Term
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Definition
| A summary of what a company owns (assets), and what it owes (liabilities) and the difference between the two (owner's equity) |
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Term
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Definition
| The estimated cost of settling claims for losses that have already occurred but that have not been paid as of the valuation date. |
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Term
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Definition
| Loss reserves that are established for each individual claim when it is Reported. |
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Term
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Definition
| Establishes the aggregate loss reserves for a specific coverage line. |
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Term
| Incurred-But-Not-Reported Reserve (IBNR) |
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Definition
| A reserve that must be established for claims that have already occurred but have not yet been reported to the insurer. |
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Term
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Definition
| A liability item that represents the unearned portion of gross premiums on all outstanding policies at the time of valuation. |
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Term
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Definition
| Policies are written uniformly throughout the year. |
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Term
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Definition
| The difference between an insurance company's assets and liabilities |
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Term
| Income and Expense Statement |
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Definition
| Summarizes revenues received and expenses paid during a specific time. |
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Term
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Definition
| Cash inflows that company can claim as income. |
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Term
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Definition
| Represent the portion of premiums for which insurance protection has been provided. |
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Term
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Definition
| The ratio of incurred losses and loss adjustment expenses to premiums earned |
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Term
| Reserve for amounts held on deposit |
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Definition
| A liability that represents funds owed to policyholders and to beneficiaries. |
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Term
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Definition
| A statutory account designed to absorb asset value fluctuations not caused by changing Interest Rates |
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Term
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Definition
| Difference between Assets & Liabilities |
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Term
| Regulatory Objectives in Rate Making |
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Definition
1) Rates much be adequate
2) Rates must not be excessive
3) Rates must not be discriminatory |
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Term
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Definition
| Price per unit of insurance |
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Term
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Definition
| Unit of measurement used in Insurance pricing |
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Term
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Definition
| The portion of the rate needed to pay losses and loss-adjustment expenses. |
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Term
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Definition
| The amount that must be added to premium for other expenses |
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Term
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Definition
| Pure premium and loading element |
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Term
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Definition
1) Paid by insured
2) Gross Rate * number of exposure units |
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Term
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Definition
| Each exposure is individually evaluated. Rate is determined mostly by underwriter's judgement. |
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Term
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Definition
| Exposures with similar characteristics are placed in the same underwriting class, and each are charged the same rate. |
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Term
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Definition
| Incurred losses and loss adjustment expenses / Number of exposure units |
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Term
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Definition
| Pure Premium / 1 - Expense Ratio |
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Term
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Definition
| - A rating plan by which class rates are adjusted upward or downward based on individual loss experience |
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Term
| Three Kinds of Merit Rating |
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Definition
| Schedule Rating Plan , Experience Rating, Retrospective Rating |
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Term
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Definition
-COPEM
-Exposure is individually rated. A basis rate is determined for each exposure, which is then modified by debts or credits undesirable or desirable features. |
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Term
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Definition
| Construction, Occupancy, Protection, Exposure, Maintenance |
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Term
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Definition
| The class or manual rate is adjusted upward or downward based on past loss experience. |
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Term
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Definition
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Term
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Definition
| The insured's loss experience during the current policy period determines the actual premium paid for that period. |
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