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Auto insurance vocabulary cast

Spoken English Tutorial - Buying Insurance - Free Vocabulary Lessons

Automobile insurance vocabulary is important for people that are looking to find the best offers on their car insurance rates even for those looking for a foreign policy such as Mexico automobile insurance. Every year, millions of drivers find themselves looking for automobile insurance policies. Because the industry is so large, many become confused when they start comparing their options. The wide variety of insurers and options that are offered can be a bit difficult to navigate and a small amount of knowledge or experience goes a long way. One of the main obstacles that many people run into has to deal with terminology. Shoppers that do not have much experience with the automobile coverage industry or are insuring a car for the first time may not understand a lot of the vocabulary that they run into.

In these states, the drivers, police and witnesses work together to determine which driver was responsible for the accident. The insurer of the responsible party will then have to settle the claims resulting from the accident. No-Fault States: If you happen to live in one of the 12 no-fault states, the system for determining who is at fault will be very different.

In these areas, neither automobile driver will be deemed financially responsible for the accident, and each insurer will have to pick up the bill for their individual customers. In some situations, the carrier may be able to open a claim against the other insurer should they feel as though their client was not at fault.

When you begin looking for automobile coverage, you will likely need to learn a bit of auto insurance vocabulary that involves the protective options you have at your disposal. While this car insurance vocabulary may be a bit more commonly used, many people may still not understand the differences between the options they have.

The following is some of the more common vocabulary you may need. If you are purchasing a liability automobile insurance policy, you will be buying a plan that does not cover your own automobile. Liability is a type of plan that will pay for the damages that you cause to other vehicles or persons while operating your vehicle. Any damages your automobile incurs will not be paid for.

These types of policies are often much cheaper than some of the other options available. A collision policy is usually purchased by individuals that are looking to protect the investment that they have made in their own automobile. This is due to the fact that collision plans will pay out claims that involve both vehicles in an accident.

See Compulsory third party insurance. A legally enforceable obligation or responsibility you carry for the damage, loss or injury suffered by another person.

At-Fault, The degree to which you caused or contributed to an accident; determines whose auto insurance company pays what portion of the damages. Start studying Automobile Insurance Vocabulary. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Absolute liability*. The liability of a wrongdoer's automobile insurance company to pay someone harmed by the wrongdoer, even if the wrongdoer has violated.

Typically, the insurer will take on part or all of this liability on behalf of the insured if the insured is entitled to cover under an insurance policy. A vehicle valuation determined by market demand and sales, agreed upon for the purpose of establishing a compensation limit vehicle write-off. This value takes into account the condition of the car based on its age, make and model. A form of insurance that protects against the losses and liabilities that can be incurred as a result of a road accident.

Glossary of Common Auto Insurance Terms. NOTICE: This document is for informational purposes only and is not intended to alter or replace.

A car insurance provider accepts the risk on your behalf and compensates you for the losses you would otherwise pay for yourself in the event of such an accident. A feature common to comprehensive insurance policies, which rewards you for getting through a year without making a claim.

Either your premium is reduced or, if you pay an extra on your premium, you can protect yourself from being penalised for a single, isolated claim.

Car Insurance Terminology

If you do make a claim, your bonus will be reduced; unless the accident is not your fault, in which case your bonus may be left intact. Persons you nominate as occasional drivers of your vehicle, i. A common coverage component of car insurance compensating for medical treatment, lost wages or other accident-related expenses. This coverage is subject to the terms, limits and conditions of your policy contract. See also Compulsory third party insurance. A common coverage component or extra feature of a car insurance policy compensating for the loss of or damage to personal belongings such as jewellery, cash, mobile phones, etc.

Written documentation representing a contract or agreement between you and the insurer.

Includes forms, endorsements, provisions and attachments. An online facility enabling consumers to compare the cost and features of different insurance policies provided by a range of insurers. An extension of this is a coverage calculator, which matches coverage types to individual drivers based on the information you provide.

The price of insurance paid for a specified risk for a specified period of time. In exchange for payment of a premiumthe insurer promises to reimburse the person for their covered losses.

Refers to a rating system used by insurers to determine the cost of your insurance premium. This includes conversions from group policies. Industrial Life - Industrial life insurance, also called "debit" insurance, is insurance under which premiums are paid monthly or more often, the face amount of the policy does not exceed a stated amount, and the words "industrial policy" are printed in prominent type on the face of the policy.

Inland Marine - coverage for property that may be in transit, held by a bailee, at a fixed location, a movable good that is often at different locations e. This line also includes instrumentalities of transportation and communication, such as bridges, tunnels, piers, wharves, docks, pipelines, power and phone lines, and radio and television towers.

Insurable Interest - A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it. Bickelhaupt and Magee. Insurance - an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.

Insurance Holding Company System - consists of two or more affiliated persons, one or more of which is an insurer. Insurance to Value - Amount of insurance purchased vs. Intermediary - a person, corporation or other business entity not licensed as a medical provider that arranges, by contracts with physicians and other licensed medical providers, to deliver health services for a health insurer and its enrollees via a separate contract between the intermediary and the insurer.

International - includes all business transacted outside the U. Investment grade - the obligation has been determined to be in one of the top four generic lettered rating classifications by a securities rating agency acceptable to the commissioner, that the obligation has been identified in writing by such a rating agency to be of investment grade quality, or, if the obligation has not been submitted to any such rating agency, that the obligation has been determined to be investment grade Class 1 and Class 2 by the Securities Valuation Office of the National Association of Insurance Commissioners.

Investment Income Accrued - investment income earned as of the reporting date but not legally due to be paid to the reporting entity until subsequent to the reporting date.

Investment Income Due - investment income earned and legally due to be paid to the reporting entity as of the reporting date. Investment Income Gross - shall be recorded as earned and shall include investment income collected during the period, the change in investment income due and accrued, the change in unearned investment income plus any amortization e.

Irrevocable Beneficiary - a life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured's lifetime because the policy owner has the right to change the beneficiary designation only after obtaining the beneficiary's consent.

Joint and Last Survivor Annuity - retirement plan that continues to payout so long as at least one, of two or more, annuitants is alive. Joint Underwriting Association JUA - a loss-sharing mechanism combining several insurance companies to provide extra capacity due to type or size of exposure. Joint-Life Annuity - an annuity contract that ceases upon the death of the first of two or more annuitants.

Key-Persons Insurance - a policy purchased by, for the benefit of, a business insuring the life or lives of personnel integral to the business operations. Lapse - termination of a policy due to failure to pay the required renewal premium. Level Premium Insurance - life insurance policy for which the cost is equally distributed over the term of the premium period, remaining constant throughout.

10 common car insurance terms every consumer should know because they appear on your premiums and explain your insurance rates. Do you know what an SR Form is? What about PIP or No-Fault? Find out the definition of important insurance terms. Our Car Insurance glossary is an online guide to help you understand everything you need to know about getting a great policy plan that suits you. Call us on

Liability - a certain or probable future sacrifice of economic benefits arising from present obligations of a particular entity to transfer assets or to provide services to other entities in the future as a result of a past transactions s or event s.

Life — Endowment - insurance that pays the same benefit amount should the insured die during the term of the contract, or if the insured survives to the end of the specified coverage term or age. Life — Flexible Premium Adjustable Life - a group life insurance that provides a face amount that is adjustable to the certificate holder and allows the certificate holder to vary the modal premium that is paid or to skip a payment so long as the certificate value is sufficient to keep the certificate in force, and under which separately identified interest credits other than in connection with dividend accumulation, premium deposit funds or other supplementary accounts and mortality and expense charges are made to individual certificates while providing minimum guaranteed values.

Life Settlements - a contract or agreement in which a policyholder agrees to sell or transfer ownership in all or part of a life insurance policy to a third party for compensation that is less than the expected death benefit of a policy. Lifetime Disability Benefit - a provision in some disability income policies to recoup lost wages for the term of disability or remainder of insured's life in case of permanent disability. Also include short-term care policies that provide coverage for less than one year for medical and other services provided in a setting other than an acute care unit of the hospital.

Limited Payment Life Insurance - a form of whole-life insurance with a pre-defined number of premiums to be paid. Limited Policies - health insurance coverage for a certain ailment, such as cancer. Liquor Liability - coverage for the liability of an entity involved in the retail or wholesale sales of alcoholic beverages, or the serving of alcoholic beverages, to persons who have incurred bodily injury or property damage arising from an intoxicated person.

Living benefits rider - a rider attached to a life insurance policy providing long term care for the terminally ill. Lloyd's of London - association offering membership in various syndicates of wealthy individuals organized for the purpose of writing insurance for a particular hazard. Long Duration Contracts - contracts, excluding financial guaranty contracts, mortgage guaranty contracts and surety contracts, that fulfill both of the following conditions: Long-Term Care - policies that provide coverage for not less than one year for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital, including policies that provide benefits for cognitive impairment or loss of functional capacity.

This includes policies providing only nursing home care, home health care, community based care, or any combination. Long-Term Disability Income Insurance - policy providing monthly income payments for insureds who become disabled for an extensive length of time, typically two years or longer. Loss - physical damage to property or bodily injury, Including loss of use or loss of income.

Loss Adjustment Expense LAE - expected payments for costs to be incurred in connection with the adjustment and recording of losses. Can be classified into two broad categories: Loss of Use Insurance - policy providing protection against loss of use due to damage or destruction of property. Loss Payable Clause - coverage for third party mortgagee in case of default on insured property, secured by a loan, that has been lost or damaged.

Loss Reserve - the amount that insurers set aside to cover claims incurred but not yet paid. Loss Reserves - an estimate of liability or provision in an insurer's financial statement, indicating the amount the insurer expects to pay for losses incurred but not yet reported or reported claims that haven't been paid.

Losses Incurred But Not Reported IBNR - An estimated amount set aside by the insurance company to pay claims that may have occurred, but for some reason have not yet been reported to the insurance company. Malpractice - alleged misconduct or negligence in a professional act resulting in loss or injury.

Spoken English Tutorial - Buying Insurance - Free Vocabulary Lessons

Managed Care - system of health care delivery that attempts to influence the utilization, quality, and cost of services provided. Manufacturers Output Policies - provides broad form coverage of personal property of an insured manufacturer including raw material, goods in process, finished goods and goods shipped to customers. Margin Premium - a deposit that an organization is required to maintain with a broker with respect to the Futures Contracts purchased or sold.

Market Value - fair value or the price that could be derived from current sale of an asset. Mechanical Breakdown Insurance - premiums attributable to policies covering repair or replacement service, or indemnification for that service, for the operational or structural failure of property due to defects in materials or workmanship, or normal wear and tear. May cover motor vehicles, mobile equipment, boats, appliances, electronics, residual structures, etc.

Medical Malpractice - insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured's misconduct, negligence, or incompetence, in rendering or failure to render professional services. Medical Only - line of business that provides medical only benefits without hospital coverage.

An example would be provider-sponsored organizations where there is no coverage for other than provider non-hospital services. Medical Professional Liability - insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured's misconduct, negligence, or incompetence in rendering professional services.

Medical Professional Liability is also known as Medical Malpractice. Medicare - a state assistance program, passed under Title XVIII of the Social Security Amendments ofto provide hospital and medical expense insurance to those over 65 years of age. Medicare pays a fixed amount for insured's care every month to the companies offering Medicare Advantage plans.

These contracts with CMS provide reimbursement through pre-determined monthly amount per member based on a total estimated budget. The beneficiary may use providers outside the provider network. Does not include stand alone Medicare Part D Plans. Medicare Supplement - Insurance coverage sold on an individual or group basis to help fill the "gaps" in the protections granted by the federal Medicare program.

This is strictly supplemental coverage and cannot duplicate any benefits provided by Medicare. It is structured to pay part or all of Medicare's deductibles and co-payments. It may also cover some services and expenses not covered by Medicare.

Also known as Medigap" insurance. Medigap - supplementary private health insurance products to Medicare insurance benefits. Minimum Premium Plan - an arrangement under which an insurance carrier will, for a fee, handle the administration of claims and insure against large claims for a self-insured group.

The employer self-funds a fixed percentage e. Mobile Homes - Homeowners - homeowners insurance sold to owners occupying the described mobile home. Mobile Homes under Transport - coverage for mobile homes while under transport for personal or commercial use. Modified Guaranteed - an annuity that contains a provision that adjusts the value of withdrawn funds based on a formula in the contract. The formula reflects market value adjustments. Member - A person who has enrolled as a subscriber or an eligible dependent of a subscriber and for whom the health organization has accepted the responsibility for the provision of health services as may be contracted for.

Moral Hazard - personality characteristics that increase probability of losses. For example not taking proper care to protect insured property because the insured knows the insurance company will replace it if it is damaged or stolen.

Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss. Morbidity - the frequency or severity of disease or illness within a subset of the population. Morbidity Risk - the potential for a person to experience illness, injury, or other physical or psychological impairment, whether temporary or permanent. Morbidity risk excludes the potential for an individual's death, but includes the potential for an illness or injury that results in death.

Morbidity Table - a statistical record of the rate of illness among the defined age groups. Mortality Table - chart that shows the death rates of a particular population at each age displayed as the number of deaths per thousand. Mortgage Guaranty - insurance that indemnifies a lender for loss upon foreclosure if a borrower fails to meet required mortgage payments. Mortgage-Backed Securities - a type of asset-backed security that is secured by a mortgage or collection of mortgages.

These securities must also be grouped in one of the top two ratings as determined by an accredited credit rating agency, and usually pay periodic payments that are similar to coupon payments. Furthermore, the mortgage must have originated from a regulated and authorized financial institution. Multi-Peril Insurance - personal and business property coverage combining several types of property insurance in one policy.

Municipal Bond Guarantee Insurance - coverage sold to municipalities to guarantee the principle payment on bonds issued. Municipal obligation bond - any security, or other instrument, including a state lease but not a lease of any other governmental entity, under which a payment obligation is created, issued by or on behalf of a governmental unit to finance a project servicing a substantial public purpose, and 1 Payable from tax revenues, but not tax allocations, within the jurisdiction of such governmental unit; 2 Payable or guaranteed by the United States of America or any agency, department or instrumentality thereof, or by a state housing agency; 3 Payable from rates or charges but not tolls levied or collected in respect of a non-nuclear utility project, public transportation facility other than an airport facility or public higher education facility; or 4 With respect to lease obligations, payable from future appropriations.

Mutual Insurance Company - a privately held insurer owned by its policyholders, operated as a non-profit that may or may not be incorporated. Mutual Insurance Holding Company - a company organized as a mutual and owning a capital stock insurer or insurers for the benefit of pooling risk for many people, typically those in the same industry.

Named Peril Coverage - insurance for losses explicitly defined in the policy contract. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. Negligence - failure to exercise reasonable consideration resulting in loss or damage to oneself or others. Net Admitted Assets - total of assets whose values are permitted by state law to be included in the annual statement of the insurer. Net Income - total revenues from an insurer's operations less total expenses and income taxes. Encourages participation by private insurers through a flood insurance pool.

Nonadmitted Assets - assets having economic value other than those which can be used to fulfill policyholder obligations, or those assets which are unavailable due to encumbrances or other third party interests and should not be recognized on the balance sheet. Nonadmitted Insurer - insurance company not licensed to do business within a given state. Non-controlled stock insurers - insurers in which a parent company has: Non-proportional Reinsurance - reinsurance that is not secured on individual lives for specific individual amount of reinsurance, but rather reinsurance that protects the ceding company's overall experience on its entire portfolio of business, or at least a broad segment of it.

The most common forms of non-proportional reinsurance are stop loss and catastrophe. Notional Value - the principal value upon which future payments are based in a derivative transaction as at a specific period in time the "as of" reporting date in the reporting currency. Examples are: Moody's Investors Service, Inc. Best Company A. Nuclear Energy Liability - coverage for bodily injury and property damage liability resulting from the nuclear energy material whether or not radioactive on the insured business's premises or in transit.

Occurrence - an accidentincluding injurious exposure to conditions, which results, during the policy period in bodily injury or property damage neither expected or intended from the standpoint of the insured. Ocean Marine - coverage for ocean and inland water transportation exposures; goods or cargoes; ships or hulls; earnings; and liability. Officer - a president, vice-president, treasurer, actuary, secretary, controller and any other person who performs for the company functions corresponding to those performed by the foregoing officers.

Option - an agreement giving the buyer the right to buy or receive, sell or deliver, enter into, extend or terminate, or effect a cash settlement based on the actual or expected price, level, performance or value of one or more Underlying Interests.

The definitions in this glossary are developed by the NAIC Research and Actuarial . Auto Physical Damage - motor vehicle insurance coverage ( including. Automobile Insurance Vocabulary - Don't shop for auto insurance on your own. Receive guidance from reputable car insurance providers in order to be. C. Insurance designed to pay for the repair or replacement of the policy policyowner's car in the event of damage not resulting from an accident. D. Protection.

Other Accident and Health - accident and health coverages not otherwise properly classified as Group Accident and Health or Credit Accident and Health e. Include all Medicare Part D Prescription Drug Coverage, whether sold on a stand-alone basis or through a Medicare Advantage product and whether sold directly to an individual or through a group. Other Considerations - Unallocated annuity considerations and other unallocated deposits that incorporate any mortality or morbidity risk and are not reported as direct premiums, direct annuity considerations or deposit-type contract funds.

Other Liability - coverage protecting the insured against legal liability resulting from negligence, carelessness, or a failure to act resulting in property damage or personal injury to others.

Other Underwriting Expenses - allocable expenses other than loss adjustment expenses and investment expenses. Owner Occupied - homeowners insurance sold to owners occupying the described property.

Auto insurance vocabulary

Peril - the cause of property damage or personal injury, origin of desire for insurance. Permanent Life Insurance - policy that remains active for the life of the insured. Personal Auto Policy - coverage designed to insure private passenger automobiles and certain types of trucks owned by an individual or husband and wife. Personal Earthquake - earthquake property coverage for personal, family or household purposes.

Personal Flood - separate flood insurance policy sold for personal, family or household purposes. Personal GAP Insurance - credit insurance that insures the excess of the outstanding indebtedness over the primary property insurance benefits in the event of a total loss to a collateral asset.

Personal Injury Liability - liability coverage for those who have been discriminated against, falsely arrested, illegally detained, libeled, maliciously prosecuted, slandered, suffered from identity theft, mental anguish or alienation of affections, or have had their right of privacy violated. Personal Property - single interest or dual interest credit insurance where collateral is not a motor vehicle, mobile home, or real estate that covers perils to goods purchased or used as collateral and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part; or covers perils to goods purchased in connection with an open-end credit transaction.

Pet Insurance Plans - veterinary care plan insurance policy providing care for a pet animal e. Policy Dividend - a refund of part of the premium on a participating life insurance policy. Amount of payment is determined by subtracting the actual premium expense from the premium charged. The payment can be taken as cash, applied to a purchase an increment of paid-up insurance, left on deposit with the insurance company or applied to purchase term insurance for one year.

Policy Reserve - the amount of money allocated specifically for the fulfillment of policy obligations by a life insurance company; reserves are in place to safeguard that the company is able to pay all future claims. Policyholders Surplus - assets in excess of the liabilities of a company or net income above any monies indebted to legal obligation.

Pool - an association organized for the purpose of absorbing losses through a risk-sharing mechanism thereby limiting individual exposures. Preferred Provider Organization PPO - arrangement, insured or uninsured, where contracts are established by Health Plan Companies typically, commercial insurers, and, in some circumstances, by self-insured employers with health care providers. The Health Plans involved will often designate these contracted providers as "preferred" and will provide an incentive, usually in the form of lower deductibles or co-payments, to encourage covered individuals to use these providers.

Members are allowed benefits for non-participating provider services on an indemnity basis with significant copayments and providers are often, but not always, paid on a discounted fee for service basis. Preferred Risk - insured, or applicant for insurance, who presents likelihood of risk lower than that of the standard applicant. Premises and Operations - policies covering the liability of an insured to persons who have incurred bodily injury or property damage on an insured's premises during normal operations or routine maintenance, or from an insured's business operations either on or off of the insured's premises.

Premium - Money charged for the insurance coverage reflecting expectation of loss. Premiums Earned - the portion of premium for which the policy protection or coverage has already been given during the now-expired portion of the policy term.

Premiums Net - is the amount calculated on the basis of the interest and mortality table used to calculate the reporting entity's statutory policy reserves. Premiums Written - total premiums generated from all policies contracts written by an insurer within a given period of time. Primary Insurance - coverage that takes precedence when more than one policy covers the same loss. Prior Approval Law - a state regulatory requirement for pre-approval of all insurance rates and forms.

Private Passenger Auto PPA - filings that include singularly or in any combination coverage such as the following: Producer - an individual who sells, services, or negotiates insurance policies either on behalf of a company or independently.

Product Liability - insurance coverage protecting the manufacturer, distributor, seller, or lessor of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product. Professional Errors and Omissions Liability - coverage available to pay for liability arising out of the performance of professional or business related duties, with coverage being tailored to the needs of the specific profession.

Examples include abstracters, accountants, insurance adjusters, architects, engineers, insurance agents and brokers, lawyers, real estate agents, stockbrokers. Property - coverage protecting the insured against loss or damage to real or personal property from a variety of perils, including but not limited to fire, lightening, business interruption, loss of rents, glass breakage, tornado, windstorm, hail, water damage, explosion, riot, civil commotion, rain, or damage from aircraft or vehicles.

Pro-rata proportional Reinsurance - portion of the losses and premium reinsurer shares with the ceding entity. Protected Cell - an insurance-linked security retained within the insurance or reinsurance company and is used to insulate the proceeds of the securities offering from the general business risks of the insurer, granting an additional comfort level for investors of the securitized instrument.

Provider Sponsored Network PSN - formal affiliations of providers, sometimes called "integrated delivery systems", organized and operated to provide an integrated network of health care providers with which third parties, such as insurance companies, HMOs, or other Health Plan Companies, may contract for health care services to covered individuals.

Glossary of auto insurance terms

Public Adjuster - independent claims adjuster representing policyholders instead of insurance companies. Pure Premium - that portion of the premium equal to expected losses void of insurance company expenses, premium taxes, contingencies, or profit margin. Pure Risk - circumstance including possibility of loss or no loss but no possibility of gain. Qualified Actuary - a person who meets the basic education, experience and continuing education requirements these differ by line of business of the Specific Qualification Standard for Statements of Actuarial Opinion, NAIC Property and Casualty Annual Statement, as set forth in the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States, promulgated by the American Academy of Actuaries, and is in good standing of the American Academy of Actuaries who has been approved as qualified for signing casualty loss reserve opinions by the Casualty Practice Council of the American Academy of Actuaries.

Calculated by dividing the company's capital by the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations. The assumption is in exchange for a premium. Indemnification is on a proportional or non-proportional basis. Renewable Term Insurance - insurance that is renewable for a limited number of successive terms by the policyholder and is not contingent upon medical examination.

Renters Insurance - liability coverage for contents within a renter's residence. Coverage does not include the structure but does include any affixed items provided or changed by the renter.

Replacement Cost - the cost of replacing property without a reduction for depreciation due to normal wear and tear. Reported Losses - Includes both expected payments for losses relating to insured events that have occurred and have been reported to the insurance company, but not yet paid. Reserve Credit - reduction of reserve amounts for reinsurance ceded. Residence - the domicile location of a member as shown by his or her determination as a resident.

Residual Market Plan - method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels. Retention - a mechanism of internal fund allocation for loss exposure used in place of or as a supplement to risk transfer to an insurance company.

Retention Limit - maximum amount of medical and hospital expense an insurer will carry on its own. Retrocession - the portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain. Retrospective Rating - the process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment. Risk - Uncertainty concerning the possibility of loss by a peril for which insurance is pursued.

Risk Retention Group - group-owned insurer organized for the purpose of assuming and spreading the liability risks to its members. Statutory Accounting Principles SAP - a set of accounting principles set forth by the National Association of Insurance Commissioners used to prepare statutory financial statements for insurance companies.

Securitization of Insurance Risk - a method for insurance companies to access capital and hedge risks by converting policies into securities that can be sold in financial markets.

Security - a share, participation, or other interest in property or in an enterprise of the issuer or an obligation of the issuer. Self-Insurance - type of insurance often used for high frequency low severity risks where risk is not transferred to an insurance company but retained and accounted for internally. Separate Account - segregated funds held and invested independently of other assets by an insurer for the purpose of a group retirement fund.

Short-term Disability - a company standard defining a period of time employees are eligible for short-term disability coverage, typically for 2 years or less. Short-Term Medical - policies that provide major medical coverage for a short period of time, typically 30 to days. These policies may be renewable for multiple periods. Situs of Contract - the jurisdiction in which the contract is issued or delivered as stated in the contract. Social Insurance - compulsory insurance plan administered by a federal or state government 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 security, or other instrument under which a payment obligation is created, issued by or on behalf of a governmental unit to finance a project serving a substantial public purpose and not payable from the sources in connection with the payment of municipal obligation bonds.

Benefits can be paid as expense incurred, per diem or as a principal sum. Standard Risk - a person who, according to a company's underwriting standards, is considered a normal risk and insurable at standard rates. High or low risk candidates may qualify for extra or discounted rates based on their deviation from the standard.

State Page - Exhibit of Premiums and Losses for each state a company is licensed. The state of domicile receives a schedule for each jurisdiction the company wrote direct business, or has amounts paid, incurred or unpaid. Statement Type - refers to the primary business type under which the company files its annual and quarterly statement, such as Life, Property, Health, Fraternal, Title.

2 comments

  1. Mulkis

    What necessary words... super, a magnificent idea

    Reply

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