The formula reflects market value adjustments. Mortality Table - chart that shows the death rates of a particular population at each age displayed as the number of deaths per thousand. Access to every published model law, regulation, and guideline. Nonadmitted Insurer - insurance company not licensed to do business within a given state.
17 Insurance Terms to Know | Matic Burglary and Theft - coverage for property taken or destroyed by breaking and entering the insured's premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and off-premises exposure. Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss. Public Adjuster - independent claims adjuster representing policyholders instead of insurance companies. Soft Market - a buyer's market characterized by abundant supply of insurance driving premiums down. Dental Only - line of business providing dental only coverage; coverage can be on a stand-alone basis or as a rider to a medical policy. Commercial Auto - coverage for motor vehicles owned by a business engaged in commerce that protects the insured against financial loss because of legal liability for motor vehicle related injuries, or damage to the property of others caused by accidents arising out of the ownership, maintenance, use, or care-custody & control of a motor vehicle. Surplus - insurance term referring to retained earnings. Experience Rating - rating system where each group is rated entirely on the basis of its own expected claims in the coming period, with retrospective adjustments for prior periods. Dental Insurance - policies providing only dental treatment benefits such as routine dental examinations, preventive dental work, and dental procedures needed to treat tooth decay and diseases of the teeth and jaw. Policy Period - time period during which insurance coverage is in effect. Disability Income - a policy designed to compensate insured individuals for a portion of the income they lose because of a disabling injury or illness. Flood - coverage protecting the insured against loss or damage to real or personal property from flood. Warranty - coverage that protects against manufacturer's defects past the normal warranty period and for repair after breakdown to return a product to its originally intended use. Derived by subtracting related expenses from incurred losses and dividing by written premiums. The company must conform to state regulatory standards to legally sell insurance products in that state. Here's what a homeowners policy covers: Type of coverage. Unauthorized Reinsurance - reinsurance placed with a company not authorized in the reporting company's state of domicile. Credit Life Insurance - policy assigning creditor as beneficiary for insurance on a debtor thereby remitting balance of payment to creditor upon death of debtor. (Bickelhaupt and Magee ). Crop-Hail Insurance - coverage for crop damage due to hail, fire or lightning. Mechanical Breakdown Insurance - premiums attributable to policies covering repair or replacement service, or indemnification for that service, for the operational or structural failure of property due to defects in materials or workmanship, or normal wear and tear. EBNR - Earned but not reported - premium amount insurer reasonably expects to receive for which contracts are not yet final and exact amounts are not definite. Does not include self-insured business as well as FEHBP or Medicare and Medicaid programs. Employee Retirement Income Security Act of 1974 (ERISA) - a federal statute governing standards for private pension plans, including vesting requirements, funding mechanisms, and plan design. Assessed Value - estimated value for real or personal property established by a taxing entity. Also include short-term care policies that provide coverage for less than one year for medical and other services provided in a setting other than an acute care unit of the hospital. Asset Risk - in the risk-based capital formula, risk assigned to the company's assets. Loss Adjustment Expense (LAE) - expected payments for costs to be incurred in connection with the adjustment and recording of losses. Specified/Named Disease - policies that provide benefits only for the diagnosis and/or treatment of a specifically named disease or diseases. Specified Disease Coverage - coverage that provides primarily pre-determined benefits for expenses of the care of cancer and/or other specified diseases. Long-Term Care - policies that provide coverage for not less than one year for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital, including policies that provide benefits for cognitive impairment or loss of functional capacity. Morbidity risk excludes the potential for an individual's death, but includes the potential for an illness or injury that results in death. Permanent Life Insurance - policy that remains active for the life of the insured. Designates must also have at least three years experience in the insurance business or related field. Product Liability - insurance coverage protecting the manufacturer, distributor, seller, or lessor of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product. An asset has three essential characteristics: It embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows; A particular entity can obtain the benefit and control others' access to it; and The transaction or other event-giving rise to the entity's right to or control of the benefit has already occurred. Person who obtains a loan and enters an agreement to repay the loan in installment payments. Bonds - a form of debt security whereby the debt holder has a creditor stake in the company. Commission - a percentage of premium paid to agents by insurance companies for the sale of policies. An example is a tenant who, while occupying another party's property, through negligence causes fire damage to the property. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies. Contact Us 800-397-6295 Sponsored By Call to speak with a licensed agent M-F 8a-9p, Sa-Sun 8a-8p CT. Irrevocable Beneficiary - a life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured's lifetime because the policy owner has the right to change the beneficiary designation only after obtaining the beneficiary's consent. Business auto filings include singularly or in any combination coverage such as the following: Auto Liability, PIP, MP, Uninsured Motorist and/or Underinsured Motorists (UM/UIM); Specified Causes of Loss, Comprehensive, and Collision. Here are some basic terms that can help you communicate when you need to talk insurance. Joint and Last Survivor Annuity - retirement plan that continues to payout so long as at least one, of two or more, annuitants is alive. Subsequent Event - events or transactions that occur subsequent to the balance sheet date, but before the issuance of the statutory financial statements and before the date the audited financial statements are issued, or available to be issued. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Health Insurance Terms Glossary - Forbes Advisor Insurance Terms and Definitions | Progressive Domestic and international policy and outreach initiatives. These definitions represent a common or general use of the term. Benefits often include a stated dollar amount for glasses and contacts. Excludes amounts attributable to uninsured accidents and health plans and the uninsured portion of partially insured accident and health plans. Auto Liability - coverage that protects against financial loss because of legal liability for motor vehicle related injuries (bodily injury and medical payments) or damage to the property of others caused by accidents arising out of ownership, maintenance or use of a motor vehicle (including recreational vehicles such as motor homes). Term - period of time for which policy is in effect. NFIP - National Flood Insurance Program - flood insurance and floodplain management for personal and business property administered under the National Flood Act of 1968. Encumbrance - outstanding mortgages or other debt related to real estate and any unpaid accrued acquisition or construction costs. Malpractice - alleged misconduct or negligence in a professional act resulting in loss or injury. While these terms can be confusing, the better you understand them, the better you will be prepared to successfully gain coverage and access to the treatments that are right for you. Valued Policy Law - state legislation which specifies that the insured shall receive the face amount of the policy in the event of a total loss to a dwelling rather than the actual cash value regardless of the principle of indemnity. Gross Paid-in and Contributed Surplus - amount of capital received in excess of the par value of the stock issued. Insurance Holding Company System - consists of two or more affiliated persons, one or more of which is an insurer. The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. Unallocated Loss Adjustment Expense (ULAE) - loss adjustment expenses that cannot be specifically tied to a claim. Foreign Insurer - an insurance company selling policies in a state other than the state in which they are incorporated or domiciled. So, if you rear end another car and their passengers need to go to the hospital, this . Premiums Net - is the amount calculated on the basis of the interest and mortality table used to calculate the reporting entity's statutory policy reserves. Equity Indexed Annuity - a fixed annuity that earns interest or provides benefits that are linked to an external reference or equity index, subject to a minimum guarantee. Group Annuities Deferred Variable - an annuity contract that provides an accumulation based fund where the accumulation varies in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. Insurable Interest - A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it. Collateral Loans - unconditional obligations for the payment of money secured by the pledge of an investment. Condos - homeowners insurance sold to condominium owners occupying the described property. Employee Benefit Liability - liability protection for an employer for claims arising from provisions in an employee benefit insurance plan provided for the economic and social welfare of employees. Disability Income - Short-Term - policies that provide a weekly or monthly income benefit for up to five years for individual coverage and up to one year for group coverage for full or partial disability arising from accident and/or sickness. Situs of Contract - the jurisdiction in which the contract is issued or delivered as stated in the contract. Health Plan - written promise of coverage given to an individual, family, or group of covered individuals, where a beneficiary is entitled to receive a defined set of health care benefits in exchange for a defined consideration, such as a premium. Personal Property - single interest or dual interest credit insurance (where collateral is not a motor vehicle, mobile home, or real estate) that covers perils to goods purchased or used as collateral and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part; or covers perils to goods purchased in connection with an open-end credit transaction. State Page - Exhibit of Premiums and Losses for each state a company is licensed. We provide tools and resources to help regulators set standards and best practices, provide regulatory support functions, and educate on U.S. state-based insurance regulation. Loss Reserve - the amount that insurers set aside to cover claims incurred but not yet paid. This method tends to be more conservative than the Generally Accepted Accounting Principles used by most businesses. Indemnification is on a proportional or non-proportional basis. By Future Generali Updated On Oct 06, 2022 5 min 5.5K Understanding the basic life insurance terminology helps us to understand the various benefits and features of a policy. Internet Liability Insurance/Cyber Insurance - coverage for cyber commerce including copyright infringement, libel, and violation of privacy. Representatives from diverse groups who provide varied perspectives on insurance regulatory issues. Labour leader Sir Keir Starmer said "NATO has never been stronger" as he responded to a statement by Prime Minister Rishi Sunak in the Commons. Combinations - a special form of package policy composed of personal automobile and homeowners insurance. Retrospective Rating - the process of determining the cost of an insurance policy based on the actual loss experience determined as an adjustment to the initial premium payment. Asset - probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
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