Term
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Definition
| An Insurance Agent is a state-licensed professional who represents an insurance company in selling and servicing policies. |
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Term
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Definition
| A social device for spreading the chance of financial loss among a large number of people. |
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Term
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Definition
| Includes soliciting insurance, collecting premiums, and handling claims. |
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Term
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Definition
| By combining a large number of homogeneous units, the insurer is able to make predictions of possible loss. What insurers use to calculate their probable loss and establish rates for premiums. |
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Term
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Definition
| The process of selecting certain types of risks that have historically produced a profit and rejecting those risks that do not fit the underwriting criteria of the insurer. |
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Term
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Definition
| Premium collected, less loss and expenses. |
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Term
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Definition
| The tendency of insureds with a greater-than-average chance of loss to purchase insurance. |
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Term
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Definition
| A means o reducing exposure of loss for a particular risk. A contract of indemnity against liability by which and insurance company procures another insurance company to insure it against loss or liability by reason of the original insurance. |
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