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| An environment in which insurers and policyholders interact and trade. |
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| Refers to sellers’ market intentions |
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| Reflects buyers’ market intentions. |
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| Refers to the sensitivity of demand in relationship to changes in price. Meaning if the price of the insurance products rise, customers might purchase coverage from another insurer, complain or protest to legislators, but they usually continue to purchase insurance. In other words, customers purchase the same amount of insurance whether prices fall, rise or stay the same. |
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| Products perceived to be the same by consumers. This perception occurs when the market has may undifferentiated suppliers |
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| A recurring rise and fall in profits, usually profits in just one industry |
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| A commonly used term for a recurring rise and fall in profits and prices. UW Cycles is the P&C industry’s profit cycle |
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| It compares operating funds that flow into and out of an insurance company. The Combined Ratio is the traditional measure of UW profitability in the Property and Liability insurance business |
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| The volume of business (written premiums) that an insurer is able to handle relative to the size of its policyholder surplus |
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| A group of customers with specialize needs |
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| These statistically map the relationships among data elements for a specific purpose. The resulting statistics can be used to predict outcomes, which can help to guide decisions |
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| Marketing that takes place directly between the customer and the insurer through mail, phone, and the Internet without an agent as an intermediary |
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| A misrepresentation intended to induce another to party with something of value or to surrender a legal right |
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committed if:
1. Information in an insurance application is falsified in an attempt to obtain lower premium rates.
2. The amount of the loss in a claim is falsified
3. A claim is falsified. |
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| Computerized databases that provide access to a bank of information through search inquiries |
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| Sets of computer programs that perform tasks at the level of a human expert. They are created on the basis of knowledge collected from human experts and they imitate the reasoning process of a human being |
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| Special Investigative Unit (SIU): |
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| A unit within an insurance company specially dedicated to investigating suspicious claims and other possible frauds. SIUs also exist within the insurance departments in some states |
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| An offense that is lower than a felony and generally punishable by fine, penalty or imprisonment in a facility other than a penitentiary |
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| A crime of a grave or serious nature punishable by death or imprisonment for a term exceeding one year |
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| Provide protection to insurance companies for the good-faith exchange of information required to provide information to state insurance departments or law officials without fear of criminal or civil prosecution |
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| Garages where stolen vehicles are brought to be stripped of their components |
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| Court order that prohibit someone from committing a specified act or that command someone to undo a wrong or an injury |
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| Term used to describe a vehicle owner who conspires with others to commit fraud |
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