Term
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Definition
| An interest rate that changes, based on changes in a published market-rate index |
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Term
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Definition
| A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted |
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Term
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Definition
| Assets permitted by state law to be included in an insurance company's annual statement. These assets are an important factor when regulators measure insurance company solvency. They include mortgages, stocks, bonds and real estate |
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Term
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Definition
| Individual who sells and services insurance policies in either of two classification: independent agent represents at least two insurance companies and (at least in theory) services clients by searching the market for the most advantageous price for the most coverage. Direct or career agent represents only one company and sells only its policies |
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Term
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Definition
| Usually refers to liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents might occur |
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Term
| Annual Administrative Fee |
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Definition
| Charge for expenses associated with administering a group employee benefit plan |
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Term
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Definition
| The maximum rate that the equity-indexed annuity can be credited in a yaer. If a contract has an upper limit, or cap, or 7 percent and the index linked to the annuity gained 7.2 percent, only 7 percent would be credited to the annuity |
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Term
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Definition
| Process by which you convert part or all of the money in a qualified retirement plan or non-qualified annuity contract into a stream of regular income payments, either for you lifetime or the lifetimes of you and your join annuitant. Once you choose to annuitize, the payment schedule and the amount is generally fixed and can't be altered |
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Term
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Definition
| Choices in the way to annuitize. For example, life with a 10-year period certain means payouts will last a lifetime, but should the annuitant die during the first 10 years, the payments will continue to beneficiaries through the 10th year. Selection of such an option reduces the amount of the periodic payment |
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Term
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Definition
| An agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period |
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Term
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Definition
| Indicates the company is approved (or authorized) to write reinsurance on risks in this state. A license to write reinsurance might not be required in these states |
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Term
| Approved or Non Disapproved for Surplus lines |
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Definition
| Indicates the company is approved (or authorized) to write excess or surplus lines in this state |
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Term
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Definition
| Assets refer to "all the available properties of every kind or possession of an insurance company that might be used to pay its debts" |
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Term
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Definition
| Refers to things such as bonds, stocks, cash and income-producing real estate |
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Term
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Definition
| Refers to non-income producing possessions such as the building the company occupies, office furniture, and debts owed, usually in the form of deferred and unpaid premiums |
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Term
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Definition
| Refers to everything a company owns. "All other" plus "invested assets" = total admitted assets |
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Term
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Definition
| Insured's age at a particular time. For example, many term life insurance policies allow an insured to convert to permanent insurance without a physical examination at the insured's then attained age. Upon conversion, the premium usually rises substantially to reflect the insured's age and diminished life expectancy |
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Term
| Automobile Liability Insurance |
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Definition
| Cover if an insured is legally liable for bodily injury or property damage caused by an automobile |
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Term
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Definition
| An accounting term referring to a listing of a company's assets, liabilities, and surplus as of a specific date |
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Term
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Definition
| In health insurance, the number of days for which benefits are paid to the named insured and his or her dependents. For example, the number of days that benefits are calculated for a calendar year consist of the days beginning on Jan. 1 and ending Dec. 31 of each year |
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Term
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Definition
| The part of a contract that says when a loan may be declared due and payable |
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Term
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Definition
| In a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. There can be a certain exclusions as well as time and age limits |
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Term
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Definition
| Person whose absence from a planned event would trigger a benefit if the event needs to be canceled or postponed |
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Term
| Activities of Daily Living |
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Definition
| Bathing, preparing and eating meals, moving from room to room, getting into and out of beds or chairs, dressing, using a toilet |
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Term
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Definition
| Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and osbolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation. |
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Term
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Definition
| A specialist in the mathematics of insurance who calculates rates, reserves dividends and other statistics (Americanism: in most countries the individual is known as mathematician) |
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Term
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Definition
| Insurance salesperson that searches the marketplace in the interest of clients, not insurance companies |
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Term
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Definition
| Independent insurance salesperson who represents particular insurers but also might function as a broker by searching the entire insurance market to place an applicant's coverage to maximize protection and minimize cost. This person is licensed as an agent and a broker |
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Term
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Definition
| This item represents the percentage of a company's gross writings that are retained for its own account. Gross writings are the sum of direct writings and assumed writings. this measure excludes affiliated writings |
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Term
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Definition
| Equity of shareholders of a stock insurance company. This company's capital and surplus are measured by the difference between its assets minus its liabilities. |
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Term
| Capitalization / Leverage |
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Definition
| Measures the exposure of a companies surplus to various operating and financial practices. A highly leveraged, or poorly capitalized, company can show a high return on surplus, but might be exposed to a high risk of instability |
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Term
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Definition
| Representative of a single insurer or fleet of insurers who is obliged to submit business only to that company, or at a very minimum, give that company first refusal rights on a sale. |
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Term
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Definition
| A system of coordinating medical services to treat a patient, improve care and reduce cost. A case manager coordinates health care delivery for patients |
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Term
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Definition
| Liability or loss resulting from an accident |
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Term
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Definition
| That type of insurance that is primarily concerned with losses caused by injuries to other persons and legal liability imposed upon the insured for such injury or for damage to property of others. It also includes such diverse forms as plate glass, insurance against crime, such as robbery, burglary and forgery, boiler and machinery insurance and aviation insurance. Many casualty companies also write surety business |
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Term
| Change in Net Premiums Written (IRIS) |
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Definition
| The annual percentage change in Net premiums Written. A company should demonstrate its ability to support controlled business growth with quality surplus growth from strong internal capital generation. |
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