Term
|
Definition
| Periodic payment to an individual that continues for a fixed period or for the duration of a designated life or lives. |
|
|
Term
|
Definition
| Tax credit that can be used to reduce the amount of federal estate or gift tax; also known as unified tax credit. |
|
|
Term
|
Definition
| Used when the insured and insurer agree that the loss is covered, but the amount of the loss is in dispute. |
|
|
Term
|
Definition
| Mutual insurance company that has the right to assess policy owners for losses and expenses. |
|
|
Term
|
Definition
| Defense against a negligence claim that bars recovery for damages if a person understand and recognizes the danger inherent in a particular activity or occupation. |
|
|
Term
|
Definition
| Condition that can attract and injure children. Occupants of land on which such a condition exists are liable for injuries to children. |
|
|
Term
|
Definition
| Cash borrowed from a life insurance policy's cash value to pay an overdue premium after the grace period for paying the premium has expired. |
|
|
Term
| Automobile Insurance Plan |
|
Definition
| Method for providing automobile insurance to persons considered to be high-risk drivers who cannot obtain protection in the voluntary markets. All automobile insureres in the state are assigned their share of such drivers based on the volume of automobile insurance business written in the state. Formerly called assigned risk plan. |
|
|
Term
| Average Indexed Monthly Earnings (AIME) |
|
Definition
| Under the OASDI program, the person's actual earnings are indexed to determine his or her primary insurance amount (PIA). |
|
|
Term
|
Definition
| Policy that covers the loss or damage to property of customers regardless of a bailee's legal liability. |
|
|
Term
|
Definition
| A period of time, typically one to three years, during which major medical benefits are paid after the deductible is satisfied. When the benefit period ends, the insured must then satisfy a new deductible in order to establish a new benefit period. |
|
|
Term
|
Definition
| The period during which Social Security benefits are not paid to a surviving spouse -- between the time the youngest child reaches age 16 and the surviving spouse's sixtieth birthday. |
|
|
Term
|
Definition
| Typically nonprofit, community-oriented prepayment lans that provide health insurance covareage primarily for hospital services. |
|
|
Term
|
Definition
| Typically nonprofit prepayment plans that provide health insurance coverage mainly for physician's services. |
|
|
Term
| Boat Owners Package Policy |
|
Definition
| A special package policy for boat owners that combines physical damage insurance, medical expense insurance, liability insurance, and other coverages in one contract. |
|
|
Term
|
Definition
| Someone who legally represents the insured, soliciting or accepting applications for insurance that are not in force until the company accepts the business. |
|
|
Term
|
Definition
| Taking of poperty from within the premises by someone who unlawfully enters or leaves the premises, with marks of forcible entry of exit. |
|
|
Term
| Business Income Coverage Form |
|
Definition
| Business income form drafted by the Insurance Services Office to cover the loss of business income regardless of whether the income is derived from retail or service operations, manufacturing, or rents. |
|
|
Term
|
Definition
| Package policy specifically designed to meet the basic property and liability insurance needs of smaller business firms in one contract. |
|
|
Term
|
Definition
| Generic term for an employee benefit plan that allows employees to select among the various group life, medical expense, disability, dental, and other plans that best meet their specific needs. Also called flexible benefit plans. |
|
|
Term
|
Definition
| Amount payable by an insured during a calendar year before a group or individual health insurance policy begins to pay for medical expenses. |
|
|
Term
|
Definition
| Term used in the property and liability insurance industry that refers to the relative level of surplus; the greater the industry's surplus position, the more willing underwriters will write new business or reduce premiums. |
|
|
Term
|
Definition
| Method of determining which capital investment projects a company shoudl undertake based on the time value of money. |
|
|
Term
| Capital Retention Approach |
|
Definition
| A method used to estimate the amount of life insurance to own. Under this method, the insurance proceeds are retained and are not liquidated. |
|
|
Term
|
Definition
| A method of payment in managed care plans which a physician or hospital receives a fixed annual payment for each plan member regardless of the frequency type or type of service provided. |
|
|
Term
| Captive Insurer Insurance |
|
Definition
| company established and owned by a parent firm in order to insure its loss exposures while reducing premium costs, providing easier access to a reinsurer, and perhaps easing tax burdens. |
|
|
Term
|
Definition
| The balance is paid in one lump sum to the beneficiary after the death of the annuitant, if total payments do not equal annuity purchase price. |
|
|
Term
|
Definition
| Amount payable to the owner of a cash value life insurance policy should he or she devide it is no longer wanted. Calculated separately from the legal reserve. |
|
|
Term
|
Definition
| Field of insurance that covers whatever is not covered by fire, marine, and life insurance. Includes auto, liability, burglary and theft, workers compensation, glass, and health insurance. |
|
|
Term
|
Definition
| Corporate bonds that permit the issuer of the bond to skip or defer scheduled payments of principal or interest if a catastrophic loss occurs. |
|
|
Term
|
Definition
| Form added to commercial property insurance policy that indicates the causes of loss that are covered. There are three causes-of-loss forms: basic, broad, and special. |
|
|
Term
|
Definition
| Insurers that writes the policy initially and later shifts part of all of the coverage to a reinsurer. |
|
|
Term
| Certified Financial Planner |
|
Definition
| Professional who has attained a high degree of techincal comptency in financial planning and has passed a series of professional examinations. |
|
|
Term
|
Definition
| The probability that a loss will occur. |
|
|
Term
|
Definition
| Allows life insurnace policyowners to excahgen their present policies for differne contracts, provides flexibility. |
|
|
Term
|
Definition
| Person responsible for the treatment of pure and speculatire risks faced by an organization. |
|
|
Term
|
Definition
| Motorists can elect to be covered under the state's no-fault law with lower premiums or can reatin the right to sue under the tort liabilty system with higher premiums. |
|
|
Term
|
Definition
| Person who settles claims: an agent, company adjustor, independent adjustor, adjustment bureau, or public adjustor. |
|
|
Term
|
Definition
| A liability insurance policy that only covers claims that are first reported during the policy period, provided the event occurred after the retroactive date (if any) stated in the policy. |
|
|
Term
|
Definition
| Rate-making method in which similar insureds are placed in the same underwriting class and each is charged the same rate. Also called manual rating. |
|
|
Term
|
Definition
| Common provision in commercial property insurance contracts that requires the insured to maintain insurance on the poperty at a stated percentage of its actual cash value or its replacement cost. Payment for a loss is determined by multiplying the amoutn of the loss by the fraction derived from teh amount of insurance required. If the coinsurance requirement is not met at the time of loss, the insured will be penalized. Coninsurance is also used to refer to the percentage participation clause in health insurance. See also Percentage Participation Clause. |
|
|
Term
|
Definition
| Under this rule, the defendant cannot introduce any evidence that shows the injured party has received compensation from other collaterial sources. |
|
|
Term
|
Definition
| Damages to an automobile caused by the upset of the automoibile of its impact with another vehicle or object. Collision losses are paid by the insurer regardless of fault. |
|
|
Term
| Commerical Crime Coverage Form |
|
Definition
| ISO form that can be added to a package policy to cover crime exposures of business firms. |
|
|
Term
| Commercial General Liability Policy |
|
Definition
| Commerical liability policy drafted by the ISO containing two coverage forms -- an occurence form and a claims-made form. |
|
|
Term
|
Definition
| Property and casualty coverages for business firms, nonprofit organizations, and government agencies. |
|
|
Term
| Commercial Package Policy |
|
Definition
| A commercial policy that can be designed to meet the specific insurance needs of business firms. Property and liabilty coverage forms are combined to form a single policy. |
|
|
Term
|
Definition
| Risk of losing money if the price of a commodity changes. |
|
|
Term
|
Definition
| One in which the values exchagnes by both parties are thoretically even. |
|
|
Term
| Comparative Negligence Laws |
|
Definition
| Laws enacted by many jurisdictions permitting an injured person to recover damages even though he or she may have contribued to the accident. The financial burden is shared by both parties according to their respective degrees of fault. |
|
|
Term
|
Definition
| Liability arising out of faulty work performed away from the premises after the work or operations are completed; applicable to contractors, plumbers, electricians, repair shops, and similar firms. |
|
|
Term
| Comprehensive Major Medical Insurance |
|
Definition
| Type of group plan combining basic plan benefits and major medicial insurance in one policy |
|
|
Term
|
Definition
| Law protecting accident victims against irresponsible motorists by requiring owners and operators of automobiles to carry certain amounts of liability insurance in order to license the vehicle and drive legally within the state. |
|
|
Term
|
Definition
| Deliberate failure of an applicant for insurance to reveal a material fact to the insurer. |
|
|
Term
|
Definition
| Provisions inserted in an insurance contract that qualify or place limitations on the insurer's promise to perform. |
|
|
Term
|
Definition
| Financial loss occuring as the consequence of some other loss. Often called an indirect loss. |
|
|
Term
|
Definition
| Beneficiary of a life insurance policy who is entitled to receive the policy proceeds on the insured's death if the primary beneficiary dies before the insured; or the beneficiary who receives the remaining payments if the primary beneficiary dies before receiving the guaranteed number of payments. |
|
|
Term
|
Definition
| Liability arising out of work done by independent contractors for a firm. A firm may be liable for the work done by an independent contracot if the activity is illegal, the situation does not permit delegation of authority, or the work is inherently dangerous. |
|
|
Term
|
Definition
| Type of surety bond guaranteeing that the princiapl will fulfill all contractual obligations. |
|
|
Term
|
Definition
| The insured must accept the entire contract, with all of its terms and conditions. |
|
|
Term
|
Definition
| Legal liablity of another party that the bhsiness firm agrees to assume by a written or oral contract. |
|
|
Term
| Contribution by Equal Shares |
|
Definition
| Type of other-insurance provision often found in liabilty insurance contracts that requires each company to share equally in the loss until the share of each insurer equals the lowest limit of liabity under any policy or until the full amount of loss is paid. |
|
|
Term
|
Definition
| Common law defense blocking an injured person from recovering damages if he or she has contributed in any way to the accident. |
|
|
Term
|
Definition
| Group life, health, or pension plan in which the employees pay part of the premiums. |
|
|
Term
| Coordinations-of Benefits Provision |
|
Definition
| Provision in a group medicial expense plan that prevents orver-insurance and duplication of benefits when one person is covered under more than one group plan. |
|
|
Term
|
Definition
| Major medicial plan deductible that integrates a basic plan with a supplemental group major medical expense policy. |
|
|
Term
|
Definition
| Benefit that can be added to a life insurance policy under which the policyholder can purchase one-year term insruance equal to the cumulative percentage change in the consumer price index with no evidence of insurability. |
|
|
Term
|
Definition
| A risk management technique that measures certain costs in a risk management program, including premiums paid, retained losses, outside risk management services, financial guarantees, internal administrative costs, taxes and fees, and certain other expenses. |
|
|
Term
| Coverage for Damage to Your Auto |
|
Definition
| That part of the personal auto policy insuring payment for damage or theft of the insured automobile. This optional coverage can be used to insure both collision and other-than-collision losses. |
|
|
Term
| Current Assumption Whole Life Insurance |
|
Definition
| Nonparticipating whole life policy in which the cash values are based on the insurer's current mortality, investment, and expense experience. An accumulatiion account is credited with a current interest rate that changes over time. Also called interest-senstitive whole life insurance. |
|
|
Term
|
Definition
| Status of a covered persons under the Old-Age, Survivors, and Disability Insurance (OASDI) program who has at least six credits out of the last thirteen quarters, ending with the quarters of dealth, disability, or entitlement to retirement benefits. |
|
|
Term
|
Definition
| Liability for damages even though fault or negligence cannot be proven, for example, in such situations as occupational injury of employees under a workers compensation law. |
|
|
Term
| Accelerated death benefits rider |
|
Definition
| A rider that allows insureds who are terminally ill or who suffer from certain catastrophic diseases to collect part or all of their life insurance benefits before they die, primarily to pay for the care they require. |
|
|
Term
|
Definition
| A loss-causing event that is sudden, unforeseen, and unintentional. See also occurrence |
|
|
Term
|
Definition
| Bodily injury resulting from an act whose result was accidental or unexpected. |
|
|
Term
|
Definition
| Value of property at the time of its damage or loss, determined by subtracting depreciation of the item from its replacement cost. |
|
|
Term
|
Definition
| Pays benefits to an accident victim without regard to fault, but the injured person still has the right to sue the negligent drive who caused the accident |
|
|
Term
|
Definition
| Organization for adjusting insurance claims that is supported by insurers using the bureau's services. |
|
|
Term
|
Definition
| Pension-funding method in which the employer systematically and periodically sets aside funds prior to the employee's retirement. |
|
|
Term
|
Definition
| Mutual insurance company owned by the policy owners that does not issue assessable policies but charges premiums expected to be sufficient to pay all claims and expenses |
|
|
Term
|
Definition
| tendency of persons with a higher-than-average chance of loss to seek insurance at standard (average) rates, which, if not controlled by underwriting, results in higher-than-expected loss levels. |
|
|
Term
|
Definition
| Contract between an insurance agent and insurance company that describes the powers, rights, and duties of the agent. |
|
|
Term
|
Definition
| Someone who legally represents the insurer, has the authority to act on the insurer's behalf, and can bind the principal by expressed powers, by implied powers, and by apparent authority. |
|
|
Term
|
Definition
| Deductible in some property and health insurance contracts in which all covered losses during a year are added together and the insurer pays only when the aggregate deductible amount is exceeded. |
|
|
Term
|
Definition
| One in which the values exchanged may not be equal but depend on an uncertain event. |
|
|
Term
|
Definition
| Insurance company chartered by a foreign country and meeting certain licensing requirements. |
|
|
Term
|
Definition
| Coverage by an insurance contract that promises to cover all losses except those losses specifically excluded in the policy. Also called an open perils policy or a special coverage policy. |
|
|
Term
| Alternative Dispute Resolution (ADR)Techniques |
|
Definition
| Techniques to resolve a legal dispute without litigation. |
|
|
Term
|
Definition
| Person who receives the periodic payment from a annuity. |
|
|
Term
|
Definition
| Authorization of coverage by an agent given before the company has formally approved a policy. Provides evidence that the insurance is in force. |
|
|
