A general class of risk; risks arising from a jury or judge’s decision or from court or jury attitudes.

In probability theory and statistics, a statistic that measures the degree of peakedness in a distribution; also known as a measure of the volatility of

The point in time when the policy has been terminated or cancelled, usually due to non-payment of premium.

An accounting method used to value inventory and the cost of goods sold. Sales are considered to be made using the latest-purchased or produced merchandise

In probability and statistics, the larger the number of units independently exposed to loss, the more accurate the ability to predict loss results arising from

Building an insurance program in steps, utilizing the excess-of-loss approach, whereby one insurer writes in excess of lower limits accepted by other insurers.

The behavior from a risk manager to cause people to take action; an element of the managerial process.

A general class of risk; risks inherent in compliance or arising from statutory liability.

In Universal life insurance, an option that provides a level death benefit similar to a whole life policy. This option may also apply in some

Insurance where the premium remains the same throughout the life of the contract.

The face value remains the same from the effective date until the expiration date.

Use of external fixed cost sources of capital for the organization, e.g., long-term debt and preferred stock.

Legal responsibility or fault.

As shown in the mortality or annuity table used as a reference, the average number of years remaining for a person of a given age

Provides protection for a person’s “expectation of life.” This becomes the term of the policy, as opposed to the ordinary term policies that are for

A settlement option under which a life insurance policy pays equal installments as long as the beneficiary lives, even if the principal has been exhausted.

A contractual system of risk sharing under which contributions are accumulated and redistributed to meet the economic consequences of the uncertain duration of life.

Benefits continue for the lifetime of the insured.

The maximum amount the insurer would pay in benefits for an insured during the insured’s lifetime while covered under the policy.

Pre-event limitation of the amount, type, or method of calculation of damages available by one or both parties to an agreement.

Health insurance plans that contain certain limitations that impose internal limits or “caps” on specific types of medical care.

A business organization possessing the pass-through tax nature of a partnership while creating a separate legal entity similar to a corporation.

A partnership in which the general partner is the managing partner who operates the business and the limited partners are not involved in the day-to-day

A life insurance contract with premiums paid for an indicated number of years.

See Limit of liability clause.