Proclivity to cause a loss to effect an insurance recovery, e.g., arson.

Indifference to loss, such as poor housekeeping or maintenance.

The measure of the probability of expected sickness or injury within a given group.

The measure of the probability of dying at a certain age. Mortality rates usually reflect the actual experience of an insurer with its insureds, adjusted

An incorporated insurance company owned by its policyholders.

National Alliance Difference Makers is a quarterly multimedia series highlighting insurance and risk management professionals who display excellence and make positive impacts on the industry

Association of insurers selling workers compensation coverage that operates as a rating organization. NCCI collects statistics, develops rates and policy forms, and makes state filing

Failure to exercise a degree of care which a reasonably prudent person would exercise under the same circumstances. The following four elements must be proven

Value of an organization’s assets as carried on the balance sheet in accordance with applicable accounting system principals. Under financial accounting (GAAP), the historic or

Premium deposited in the captive. From the perspective of the fronting company, it is ceded reinsurance. From the captive’s perspective, it is assumed reinsurance.

Operating income less interest expense and taxes; amount that can be distributed to an organization’s owners or kept as retained earnings.

Net income divided by sales.

The measurement of the PV of future cash inflows compared to the net investment of a project.

In financial management, the evaluation of a project or option by determining if the PV of expected inflows exceeds the PV of expected outflows.

Measure of the amount of profit within sales; net income divided by sales.

Sum of underwriting profit (loss) and investment income from underwriting.

Measure of ability of an organization to quickly meet its current obligations; current assets less current liabilities.

Total value of all assets minus all liabilities.

Multiple groups of medical providers contracted with an HMO to provide services to HMO insureds.

A federal regulation that requires group and individual plans that offer maternity benefits to provide coverage for a hospital stay following a normal delivery for

Director or officer is protected against honest errors in judgment that can be justified by a rationale or that are not egregious on their face.

A policy sold directly to consumers from the insurer, thus minimizing sales expenses.

Anything that distorts a message by interfering with the communication process.

Assets of an insurer that are not permitted by the state insurance department or other regulatory authority to be taken into account when determining an

Insurer authorized to operate in a state under a certificate of authority but not being subject to that state’s financial, form, and rate regulations.