A network of medical care providers structured in a similar manner to a PPO but have many of the requirements of an HMO.

Pre-event exoneration of the fault of one party that results in any loss or specified loss to another.

Initial estimate of losses for a given policy period.

When computing workers compensation experience modifications, the factor taken from actuarial tables used to calculate total expected losses for the specific classification given the audited

Projection of the frequency and/or severity of losses based on loss history, probability distributions, and statistics; the expected loss projection is commonly called a “loss

The expected incidence of death within a given group during a given period of time, as shown in a mortality table developed by actuaries.

Expense factor (usually expressed as a dollar amount) added to the premium charged for a class of policies that would otherwise produce insufficient premium to

A ratio that indicates the percentage of premiums used to pay the insurers’ operating expenses.

An account held by an insurer funded through the initial premium and subsequent premium deposits, if any.

Factor developed by measuring the difference between the insured’s actual past experience and the expected experience of the class. The factor may be either a

A rating that considers the individual loss experience of a particular insured. It applies loss experience to the present policy year. Describes any plan that

Each unit is assigned costs on an equitable basis based on the loss experience each unit presents.

The mortality that actually occurs to a group of insureds in contrast to expected mortality.

A situation, practice or condition that may lead to an adverse financial consequence; an activity or resource; people and assets

Each unit is assigned costs on an equitable basis based on the exposures each unit presents.

Authority expressly given by the insurer, either orally or in writing.

A group policy provision that pays a life benefit when (1) the insured is totally and continuously disabled at the time the policy owner stops

Using other funds other than the organization’s funds for the financing of losses, e.g. insurance, borrowing and contractual transfer.

The amount of coverage provided by a life insurance policy, also referred to as coverage amount or death benefit.

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

A federal regulation that provides employees who have been employed at least 12 months and have worked at least 1,250 hours within that 12 month

A person related to the insured by blood, marriage, or adoption who is a resident of the insured’s household.

1) under common law, liability imposed upon a party who stands in a special relationship of trust with another party for a breach of that

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

Process of managing an organization’s assets, liabilities, and cash flows to maximize shareholder (or stakeholder) wealth.

Risks related to an organization’s financial activities resulting in upside and downside outcomes.

Used by primary insurance companies and large self-insurers; the accepted term used to describe a spectrum of loss financing concepts that combine internal and external

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

Insurance policy on two lives, with a death benefit to be paid to the surviving insured upon the death of one of the insureds (also

Assets with an expected life in excess of one year.

A benefit, the dollar amount of which does not vary.

Costs that do not vary with the level of output, especially fixed financial costs such as interest, lease payments, and sinking fund payments.

Fixed, periodic benefit payments are made until the principal and interest are exhausted.

Benefits are guaranteed to be paid in equal installments for a specified period of time.

Insurance that pays out a death benefit when the life insured dies during the term of the policy.

A whole life contract and a security vehicle that features flexible premium payments, non-guaranteed cash values and either a minimum guaranteed death benefit or no

A federal regulation that provides employees who have been employed at least 12 months and have worked at least 1,250 hours within that 12 month

In the law of insurance, a superior or irresistible force. Also common to construction contracts to protect parties in the event that a part of

Insurer domiciled outside a state that operates in that state under a certificate of authority granted by that state’s insurance department. A foreign insurer may

Event subject to chance without the implication of suddenness.

Material used to construct the building.

An intentional manipulation of the truth, and the act of getting someone to rely on that manipulation of the truth, which results in the person’s

A period of time (usually 10, 20 or 30 days) during which a policy owner may examine a newly issued policy of life and surrender

The number of losses occurring in a given time period.

Use of one insurance company, usually a domestic, admitted carrier, to issue policies on behalf of the captive.

A healthcare reimbursement account that allows employees to set aside money through payroll deductions on a pre-tax basis to pay for anticipated eligible medical expenses,

A plan where the policyholder (individual or employer) pays a defined premium to an insurer and does not share in the risk associated with actual

Used by larger organizations to assume management of all exposures; useful when losses for both frequency and severity are very predictable and often used in

Employer retains 100% of the cost of claims. Because there is no reinsurance protection most employers choose a partially self-funded financial arrangement.

Cost to repair or replace damaged or destroyed property with materials that are functionally the equivalent of the damaged or destroyed property.

The setting aside of sufficient sums of money to meet future liabilities.

Value in the future of a payment or payments made in the present.

Principles in financial accounting that serve to assure consistency in financial reporting. GAAP is a type of self-regulation in that members of the financial accounting

An award based on a measure of intangible damages inferred from the Special Damages and other facts and circumstances (e.g., pain and suffering).

A partnership in which each general partner may act on behalf of the partnership and is personally liable for the partnership’s obligations.

Principles in financial accounting that serve to assure consistency in financial reporting. GAAP is a type of self-regulation in that members of the financial accounting

As related to the Business Judgment Rule, a decision must be made with an honest belief that the decision is in the best interest of

1) In accounting, the difference between the market price paid for an asset an organization and its book value; 2) in common usage, customer relationship

Non-commercial accounting system that features accounts for budgets, encumbrances and restricted use assets. Also called “fund accounting.”

A prescribed period, usually 30 to 31 days after the premium due date, during which an insurance contract stays in force and the overdue premium

Death benefits that, in the early years of the contract for an otherwise uninsurable individual, are less than the face amount of the policy, but

A modified life insurance policy for which the initial premium is low, and then increases in steps over a period of time (usually five years),

The premium for participating life insurance. If an insured elects to use his dividends to pay premiums, the gross premium becomes the net premium when

Gross profit Sales revenue less cost of goods sold.

Gross profit divided by sales.

The annual premium showing on the policies, collected on a gross basis. For a captive, GWP is the annual pay-in of premium by the organization(s).

Owned by multiple, unrelated organizations who are the policyholders; owners may be either homogeneous or heterogeneous.

A single multi-specialty medical group contracted with an HMO to provide care to the HMO’s insureds.

Any of a wide array of arrangements in which two or more small employers purchase health insurance collectively, often through a common intermediary who acts

Insurer guarantees to convert into a different type of policy at the request of the policy owner.

An insurance plan for which a fixed premium for the policy term, subject to audit, is paid by the insured regardless of the number and

Sometimes called Guaranteed Purchase Option, an option that allows an insured or owner to buy additional coverage at certain times even though he or she

Guarantees the premium rates will not change during the entire term of the policy.

Guarantees an insurance policy will continue in force, provided the policy premiums are paid on time.

The annual premium showing on the policies, collected on a gross basis. For a captive, GWP is the annual pay-in of premium by the organization(s).

A condition or circumstance that may give rise to a loss from a given peril; physical, moral, or morale characteristics that make the likelihood of

Risks covered by insurance resulting in downside outcomes only.

A plan that requires employees to bear a greater financial burden in their healthcare by requiring a larger amount of expenses be paid by the

A federal law that provides rights and protections for employees and their covered dependents in group health plans that limit exclusions for pre-existing conditions; prohibit

Provides a comprehensive benefits package including physician visits, laboratory services, hospitalization and surgery, and focuses on preventive care, early diagnosis and outpatient treatment. An HMO

An account owned, maintained and funded by the employer to pay Qualified Medical Expenses for employees.

A tax-saving plan for individuals and employees participating in High Deductible Health Plans to save and pay for Qualified Medical Expenses. HSA funds may also

A healthcare reimbursement account that allows employees to set aside money through payroll deductions on a pre-tax basis to pay for anticipated eligible medical expenses,

A plan that requires employees to bear a greater financial burden in their healthcare by requiring a larger amount of expenses be paid by the

A federal law that provides rights and protections for employees and their covered dependents in group health plans that limit exclusions for pre-existing conditions; prohibit

Original purchase price.

Provides a comprehensive benefits package including physician visits, laboratory services, hospitalization and surgery, and focuses on preventive care, early diagnosis and outpatient treatment. An HMO

Affirmative assumption of the financial consequences for liabilities of another through a contract. See Indemnification agreement.

Medical care provided by trained personnel in the patient’s home for patients who do not need the more extensive treatment provided by a hospital, skilled

A program or facility that provides care to the terminally ill.

An account owned, maintained and funded by the employer to pay Qualified Medical Expenses for employees.

A tax-saving plan for individuals and employees participating in High Deductible Health Plans to save and pay for Qualified Medical Expenses. HSA funds may also

Minimum accepted rate of return from a project.

Represents the liability for unpaid claims not reflected in the case reserve estimates for individual losses. The two components to IBNR reserves are pure IBNR

Implementing the desired actions and risk management plans; an element of the risk administration step of the Risk Management Process.

Authority of the agent, which is not specifically expressed or communicated, but which is consistent with the agent fully exercising the express authority granted by

An event that disrupts normal activities and may become a loss, claim or business interruption.

Various rights a policy owner may exercise under the policy contract. Some of the incidents of ownership would be the rights to (1) cash in

A life insurance contract that provides income on a monthly basis, as opposed to a policy that pays proceeds in a lump sum.

A report of the organization’s financial performance for a stated time period.

Tax treatment depends upon type of captive, premium volume, and investment income.

A clause in a policy stating that after a policy has been in effect for a given length of time (generally one or two years),

Ratio applied to losses at one retention level (e.g. $1,000,000 per occurrence) to determine expected losses at another retention level (e.g., $5,000,000).

Represents the liability for unpaid claims not reflected in the case reserve estimates for individual losses. The two components to IBNR reserves are pure IBNR

Expenses not yet paid. Can also include paid expenses in some accounting systems.

Portion of an earned premium dollar that is spent on incurred losses.

1) The total amount of paid claims and loss reserves associated with a particular period of time (usually a policy year). Generally, incurred losses are

Affirmative assumption of the financial consequences for liabilities of another through a contract. See Indemnification agreement.

To make compensation to an entity for incurred hurt, loss, or damage; restore to original position.

The party that is relieved of liability assumed by the indemnitor.

The party that assumes the liability inherent in a situation.

Restoring an injured party to the financial position they enjoyed prior to a loss; reimbursing an injured party suffering loss for the amount of the

Also known as “fee-for-service plans”, provide a specified payment for medical services rendered regardless of the actual charges.

Organization or a person hired by an insurer and paid a fee for settling claims.

A system of marketing insurance that involves self-employed parties (independent contractors (agents)) who enter into contracts with usually more than one insurer to represent the

Individual or entity that agrees to perform specific work for another but is not subject to direction or management by the person who contracted for

Physicians that retain their individual practices and separate offices but belong to a legal entity for contracting purposes with HMOs.

Contracts where the policy owner can share in a percentage of the growth of an indexed investment (a mutual fund tied to the Standard &

What is an Indexed Ultimate Total Loss? Answer: Indexed Ultimate Total Loss are incurred losses that have been developed (trended) and indexed (adjusted) for inflation.

Amount of premium calculated for any one period using the retrospective rating formula.

A loss or damage that results from an insured’s inability to use his/her property because of direct loss to the property of others.

Health insurance that is typically purchased by individuals who are self-employed, unemployed or work for a company that does not offer employee health benefits.

A self-directed, tax-deferred retirement investment account established by employed workers who earn a salary, wage, or self-employment income. An individual may establish an IRA account

Premium loading to provide for future increases in claims costs and loss payments resulting from inflation.

A feature that increases the amount of an insurance benefit by a fixed percentage automatically every year, to adjust for inflation.

Requirement to refrain from doing an act.

General acceptability by an insurer of an applicant for insurance, based on underwriting review, which may include items such as the applicant’s current health status,

The existence of potential financial loss on the part of the policy owner and/ or beneficiary in the event of the death of the insured.

A person authorized by an insurer to solicit applications, collect premiums, and write policies on behalf of the insurer.

The insurance broker is an individual who acts or aids in the negotiation of insurance contracts, in placing risks, or in soliciting or effecting contracts.

Insurance company.

Person(s) protected under an insurance contract.

Insurance company that assumes risks for insureds and performs other insurance-related operations, such as loss control and claims settlements.

Property that has a value and lacks a physical existence, such as industrial property consisting of inventions, designs, or trademarks, or copyrights, such as artistic

When an individual commits an act with the intent of causing injury, damages, or a private violation of another person’s rights.

Using the organization’s funds for the financing of losses, e.g. deductibles, planned retentions, uninsured losses (planned or unplanned).

The calculation of an “unknown” discount rate that makes the PV of future cash inflows exactly equal to the net investment at time zero; only

A global system of interconnected computer networks using a standard Internet protocol to access data and information available on the World Wide Web (www); a

Investment returns on invested funds (loss reserves, capital, and retained earnings).

Acronym for Insurance Operations

A self-directed, tax-deferred retirement investment account established by employed workers who earn a salary, wage, or self-employment income. An individual may establish an IRA account

A beneficiary that cannot be changed without the beneficiary’s consent.

The date an insurance policy is issued. This may also be the effective date of the policy coverage.

Acronym for Inception To Date

1) Legal doctrine applying in some states that allows an injured person to sue and recover the full amount from any one or more of

Association of two or more individuals or organizations who engage in a specific or limited business transaction; a partnership between separate business organizations.

An annuity that provides income to two or more people and continues in force as long as any one of them survives.

Provides annuity payments to the annuitant until they die then to the named survivor for their life. Usually spouse, but could be anyone named.

Exterior walls of masonry material (adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials) with combustible floor and roof.

A rate that is applied solely to individual insureds by the insurance company.

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.

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

Estimation of the liability for unpaid claims that have occurred as of a given date, including the IBNR claims, claims due but not yet paid,

See Retention Loss run. See Loss report.

Adjusting historical losses to account for inflationary trends so that the ultimate value is more current or meaningful. Loss trend factors are multiplied by actual

Study of changes, the relationship of one period to a previous period. The process involves graphs in which the data is displayed in an inverted

Benefits paid to the beneficiary all at once rather than in installment payments.

Provides greater benefits for services such as in-patient and out-patient hospital care, intensive care, physician charges and other medical services.

A partnership between insurers and providers through contracts to provide care at discounted costs for benefits defined in the policy.

Incorporates basic utilization programs such as case management, pre-certification and recertification of certain services into a traditional indemnity plan.

An internal accounting system that provides accurate and timely financial information for use by managers to make short-term and day-by-day financial decisions.

Planning, organizing, leading and evaluating the resources of people, funds, materials, and time to protect the organization’s assets and positively affect the organization’s performance.

A person or firm who has an independent business that performs for one or more insurers some or all of the functions typically attributable to

Rates as promulgated by a rating bureau before application of any credits, discounts, surcharges or deviations. Such rates are referred to as “manual rates” because

Measures of the value of a corporation’s common stock in the financial market.

Amount a willing buyer will give to a willing seller.

Measure of the market price of a share of common stock divided by its book value per share.

Highly liquid securities that have a low but positive yield, normally publicly traded stocks and bonds.

Exterior walls of masonry material (adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials) with floor and roof of metal or

An attempt by insurance companies to provide some forms of insurance in a more economical fashion.

The date cash value equals the face value of a whole life or endowment policy and becomes payable to the policy owner.

The amount paid under a whole life insurance contract if the insured reaches the age of the mortality table on which the contract was based.

Worst possible Property loss that could occur.

Maximum that can be charged under a retro plan regardless of the losses; maximum paid by the insured under a retro plan.

See Probable Maximum Loss

In retrospective rating, a factor established by agreement between the insured and the insurer to determine the maximum premium. Excess loss premiums may be included

Sum of all observations divided by the number of observations; the average (also known as the arithmetic mean).

In statistics, a statistic that defines the center of a distribution, such as the arithmetic mean or average, the median, or the mode.

In statistics, a statistic that describes the spread of values about the mean of a distribution, such as range, variance, and standard deviation.

Midpoint of the observations ranked in order of value; half the observations lie below and half above; the middle value (also known as the 50th

A jointly funded federal and state program that provides hospital expenses, medical expense coverage, and in some cases long-term-care-type coverage to the low-income population and

A data pooling organization that maintains information on individuals who have applied for insurance with life and health insurance companies that subscribe to the bureau.

A trust created exclusively for paying qualified medical expenses of the account holder. Allowable contributions are tax-deductible and growth is tax- free if the account

A federal government medical insurance plan originally for individuals age 65 and older or disabled. The age requirement has been raised based on year of

Also known as “Medigap”, individual health insurance coverage designed to bridge coverage gaps in Medicare.

A federal regulation that requires employers to provide coverage for the diagnosis and treatment of mental illness and substance abuse under the same terms and

Two or more organizations that create a new entity, agree to move forward as one and issue the appropriate ownership interests (common stock, memberships, partnerships,

Acronym for Managing General Agent

Acronym for Managing General Underwriter

As a consequence of COVID-19 and the closing of schools, parents have started organizing “microschools,” or homeschooling pods, where groups of three to 10 students

Provides a lower level of benefits with a lower premium.

Automatic 60-day extended reporting period allowing for the making of claims after expiration of a “claims made” liability policy.

Also known as “minimum continuation premium”, the premium that is lower than the target premium. It is used in universal life policies to skip premiums

In retrospective rating, the minimum amount of premium to be paid by the insured, determined by multiplying the minimum retrospective premium factor by the standard

A self-insured health plan that includes a maximum dollar amount that an employer must pay for claims.

In retrospective rating, a factor established by agreement between the insured and the insurance carrier to determine the minimum premium.

A misstatement of facts regarding the subject of insurance (the item being insured).

Legal concept that imposes a duty on an injured party to exercise reasonable diligence and ordinary care in attempting to minimize damages after injury or

Also known as a “hybrid HMO”, are closed-panel HMOs that expanded their market by offering an open model product on a regional or national level

Observation that occurs most often in the sample; the highest frequency.

Depreciation by IRS schedule according to the type of asset; ach MACRS class has a predetermined schedule used to determine the percentage of the asset’s

Examining and evaluating the results of risk management actions and plans; an element of the Risk Administration step of the Risk Management Process.

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.

An insurance policy that the insured has the right to keep in force by paying the premium for a period (stated in the contract). The

A term used to describe a situation where there are two or more insurance policies not written with the same coverage, or effective dates.

A group health plan that has no cost sharing – the employer pays the full cost of an eligible employee’s coverage under the plan.

Pain, suffering, and other non-monetary losses.

Provision that ensures the insured cannot lose the equity of a whole life insurance policy. A policy owner can select from three options under the

The transfer of risk through a contract other than an insurance contract.

Transfer of risk from one party to another party other than an insurance company. This risk management technique usually involves risk transfers by way of

Assets that are not entered onto the balance sheet.

Often combine general liability, automobile liability, workers compensation (with fronting carriers) and other miscellaneous lines with no per occurrence stop loss or loss limitation; works

The action by the insurance company to terminate insurance coverage at the expiration date or anniversary date of the policy.

A premium that is not a part of a loss sensitive rating formula. For example, in a retro plan, the non-subject premium usually purchases the

In claims management, a bilateral agreement between an insurer and a claimant that permits the continued processing of the claim while preserving the insurer’s rights

Exterior walls, floor, and supports made of metal, asbestos, gypsum, or other noncombustible materials.

In statistics, a distribution in which the mean, median, and mode are the same; it has the same value at the high point of the

An accounting concept, the explanation of how specific transactions have been treated; the rules by which the financial statements are drawn.

Amount that an insurer will pay to settle a claim that may not be valid or may be of lesser value so as to avoid

A licensed facility that provides 24-hour-a-day nursing care to assist individuals who need long-term care.

Person, firm, or corporation protected by a surety bond; the party to whom the principal under the bond is obligated.

Under a surety bond, the party who owes the obligation to the obligee.

The occupants or operations in the building.

In, upon, getting in, on, out, or off.

An accident with the limitation of time removed; an “accident” that is extended over a period of time rather than a single observable happening.

An accident with the limitation of time removed; an “accident” that is extended over a period of time rather than a single observable happening.

An insurer domiciled outside the US. By definition, all off-shore insurance companies are alien, in spite of ultimate ownership by a US corporation.

Acronym for Operating Committee