Term
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Definition
| Insurance is a risk management technique that transfers some or all of the potential financial consequences for certain loss exposures from the insured to the insurer. |
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Term
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Definition
| The mathematical principle stating that as the number of similar but independent exposure units increases, the relative accuracy of predictions also increases. |
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Term
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Definition
| Insurers formed to earn a profit for their owners |
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Term
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Definition
| Insurers owned by their policyholders and usually formed to provide insurance protection protection to their policyholders at minimum cost. Mutual insurance companies, reciprocal exchanges and fraternal organizations are examples of cooperateive insurers. |
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Term
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Definition
| An association of persons or organizations that combines its resources to economically finance recovery from accidental losses. |
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Term
| Fair Aceces to Insurance Requirements (FAIR) plans |
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Definition
| An insurance pool through which private insurers collectively address an unmet need for property insurance on urban properties, especially those susceptible to loss by riot or civil commotion. |
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Term
| Licensed insurer or admitted insurer |
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Definition
| An insurer authorized by the state insurance department to transact business within a particular state. |
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Term
| Unlicensed or nonadmitted insurer |
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Definition
| An insurer not authorized by the state insurance department to transact business in the insured's state. |
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