Ability of an organization to convert assets into cash quickly with little or no loss, such as selling or factoring accounts receivable and selling marketable

Financial ratios that measure the organization’s ability to pay bills over the short term. Includes the current ratio, quick ratio, and net working capital.

Arises from causing or contributing to another’s intoxication, or from furnishing alcohol to a minor

A rider attached to a life insurance policy that allows for the payment of a percentage of the death.

An association of private underwriters, each of whom underwrites (backs) insurance contracts on a basis of personal liability.

A term that refers to the amount of money an insured can borrow using the cash value of his or her life insurance policy as

A network of computers interconnected with one another within a limited area.

A blanket term for a wide range of services designed to meet medical, personal, and social needs in a variety of settings and locations.

An individual who plans and coordinates long-term care and assists individuals with the details of housing, home care services, socialization programs, and financial and legal

An amount that will be available under a long-term care policy taking into consideration the expected daily cost of a chosen care facility at a

The maximum amount of time, expressed in years, that the insured will receive long-term care benefits.

Funds borrowed from external sources; the least expensive source of capital for an organization.

Liabilities that are expected to be paid after one year, such as long-term debt, mortgages or deferred income tax liability.

A reduction in value.

See Risk control.

In retrospective rating, a factor used to cover claim adjustment expenses and the cost of the insurer’s or third-party claim administrator’s services.

Application of various methods of analyzing loss data to identify and understand the potential impact those losses may have on the organization’s risk management program

Difference between the original loss frequency and/or severity as originally reported to an insurer and its subsequent evaluation at a later date or at the

Ratios applied to a current valuation of losses to determine an estimate of ultimate incurred losses. These factors are calculated by comparing the period-to-period changes

Predicting future losses through an analysis of past losses.

Used in retrospective rating formulas, the maximum amount of any one loss included in the retrospective rating plan. In effect, this lessens the impact of

Portfolio of previously incurred losses that is transferred for a premium; addresses known losses.

Rating technique that establishes the prospective rate based upon historical losses that will be applied to an exposure base to compute the premium.

Proportionate relationship of incurred losses to earned premiums expressed as a percentage.

Listing of reported claims providing such information as the date of occurrence, type of claim, amount paid and amount reserved for each as of the