A form of reinsurance using offer and acceptance of individual risks, in which under a contract of reinsurance, the reinsurer retains the faculty to accept

Chance of loss or gain; often referred to as a “business risk”.

The most restrictive type of HMO where insureds select his or her primary care physician within the model but the HMO may close a particular

In statistics, the square root of the variance.

Premium that is determined on the basis of authorized rates, any experience modification rating, applicable loss constants and minimum premiums; specifically excludes premium discounts and

“Let the decision stand,” a legal concept of common law stating that the prior decisions of judges and juries have determined the outcome. See Res

A method of fixing the maximum amount payable in an insurance policy.

A report summarizing the effects of cash on the operating, investing, and financial activities of an organization for a specific period of time.

See Income Statement.

Legal concept that holds no suit or action shall be maintained on certain classes of contracts or engagements unless there is a note or memorandum

Any statute that prescribes the time limit in which a legal action must be brought.

Those principles required by statute that must be followed by a regulated financial organization, such as an insurance company or bank when submitting its financial

Enactments of legislative and administrative bodies.

An incorporated insurance company owned by its stockholders.

Net worth, retained earnings or total assets less total liabilities; sum of the book value of common stock less treasury stock, preferred stock, and additional

A form of reinsurance for self-insured employers that limits the amount the employers will have to pay for each covered employee’s and dependents healthcare claims

Most commonly used method; annual depreciation = historical cost less estimated salvage value divided by years of estimated useful life.

Risks related to an organization’s strategic plan and its mission resulting in upside or downside outcomes; most likely cause of failure of organizations.

Liability directed by law (statute or common law) without regard to the intention of the offender’s actions. Strict liability shifts the burden of proof; it

Holds sellers, distributors, and manufacturers of products responsible for defective or unduly hazardous products.

Settlement in which the plaintiff agrees to accept a stream of payments, in whole or in part, in lieu of a lump sum. Annuities are

In retrospective rating plans, the portion of the premium applied to the retrospective rating formula. It is generally used to help calculate the basic premium,

1) The legal right of one who has paid another’s obligation to collect from the party originally owing the obligation, e.g., the insurer’s right to

The right of an insurance company to recover an amount of money paid to an insured for a loss when the loss is someone else’s

Legal doctrine that protects the party to a contract who makes an honest endeavor in good faith to perform his/her part of the contract with