Glossary of Insurance Terms
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
Glossary of Insurance Terms
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List of Services
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Accident an unexpected event or circumstance without deliberate intent.Accident
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Accident Insurance insurance for unforeseen bodily injury.Accident Insurance
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Accident Only an insurance contract that provides coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accident.Accident Only
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Accident Only or AD&D policies providing coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accidents. Types of coverage include student accident, sports accident, travel accident, blanket accident, specific accident or accidental death and dismemberment (AD&D).Accident Only or AD&D
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Accidental Bodily Injury unexpected injury to a person.Accidental Bodily Injury
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Accidental Death & Dismemberment an insurance contract that pays a stated benefit in the event of death and/or dismemberment caused by accident or specified kinds of accidents.Accidental Death & Dismemberment
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Accumulation Period period of time insured must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.Accumulation Period
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Actual Cash Value repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciationActual Cash Value
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Actuarial Report (PC Insurance)a document or other presentation, prepared as a formal means of conveying to the state regulatory authority and the Board of Directors, or its equivalent, the actuary's professional conclusions and recommendations, of recording and communicating the methods and procedures, of assuring that the parties addressed are aware of the significance of the actuary's opinion or findings and that documents the analysis underlying the opinion. (In Life and Health) this document would be called an "Actuarial Memorandum."Actuarial Report
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Actuary business professional who analyzes probabilities of risk and risk management including calculation of premiums, dividends and other applicable insurance industry standards.Actuary
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Adjuster a person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held.Adjuster
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Admission hospital inpatient care for any medical condition.Admission
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Admitted Assets insurer assets which can be valued and included on the balance sheet to determine financial viability of the company.Admitted Assets
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Admitted Company an insurance company licensed to do business in a state(s), domiciled in an alternative state or country.Admitted Company
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Advance Premiums occur when a policy has been processed, and the premium has been paid prior to the effective date. These are a liability to the company and not included in written premium or the unearned premium reserve.Advance Premiums
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Adverse Selection the social phenomenon whereby persons with a higher than average probability of loss seek greater insurance coverage than those with less risk.Adverse Selection
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Advisory Organization a group supported by member companies whose function is to gather loss statistics and publish trended loss costs.Advisory Organization
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Affiliate a person or entity that directly, or indirectly, through one or more other persons or entities, controls, is controlled by or is under common control with the insurer.Affiliate
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Aggregate the maximum dollar amount or total amount of coverage payable for a single loss, or multiple losses, during a policy period, or on a single project.Aggregate
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Aggregate Cost Payments method of reimbursement of a health plan with a corporate entity that directly provides care, where (1) the health plan is contractually required to pay the total operating costs of the corporate entity, less any income to the entity from other users of services, and (2) there are mutual unlimited guarantees of solvency between the entity and the health plan that put their respective capital and surplus at risk in guaranteeing each other.Aggregate Cost Payments
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Aircraft coverage for aircraft (hull) and their contents; aircraft owners' and aircraft manufacturers liability to passengers, airports and other third parties.Aircraft
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ALAE an estimate of the claims settlement associated with a particular claim or claims.ALAE
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Alien Company an insurance company formed according to the laws of a foreign country. The company must conform to state regulatory standards to legally sell insurance products in that state.Alien Company
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Allied Lines coverages which are generally written with property insurance, e.g., glass, tornado, windstorm and hail; sprinkler and water damage; explosion, riot, and civil commotion; growing crops; flood; rain; and damage from aircraft and vehicle, etc.Allied Lines
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All-Risk also known as open peril, this type of policy covers a broad range of losses. The policy covers risks not explicitly excluded in the policy contract.All-Risk
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Alternative Workers' Compensation other than standard workers' compensation coverage, employer's liability and excess workers' compensation (e.g., large deductible, managed care).Alternative Workers' Compensation
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Ambulatory Services health services provided to members who are not confined to a health care institution. Ambulatory services are often referred to as "outpatient" services.Ambulatory Services
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Annual Statement an annual report required to be filed with each state in which an insurer does business. This report provides a snapshot of the financial condition of a company and significant events which occurred throughout the reporting year.Annual Statement
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Annuitant the beneficiary of an annuity payment, or person during whose life and annuity is payable.Annuitant
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Annuities – Immediate Non-variable an annuity contract that provides for the fixed payment of the annuity at the end of the first interval of payment after purchase. The interval may vary, however the annuity payouts must begin within 13 months.Annuities – Immediate Non-variable
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Annuity a contract providing income for a specified period of time, or duration of life for a person or persons.Annuity
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Appraisal an estimate of value.Appraisal
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Arbitration a binding dispute resolution tactic whereby a conciliator with no interest in the outcome intercedes.Arbitration
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Assessed Value estimated value for real or personal property established by a taxing entityAssessed Value
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Asset probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. An asset has three essential characteristics: It embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows; A particular entity can obtain the benefit and control others' access to it; and The transaction or other event-giving rise to the entity's right to or control of the benefit has already occurred.Asset
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Asset Risk in the risk-based capital formula, risk assigned to the company's assets.Asset Risk
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Assigned Risk A governmental pool established to write business declined by carriers in the standard insurance market.Assigned Risk
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Assisted Living Care a policy or rider that provides coverage only while a policyholder is confined to an assisted living facility and meets the policy requirements for coverage.Assisted Living Care
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Assumed Reinsurance the assumption of risk from another insurance entity within a reinsurance agreement or treaty.Assumed Reinsurance
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Authorized Company an insurer licensed or admitted to do business in a particular state.Authorized Company
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Authorized Control Level Risk Based Capital theoretical amount of capital plus surplus an insurance company should maintain.Authorized Control Level Risk Based Capital
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Authorized Reinsurance reinsurance placed with a reinsurer who is licensed or otherwise allowed to conduct reinsurance within a state.Authorized Reinsurance
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Auto Liability coverage that protects against financial loss because of legal liability for motor vehicle related injuries (bodily injury and medical payments) or damage to the property of others caused by accidents arising out of ownership, maintenance or use of a motor vehicle (including recreational vehicles such as motor homes). Commercial is defined as all motor vehicle policies that include vehicles that are used primarily in connection with business, commercial establishments, activity, employment, or activities carried on for gain or profit. No Fault is defined by the state concerned.Auto Liability
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Auto Physical Damage motor vehicle insurance coverage (including collision, vandalism, fire and theft) that insures against material damage to the insured's vehicle. Commercial is defined as all motor vehicle policies that include vehicles that are used in connection with business, commercial establishments, activity, employment, or activities carried on for gain or profit.Auto Physical Damage
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Automobile Liability Insurance coverage for bodily injury and property damage incurred through ownership or operation of a vehicle.Automobile Liability Insurance
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List of Services
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Balance Sheet accounting statement showing the financial condition of a company at a particular date.Balance Sheet
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BCEGS - Building Code Effectiveness Grading Schedule classification system for assessment of building codes per geographic region with special emphasis on mitigation of losses from natural disasters.BCEGS - Building Code Effectiveness Grading Schedule
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Beneficiary an individual who may become eligible to receive payment due to will, life insurance policy, retirement plan, annuity, trust, or other contract.Beneficiary
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Benefits (Medical & Hospital Expenses) total expenditures for health care services paid to or on behalf of a member.Benefits (Medical & Hospital Expenses)
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Blanket coverage coverage for property and liability that extends to more than one location, class of property or employee.Blanket coverage
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Boatowners/Personal Watercraft covers damage to pleasure boats, motors, trailers, boating equipment and personal watercraft as well as bodily injury and property damage liability to others.Boatowners/Personal Watercraft
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Bodily Injury physical injury including sickness or disease to a person.Bodily Injury
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Boiler & Machinery or Equipment Breakdown & Machinery coverage for the failure of boilers, machinery and other electrical equipment. Benefits include (i) property of the insured, which has been directly damaged by the accident; (ii) costs of temporary repairs and expediting expenses; and (iii) liability for damage to the property of others. Coverage also includes inspection of the equipment.Boiler & Machinery or Equipment Breakdown & Machinery
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Bonds a form of debt security whereby the debt holder has a creditor stake in the company. Obligations issued by business units, governmental units and certain nonprofit units having a fixed schedule for one or more future payments of money; includes commercial paper, negotiable certificates of deposit, repurchase agreements and equipment trust certificates.Bonds
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Book Value original cost, including capitalized acquisition costs and accumulated depreciation, unamortized premium and discount, deferred origination and commitment fees, direct write-downs, and increase/decrease by adjustment.Book Value
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Broker an individual who receives commissions from the sale and service of insurance policies. These individuals work on behalf of the customer and are not restricted to selling policies for a specific company but commissions are paid by the company with which the sale was made.Broker
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Builders' Risk Policies typically written on a reporting or completed value form, this coverage insures against loss to buildings in the course of construction. The coverage also includes machinery and equipment used in the course of construction and to materials incidental to construction.Builders' Risk Policies
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Burglary and Theft coverage for property taken or destroyed by breaking and entering the insured's premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and off-premises exposure.Burglary and Theft
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Business Auto coverage for motor vehicles, other than those in the garage business, engaged in commerce. Business auto filings include singularly or in any combination coverage such as the following: Auto Liability, PIP, MP, Uninsured Motorist and/or Underinsured Motorists (UM/UIM); Specified Causes of Loss, Comprehensive, and Collision.Business Auto
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Business Interruption loss of income as a result of property damage to a business facility.Business Interruption
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Business owners Policy business insurance typically for property, liability and business interruption coverage.Business owners Policy
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List of Services
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Calendar Year Deductible Calendar Year DeductibleCalendar Year Deductible
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Capital and Surplus Capital and SurplusCapital and Surplus
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Capital and Surplus Requirement Capital and Surplus RequirementCapital and Surplus Requirement
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Capital Gains (Loss) Capital Gains (Loss)Capital Gains (Loss)
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Capitation Arrangement Capitation ArrangementCapitation Arrangement
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Captive Agent Captive AgentCaptive Agent
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Captive Insurer Captive InsurerCaptive Insurer
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Carrying Value (Amount) Carrying Value (Amount)Carrying Value (Amount)
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Cash CashCash
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Cash Equivalent Cash EquivalentCash Equivalent
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Cash Value Cash ValueCash Value
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Casualty Insurance Casualty InsuranceCasualty Insurance
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Catastrophe Bonds Catastrophe BondsCatastrophe Bonds
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Catastrophe Loss Catastrophe LossCatastrophe Loss
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Ceded Premium Ceded PremiumCeded Premium
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Ceding Company Ceding CompanyCeding Company
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Centers for Medicare & Medicaid Services (CMS) Centers for Medicare & Medicaid Services (CMS)Centers for Medicare & Medicaid Services (CMS)
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Change in Valuation Basis Change in Valuation BasisChange in Valuation Basis
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Chartered Life Underwriter (CLU) Chartered Life Underwriter (CLU)Chartered Life Underwriter (CLU)
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Chartered Property Casualty Underwriter (CPCU) Chartered Property Casualty Underwriter (CPCU)Chartered Property Casualty Underwriter (CPCU)
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Claim ClaimClaim
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Claims Adjustment Expenses Claims Adjustment ExpensesClaims Adjustment Expenses
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Claims-made Form Claims-made FormClaims-made Form
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Class Rating Class RatingClass Rating
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Coinsurance CoinsuranceCoinsurance
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Collar CollarCollar
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Collateral Loans Collateral LoansCollateral Loans
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Collateralized Bond Obligations (CBOs) Collateralized Bond Obligations (CBOs)Collateralized Bond Obligations (CBOs)
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Collateralized Mortgage Obligations (CMOs) Collateralized Mortgage Obligations (CMOs)Collateralized Mortgage Obligations (CMOs)
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Combinations CombinationsCombinations
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Combined Ratio Combined RatioCombined Ratio
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Commencement Date Commencement DateCommencement Date
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Commercial Auto Commercial AutoCommercial Auto
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Commercial Earthquake Commercial EarthquakeCommercial Earthquake
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Commercial Farm and Ranch Commercial Farm and RanchCommercial Farm and Ranch
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Commercial Flood Commercial FloodCommercial Flood
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Commercial General Liability Commercial General LiabilityCommercial General Liability
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Commercial Mortgage-Backed Securities Commercial Mortgage-Backed SecuritiesCommercial Mortgage-Backed Securities
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Commercial Multiple Peril Commercial Multiple PerilCommercial Multiple Peril
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Commercial Package Policy Commercial Package PolicyCommercial Package Policy
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Commercial Property Commercial PropertyCommercial Property
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Commission CommissionCommission
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Community Rating Community RatingCommunity Rating
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Company Code Company CodeCompany Code
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Completed Operations Liability Completed Operations LiabilityCompleted Operations Liability
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Comprehensive (Hospital and Medical) Comprehensive (Hospital and Medical)Comprehensive (Hospital and Medical)
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Comprehensive General Liability (CGL) Comprehensive General Liability (CGL)Comprehensive General Liability (CGL)
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Comprehensive Personal Liability Comprehensive Personal LiabilityComprehensive Personal Liability
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Comprehensive/Major Medical Comprehensive/Major MedicalComprehensive/Major Medical
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Concurrent Causation Concurrent CausationConcurrent Causation
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Conditions ConditionsConditions
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Condos CondosCondos
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Construction and Alteration Liability Construction and Alteration LiabilityConstruction and Alteration Liability
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Contingency Reserves Contingency ReservesContingency Reserves
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Contingent Liability Contingent LiabilityContingent Liability
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Continuation of Care Requirement Continuation of Care RequirementContinuation of Care Requirement
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Continuing Care Retirement Communities Continuing Care Retirement CommunitiesContinuing Care Retirement Communities
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Contract Reserves Contract ReservesContract Reserves
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Contractual Liability Contractual LiabilityContractual Liability
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Convertible Term Insurance Policy Convertible Term Insurance PolicyConvertible Term Insurance Policy
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Coordination of Benefits (COB) Coordination of Benefits (COB)Coordination of Benefits (COB)
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Copay CopayCopay
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Corrective Order Corrective OrderCorrective Order
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Covered Lives Covered LivesCovered Lives
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Credit CreditCredit
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Credit – Assumption Agreement Credit – Assumption AgreementCredit – Assumption Agreement
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Credit - Credit Default Credit - Credit DefaultCredit - Credit Default
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Credit – Involuntary Unemployment Credit – Involuntary UnemploymentCredit – Involuntary Unemployment
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Credit Accident and Health (group and individual) Credit Accident and Health (group and individual)Credit Accident and Health (group and individual)
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Credit Disability Credit DisabilityCredit Disability
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Credit Health Insurance Credit Health InsuranceCredit Health Insurance
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Credit Involuntary Unemployment Credit Involuntary UnemploymentCredit Involuntary Unemployment
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Credit Life Insurance Credit Life InsuranceCredit Life Insurance
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Credit Personal Property Insurance Credit Personal Property InsuranceCredit Personal Property Insurance
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Credit Placed Insurance Credit Placed InsuranceCredit Placed Insurance
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Credit Risk Credit RiskCredit Risk
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Creditor-Placed Auto Creditor-Placed AutoCreditor-Placed Auto
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Creditor-Placed Home Creditor-Placed HomeCreditor-Placed Home
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Crop CropCrop
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Crop-Hail Insurance Crop-Hail InsuranceCrop-Hail Insurance
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List of Services
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Date of Issue date when an insurance company issues a policy.Date of Issue
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Declarations policy statements regarding the applicant and property covered such as demographic and occupational information, property specifications and expected mileage per year .Declarations
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Deductible Portion of the insured loss (in dollars) paid by the policy holderDeductible
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Deferred Annuity annuity payment to be made as a single payment or a series of installments to begin at some future date, such as in a specified number of years or at a specified age.Deferred Annuity
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Deferred Annuities a contract providing income at a specified point in the future, either for a defined duration of time or for the remaining life or lives of the annuitant(s)Deferred Annuities
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Demutualization conversion of a mutual insurance company to a capital stock company.Demutualization
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Dental Insurance policies providing only dental treatment benefits such as routine dental examinations, preventive dental work, and dental procedures needed to treat tooth decay and diseases of the teeth and jaw.Dental Insurance
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Dental Only line of business providing dental only coverage; coverage can be on a stand-alone basis or as a rider to a medical policy. If the coverage is as a rider, deductibles or out-of-pocket limits must be set separately from the medical coverage. Does not include self-insured business as well as FEHBP or Medicare and Medicaid programs.Dental Only
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Derivative securities priced according to the value of other financial instruments such as commodity prices, interest rates, stock market prices, foreign or exchange rates.Derivative
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Difference In Conditions (DIC) Insurance special form of open-peril coverage written in conjunction with basic fire coverage and designed to provide protection against losses not reimbursed under the standard fire forms. Examples are flood and earthquake coverage.Difference In Conditions (DIC) Insurance
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Direct Incurred Loss loss whereby the proximate cause is equivalent to the insured peril.Direct Incurred Loss
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Direct Loss Damage to covered real or personal property caused by a covered peril.Direct Loss
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Direct Writer an insurance company that sells policies to the insured through salaried representatives or exclusive agents only; reinsurance companies that deal directly with ceding companies instead of using brokers.Direct Writer
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Direct Written Premium total premiums received by an insurance company without any adjustments for the ceding of any portion of these premiums to the Reinsurer.Direct Written Premium
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Directors & Officers Liability liability coverage protecting directors or officers of a corporation from liability arising out of the performance of their professional duties on behalf of the corporation.Directors & Officers Liability
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Disability Income a policy designed to compensate insured individuals for a portion of the income they lose because of a disabling injury or illness.Disability Income
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Disability Income - Long-Term policies that provide a weekly or monthly income benefit for more than five years for individual coverage and more than one year for group coverage for full or partial disability arising from accident and/or sickness.Disability Income - Long-Term
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Disability Income - Short-Term policies that provide a weekly or monthly income benefit for up to five years for individual coverage and up to one year for group coverage for full or partial disability arising from accident and/or sickness.Disability Income - Short-Term
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Dividend a refund of a portion of the premium paid by the insured from insurer surplus.Dividend
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Domestic Insurer an insurance company that is domiciled and licensed in the state in which it sells insurance.Domestic Insurer
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Dual Interest insurance that protects the creditor's and the debtor's interest in the collateral securing the debtor's credit transaction. "Dual Interest" includes insurance commonly referred to as "Limited Dual Interest."Dual Interest
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Dwelling Property/Personal Liability a special form of package policy composed of dwelling fire and/or allied lines, and personal liability insurance.Dwelling Property/Personal Liability
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List of Services
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Early warning system a system designed by insurance industry regulators of identifying practices and risk-related trends that contribute to systemic risk by measuring insurer' financial stability.Early warning system
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Earned Premium portion of insured's prepaid premium allocated to the insurance company's loss experience, expenses, and profit year- to -date.Earned Premium
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Earthquake property coverages for losses resulting from a sudden trembling or shaking of the earth, including that caused by volcanic eruption. Excluded are losses resulting from fire, explosion, flood or tidal wave following the covered event.Earthquake
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EBNR - Earned but not reported premium amount insurer reasonably expects to receive for which contracts are not yet final and exact amounts are not definite.EBNR - Earned but not reported
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EDP Policies coverage to protect against losses arising out of damage to or destruction of electronic data processing equipment and its software.EDP Policies
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Effective Date date at which an insurance policy goes into force.Effective Date
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Elevators and Escalators Liability liability coverage for bodily injury or property damage arising from the use of elevators or escalators operated, maintained or controlled by the insured.Elevators and Escalators Liability
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Employee Benefit Liability liability protection for an employer for claims arising from provisions in an employee benefit insurance plan provided for the economic and social welfare of employees. Examples of items covered are pension plans, group life insurance, group health insurance, group disability income insurance, and accidental death and dismemberment.Employee Benefit Liability
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Employee Retirement Income Security Act of 1974 (ERISA) a federal statute governing standards for private pension plans, including vesting requirements, funding mechanisms, and plan design.Employee Retirement Income Security Act of 1974 (ERISA)
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Employers Liability employers' liability coverage for the legal liability of employers arising out of injuries to employees. This code should be used when coverage is issued as an endorsement, or as part of a statutory workers' compensation policy.Employers Liability
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Employment Practices Liability Coverage liability insurance for employers providing coverage for wrongful termination, discrimination, or sexual harassment of the insured's current or former employees.Employment Practices Liability Coverage
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Encumbrance outstanding mortgages or other debt related to real estate and any unpaid accrued acquisition or construction costs.Encumbrance
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Endorsement an amendment or rider to a policy adjusting the coverages and taking precedence over the general contract.Endorsement
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Enrollment The total number of plans, not the total number of covered lives, providing coverage to the enrollee and their dependents.Enrollment
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Environmental Impairment Liability (EIL) coverage for negligence or omission resulting in pollution or environmental contamination.Environmental Impairment Liability (EIL)
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Environmental Pollution Liability liability coverage of an insured to persons who have incurred bodily injury or property damage from acids, fumes, smoke, toxic chemicals, waste materials or other pollutants.Environmental Pollution Liability
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Equity Indexed Annuity a fixed annuity that earns interest or provides benefits that are linked to an external reference or equity index, subject to a minimum guarantee.Equity Indexed Annuity
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Errors and Omissions Liability | Professional Liability other than Medical liability coverage of a professional or quasi professional insured to persons who have incurred bodily injury or property damage, or who have sustained any loss from omissions arising from the performance of services for others, errors in judgment, breaches of duty, or negligent or wrongful acts in business conduct.Errors and Omissions Liability | Professional Liability other than Medical
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Event Cancellation coverage for financial loss because of the cancellation or postponement of a specific event due to weather or other unexpected cause beyond the control of the insured.Event Cancellation
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Excess and Umbrella Liability liability coverage of an insured above a specific amount set forth in 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 known or unknown gaps in basic coverages or self insured retentions.Excess and Umbrella Liability
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Excess of Loss Reinsurance loss sharing mechanism where an insurer pays all claims up to a specified amount and a reinsurance company pays any claims in excess of stated amount.Excess of Loss Reinsurance
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Excess Workers' Compensation either specific and/or aggregate excess workers' compensation insurance written above an attachment point or self-insured retention.Excess Workers' Compensation
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Expense Ratio percentage of premium income used to attain and service policies. Derived by subtracting related expenses from incurred losses and dividing by written premiums.Expense Ratio
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Experience Rating rating system where each group is rated entirely on the basis of its own expected claims in the coming period, with retrospective adjustments for prior periods. This method is prohibited under the conditions for federal qualification.Experience Rating
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Exposure risk of possible loss.Exposure
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Extra Expense Insurance a type of property insurance for extraordinary expenses related to business interruption such as a back-up generator in case of power failure.Extra Expense Insurance
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List of Services
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Face Amount the value of a policy to be provided upon maturity date or death.Face Amount
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Facultative Reinsurance reinsurance for a specific policy for which terms can be negotiated by the original insurer and reinsurer.Facultative Reinsurance
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FAIR Plan - Fair Access to Insurance Requirements tate pools designed to provide insurance to property owners who are unable to obtain property insurance through conventional means.FAIR Plan - Fair Access to Insurance Requirements
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Fair Value the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. If a quoted market price is available, the fair value is the product of the number of trading units times market price.Fair Value
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Farmowners Insurance farmowners insurance sold for personal, family or household purposes. This package policy 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 losses. Coverage includes farm dwellings and their contents, barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock.Farmowners Insurance
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Federal Flood Insurance coverage for qualifying residents and businesses in flood prone regions through the National Flood Insurance Act, a federally subsidized flood insurance program enacted in 1968.Federal Flood Insurance
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Federally Reinsured Crop crop insurance coverage that is either wholly or in part reinsured by the Federal Crop Insurance Corporation (FCIC) under the Standard Reinsurance Agreement (SRA). This includes the following products: Multiple Peril Crop Insurance (MPCI); Catastrophic Insurance, Crop Revenue Coverage (CRC); Income Protection and Revenue Assurance.Federally Reinsured Crop
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Fees Payable fees incurred but not yet paid.Fees Payable
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FEMA - Federal Emergency Management Agency an independent agency, tasked with responding to, planning for, mitigating and recovery efforts of natural disasters.FEMA - Federal Emergency Management Agency
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Fidelity a bond or policy covering an employer's loss resulting from an employee's dishonest act (e.g., loss of cash, securities, valuables, etc.).Fidelity
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Financial Guaranty a surety bond, insurance policy, or an indemnity contract (when issued by an insurer), or similar guaranty types under which loss is payable upon proof of occurrence of financial loss to an insured claimant, obligee or indemnitee as a result of failure to perform a financial obligation or any other permissible product that is defined as or determined to be financial guaranty insurance.Financial Guaranty
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Financial Reporting insurance companies are required to maintain records and file annual and quarterly financial statements with regulators in accordance with statutory accounting principles (SAP). Statutory rules also govern how insurers should establish reserves for invested assets and claims and the conditions under which they can claim credit for reinsurance ceded.Financial Reporting
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Financial Responsibility Law a statute requiring motorists to show capacity to pay for automobile-related losses.Financial Responsibility Law
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Financial Statement balance sheet and profit and loss statement of an insurance company. This statement is used by the NAIC, and by State Insurance Commissioners to regulate an insurance company according to reserve requirements, assets, and other liabilities.Financial Statement
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Fire coverage protecting the insured against the loss to real or personal property from damage caused by the peril of fire or lightning, including business interruption, loss of rents, etc.Fire
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Fire Legal Liability coverage for property loss liability as the result of separate negligent acts and/or omissions of the insured that allows a spreading fire to cause bodily injury or property damage of others. An example is a tenant who, while occupying another party's property, through negligence causes fire damage to the property.Fire Legal Liability
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Fixed Deferred Annuities a specific type of deferred annuity where the account value increases based on the relatively stable performance of an annuity provider's general account investments and often subject to a guaranteed minimum return in each year.Fixed Deferred Annuities
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Flood coverage protecting the insured against loss or damage to real or personal property from flood. (Note: If coverage for flood is offered as an additional peril on a property insurance policy, file it under the applicable property insurance filing code.)Flood
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Foreign Insurer an insurance company selling policies in a state other than the state in which they are incorporated or domiciled.Foreign Insurer
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Foreign Investment an investment in a foreign jurisdiction, or an investment in a person, real estate or asset domiciled in a foreign jurisdiction. An investment shall not be deemed to be foreign if the issuing person, qualified primary credits source or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction, unless: a) The issuing person is a shell business entity; and b) The investment is not assumed, accepted, guaranteed or insured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business entity, domiciled in a domestic jurisdiction.Foreign Investment
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Foreign jurisdiction a jurisdiction outside of the United States, Canada or any province or political subdivision of the foregoing.Foreign jurisdiction
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Fraternal Insurance a form of group coverage or disability insurance available to members of a fraternal organization.Fraternal Insurance
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Fronting an arrangement in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not.Fronting
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List of Services
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Generally Accepted Accounting Principles (GAAP) an aggregate of the accounting standards, principles and best practices for the preparation of financial statements allowing for consistency in reporting.Generally Accepted Accounting Principles (GAAP)
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Gramm-Leach Bliley Act (GLBA) act, repealing Glass-Steagal Act of 1933, allows consolidation of commercial banks, investment institutions and insurance companies. Established a framework of responsibilities of federal and state regulators for these financial industries. It permits financial services companies to merge and engage in a variety of new business activities, including insurance, while attempting to address the regulatory issues raised by such combinations.Gramm-Leach Bliley Act (GLBA)
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Goodwill the difference between the cost of acquiring the entity and the reporting entity's share of the book value of the acquired entity.Goodwill
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Gross Paid-in and Contributed Surplus amount of capital received in excess of the par value of the stock issued.Gross Paid-in and Contributed Surplus
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Gross Premium the net premium for insurance plus commissions, operating and miscellaneous commissions. For life insurance, this is the premium including dividends.Gross Premium
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Group Accident and Health coverage written on a group basis (e.g., employees of a single employer and their dependents) that pays scheduled benefits or medical expenses caused by disease, accidental injury or accidental death. Excludes amounts attributable to uninsured accidents and health plans and the uninsured portion of partially insured accident and health plans.Group Accident and Health
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Group Annuities – Deferred Non- Variable and Variable an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some designated future date.Group Annuities – Deferred Non- Variable and Variable
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Group Annuities – Deferred Variable an annuity contract that provides an accumulation based fund where the accumulation varies in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. Must include at least one option to have the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder and may include at least one option to have the series of payments vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. This annuity contract provides for the initiation of payments at some designated future date.Group Annuities – Deferred Variable
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Group Annuities – Immediate Non-Variable and Variable an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some interval that may vary, however the annuity payouts must begin within 13 months.Group Annuities – Immediate Non-Variable and Variable
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Group Annuities – Immediate Variable n annuity contract that provides for the first payment of the annuity at the end of the fixed interval of payment after purchase. The interval may vary, however the annuity payouts must begin within 13 months. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies.Group Annuities – Immediate Variable
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Group Annuities – Unallocated annuity contracts or portions thereof where the Insurer purchases an annuity for the retirees.Group Annuities – Unallocated
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Group Annuity a contract providing income for a specified period of time, or duration of life for a person or persons established to benefit a group of employees.Group Annuity
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Group Health health insurance issued to employers, associations, trusts, or other groups covering employees or members and/or their dependents, to whom a certificate of coverage may be provided.Group Health
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Group Code a unique three to five digit number assigned by the NAIC to identify those companies that are part of a larger group of insurance companies.Group Code
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Group Credit – Life contracts sold in connection with loan/credit transactions or other credit transactions, which do not exceed a stated duration and/or amount and provide insurance protection against death.Group Credit – Life
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Group Health Organizations – Health Maintenance (HMO) a plan under which an enrollee pays a membership fixed fee in advance in return for a wide range of comprehensive health care services with the HMO's approved providers in a designated service area.Group Health Organizations – Health Maintenance (HMO)
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Guaranty Fund funding mechanism employed by states to provide funds to cover policyholder obligations of insolvent reporting entities.Guaranty Fund
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List of Services
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Hard Market a market characterized by high demand and low supply.Hard Market
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Hazard circumstance which tends to increase the probability or severity of a loss.Hazard
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Health – Excess/Stop Loss this type of insurance may be extended to either a health plan or a self-insured employer plan. Its purpose is to insure against the risk that any one claim will exceed a specific dollar amount or that an entire plan's losses will exceed a specific amount.Health – Excess/Stop Loss
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Health Insurance a generic term applying to all types of insurance indemnifying or reimbursing for losses caused by bodily injury or illness including related medical expenses.Health Insurance
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Health Maintenance Organization (HMO) a medical group plan that provides physician, hospital, and clinical services to participating members in exchange for a periodic flat fee.Health Maintenance Organization (HMO)
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Health Plan written promise of coverage given to an individual, family, or group of covered individuals, where a beneficiary is entitled to receive a defined set of health care benefits in exchange for a defined consideration, such as a premium.Health Plan
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Hold-Harmless Agreement A risk transfer mechanism whereby one party assumes the liability of another party by contractHold-Harmless Agreement
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Homeowners Insurance a package policy combining real and personal property coverage with personal liability coverage. Coverage applicable to the dwelling, appurtenant structures, unscheduled personal property and additional living expense are typical. Includes mobile homes at a fixed location.Homeowners Insurance
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Hospital Indemnity Coverage coverage that provides a pre-determined, fixed benefit or daily indemnity for contingencies based on a stay at a hospital or intensive care facility.Hospital Indemnity Coverage
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Hull Insurance coverage for damage to a vessel or aircraft and affixed items.Hull Insurance
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List of Services
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Incontestability Provision a life insurance and annuity provision limiting the time within which the insurer has the legal right to void the contract on grounds of material misrepresentation in the policy application.Incontestability Provision
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Incurred But Not Reported (IBNR) (Pure IBNR) claims that have occurred but the insurer has not been notified of them at the reporting date. Estimates are established to book these claims. May include losses that have been reported to the reporting entity but have not yet been entered into the claims system or bulk provisions. Bulk provisions are reserves included with other IBNR reserves to reflect deficiencies in known case reserves. IBNR can sometimes include estimates of incurred but Not Enough Reported (IBNER)Incurred But Not Reported (IBNR)
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Incurred Claims paid claims plus amounts held in reserve for those that have been incurred but not yet paid.Incurred Claims
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Incurred Losses sustained losses, paid or not, during a specified time period. Incurred losses are typically 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 period.Incurred Losses
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Indemnity, Principle of a general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss. Legal principle limiting compensation for damages be equivalent to the losses incurred.Indemnity, Principle of
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Independent Adjuster freelance contractor paid a fee for adjusting losses on behalf of companies.Independent Adjuster
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Independent Agent a representative of multiple insurance companies who sells and services policies for records which they own and operate under the American Agency System.Independent Agent
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Independent Contractor an individual who is not employed for a company but instead works for themselves providing goods or services to clients for a fee.Independent Contractor
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Index Annuity an interest bearing fixed annuity tied to an equity index, such as the Dow Jones Industrial Average or S & P 500.Index Annuity
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Individual Annuities – Deferred Variable an annuity contract that provides an accumulation based fund where the accumulation varies in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. Must include at least one option to have the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder and may include at least one option to have the series of payments vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. This annuity contract provides for the initiation of payments at some designated future date.Individual Annuities – Deferred Variable
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Individual Annuities – Immediate Variable an annuity contract that provides for the first payment of the annuity at the end of the fixed interval of payment after purchase. The interval may vary, however the annuity payouts must begin within 13 months. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies.Individual Annuities – Immediate Variable
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Individual Annuities – Special contracts with certain noteworthy attributes.Individual Annuities – Special
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Individual Annuities- Deferred Non-Variable and Variable an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some designated future date.Individual Annuities- Deferred Non-Variable and Variable
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Individual Annuities- Deferred Non-Variable an annuity contract that provides an accumulation based on funds that accumulate based on a guaranteed crediting interest rate or additional interest rate. This annuity contract provides for the initiation of payments at some designated future date.Individual Annuities- Deferred Non-Variable
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Individual Annuities- Immediate Non-Variable an annuity contract that provides for the fixed payment of the annuity at the end of the first interval of payment after purchase. The interval may vary, however the annuity payouts must begin within 13 months.Individual Annuities- Immediate Non-Variable
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Individual Annuities- Immediate Non-Variable and Variable an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some interval that may vary, however the annuity payouts must begin within 13 months.Individual Annuities- Immediate Non-Variable and Variable
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Individual Health health insurance where the policy is issued to an individual covering the individual and/or their dependents in the individual market. This includes conversions from group policies.Individual Health
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Individual Credit – Credit Disability makes monthly loan/credit transaction payments to the creditor upon the disablement of an insured debtor.Individual Credit – Credit Disability
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Individual Credit – Life contracts sold in connection with loan/credit transactions or other credit transactions, which do not exceed a stated duration and/or amount and provide insurance protection against death.Individual Credit – Life
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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.Industrial Life
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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.g., off road constructions equipment), or scheduled property (e.g., Homeowners Personal Property Floater) including items such as live animals, property with antique or collector's value, etc. 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.Inland Marine
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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 )Insurable Interest
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Insurance an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.Insurance
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Insurance Holding Company System consists of two or more affiliated persons, one or more of which is an insurer.Insurance Holding Company System
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Insurance Regulatory Information System (IRIS) a baseline solvency screening system for the National Association of Insurance Commissioners (NAIC) and state insurance regulators established in the mid-1970s.Insurance Regulatory Information System (IRIS)
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Insurance to Value Amount of insurance purchased vs. the actual replacement cost of the insured property expressed as a ratio.Insurance to Value
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Insured party(ies) covered by an insurance policy.Insured
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Insurer an insurer or reinsurer authorized to write property and/or casualty insurance under the laws of any state.Insurer
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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.Intermediary
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International includes all business transacted outside the U.S. and its territories and possessions where the appropriate line of business is not determinable.International
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Internet Liability Insurance/Cyber Insurance coverage for cyber commerce including copyright infringement, libel, and violation of privacy.Internet Liability Insurance/Cyber Insurance
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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 grade
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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 Accrued
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Investment Income Due investment income earned and legally due to be paid to the reporting entity as of the reporting date.Investment Income Due
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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.g., discounts or premiums on bonds, origination fees on mortgage loans, etc.)Investment Income Gross
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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.Irrevocable Beneficiary
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List of Services
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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 and Last Survivor Annuity
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Joint Underwriting Association (JUA) a loss-sharing mechanism combining several insurance companies to provide extra capacity due to type or size of exposure.Joint Underwriting Association (JUA)
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Joint-Life Annuity an annuity contract that ceases upon the death of the first of two or more annuitants.Joint-Life Annuity
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List of Services
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List of Services
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Lapse termination of a policy due to failure to pay the required renewal premium.Lapse
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Level Premium Insurance life insurance policy for which the cost is equally distributed over the term of the premium period, remaining constant throughout.Level Premium Insurance
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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). three essential characteristics: a) It embodies a present duty or responsibility to one or more other entities that entails settlement by probable future transfer or use of assets at a specified or determinable date, on occurrence of a specified event, or on demand; b) The duty or responsibility obligates a particular entity, leaving it little or no discretion to avoid the future sacrifice; and c) The transaction or other event obligating the entity has already happened.Liability
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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 – Endowment
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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 – Flexible Premium Adjustable Life
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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.Life Settlements
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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.Lifetime Disability Benefit
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Limited Benefit policies that provide coverage for vision, prescription drug, and/or any other single service plan or program. 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 Benefit
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Limited Payment Life Insurance a form of whole-life insurance with a pre-defined number of premiums to be paid.Limited Payment Life Insurance
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Limited Policies health insurance coverage for a certain ailment, such as cancer.Limited Policies
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Limits maximum value to be derived from a policy.Limits
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Line of Business classification of business written by insurers.Line of Business
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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.Liquor Liability
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Living benefits rider a rider attached to a life insurance policy providing long term care for the terminally ill.Living benefits rider
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Lloyd's of London association offering membership in various syndicates of wealthy individuals organized for the purpose of writing insurance for a particular hazard.Lloyd's of London
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Loan-backed Securities pass-through certificates, collateralized mortgage obligations (CMOs), and other securitized loans not included in structured securities where payment of interest and/or principal is directly proportional to the interest and/or principal received by the issuer from the mortgage pool or other underlying securities.Loan-backed Securities
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Long Duration Contracts contracts, excluding financial guaranty contracts, mortgage guaranty contracts and surety contracts, that fulfill both of the following conditions: (1) the contract term is greater than or equal to thirteen months and (2) the insurer can neither cancel nor increase the premium during the contract term.Long Duration Contracts
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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. The policy does not include coverage provided under comprehensive/major medical policies, Medicare Advantage, or for accelerated heath benefit-type products.Long-Term Care
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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.Long-Term Disability Income Insurance
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Loss physical damage to property or bodily injury, Including loss of use or loss of incomeLoss
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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: Defense and Cost Containment (DCC) and Adjusting and Other (AO). Can also be separated into (Allocated Loss Adjustment Expense) and (Unallocated Loss Adjustment Expense for ratemaking purposes.Loss Adjustment Expense (LAE)
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Loss Frequency incidence of claims on a policy during a premium period.Loss Frequency
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Loss of Use Insurance policy providing protection against loss of use due to damage or destruction of property.Loss of Use Insurance
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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 Payable Clause
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Loss Ratio the percentage of incurred losses to earned premiums.Loss Ratio
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Loss Reserve the amount that insurers set aside to cover claims incurred but not yet paid.Loss Reserve
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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.Loss Reserves
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Losses Incurred Includes claims that have been paid and/or have amounts held in reserve for future paymentLosses Incurred
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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.Losses Incurred But Not Reported (IBNR)
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List of Services
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Major Medical a hospital/surgical/medical expense contract that provides comprehensive benefits as defined in the state in which the contract will be delivered.Major Medical
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Malpractice alleged misconduct or negligence in a professional act resulting in loss or injury.Malpractice
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Managed Care system of health care delivery that attempts to influence the utilization, quality, and cost of services provided.Managed Care
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Mandated benefits insurance required by state or federal law.Mandated benefits
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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.Manufacturers Output Policies
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Margin Premium a deposit that an organization is required to maintain with a broker with respect to the Futures Contracts purchased or sold.Margin Premium
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Market Value fair value or the price that could be derived from current sale of an asset.Market Value
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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.)Mechanical Breakdown Insurance
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Medicaid policies issued in association with the Federal/State entitlement program created by Title XIX of the Social Security Act of 1965 that pays for medical assistance for certain individuals and families with low incomes and resources.Medicaid
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Medical & Hospital Expenses (Benefits or Claims) total expenditures for health care services paid to or on behalf of members.Medical & Hospital Expenses (Benefits or Claims)
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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 Malpractice
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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. Does not include self-insured business, FEHBP, Medicare and Medicaid programs, or dental only business.Medical Only
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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.Medical Professional Liability
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Medicare a state assistance program, passed under Title XVIII of the Social Security Amendments of 1965, to provide hospital and medical expense insurance to those over 65 years of age.Medicare
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Medicare + Choice a major initiative in the Balanced Budget Act of 1997 (also called Medicare Part C), under which Medicare beneficiaries may select from among several managed care options or a Medicare system.Medicare + Choice
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Medicare Advantage Plan n HMO, PPO, or Private Fee-For Service Plan that contracts with Medicare Advantage Prescription Drug Plan also includes drug benefits. The plan may provide extra coverage such as vision, hearing, dental, and/or health and wellness programs. Medicare pays a fixed amount for insured's care every month to the companies offering Medicare Advantage plans.Medicare Advantage Plan
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Medicare Cost contract with Center for Medicare and Medicaid Services (CMS) for Medicare coverage. 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 Cost
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Medicare Part D - Stand-Alone stand-alone Part D coverage written through individual contracts; stand-alone Part D coverage written through group contracts and certificates; and Part D coverage written on employer groups where the reporting entity is responsible for reporting claims to the Centers for Medicare & Medicaid Services (CMS).Medicare Part D - Stand-Alone
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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.Medicare Supplement
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Medigap supplementary private health insurance products to Medicare insurance benefits.Medigap
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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.g. 90%) of the estimated monthly claims, and the insurer covers the remainder.Minimum Premium Plan
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Mobile Homes - Homeowners homeowners insurance sold to owners occupying the described mobile home.Mobile Homes - Homeowners
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Mobile Homes under Transport coverage for mobile homes while under transport for personal or commercial use.Mobile Homes under Transport
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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.Modified Guaranteed
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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.Member
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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.Moral Hazard
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Morale Hazard negligence or disregard on the part of the insured which could lead to probable loss.Morale Hazard
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Morbidity the frequency or severity of disease or illness within a subset of the population.Morbidity
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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 Risk
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Morbidity Table a statistical record of the rate of illness among the defined age groups.Morbidity Table
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Mortality Table chart that shows the death rates of a particular population at each age displayed as the number of deaths per thousand.Mortality Table
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Mortgage a note used to secure a loan for real property.Mortgage
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Mortgage Guaranty insurance that indemnifies a lender for loss upon foreclosure if a borrower fails to meet required mortgage payments.Mortgage Guaranty
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Mortgage Insurance a form of life insurance coverage payable to a third party lender/mortgagee upon the death of the insured/mortgagor for loss of loan payments.Mortgage Insurance
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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.Mortgage-Backed Securities
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Multi-Peril Insurance personal and business property coverage combining several types of property insurance in one policy.Multi-Peril Insurance
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Municipal Bond Guarantee Insurance coverage sold to municipalities to guarantee the principle payment on bonds issued.Municipal Bond Guarantee Insurance
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Municipal Liability liability coverage for the acts of a municipality.Municipal Liability
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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.Municipal obligation bond
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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 Company
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Mutual Insurance Holding Company 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.Mutual Insurance Holding Company
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List of Services
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Named Insured the individual defined as the insured in the policy contract. .Named Insured
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Named Peril Coverage insurance for losses explicitly defined in the policy contract.Named Peril Coverage
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National Association of Insurance Commissioners (NAIC) the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. 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. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S.National Association of Insurance Commissioners (NAIC)
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Negligence failure to exercise reasonable consideration resulting in loss or damage to oneself or others.Negligence
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Net Admitted Assets total of assets whose values are permitted by state law to be included in the annual statement of the insurer.Net Admitted Assets
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Net Income total revenues from an insurer's operations less total expenses and income taxesNet Income
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Net Premiums Earned premiums on property/casualty or health policies that will not have to be returned to the policyholder if the policy is cancelled.Net Premiums Earned
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NFIP - National Flood Insurance Program flood insurance and floodplain management for personal and business property administered under the National Flood Act of 1968. Encourages participation by private insurers through a flood insurance pool .NFIP - National Flood Insurance Program
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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 Assets
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Nonadmitted Insurer insurance company not licensed to do business within a given state.Nonadmitted Insurer
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Non-controlled stock insurers insurers in which a parent company has: 1) a financial interest represented by the direct or indirect ownership of less than 50% of voting shares, and 2) does not have the ability to exercise control over the insurer, e.g., through voting stock or management contractNon-controlled stock insurers
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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.Non-proportional Reinsurance
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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.Notional Value
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Nationally Recognized Statistical Rating Organization (NRSRO) refers to rating organizations so designated by the SEC whose status has been confirmed by the Securities Valuation Office. Examples are: Moody's Investors Service, Inc., Standard & Poor's (S&P), A.M. Best Company (A.M. Best) and Fitch Ratings and Dominion Bond Rating Service (DBRS).Nationally Recognized Statistical Rating Organization (NRSRO)
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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.Nuclear Energy Liability
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List of Services
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Occurrence an accident , including 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. (Bickelhaupt and Magee)Occurrence
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Ocean Marine coverage for ocean and inland water transportation exposures; goods or cargoes; ships or hulls; earnings; and liability.Ocean Marine
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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.Officer
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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.Option
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Other Accident and Health accident and health coverages not otherwise properly classified as Group Accident and Health or Credit Accident and Health (e.g., collectively renewable and individual non-cancelable, guaranteed renewable, non-renewable for stated reasons only, etc.). 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 Accident and Health
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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 Considerations
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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 Liability
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Other Underwriting Expenses allocable expenses other than loss adjustment expenses and investment expenses.Other Underwriting Expenses
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Owner Occupied homeowners insurance sold to owners occupying the described property.Owner Occupied
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List of Services
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Package Policy two or more distinct policies combined into a single contract.Package Policy
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Par Value the nominal or face value of a stock or bond.Par Value
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Peril the cause of property damage or personal injury, origin of desire for insurance. "Cause of Loss"Peril
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Permanent Life Insurance policy that remains active for the life of the insured.Permanent Life Insurance
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Personal Auto Policy coverage designed to insure private passenger automobiles and certain types of trucks owned by an individual or husband and wife.Personal Auto Policy
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Personal Earthquake earthquake property coverage for personal, family or household purposes.Personal Earthquake
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Personal Flood separate flood insurance policy sold for personal, family or household purposes.Personal Flood
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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 GAP Insurance
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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 Injury Liability
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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 of the insured.Personal Injury Protection Coverage/PIP
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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.Personal Property
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Pet Insurance Plans veterinary care plan insurance policy providing care for a pet animal (e.g., dog or cat) of the insured owner in the event of its illness or accident.Pet Insurance Plans
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Policy a written contract ratifying the legality of an insurance agreement.Policy
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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 Dividend
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Policy Period time period during which insurance coverage is in effect.Policy Period
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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.Policy Reserve
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Policyholders Surplus assets in excess of the liabilities of a company or net income above any monies indebted to legal obligation.Policyholders Surplus
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Pollution environmental contamination.Pollution
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Pool an association organized for the purpose of absorbing losses through a risk-sharing mechanism thereby limiting individual exposures.Pool
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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 Provider Organization (PPO)
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Preferred Risk nsured, or applicant for insurance, who presents likelihood of risk lower than that of the standard applicant.Preferred Risk
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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.Premises and Operations
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Premium Money charged for the insurance coverage reflecting expectation of loss.Premium
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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 Earned
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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 Net
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Premiums Written total premiums generated from all policies (contracts) written by an insurer within a given period of time.Premiums Written
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Primary Insurance coverage that takes precedence when more than one policy covers the same loss.Primary Insurance
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Prior Approval Law a state regulatory requirement for pre-approval of all insurance rates and forms.Prior Approval Law
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Private Passenger Auto (PPA) filings that include singularly or in any combination coverage such as the following: Auto Liability, Personal Injury Protection (PIP), Medical Payments (MP), Uninsured/Underinsured (UM/UIM); Specified Causes of Loss, Comprehensive, and Collision.Private Passenger Auto (PPA)
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Producer an individual who sells, services, or negotiates insurance policies either on behalf of a company or independently.Producer
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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.Product Liability
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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.Professional Errors and Omissions Liability
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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.Property
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Pro-rata (proportional) Reinsurance portion of the losses and premium reinsurer shares with the ceding entity.Pro-rata (proportional) Reinsurance
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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.Protected Cell
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Protection and Indemnity (P&I) Insurance a broad form of marine legal liability insurance coverage.Protection and Indemnity (P&I) Insurance
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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. Some models of integration include Physician Hospital Organizations, Management Service Organizations, Group Practices Without Walls, Medical Foundations, and Health Provider Cooperatives.Provider Sponsored Network (PSN)
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Provisions contingencies outlined in an insurance policy.Provisions
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Proximate Cause event covered under insured's policy agreement.Proximate Cause
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Public Adjuster independent claims adjuster representing policyholders instead of insurance companies.Public Adjuster
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Pure Premium that portion of the premium equal to expected losses void of insurance company expenses, premium taxes, contingencies, or profit margin.Pure Premium
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Pure Risk circumstance including possibility of loss or no loss but no possibility of gain.Pure Risk
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List of Services
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Rate value of insured losses expressed as a cost per unit of insurance.Rate
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Risk Based Capital (RBC) Ratio ratio used to identify insurance companies that are poorly capitalized. Calculated by dividing the company's capital by the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations.Risk Based Capital (RBC) Ratio
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Rebate a refund of part or all of a premium payment.Rebate
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Reinsurer company assuming reinsurance risk.Reinsurer
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Renewable Term Insurance insurance that is renewable for a limited number of successive terms by the policyholder and is not contingent upon medical examination.Renewable Term Insurance
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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.Renters Insurance
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Replacement Cost the cost of replacing property without a reduction for depreciation due to normal wear and tear.Replacement Cost
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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.Reported Losses
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Reserve A portion of the premium retained to pay future claimsReserve
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Reserve Credit reduction of reserve amounts for reinsurance ceded. Reductions may include the claim reserve and/or the unearned premium reserve.Reserve Credit
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Residence the domicile location of a member as shown by his or her determination as a resident.Residence
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Residual Market Plan method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels.Residual Market Plan
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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
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Retention Limit maximum amount of medical and hospital expense an insurer will carry on its own. The limit can be for an individual claim and/or for the insurers total claims, depending upon the terms of the reinsurance contract.Retention Limit
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Retrocession the portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain.Retrocession
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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.Retrospective Rating
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Rider an amendment to a policy agreement.Rider
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Risk Uncertainty concerning the possibility of loss by a peril for which insurance is pursued.Risk
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Risk Retention Act a 1986 federal statute amending portions of the Product Liability Risk Retention Act of 1981 and enacted to make organization of Risk Retention Groups and Purchasing Groups more efficient.Risk Retention Act
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Risk Retention Group group-owned insurer organized for the purpose of assuming and spreading the liability risks to its members.Risk Retention Group
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List of Services
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Salvage value recoverable after a loss.Salvage
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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.Statutory Accounting Principles (SAP)
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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.Securitization of Insurance Risk
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Security a share, participation, or other interest in property or in an enterprise of the issuer or an obligation of the issuer.Security
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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.Self-Insurance
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Separate Account segregated funds held and invested independently of other assets by an insurer for the purpose of a group retirement fund.Separate Account
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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 Disability
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Short-Term Medical policies that provide major medical coverage for a short period of time, typically 30 to 180 days. These policies may be renewable for multiple periods.Short-Term Medical
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Situs of Contract the jurisdiction in which the contract is issued or delivered as stated in the contract.Situs of Contract
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Social Insurance compulsory insurance plan administered by a federal or state government agency with the primary emphasis on social adequacy.Social Insurance
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Soft Market a buyer's market characterized by abundant supply of insurance driving premiums down.Soft Market
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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.Special revenue bond
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Specified Disease Coverage coverage that provides primarily pre-determined benefits for expenses of the care of cancer and/or other specified diseases.Specified Disease Coverage
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Specified/Named Disease policies that provide benefits only for the diagnosis and/or treatment of a specifically named disease or diseases. Benefits can be paid as expense incurred, per diem or as a principal sum.Specified/Named Disease
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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.Standard Risk
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State Children's Health Insurance Program policies issued in association with the Federal/State partnership created by title XXI of the Social Security Act.State Children's Health Insurance Program
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State of Domicile the state where a company's home office is located.State of Domicile
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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.State Page
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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.Statement Type
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Statement Value the Statutory Accounting Principle book value reduced by any valuation allowance and non-admitted adjustment applied to an individual investment or a similar group of investments, e.g., bonds, mortgage loans, common stock.Statement Value
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Statutory Accounting method of accounting standards and principles used by state regulatory authorities to measure the financial condition of regulated companies and other insurance enterprises. This method tends to be more conservative than the Generally Accepted Accounting Principles used by most businesses. Compliance with solvency and other standards is determined using financial documents prepared in accordance with Statutory Accounting Principles.Statutory Accounting
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Stock Insurance Company business owned by stockholders.Stock Insurance Company
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Stop Loss/Excess Loss individual or group policies providing coverage to a health plan, a self-insured employer plan, or a medical provider providing coverage to insure against the risk that any one claim or an entire plan's losses will exceed a specified dollar amount.Stop Loss/Excess Loss
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Structured Securities loan-backed securities that have been divided into two or more classes of investors where the payment of interest and/or principal of any class of securities has been allocated in a manner that is not proportional to interest and/or principal received by the issuer from the mortgage pool or other underlying securities.Structured Securities
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Structured Settlements periodic fixed payments to a claimant for a determinable period, or for life, for the settlement of a claim.Structured Settlements
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Subrogation situation where an insurer, on behalf of the insured, has a legal right to bring a liability suit against a third party who caused losses to the insured. Insurer maintains the right to seek reimbursement for losses incurred by insurer at the fault of a third party.Subrogation
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Subrogation Clause section of insurance policies giving an insurer the right to take legal action against a third party responsible for a loss to an insured for which a claim has been paid.Subrogation Clause
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Subsequent Event events or transactions that occur subsequent to the balance sheet date, but before the issuance of the statutory financial statements and before the date the audited financial statements are issued, or available to be issued.Subsequent Event
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Substandard Risk (impaired risk) risks deemed undesirable due to medical condition or hazardous occupation requiring the use of a waiver, a special policy form, or a higher premium charge.Substandard Risk
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Superfund federal act mandating retroactive liability for environmental pollution where responsible party maintains accountability for environmental clean-up regardless of length of time since polluting event occurred.Superfund
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Surety Bond a three-party agreement whereby a guarantor (insurer) assumes an obligation or responsibility to pay a second party (obligee) should the principal debtor (obligor) become in default.Surety Bond
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Surplus insurance term referring to retained earnings.Surplus
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Surplus Line specialized property or liability coverage available via nonadmitted insurers where coverage is not available through an admitted insurer, licensed to sell that particular coverage in the state.Surplus Line
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Swap an agreement to exchange or net payments as the buyer of an Option, Cap or Floor and to make payments as the seller of a different Option, Cap or Floor.Swap
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List of Services
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Tenants homeowners insurance sold to tenants occupying the described property.Tenants
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Term period of time for which policy is in effect.Term
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Term Insurance life insurance payable only if death of insured occurs within a specified time, such as 5 or 10 years, or before a specified age.Term Insurance
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Third Party person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured.Third Party
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Title Insurance coverage that guarantees the validity of a title to real and personal property. Buyers of real and personal property and mortgage lenders rely upon the coverage to protect them against losses from undiscovered defects in existence when the policy is issued.Title Insurance
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Total Liabilities total money owed or expected to be owed by the insurance company.Total Liabilities
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Total Revenue premiums, revenue, investment income, and income from other sources.Total Revenue
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Travel Coverage covers financial loss due to trip cancellation/interruption; lost or damaged baggage; trip or baggage delays; missed connections and/or changes in itinerary; and casualty losses due to rental vehicle damage.Travel Coverage
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Treaty a reinsurance agreement between the ceding company and reinsurer.Treaty
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List of Services
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Unallocated Loss Adjustment Expense (ULAE) loss adjustment expenses that cannot be specifically tied to a claim.Unallocated Loss Adjustment Expense (ULAE)
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Umbrella and Excess (Commercial) coverage for the liability of a commercial venture above a specific amount set forth in 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 known or unknown gaps in basic coverages or self-insured retentions.Umbrella and Excess (Commercial)
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Umbrella and Excess (Personal) non-business liability protection for individuals above a specific amount set forth in 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 known or unknown gaps in basic coverages or self-insured retentions.Umbrella and Excess (Personal)
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Unauthorized Reinsurance reinsurance placed with a company not authorized in the reporting company's state of domicile.Unauthorized Reinsurance
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Underinsured Motorist Coverage policy option for bodily injury or property losses caused by a motorist with coverage insufficient to cover total dollar amount of losses. Compensation for the injured party is equal to the difference between the losses incurred and the liability covered by the motorist at fault.Underinsured Motorist Coverage
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Underlying Interest the asset(s), liability(ies) or other interest(s) underlying a derivative instrument, including, but not limited to, any one or more securities, currencies, rates indices, commodities, derivative instruments, or other financial market instruments.Underlying Interest
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Underwriter person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate.Underwriter
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Underwriting the process by which an insurance company examines risk and determines whether the insurer will accept the risk or not, classifies those accepted and determines the appropriate rate for coverage provided.Underwriting
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Underwriting Risk section of the risk-based capital formula calculating requirements for reserves and premiums.Underwriting Risk
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Unearned Premium amount of premium for which payment has been made by the policyholder but coverage has not yet been provided.Unearned Premium
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Unearned Premium Reserve all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet.Unearned Premium Reserve
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Universal Life Insurance adjustable life insurance under which premiums and coverage are adjustable, company expenses are not specifically disclosed to the insured but a financial report is provided to policyholder's annually.Universal Life Insurance
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Unpaid Losses claims that are in the course of settlement. The term may also include claims that have been incurred but not reported.Unpaid Losses
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List of Services
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Valued Policy Valued PolicyValued Policy
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Valued Policy Law Valued Policy LawValued Policy Law
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Variable Annuity Variable AnnuityVariable Annuity
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Variable Life Insurance Variable Life InsuranceVariable Life Insurance
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Variable Universal Life Variable Universal LifeVariable Universal Life
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Viatical Settlements Viatical SettlementsViatical Settlements
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Vision VisionVision
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List of Services
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Warrant an agreement that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times according to a schedule or warrant agreement.Warrant
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Warranty coverage that protects against manufacturer's defects past the normal warranty period and for repair after breakdown to return a product to its originally intended use. Warranty insurance generally protects consumers from financial loss caused by the seller's failure to rectify or compensate for defective or incomplete work and cost of parts and labor necessary to restore a product's usefulness. Includes but is not limited to coverage for all obligations and liabilities incurred by a service contract provider, mechanical breakdown insurance and service contracts written by insurers.Warranty
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Whole Life life insurance that may be kept in force for a person's entire life and that pays a benefit upon the person's death, whenever that may be.Whole Life
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Whole Life Insurance life insurance that may be kept in force for the duration of a person's life and pays a benefit upon the person's death. Premiums are made for same time period.Whole Life Insurance
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Workers' Compensation insurance that covers an employer's liability for injuries, disability or death to persons in their employment, without regard to fault, as prescribed by state or federal workers' compensation laws and other statutes.Workers' Compensation
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Written Premium the contractually determined amount charged by the reporting entity to the policyholder for the effective period of the contract based on the expectation of risk, policy benefits, and expenses associated with the coverage provided by the terms of the insurance contract.Written Premium
Glossary
