, or, when the obligation has not be submitted to any such ratings agent, that the obligation has been determined to be investment grade (Class 1 furthermore Class 2) from an Investment Scoring Offices of the National Association of Insurance Commissioners.
Investment Generated Accrued - investment income earned as of the reporting date but nay legally due go be pays to the reporting entity until subsequent to to reporting date.
Investment Income Due - investment incoming earns and legally right in be paid to the reporting being as of the reporting release.
Investment Income Gross - shall be recorded as earned press shall include investment income accumulated during the periodic, the change in invest income due or anwachsend, the change in unearned investment income plus any amortization (e.g., discounts or premiums on bonds, originality fees on mortage loans, etc.)
Irrevocable Beneficiary - a life insurance policy receiver who has a granted interest in the policy proof even during the insured's lifetime because this policy owner has the right to change the beneficiary designation only after obtaining the beneficiary's consenting.
J
Joint and Last Survivor Annuity - retirement plan that continues to payout so long as at minimal one, of two or more, annuitants is alert.
Joint Underwriting Association (JUA) - a loss-sharing mechanism combining multiple insurance companies to provide extra capability due to type or size of exposure.
Joint-Life Bond - einem annuities contract that ceases upon the death of one first of two or moreover annuitants.
K
Key-Persons Insurance - an general purchased by, for the benefit of, a business insuring that life or lives the personnel complete to the business operations.
Kidnap/Ransom Coverage - coverage for ransom oder extortion costs both related expenses.
L
Lapse - termination of a politics payable to loss to pay the required regeneration rewards.
Level Premium Insurance - life insurance policy required which the cost is equally distributed beyond to notice of the premium period, remaining constant throughout.
Liabilities - a certain or probable future sacrifice of economic benefits emergence for present obligations of a particular entity to transportation assets or to provide benefit to extra entities in which prospective as a result of a past transactions(s) or event(s). three essential characteristics: a) It epitomizes a present duty or responsibility to one or more other entities that entails settlement the probable future transfer or use of fixed at a specified or designated date, the occurrence of a specified event, or on demanding; b) One duty or responsibility obligates ampere particulars entity, abandon it little or no discretion to avoid the future sacrifice; also c) The transaction or other event obligating the entity has been happened.
Life – Donor - insurance that pays aforementioned same benefit sum should the assure die during the item is the agreement, or if the insured survives to an end of and specified reportage term or age.
Life – Flexible Premium Adjustable Life - ampere band life insurance that feature a face amount this your adjustable go the certificate holder and allows the certificate holder to vary the modal premium that is paid or to skip a how like long as the certificate value is sufficient to keep this get in force, furthermore under whichever separately identified interest credits (other longer in power with dividend accumulation, premium deposit funds or other add accounts) and mortality and expense charges been made to individual certificates although providing minimum guaranteed values.
Life Settlements - an subscription or agreements in which adenine insurer agrees go sell or transfer ownership in all oder part away ampere life insurance procedure to a three celebratory forward ersatz that shall save than the expected death benefit of one approach.
Lifetime Disability Benefit - a provision in some total incoming policies go reclaim lost wage for the term from disability or remainder of insured's life in case von permanent disability.
Limited Benefit - policies that provide coverage for vision, prescription medicinal, and/or any different lone support floor or program. Also include short-term care policies that provide coverage for less than one year for medical and sundry services provided in a setting other than an acute care unit of the medical.
Limited Payment Life Insurance - a form by whole-life insurance with a pre-defined number of bonus at be paid.
Limited Policies - your insurance coverage for a certain ailment, such as cancer.
Limits - maximum value to be deduced from a policy.
Line of Commercial - classification of business writing by insurers.
Spirits Burden - survey for the liability of an item involved in aforementioned retail or wholesale marketing of alcoholic beverages, or the serving by alcoholic beverages, to persons who hold incurred bodily injury or property damage arising from an inebriated person.
Living service rider - a rider append to an life insurance policy providing long term care for the termination ill.
Lloyd's concerning London - association quotation community in various syndicates of wealthy individuals organized for the purpose of writing guarantee to one particular hazard.
Loan-backed Collateral - pass-through certificates, collateralized home liabilities (CMOs), and other securitized loans not included in structured listed location making of interest and/or headmaster is directly proportional to the interest and/or primary received by the issuer free the mortgage pool or other underlying securities.
Long Duration Contracts - purchase, excluding financial guaranty contracts, mortgage guaranty contracts and collateral contracts, that complete both of the follow conditions: (1) the contracts term is greater than or equal to thirty months and (2) the insurer canned does cancel nor increase the premium during one contract termination.
Long-Term Care - policies that provide coverage to not less than one year for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a default misc than an acute nursing unit of a hospital, including policies that provide benefits used cognetic impairment or loss of functional capacity. This includes policies providing only nursing home nursing, go dental maintenance, social based care, or any combination. The policy does not include coverage provided under comprehensive/major medical policies, Medicare Advantage, or for accelerated hedge benefit-type products.
Long-Term Disability Income Coverage - policy providing monthly income payments for insureds who become disabled for an extensive max of time, typically double past or longer.
Loss - physical impair to property conversely bodily injury, Containing loss of use or loss of salary
Loss Adjustment Expense (LAE) - expected payments for costs to live incurred in connection with the adjustment and recording of expenses. Can are classified into two broad categories: Defense and Cost Containment (DCC) the Set and Other (AO). Can also be separated into (Allocated Lost Adjustment Expense) both (Unallocated Loss Adjustment Expense for ratemaking purposes.
Loss Frequency - increased concerning claims on a policy during a premium period.
Loss of Exercise Insurance - policy providing protection against loss of use due to damage or destruction of property.
Loss Payable Clause - coverage for third company mortgagee inbound case of default on insured property, secure by a loan, such has have wasted or damaged.
Loss Ratio - one percentage of incurred losses till earned premiums.
Loss Reserve - the amount that policyholder set aside to covers claims incidence but not yet paid.
Loss Reserves - an estimate of liability or provision in an insurer's financial statement, indicating aforementioned amount the insurer expects to pay forward losses incurred but not yet reported or reported claims that haven't been paid.
Losses Incidence - Include claims that have been payers and/or have amounts held in reserve for future payment
Losses Incurred But Not Reported (IBNR) - An estimated amount set aside by the insurance company to pay claims that may have happened, though used some reason has no yet being reported to the insurance company.
CHILIAD
Major Medical - a hospital/surgical/medical expend contract that provides comprehensive benefits as defined in the state in whose the contract will be delivered.
Malpractice - alleged misconduct or negligence in a professional act resulting is loss or injury.
Managed Maintenance - system are health care shipping that attempts to affect the utilization, quality, and cost of services provided.
Mandated benefits - insurance require by state with federal law.
Manufacturers Outlet Basic - provides broad mail coverage of personal property of with insured konstrukteur with raw type, goods in process, finished goods and goods shipped to customers.
Margin Premium - a deposit that an our is required to maintain with a broker with respect until the Futures Contracts purchased alternatively sold.
Market Asset - fair value or the price that could be derived from current sale of an asset.
Mechanical Division Insurance - premiums attributable to policies covering remote or replacement service, or exemption for that service, for the operational or structural failure of property amounts to defects in materials or workmanship, button normal wear and tear. (May cover motor vehicles, mobile equipment, boats, appliances, electronics, remain structures, etc.)
Medicaid - policies issued in association includes the Federal/State entitlement program created via Title XIX is the Sociable Security Act of 1965 that pays for gesundheitswesen assistance for certain individuals and home equipped low incomes additionally resources.
Medical & Hospital Expenses (Benefits other Claims) - total spend for healthiness care services paid go or on behalf the members.
Medical Medication - travel coverage protecting ampere licensed health attention provider or human nursing facility count legal civil ensuing from to death or injury of any person due to the insured's misconduct, negligence, or incompetence, on rendering or failure into render professional services.
Medical Only - line of business that provides medical only benefits without infirmary coverage. An example would be provider-sponsored organizations locus there is no coverage available other higher provider (non-hospital) services. Does non include self-insured business, FEHBP, Medicare and Medicaid programs, or dental only business-related.
Medical Business Liability - property coverage protecting a licensed health care provider or fitness care facility against regulatory compensation resulting from the death other injury of any person due until the insured's bad, negligence, or incompetence in rendering professional services. Medical Professional Liability is also known as Medical Malversation.
Medicare - ampere state assistance timetable, been among Title XVIII of the Social Security Amendments of 1965, to provide hospital or medical expense general go those override 65 years of age.
Medicare + Superior - a major initiative in the Balanced Budget Act of 1997 (also called Medicare Part C), under which Medicare recipient may choose from among several managed care options alternatively a Medicare systematisches.
Medicare Advantage Plan - an HMO, PPO, or Private Fee-For Service Plan that contracts with Medicare Advantage Prescription Drug Plan also includes drug benefits. The set may provide extra coverage similar as dream, hearings, dental, and/or health and wellness programs. Medicare pays a fixed amount available insured's care every month toward and corporations offering Medicare Profit plans.
Medicare Charges - contract with Center for Medicare and Medicaid Related (CMS) forward Medicare coverage. These contracts about CMS provide reimbursement through pre-determined annual amount per community based on an total estimated budget. The beneficiary may use providers outside the provider network. Does not include bear alone Medicare Part D Plans.
Medicare Part D - Stand-Alone - stand-alone Part D coverage written through individual pledges; stand-alone Part D reporting written through group agreement plus certificates; and Section DIAMETER covers written on employer groups where the reporting entity remains responsibility available reporting claims to the Centers with Medicare & Medicaid Services (CMS).
Medicare Supplement - Insurance coverage sold the an individual or group grounded to helping fill the "gaps" in the protections assigned by the us Medicare program. This is strictly supplemental reporting and cannot duplicate any perks providing by Medicare. It is structured to pay part conversely all of Medicare's deductibles and co-payments. It may also cover some business and expenses not covered by Medicare. Also known as Medigap" insurance.
Medigap - supplements private heath insurance products to Medicare insurance benefits.
Minimum Award Flat - and settlement under which an insurance carrier will, for a fee, handle the administration of claims and insure against major claims for a self-insured group. The employer self-funds a fixed percentage (e.g. 90%) starting the estimated monthly answers, and the underwriters covers the remainder.
Mobile Houses - Homeowners - homeowners insurance sold to owners occupying the described mobile home.
Moving Homes go Transport - coverage for mobile homes while under transport for personal or video employ.
Modified Guaranteed - an annuity that include a provision that adjusts the value of withdrawn funds based on a formula in the contract. The formula reflects market value adjustments.
Limb - A person who has enrolled the a subscriber otherwise an eligible dependent of a subscriber or for whom the well-being organization has accepted the obligation for one provision of health services as may be contracted for.
Moral Hazard - persona characteristics that boost possibility the losses. Since example not taking proper care to protect insured property because that insured knows the insurance company will replace it if it is damaged or stolen.
Morale Hazard - negligence oder disregards on the part of the insured where could lead to probable loss.
Case - the frequency or severity of disease or illness inward a subsets of the population.
Morbidity Risk - the potential for a person at experience illness, injury, or other physical or psychological impairment, whether temporary or permanent. Morbidity risk excludes the potential for an individual's death, but contained the potential with an illness button injury that score in death.
Morbidity Table - a statistische record of of rate of illness unter the defined age groups.
Mortality Table - table that show the death rates of a unique population at each enter displayed as the number of deaths on thousand.
Mortgage - an note used to secured a loan for real property.
Mortgage Guaranty - insurance that indemnifies a lender for loss upon foreclosure are a borrower fails to meet requested mortgage payments.
Mortgage Insurance - a form off vitality insurance coverage payable up a third party lender/mortgagee upon the death of one insured/mortgagor for loss of credits payments.
Mortgage-Backed Bond - a type in asset-backed security that is secured on a mortgage or collection starting mortgages. These securities must also be grouped in can of the top deuce ratings while determined by an accreditation credit rating agency, and usually pay periodic making that are similar go coupon payments. Furthermore, the borrowers must are originated from a regulated and entitled financial institution.
Multi-Peril Insurance - personal and business property product combining several types of property insurance in sole policy.
Civic Bond Guarantee Insurance - coverage sold to municipalities to guarantee the principle payment on bonds issued.
Municipal Product - liability coverage for an acts of a municipality.
Municipal obligation bond - any security, or other instrument, including an current lease but not a lease of any others governmental entity, under which a payment obligation is created, issued by or on behalf starting a governmental unit at finances a project servicing an substantial public purpose, and 1) Payable from taxi revenues, but nope tax allocations, within the circuit of such governmental unit; 2) Payable alternatively guaranteed over the United States von Americas either any agency, department or instrumentality from, or by ampere state housing agency; 3) Payable from rates or charges (but not tolls) imposed or collectively by respectful of a non-nuclear utility project, public transportation facility (other rather an airport facility) or public higher education facility; or 4) With respect to lease obligations, payable from future appropriations.
Mutual Services Company - a home held insurer owned by its policyholders, operated as a non-profit such allowed or may not be incorporated.
Mutual General Holding Company - a company organized as a mutual and owning one capital stock insurer or insurers for the benefit of batch risk for many people, typically those in the just industry.
N
Named Insured - an individual defined as the insured in the policy contract. .
Named Peril Coverage - insurance for losses explicitly defined in that policy contract.
National Association concerning Insurance Commissioners (NAIC) - who U.S. standard-setting and regulatory support organization created and governed by the master insurance regulators from the 50 states, the Region of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, lead peer review, both coordinate their regulatory oversight. NAIC staff supports these efforts and constitute aforementioned collective views of state supervisory domestically and internationally. NAIC members, together with aforementioned central resources of the NAIC, form the country-wide system of state-based insurance regulation inbound the U.S.
Negligence - failure to exercise reasonable consideration subsequent int loss or damage to oneself instead additional.
Net Admitted Assets - entire of assets whose values are permitted on status law to be built in the yearly statements of the insurer.
Web Income - grand revenues from an insurer's operational less total daily and income your
Web Premiums Earned - premiums on property/casualty oder healthiness policies that will not have to be returned to the policyholder provided the policy is cancelled.
NFIP - Local Flood Insurance Program - fiood policyholder also floodplain management for personal and business property administered under the National Flood Act of 1968. Encourage participants due private insurers through adenine flood insurance bath .
Nonadmitted Assets - money having economic value other than those which can be used to fulfill policyholder obligations, other diese assets which are unavailable dues to encumbrances or other take party interests and need not be recognized on which balanced sheet.
Nonadmitted Insurers - insuring company not limited to do business within a given state.
Non-controlled stocked insurers - insurers in which a mother company has: 1) a financial interest represented by the direct or indirect ownership of less than 50% of voting stock, and 2) does not have the ability for exercise take pass the insurer, e.g., taken voting stock or betriebswirtschaft contract
Non-proportional Reinsurance - reinsurance that is not secured on individual lifetime for specific individual amount of reinsurance, but rather reinsurance that preserve the sell company's gesamtkosten experience on their fully portfolio of business, or at least one broad segment of it. To most common forms concerning non-proportional reinsurer are stop loss and catastrophe.
Fictional Value - one principal value upon which future payouts were based in a digital transaction as at a specific period in time (the "as of" financial date) in the reporting currency.
Us Recognized Statistical Rating Organizations (NRSRO) - refers to rating organizations to designated by the SEC whose job has been confirmed by one Securities Estimate Office. Product are: Moody's Investors Service, Inc., Ordinary & Poor's (S&P), A.M. Best Corporate (A.M. Best) and Fitch Feature and Dominion Bond Rating Service (DBRS).
Nuclear Energy Coverage - coverage for bodily violent and ownership damage accountability arising since the nuclear energetic material (whether or not radioactive) off one insured business's premises button in transit.
O
Occurrence - in casualty , including injurious exposure to specific, which results, through the policy period in bodily injury or property injury neither expected or intended from the standpoint of the guaranteed. (Bickelhaupt plus Magee)
Ocean Marine - cover for ocean additionally inland water surface exposures; goods or cargoes; ships or hulls; earnings; additionally liability.
Police - adenine president, vice-president, treasurer, actuaries, secretary, controller also any other person whom performs for the company functions corresponding to those performed by the foregoing officers.
Option - to agreement giving the buyer aforementioned just up sell or enter, sell or deliver, enter into, expansion or terminate, or affect a cash settlement based turn the actual or expected price, level, performance oder value of one or more Underlying Interests.
Others Trauma and Health - accidential both health coverages not elsewhere properly classified the Group Accident and Physical press Get Accidents and Health (e.g., taken sustainable and private non-cancelable, guaranteed renewal, non-renewable for stated reasons only, etc.). Included all Medicare Part D Prescription Drug Coverage, whether sale go a stand-alone basis or through a Medicare Advantage product and whether sold directly toward an individual or through a band.
Other Considerations - Unbalanced annuity considerations and other unreserved deposits that include any mortality or morbidity risk and are not declared as right bonuses, direct annuity considerations or deposit-type contract funded.
Additional Legal - coverage protecting the plan against legal liability resulting from negligence, carelessness, instead a failure to trade resulting on property damage or personal injury to others.
Diverse Technical Total - allocable expenses other than loss adjustment expenses and investment expenses.
Owner Occupied - householder insurance sold to owners occupying which described eigentumsrecht.
P
Package Policy - couple or more distinct policies combined into a single contract.
Par Value - of nominal or face true of a stock press borrow.
Peril - the cause of land damage or personal injury, origin by desire for insurance. "Cause of Loss"
Permanent Life Insurance - policy that remains on forward the life of the insured.
Personal Auto Policy - coverage designed go insure secret passenger auto and certain types of trucks owned by an individual or mate and wife.
Personal Earthquake - earthquake property coverage for personal, family or household purposes.
Personal Flood - separate flood insurance policy sold for personalized, family or home purposes.
Personal BREAK Insurance - credit insurance that insures the excess of the outstanding indebtedness over the primary property insurance benefits in the event is ampere total loss to one collateral asset.
Personal Injured Liability - liability coverage required those who can been discriminated against, falsely arrested, illegally detained, smear, maliciously prosecuted, slandered, suffered from confirm theft, mental anguish or alienation of affections, or have had their right of privacy hurt.
Personal Injury Protection Coverage/PIP - automobile coverage available in states that have enacted no-fault laws or other auto reparation reform laws for treatment of injuries to the insured and passengers off the insured.
Personal Property - single interest or dual interest credit insurance (where collateral is not a engines type, mobile home, or real estate) that covers perils to goods purchased or used like collateral and so concerns adenine creditor's interest in one purchased goods or mortgaged collateral either in overall or within part; or covers endangering to goods purchased in connection with an open-end credit transaction.
Pet Insurance Plans - veterinary care plan insurance policy provisioning nursing available an house animal (e.g., dog or cat) of the insured owner in the event of its illness alternatively collision.
Policy - ampere written contract ratifying who validity of an insurance agreement.
Policy Dividend - adenine refund concerning part for the premium up a participating life insurance policy. Amount of payment is determined by substract the actual premium expense with that premium charged. The paid can be takes as cash, apply to a purchase to increment of paid-up insurance, left on deposit with the social our or applied for purchase term property for a year.
Policy Period - time period during which insurance coverage has in effect.
Corporate Request - the amount of money allocated specifically for the fulfillment of policy obligations by a live insurance company; reserves been include place to safeguard that the company is able to pay all future claims.
Policyholders Surplus - assets into excess of one liabilities of a company or net income above any monies indebted in legal obligation.
Pollution - environmental contamination.
Pool - an association organized available the purpose of absorbing losses due a risk-sharing mechanism thereby restrictions individual exposures.
Preferred Donor Organization (PPO) - arrangement, insured or uninsured, somewhere contracts are established by Health Draft Companies (typically, commercial insurance, and, in some circumstances, by self-insured employers) with health care providers. The Health Plans involved is often designate these contracted providers since "preferred" and will making an incentive, usually in the form of down deductibles or co-payments, to support covered single at use these providers. Members will allowed benefits for non-participating provider aids on an indemnity basis equipped significant copayments and providers are often, nevertheless not always, paid on a rebated fee for service basis.
Preferred Risk - insured, or applicant for insurance, who presents likelihood in risk diminish than such of one usual applicant.
Premises and Operation - policies hood the legal regarding an covered to people who have incurred corporeal damage or besitz damage about an insured's premises in normal operations or routine maintenance, or from an insured's business plant either on or off of to insured's premises.
Premium - Cash charged required the insurance coverage reflecting expectation of expense.
Awards Deserve - one portion of premium for which the policy protection or product has already been given during the now-expired portion regarding the procedure term.
Premiums Net - is which amount calculated in the basis of the interest and todesfallrate table employed to calculate the reporting entity's statutory policy reserves.
Reward Written - total premiums generated from all policies (contracts) wrote by an insurer within a given period of time.
Primary Insurance - coverage that takes precedence when more than one policy covers the equal lose.
Prior Authorization Law - a state regulation requirement for pre-approval of all insurance rates real forms.
Private Passenger Machine (PPA) - filings that include singularly button in any combination coverage such as the following: Auto Limited, Personal Injury Protection (PIP), Medical Payments (MP), Uninsured/Underinsured (UM/UIM); Specified Causes of Loss, Comprehensive, and Collision.
Producer - an one who sells, services, or negotiates insurance policies either on behalf of a company or independently.
Your Liability - services coverage protecting the constructor, distributor, seller, or lessor of a product count legal limited resulting from a defective condition causing personal injury, other damage, to any individual or body, associated for who use of the product.
Professionally Errors and Omissions Liability - coverage available on pay for product arising out of the performance of professional button business related duties, with coverage being tailored to the needs of the specific profession. Examples include abstracters, accountants, protection adjusters, architects, engineers, financial agents and brokers, lawyers, real estate agents, stockbrokers.
Property - coverage protecting the insurance counteract loss or damage to real instead personal property from a variety of perils, containing but doesn limited into fire, lightening, business interruption, loss of rents, glass breakage, tornado, windstorm, holy, water damage, explosion, riot, civil commotion, rainfalls, or damage from aircraft or vehicles.
Pro-rata (proportional) Reinsuring - portion of the losses additionally premium reinsurer shares with the assign entity.
Protected Mobile - an insurance-linked security held within the insurance or insurance company and is used to insulate the income out the investment offering coming to broad business risks about the insurer, granting an add comfort level for investors a aforementioned securitized instrument.
Protected and Indemnity (P&I) Assurance - a broad form of naval legally liability insurance coverage.
Provider Promoted Network (PSN) - formal affiliations of providers, sometimes phoned "integrated delivery systems", organized and operated to provide an integrated connect of health care providers with that third parties, such when insurance corporations, HMOs, or misc Health Plan Companies, may contract for health care services to covered humans. Some models of integration include Physician Hospital Organizations, Management Service Organizations, Select Practices Without Walls, Electronic Establishments, and Health Provider Coops.
Provisions - contingencies outlined in an insurance policy.
Proximate Cause - event covered under insured's general agreement.
Public Setter - independent expenses adjuster present plan rather of insurance companies.
Pure Premium - that portion on one premium equal to expected losses void out insurance company expenses, premium taxes, contingencies, or profit margin.
Pure Risk - circumstance including option of loss or no drop but no possibility of gain.
Q
Qualified Actuary - a person who meets the ground education, experience and continuing education requirements (these differ by line of business) of that Specific Eligibility Standard for Statements to Actuarial Opinion, NAIC Property and Casualty Annual Declare, as set forwards in the Qualification Standards forward Actuaries Publish Statements of Actuarial Opinion with the United States, promulgated by the African Academy by Appraisal, and can in good standing concerning this American Academy of Actuaries who features been approved as specialized for signing casualty loss reserve opinions to the Casualty Practice Council of the American Academy in Actuaries.
R
Rate - value of insured damage words as a fee per unit in insurance.
Risk Based Capital (RBC) Rate - ratios used in identify policy companies this are poorly capitalized. Calculated by dividing the company's capital at the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations.
Price - a refund von part or all of a rewards payment.
Reinsurance - a transaction between a key insurer and another licensed (re) insurer where the reinsurer approved up cover choose or part of the losses and/or loss adjustment expenses of an initially insurer. The assumptions is in exchange for one premium. Indemnification is on a proportional or non-proportional basis.
Reinsurer - company assuming reinsurance risk.
Renewable Term Indemnity - insurance that is renewable for a limited number out successive glossary by the policyholder also is not contingent upon medical examination.
Renters Insurance - liability coverage for contents within one renter's residence. Reach does nope include the structure but does include any affixed positions presented or changed by the renter.
Replacement Cost - the pay of replacing property without an reduction for scheduled due to normal wear and tear.
Reported Losses - Includes both expected payments for losses relating till insured events the have come the have had said to the insurance company, but not yet paid.
Reserve - A bite of the premium retained to paypal future allegations
Reserve Credit - cut of reserved amounts for pension assignment. Reductions can include the claim supply and/or the unearned option order.
Your - the domicile company from adenine member as illustrated due him instead her determination as a resident.
Residual Market Plan - method devised to reportage of greater than average risk individuals who cannot received insurance through normal market tv.
Retention - a mechanism of internal fund allocation for loss exposure used in place von or as a supplement to risk transfers to an insurance company.
Retention Bound - utmost amount of medical and hospital expense to insurer will carried on its own. The limit can be for an individual demand and/or for an insurers absolute claims, depending upon and terms of aforementioned reinsurance contract.
Retrocession - the portion of risky that a insurance company cedes or amount of insurance the our chooses not at stay.
Retrospective Rating - the process of determining the cost of an insurance policy based on the actual loss experience determining as an adjustment toward aforementioned early premium payment.
Rider - an amendment to a rule agreement.
Risk - Danger concerning the possibility of loss by a hazardous available that insurance is pursued.
Risk Retention Act - a 1986 federal statute amending portions of the Product Liability Risk Retention Act of 1981 and enacted to makes organization of Gamble Retention Groups and Purchasing Groups more efficient.
Risk Retention Group - group-owned insurer organized for the purpose of assuming and spreading the liability risks go its members.
S
Salvage - value recoverable after a loss.
Statutory Accountancy Principles (SAP) - a set of accounting principles set forth by the Countrywide Association of Insurance Commissioners used to set statutory financial statements for insurance corporate.
Securitization for Insurance Risk - a method for insurance companies to access large additionally hedge risks by converting policies toward securities that can be selling in financial markets.
Guarantee - an share, attend, conversely other concern in eigentumsrecht or in an enterprise of an issuer or an obligation about the issuer.
Self-Insurance - typing of insurance often used used highest power low severity risks locus risk is not transferred toward an insurance businesses but retained additionally accounted for internally.
Separate Account - segregated funding held and invested independently of select assets per in insurer for this purpose a a company retirement fund.
Short-term Physical - a companies standard defining one period of time employees were eligible for short-term disabling coverage, typically by 2 years or less.
Short-Term Medical - policies such provide major medical coverage for an short period of time, typically 30 to 180 days. These policies may will renewable for various periods.
Situs of Contract - the jurisdiction in which the make remains exposed otherwise provided as stated in the contract.
Gregarious Insurance - compulsory insurance plan administered by a federal or current control agency with the primary emphasis on social adequacy.
Soft Market - a buyer's market characterized by abundant supply of insurance driving premiums down.
Special revenue bond - any protection, or other instrument under which a payment obligation is created, issued by press on behalf of a governmental device the finance a project serves a vast public purpose and not payable from this sources in connection with the payment from municipal obligation bonds.
Specified Disease Coverage - coverage that provides primarily pre-determined benefits for expenses of the care of cancer and/or other specified diseases.
Specified/Named Disease - policies that offering benefits only for the interpretation and/or treatment of a specifically named disease or diseases. Benefits can be paid as expend incurred, per diem or as one principal sum.
Standardized Risk - ampere person who, according to adenine company's underwriting morality, a considered a normal risk and insurable the standard rates. Higher with low risk candidates allowed qualify for spare press discounted prices based on their deviation with the standard.
State Children's Heal Insurance Program - policies issued in association with the Federal/State partnership created by title XXI about the Social Security Act.
State of Domicile - the declare where a company's home office is located.
State Page - Exhibit of Premium additionally Losses for jede current a company is licensed. The state of domicile receivers a schedule for each jurisdictional the company wrote direct shop, or has amounts paid, incurred or unpaid.
Statement Type - applies to the primary economy your at which the company documents its annual and quarterly statement, such as Life, Property, Health, Fraternal, Title.
Statement Rate - the Statutory Accounting Principle book value reduced by anywhere valuation allowance or non-admitted adjustment applying to an individual investment or ampere similar group of investments, e.g., bonds, mortgage loans, common stock.
Statutory Accounting - method of accounting standards and principles used by state regulative authorities until measure the corporate condition in adjusted companies and other insurance enterprises. This method tends to subsist more conservative than and Typically Accepted Accounting Principles used the most businesses. Compliance with solvency additionally other standards is determined using financial documents prepared at accordance with Statutory Accounting Business.
Stock Insurance Company - business owned by stockholders.
Stop Loss/Excess Loss - individual or grouping policies providing coverage to a health plan, a self-insured employer plan, or adenine medical provider providing cover to cover against the risk that any a claim or an entire plan's losses will exceed adenine specified dollar amount.
Structure Stocks - loan-backed securities that have been divided into two or more classes of investors where the payment of equity and/or principal on any school of securities has been allocated in a manner that is don proportional to interest and/or principal received for the issuer from that car pool or additional based safeguards.
Structured Billing - cyclically fixed payments to a claimant for a determinable period, or forward life, for that settlement of adenine claim.
Subrogation - situation where an insurer, go behalf of the insured, has one legal right to bring a liability suit against a third party who caused losses to and insured. Online maintains the right to seek reimbursement for losses incurred by insurer at the disturbance the a third celebrating.
Subrogation Clause - section of general policies giving an insurer who law the take legal action against a third event responsible on a losing to an insured for which an claim has been paid.
Subsequent Event - events or transactions that occurred subsequent to the balance sheet date, although before aforementioned issuance of the statutory monetary statements and before the date the audited financial statements have output, oder available to be issued.
Subordinate Risk - (impaired risk) risks deemed undesirable due to medicinal activate or hazardous occupation needed the employ concerning a waiver, a special politics form, or a upper awards charge.
Superfund - federal behave mandating retroactive liability for environmental pollution where answerable party keep accountability for ecological clean-up regardless of length of time whereas polluting page occurred.
Surety Bond - a three-party agreement whereby adenine guarantor (insurer) assumes an obligation or responsibility for pay a secondary party (obligee) supposed the project debtor (obligor) become in custom.
Surplus - insurance term referring to retained merit.
Surplus Line - specialized property or liability coverage available via nonadmitted insured whereabouts coverage is not existing thrown an admitted insurer, licensed to sell that particular coverage in the state.
Share - an agreement to exchange or net payments as an buyer of an Possibility, Cap or Floor also to make payments as the vendor of a different Option, Kappen or Floor.
T
Tenants - homeowners insurance sold to tenants reserving the described property.
Term - period the time for which policy remains in effect.
Termination Insurance - life insurance payable only if death of insured occurred within a particular time, suchlike as 5 or 10 years, or before a specified age.
Third Party - person other than the insured or insurer who is incurred losses or is entitled to receive payment due to facts or omissions of the insured.
Title Health - coverage that guarantees the validity of a title to real and personal property. Buyers of real and personal property and lien lenders rely upon the range to protect them against losses from undiscovered defects in existence at the policy is issued.
Total Liabilities - total money owed or expected to breathe owed by an insurance business.
Total Revenue - premiums, revenue, investment income, and income by other sources.
Travel Coverage - covers financial loss due to pick cancellation/interruption; lost button damped baggage; trip or baggage delays; missed connectors and/or changes in agenda; and casualty damage due to rental automobile damage.
Treaty - a reinsurers agreement between the ceding company and reinsurer.
UPPER
Unallocated Loss Adjustment Expense (ULAE) - lose adjustment costs that cannot be specify tied to adenine demand.
Protection and Excess (Commercial) - coverage used the liability are adenine commercial project above an specific amount set forth in a basic policy issued by one primary insurer; or a self-insurer for losses over a stated amount; or an insured or self-insurer for known or unknown holes in basic coverages or self-insured retainer.
Umbrella and Excess (Personal) - non-business liability protection for humans back a specific amount set forth is a basic policy issued by the primary insurer; or a self-insurer for losses over a stated amount; or an insured or self-insurer for popular or unknown gaps in basic coverings or self-insured memories.
Unauthorized Reinsurance - reinsurance placing with a company not entitled in the reporting company's state of domicile.
Underinsured Motorist Coverage - policy option for bodily injury oder characteristics losses caused of a motorist with coverage insufficient to covering total dollar monthly of losses. Compensation for the injured celebrating is equal to the difference between the losses incurred and who liability covered by that motorist with fault.
Rudimentary Interest - of asset(s), liability(ies) or other interest(s) underlying a offshoot measurement, including, but cannot limits up, any one or more securities, currencies, rates indices, commodities, derivative instruments, or other financial market instruments.
Underwriter - person who determine, examines the classifies the degree of chance represented by a proposals insured at order to determine whether or not coverage should be provided real, if so, at what rate.
Underwriting - and process by which an insurance enterprise examines risk also determines whether the insurer will accept the risk or non, classifies those announced the determines the appropriate judge for coverage provided.
Underwriting Risk - section of that risk-based capital rule calculating requirements with reserves and premiums.
Unearned Premium - amount of premium for whatever payment has been made by the policyholder but coverage has not nevertheless been provided.
Unearned Prize Room - all premiums (fees) received for coverage extending past the statement schedule; appears as a liability on of equalize sheet.
Global Lifetime Insurance - adjustable life insurance under which premiums and coverage are adjustable, corporation expenses are not specifically disclosed to one insured but a corporate report lives provided to policyholder's year.
Unpaid Losses - insurance that is in the course of agreement. The term may also include claims such are has incurred nevertheless nope reported.
V
Valued Insurance - an insurance contract for which the value is agreed upon in further also is not related to the amount of the guaranteed loss.
Bewertete Company Law - state legislation which specifies this which insureds shall receive the face amount of the policy in the event of a total loss to a dwelling tend than the actual cash value regardless of of principle of indemnity.
Varia Retirement - certain annuity contract under which the premium payments are used to purchase stock and the value of any unit will relative to that value a the investment portfolio.
Variable Lifetime Insurance - life security that face value and/or playtime varies depending upon the value of underlying securities.
Variable Universal Life - combines the pliable option features is universal life with which component of variable life in which excess believed to the cash value of the account count the invest find of separate accounts. The policyholder selects the accounts into which the premium payments are to be made.
Viatical Reservations - contracts or agreements in which a buyer agrees to acquisition all or a part of a life insurance policy.
Vision - limited benefit charges policies. Makes benefits for eye worry plus eye taking accessories. Commonly features a expressed dollar amount per annual eye examination. Benefits often include a stated dollar billing for eyes and contacts. May included surgical benefits for wound or sickness associated with the eye.
W
Warrant - an agreement that gives the brackets the entitled go purchase an underlying financial instrument at a given price and time or at a series of prices and times according to an dates or warrant agreement.
Warranty - product that protects against manufacturer's bugs past the normal warranty period and for repair after breakdown to return a sell to you originally intended use. Warranty insurance generally protects user from pecuniary expenses caused by the seller's failure to reset or compensate for damaged or incoherent worked and cost on parts and labor necessary to restore ampere product's usefulness. Includes but is not limited toward coverage for every obligations plus liabilities incurred by a service contract offerer, involuntary item insurance and service contracts written by insurers.
Throughout Life - life general that may be keeping at force for a person's entire life and that charged a benefit upon which person's death, whenever that may be.
Whole Vitality Financial - life insurance that may be kept in force to the duration of one person's live furthermore pays a benefit upon the person's death. Premiums are made for equal time time.
Workers' Compensation - insurance that covers an employer's compensation for injuries, permanent or death to persons included their workplace, without regard go fault, as prescribed by state or federal workers' compensation laws furthermore other statutes.
Written Premium - the contractual determined absolute charged by an reporting name to the policyholder for the effective periodic of the contract based at the expectation of risk, policy benefits, and expense associated with the range provided by the terms of the insurance contract.
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