Colonial Insurance Dictionary

A B C D E F G H I J L M N O P Q R S T U V W Y Z

Term Definition
A  
Accident Incurred Location See Accident location.
Accident Location Geographic location of a loss or accident.
Account Conditions The conditions, represented as text, under which a company should make the report available, such as a cedent (or his representative) to the reinsurer.
Account Designation In a life insurance product or annuity, identification of the person or entity who is expected to control the contract or account within the contract. Some examples of account designations include an estate, an owner, a trust, a named nominee, etc.
Accumulation Interest Rate Accumulation rates established by insurance companies that are to be applied to the accumulated value of asset based insurance/annuity products.
Accumulation Period The time frame during which premium payments are made to an insurance company for a variable product.
Accumulation Unit Value Monetary worth of each accumulation unit at the end of each valuation period for a variable product.
Accumulation Units Measure of a contract holder's share in a variable product subaccount prior to date of payout.
Accumulation Value The main asset balance in asset-based insurance/annuity contracts. It represents premiums paid less charges paid and adjusted for investment performance or interest crediting.
Activities Of Daily Living The physical capabilities that an individual can perform on their own for on-going living. Examples include: bathing, continence, dressing, eating and intellectual function.
Actual Cash Value The cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year -old living room sofa will not be replaced at current full value because of a decade of depreciation.
Actual Loss Sustained The monetary value that constitutes the actual total amount of the loss.
Actual Remuneration The monetary value that constitutes the actual payroll of this rating class for the rating period (e.g. for the past 12 months). See definition for Remuneration.
Additional Commission Not Profit Related Commission to be paid to the cedent in addition to a flat percentage or a sliding scale commission not dependent on results.
Additional Covered Area A geographic area to which coverage may be extended beyond the original geographical limits of the contract.
Additional Insured An individual or entity that is not automatically included as an insured under the contract of another (insured) person, but for whom the named insured's contract provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insured's impetus for providing additional insured status to others may be a desire to protect the other person or organization because of a close relationship with that person or organization (e.g., employees or members of an insured club), or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).
Additional Named Insured An individual or entity, other than the first named insured, identified as an insured in the contract declarations or an addendum to the contract declarations Explanation: It can be all the Named Insured on the declarations page other than the First Named Insured. It could also apply as you endorse another person/org onto the declarations page. Or sometimes, it can apply when you acquire a new operation or organization. The term additional named insured has not acquired a uniformly agreed-upon meaning within the insurance industry, and use of the term in the two different senses defined above often produces confusion in requests for additional insured status between contracting parties.
Additional Outstanding Claim Information For London Market Claims processing, the explanation of an outstanding claim amount to say if Fees, Recoveries, Salvage or Subrogation amounts are expected.
Additional Premium The premium due on a contract, in addition to the initial premium, as a result of increased coverage, increased rates, retrospective rate calculations, endorsements, premium audit, etc.
Additional Related Claim The indication of whether or not additional types of losses (Liability, Property, Automobile) are being reported with this same accident, incident, loss, occurrence, injury or illness.
Additional Warranty Period A measure of the period of warranty cover allowed in addition to the specific contract period, expressed as a number of time periods (e.g. relevant to placements where the original risk is a construction project.)
Adjustable Premium Contract A contract which contains a provision that the premium due shall be based on a calculation during or at the end of the contract period. This may involve an adjustment in a Deposit Premium (advance premium or provisional premium).
Adjustment Index A modification made to a monetary value, by a product of some type of mathematical formula. There are a number of different types of adjustment indices; one example is in a life insurance contract to account for the risk of the insured living one more year.
Adjustment Premium Premium payable by the contractholder or the insurer typically in response to a change in the underlying risk, not a result of an endorsement.
Advanced Interest Calculation Rule Loan calculations where the loan interest for a future date is already included in the loan principle amount. With insurance contracts, the future interest paid-to-date is typically the contract anniversary. If the contract anniversary is soon, perhaps within 30 days, the interest paid-to-date will be set to the following contract anniversary as specified in the insurance contract.
Advised To Bureau Date Date on which the current claim advice is first notified to the London Market bureau.
Affiliated Organization Associated insurers that are under common stock ownership or interlocking directorates.
Affinity Group A group of persons or organizations with a common interest or purpose, either constituted as a legal entity or not.
Agent See Producer. A person or an organization, who solicits, negotiates or effects contracts of insurance on behalf of an insurer. The agent's right to exercise various functions, authority, and obligations, as well as the obligations of the insurer to the agent, are subject to the terms of the agency contract with the insurer, to statutory law, and to common law.
Aggregate Deductible 1. Coverage for (re) insureds that is effective only when losses exceed a predetermined amount (in the form of self-insurance or a deductible) during an annual period. After this aggregate amount is reached, the insurer is liable for any further claims. 2. An additional deductible for claims that would otherwise be recoverable under a commercial insurance or excess of loss reinsurance contract covering losses arising from an accident or event and which is retained by the (re)insured before claims become payable by (re)insurers.
Aggregate Limit The maximum coverage under a liability policy during a specified period of time, usually one year or the policy period, regardless of the number of separate losses that may occur.
Aggregate Reserve The sum of the aggregate expense reserve and the aggregate loss reserve.
Allocated Loss Adjustment Expense The expenses incurred that are specifically assignable to a claim. For statutory and actuarial computations, the line items included may vary.
Allocation Option The rules specifying how a variable annuity owner wants assets distributed in the asset allocation feature of a variable annuity product. For example: distribute new money to funds, use standing allocations, distribute equally over funds.
Alternate Treatment Plan Provision for treatment of a patient other than hospitalization. An example would be acupuncture vs. surgery.
Amendment Request Premium Payer The person or organization who is the payer of the amendment premium due for an amendment request.
Amendment Request Refund Payee The person or organization who is the receiver of an amendment premium that is refunded as a result of an amendment request that results in a premium decrease.
Anchor Basis The anchor (primary) basis of this illustration request. An example would be the projected values of a life insurance contract for the applicant, over a specified period of time, based upon contributions and other values such as interest rates, etc.
Annualized Commission Basis Indicates whether the commission basis is calculated annually.
Annuitant A person who is entitled to receive benefits from an annuity.
Annuitization A process whereby payments are made at time intervals for a lifetime and/or for a specific period of time.
Annuity A contract that provides for periodic payments starting after a stated period or contingent upon an event, and continuing for a fixed period and/or for the remaining life of the annuitant.
Annuity - Immediate An annuity, usually purchased with a single premium, that commences benefit payments within a specified interval. Usually payments begin within one year of the initial premium.
Annuity - Joint and Survivor An annuity contract that provides periodic payments during the lifetime of two individuals.
Annuity - Reversionary Agreement under which an annuitant receives a predetermined monthly income benefit for life, upon the death of the insured.
Annuity Deferred An annuity in which the benefit payments are scheduled to begin at some stated point in the future.
Annuity Fixed An annuity for which the insurer assumes the contract's investment risk, and guarantees to pay a specified rate of interest on the accumulated value for a specified period of time.
Annuity Payout Period when the accumulated assets are returned to the annuitant.
Annuity Payout Levelization In a variable annuity payout, the process of adjusting the modal payments within a contract year to be the same amount.
Annuity Variable An annuity under which the amount of the accumulated value and the amount of the periodic annuity benefit payments fluctuate in accordance with the performance of a specified pool of investments.
Applicant The person or organization applying for a particular financial service. The person or organization has not yet been accepted by the financial services provider for the requested service; No financial services agreement has been issued yet.
Applicant Liability A legally enforceable obligation for which the applicant is responsible. Examples include: applicant has a waiver of subrogation; applicant is held harmless, or is a named insured.
Application Information supplied by a prospective insured that includes information used by an insurance company to decide whether or not to insure the risk and/or the terms of the insurance offered.
Applied Charge Sum of all expenses/fees applied to a claim.
Appraisal A report made by a qualified person setting forth an opinion or estimate of value. The term also refers to the process by which this estimate is obtained.
Appraisal Firm An organization that performs valuations of property or valuations of property damage.
Appraiser The person or organization that performs valuations of property or valuations of property damage.
Approver An individual who has signature authority to accept and commit to the terms and conditions of an insurance document or to authorize an action to be performed.
Arbiter One chosen or appointed to judge or decide a dispute; an arbitrator.
Arbitration The hearing and determination of a dispute by an impartial referee agreed to by both parties.
Arrangement Conflict See Feature Conflict
Asset Entity with exchange or commercial value, such as the book value of property owned by an insurance company as listed on its balance sheet.
Asset Allocation Long term investment plan strategy offered by some variable annuities, under which an investor's investable assets are divided into pre-determined proportions among several different types of securities, each offering a different investment objective.
Asset Allocation Model A pre-selected set of subaccounts and allocation percentages that are used as an investment feature within an investment product. They are structured to provide a certain investment objective such as preservation of capital, income generation, balanced growth, etc.
Assignee The person or organization to whom rights to a benefit are assigned. A life insurance contract is assigned by the Collateral Borrower (assignor) to the collateral creditor (assignee) as a security for a loan.
Assignment Of Benefits Transfer of rights under an insurance contract to another person or business, for purposes such as securing a loan, etc.
Assignor The person or organization who transfers rights under an insurance or mortgage contract.
Assumed Investment Return Percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant.
Audit Method The technique to be used while conducting the audit. Examples include: physical, telephone, mail, etc.
Audit Render The destination of an audit report.
Audit Source Identifies the origin of the audit information. An example: Certified Public Accountant.
Audit Transaction This identifies the type of audit performed. Examples include: Revised Interim, Final, Revised Final, Interim.
Auditor An individual or organization which performs either operational or financial reviews (audits) of various types of operational or financial information.
Authorization Appeal The process that allows a fair reconsideration of an adverse Medical Necessity decision.
Authorized Representative A person empowered by the claimant to stand or act in their place, such as an attorney.
Automatic Premium Loan Provision A provision in a life insurance contract, where if the premium due has not been paid at the end of the grace period, a contract loan will automatically be made from the contract's cash value to pay the premium.
B  
Back End Load A fee charged at the time of sale, transfer, disposition of, or withdrawal of funds of an insurance product or investment.
Back Premium In life insurance, the portion of a reinstatement premium for the break in coverage period.
Backdating A procedure for making the effective date of a contract or endorsement earlier than the transaction date.
Bailout Provision In an annuity, a clause that enables the contract owner to withdraw his or her money without surrender penalties; if the annual interest rate is lowered below a certain pre-determined minimum.
Bank Account Transaction Payee Identifies the person or organization that is to receive the money paid through the financial transaction.
Bank/Account Issuer An organization which conducts financial transactions, particularly the trading of legal tenders and securities. Financial institution providing a facility for individuals or organizations to deposit and withdraw funds.
Base Flood Elevation The measurement above sea level (e.g. feet or meters). Base Flood Elevation is typically used as a risk factor in Homeowners and Commercial Property.
Base Insurance Product An Insurance product that constitutes the base product of the insurance agreement. Other insurance products might be optionally added to the agreement. An example of this would be Variable Life or General Liability.
Basis Point Unit used to measure movement in interest rates. It is equivilant to one one-hundreth of 1%. One hundred basis points equals 1%.
Benefactor A person or organization who confers a benefit on another person or organization.
Beneficiary A person or an organization designated to receive the benefits provided for in an insurance contract (or by specific coverage in the contract) if the risk covered actually occurs.
Beneficiary Designation The identification of the recipient of a death benefit, typically on a life insurance or annuity contract.
Benefit Financial benefit granted to a party under the terms and conditions of an insurance contract or financial services contract. Goods or services are another form of benefit. Their cost may be covered by the financial benefit granted under an insurance agreement. For example, an accident insurance contract may provide that certain sums be paid for death, loss of limbs or sight, or loss of time. These specified amounts are the benefits provided by the contract.
Benefit Allowance Benefit by which the insurer pays a lump sum or payment at a given frequency for a defined allowance period. This benefit is generally included in the event that the risk materializes (pensions, annuities, disability, unemployment, etc.). Examples include: the waiver of premium allowance, which is an exemption of premium, and the repayment on loan expiry, by which the insurer repays a part of the amount borrowed by the insured.
Benefit Distribution A term used in the designation of beneficiaries when there is more than one beneficiary and one or more of the beneficiaries may have pre-deceased the insured. The distribution is typically Per Capita or Per Stirpes.
Benefit Formula Formula or rule for determining the monetary amount payable under each contingency covered by an insurance contract. Example: In group insurance, the formula frequently takes into account salary and position or years of employment at the time the benefit is paid.
Benefit Period The length of time money will be payable for the defined benefit, under the provisions of an insurance contract.
Benefit Plan Advisory Committee An organization that advises on employee benefit plans as to amounts of benefit to be paid, how benefits are to be financed, and how employees are to qualify for benefits. An advisory committee only suggests; it does not have line authority.
Benefit Proration Modification of contract benefits due to circumstances addressed by the contract. For example, the existence of other insurance covering the same contingency. Proration of benefits may lead to coordination of benefits.
Benefit Rate A factor or percent used within a benefit formula to determine the monetary benefit. For example, within the U.S. Department of Labor Statistics rate for Compensation & Working Conditions: Employer Cost for Employee Compensation might be used to determine lost wages to be paid as a benefit.
Benefit Reduction A decrease in contract benefits or payments due to the death of a covered person.
Benefit Request A document prepared by an insured party requesting the payment of a benefit, which sometimes accompanies a claim notification.
Benefit Schedule A pre-defined table which indicates benefits to be paid under the contract. Types of benefit schedules include: flat amount, coverage amount is a multiple of salary, consumer price index, etc.
Benefit Status The condition of a benefit. Examples include: Benefits have been exhausted, COBRA, etc.
Benefit Structure Indicates whether the benefit amount decreases or remains level over time. For example: decreasing (mortgage insurance the benefit decreases as the mortgage amount decreases) or level (fixed amount/face-value over a period of time).
Benefit Trigger Descriptions of specific conditions or situations that start the payment of benefits. For example, under a long-term care insurance contract, benefits may be paid when the insured cannot perform two or more activities of daily living (ADL).
Benefit Type A classification used to define the benefit associated with an insurance coverage. Examples include: changes as in original contract, changes in ration to original contract, level death benefit, etc.
Betterments See Improvements
Billing Account Owner This is the name of the person or entity that receives and is responsible for paying the invoice.
Billing Address Postal address for which an invoice or billing notice should be sent.
Billing Remittance Address Postal address to which payments should be returned.
Binder A legal agreement to provide temporary evidence of insurance until a contract can be issued.
Binding Authority A contract under which a carrier (typically an insurer) delegates their authority to another party to enter into contracts on their behalf. Typically, the intermediary (for example a U.S. Managing Agent) known as the coverholder contracts with one or more carriers or clients and is authorized to act as their intermediary and enter into contracts on behalf of the carriers, subject to the terms and conditions specified in the binding authority.
Blanket Additional Insured The person or organizations that are covered by an insurance contract in addition to the main insured of the contract. The person or organizations are not named but included automatically based on their relationship to the main insured. A blanket additional insured allows entities that are required by regulation to be included as additional insureds to be automatically covered without being named explicitly.
Blanket Basis An indication in a single Property Insurance contract that coverage applies to either multiple types of property at a single location or one or more types of property at multiple locations
Blanket Construction Activity Specifies a type of construction activity that is performed by the named insured or for which the named insured is legally obligated and as such has a legal liability. The blanket construction activity is insurable under a construction liability insurance. The blanket coverage will cover all construction activities of the stated type within the coverage period, independent of the number of activity occurrences or the location, provided the location falls within the covered area of the contract.
Block Claim A grouping of small claims on a single contract processed as a single claim because individually they are not recoverable.
Bonus Malus System (BMS) In Insurance, a system that adjusts the premium paid by a customer according to their individual claim history.
Bonus Rate Extra percent of interest credited to an insurance investment, during a specified period of time, for a specified purpose. For example, some annuities credit a 1st year bonus, paid only in the first year, above the normal accumulation interest rate, in order to attract new business.
Book Of Business A portfolio of contracts held by a certain party, either intermediary or insurer. The portfolio can refer to all policies held by the party or to the subset of those policies which are within a certain line of business.
Bordereau A list of details underlying an event or transaction, especially one containing an ennumeration of risk, premium, or claims details. For example: a premium bordereau, claims bordereau, etc.
Branch Office Local business unit of an insurance company, agency, broker or third-party administrator, etc. that markets and services its products and lines of service.
Broker A person or an organization, who may or may not be directly employed by an insurance company that sells and services insurance policies for more than one insurance company. An insurance intermediary usually has the following characteristics: acts on behalf of the client rather than the insurance company; professional, full time; regulated by statute. (See Agent, Producer).
Brokerage Amount paid to a broker for reinsurance placement and other services.
Brokerage Basis A formula used to calculate the amount paid to a broker, applied to different levels of premium. For example, gross premium or net premium.
Brokerage Commission Commission paid to a broker for selling an insurance company's products. This fee may or may not include an expense allowance depending on the amount of business the broker places with the company.
Brokerage Market Brokerage market is made up producers (intermediaries) who typically write for a variety of insurance carriers. This term is used when marketing to brokers.
Brokerage Percentage The percentage of the premium (calculation) that will be paid as brokerage amount (fee).
Building Code Effectiveness Grade A measure that distinguish between communities with effective building code enforcement and those with weak enforcement.
Building Construction Quality Description of the condition of a building's construction in terms of: the grade of material, workmanship, complexity of construction.
Building Design Style The architecture design style of the building. For example: warehouse, cathedral, colonial, etc.
Building Diagram Number The building diagram number that is on the NFIP (National Flood Insurance Program) Elevation certificate.
Building Occupancy A classification specifying how a structure is inhabited. Examples would be: vacant, occupied, tenant, etc.
Building Occupancy Purpose The predominant purpose for which a building is used including: residential, retail, commercial, industrial.
Building Rating Classification A grouping of building risks that have similar exposures or experiences used for rating purposes.
Building Total Insurable Replacement Cost The monetary value that constitutes the total insurable replacement cost of the building.
Building Wind Classification A rating classification which specifies the wind resistance class for this building. Example: wind resistive, category 4 hurricane.
Built-Ins Built-Ins are an integral and permanent part of the structure.
Bulk Claim Payment The total current payment reported covering multiple claim advices separately reported in a supporting document.
Bureau An organization providing services to the insurance industry. Services may be: contract signing, premium and claims accounting, settlement of balances, etc.
Burning Cost The ratio of actual past reinsured losses to a ceding company's subject matter premium (written or earned) for the same period.
Burning Ratio The ratio of actual losses to the total amount of insurance in effect; the ratio of losses that can reasonably be expected to the amount of insurance in effect.
Business Active Indicator An indication of whether or not this business continues operations. (i.e. is still a viable entity.)
Business Classification Represents a category description given to a business while also representing the business activity performed.
Business Domestic Location A country in which a contract is issued for a business.
Business Foreign Locations The country or countries, other than the one in which the contract is issued, for a business.
Business Legal Entity See Legal Entity.
Business Provider A person or organization that provides the business to which a contract has been taken out. Typically, the business provider may not always be the distribution channel, usually in charge of selling that product or usually in charge of that customer. The business provider may also not be necessarily allowed to sell that product to that customer (e.g. for restricted marketing reasons, such as geographical area, or line of business). From a commissioning perspective, the business provider may get a part of the sales commission.
Business Start Date The date the current owners purchased or formed the business.
Business Total Capital The monetary value of money, property, or stock employed in trade, manufactures, etc.; the sum invested or lent, as distinguished from the income or interest.
Business Travel For risk evaluation, an indication whether or not the insured travels for business.
Business Type See Business Classification.
Business Type Description Operations A text description specifying a type of trade or service, performed by a business at the functional level, applicable to the insurance contract.
Business Volume Forecast Scenario An estimate of the business volume likely to be generated from an individual as the result of a targeted marketing campaign.
Buyer A person or organization that is the buyer of goods or services that are provided for in a provider agreement.
C  
Call Center An insurance company unit that markets and services insurance business using the telephone as the primary means of communication.
Campaign See Marketing Campaign.
Campaign Cell The geographical area that a specific campaign will cover.
Cancellable Contract An individual health insurance contract that gives the insurer the right to terminate the contract at any time for any reason, simply by notifying the contract owner that the contract is cancelled and by refunding any advance premium paid for the contract.
Cancellation The termination of an insurance contract or bond, before its expiration, by either the insured or the insurer.
Cancellation Evidence Obtained An indicator that a legal notice for termination of all insurance coverage has been sent to a policyholder.
Cancellation Type The rule to be followed in calculating the earned premium. For example: flat, fully earned, pro-rate or short rate.
Capability Level Identifies the level of physical assistance needed to perform certain activities of daily living but not limited to those capabilities. Examples include: hands-on assistance, no assistance required.
Capitation A method of payment to the number of members in a health benefit plan that the provider contracts to treat. The plan sponsor agrees to pay a uniform periodic fee for each member.
Captive Agent A person who represents only one insurance company and is typically restricted by agreement from submitting business to any other company, unless it is first rejected by the agent?s captive company.
Captive Producer Market Captive market is one where the agents write, generally exclusively, for one carrier. Producers are typically salaried employees and receive their offices, administrative staff, and support directly from the carrier.
Carrier The insurance company that actually underwrites and issues the insurance contract.
Carrier Appointment The act by an insurance company that authorizes an agent to act on its behalf.
Cash Call Provision whereby large losses can be collected from reinsurers, rather than paid by the insurer on an account or from funds withheld or a loss escrow account.
Cash Surrender Value (Gross) Money the contract owner is entitled to receive from the insurance company upon surrendering a life insurance contract with cash value.
Cash Surrender Value (Net) Money the contract owner is entitled to receive from the insurance company upon surrendering a life insurance contract with cash value, net of the surrender charges and loans.
Cash Value Maturity The specific amount received by an insured at the end of an endowment period, or by the owner of an ordinary life contract who lives to a certain age.
Catastrophe A severe loss characterized by extreme force, sizable financial loss, and/or multiple injuries. Often abbreviated to "CAT." Often assigned a code to identify an occurrence of a catastrophe.
Catastrophe Bond A derivative debt investment vehicle issued by insurers and reinsurers designed to raise investor capital to cover catastrophic losses.
Catastrophe Equity Put An options contract that allows an insurer to exercise an option in the event that losses (the index value) exceed a predetermined level, thus requiring additional equity capital.
Catastrophe Plan A prepared strategy detailing how a particular organization will respond to a disaster.
Catastrophe Reinsurance A form of reinsurance that indemnifies the ceding company for the accumulation of losses in excess of a stipulated sum, arising from a single catastrophic event or series of events.
Catastrophe Reserves Reserves on the balance sheet of an insurance or reinsurance company. These are held in reserve for unexpected large losses resulting from catastrophic events, e.g. hurricanes, floods, etc. They are held in addition to: 1: reserves for known losses 2: incurred but not reported losses (IBNR).
Cause of Loss An event that brings about or triggers loss or damage. Can be direct (the action immediately precedes the loss) or indirect (part of an uninterrupted chain of events leading to the loss). Can be represented by code lists including industry code lists such as the Workers' Compensation Insurance Organization (WCIO), Insurance Services Office (ISO), Bureau of Labor Statistics.
Cede To transfer insurance risk from an insurer (the ceding insurer, or cedent) to another insurer (the reinsurer).
Cedent Insurer in the role of transferring some of the risks it holds in policies it insures to another insurance company.
Cedent Deduction For Banking Charges Amount Amount charged by cedent to reinsurer in respect of banking charges paid.
Cedent Share The amount owed to / by the cedent (the reinsured) under all their reinsurance contracts covering this risk.
Ceding Commission A cedent's acquisition costs and overhead expenses (e.g., taxes). May also contain a profit factor for the reinsured.
Certificate Of Authority Docket Number The registration number provided by a state or federal governing authority, such as the state public utility commission, to a common carrier providing authorization to transport goods within a state.
Certificate Recipient Cedent The cedent company to which the reinsurance certificate should be or is being issued.
Certified Technical Personnel Personnel having a technical certification that are employed by the company. For example: certified mechanic, CPCU, CPA, CAS, FLMI.
Certifying Organization Organization you have received certification with in the context of an examination.
Cession 1: The unit of insurance passed (or ceded) to a prorata reinsurer by a premary company or cedent which issued a policy to the original insured. A cession may accordingly be the whol or a portion of single risks, defined policies, or defined divisions of business, all as agreed in the reinsurance contract. 2: The act of ceding where such act is necessary to invoke the pro rata reinsurance protection.
Channel Role A person or an organization that has an agreement with the financial services company to sell or service the latter's products and, as such, to act on behalf of the financial services company (e.g. salaried network, broker, financial adviser, bank).
Chargeback The percentage of the original commission that is recouped.
Claim A demand by an individual or organization to obtain money or enforcement of a right or benefit.
Claim Adjuster Company or person who handles a claim for an insurance company or syndicate. An adjuster's actions include: collating details, validating cover, resolving disputes and agreeing where appropriate to settle claims at a fair price. The adjuster has got authority limits set either by contracts, by seniority or by class of business. There are two types of claim adjuster: Employee of the insurance company; External parties authorized by the insurer to adjust claims on its behalf.
Claim Adjustment Contractor External person or organization contracted and authorized by the organization to adjust claims on its behalf. See also Claims Adjuster; however, a Claim Adjustment Contractor is an external party or organization.
Claim Advice The information that makes up the details of a claim to a (Re)Insurer. It may or may not contain financial information in respect to the (Re)Insurer's outstanding reserve and/or paid amount totals.
Claim Agent One who has been authorized by the insurance company to pay a loss(es) incurred by the insured.
Claim Amount - Gross Gross claim amount equals the Current amount paid plus the Outstanding amount.
Claim Amount - Net Net claim amount equals the Gross claim amount minus the Total recovery amount.
Claim Benefit Identifies a monetary amount, or a series of monetary amounts, that are offered as the benefit offered as indemnification for a claim.
Claim Broker The intermediary who presents a claim on behalf of the claimant and who acts on behalf of the claimant in the settlement of a claim.
Claim Case Reserve The reserve for a specific claim.
Claim Closing Date Date on which the claim was designated as settled by the insurance company.
Claim Contract Annual Aggregate Deductible - 100 P The annual retention of the cedent for claims which would otherwise be recoverable under the contract. An additional retention to the each loss retention. This may vary depending on a percentage of premiums/losses so this amount may have an as of date.
Claim Contract Limit - 100 Percent The limit of liability under the reinsurance contract applicable to this claim (note: may vary from the limit stated in the contract following adjustment due to the effect of clauses such as Interlocking clause, etc).
Claim Contract Limit Expense Status - 100 Percent The status of the contract limit expense payments in the contract. This may include information from Additional Amount Information (i.e. expenses pro rated, expenses included, expenses excluded).
Claim Contract Limit Per Occurrence - 100 Percent Limit of liability per occurrence on the reinsurance contract
Claim Contract Limit Per Occurrence Expense Status The status of the contract limit per occurrence expense payments in the contract. This may include information from Additional Amount Information (i.e. expenses pro rated, expenses included, expenses excluded).
Claim Contract Retention Indicates the status of claim contract retention expense. This may include information from Additional Amount Information (i.e. expenses pro rated, expenses included, expenses excluded).
Claim Cost See Claim Amount.
Claim Covered Amount Agreed amount that will be paid to the beneficiary or claimant. In some situations, the claim can be equivalent to the Outstanding Reserve Amount.
Claim Declarer A person or organization, who declares a claim in the context of a claim declaration. Like an applicant for insurance who declares the historical claims in which he is the claimee. Or an insurance company that declares a claim to a reinsurer in the context of reinsurance.
Claim Entry Reference Unique common reference assigned by the sender of multiple Claim Advices in respect of a claim. Identified as a Transaction Reference in London Market Processing. For Example, single reference to "bundle together" all advices sent to multiple (Re)Insurers involved in a contract in respect of multi-currency claim.
Claim Estimate Estimate Details for a claim. These include financial estimates and duration (e.g. lost working time, time until recovery, percent of full recovery). See also Claim Original Estimate.
Claim Examiner See Claim Adjuster.
Claim Expense The expense of adjusting a claim such as investigation and attorney fees. It does not include the cost of the claim itself.
Claim File Any document or collection of documents related to a claim.
Claim File Document Holder The person or organization who is in possession of a claim file at a given point in time.
Claim Fraud The deception or artifice used to cheat or intentionally mislead during the claims process.
Claim Handler See Claims Administrator.
Claim Handling Center Department that manages claims.
Claim Handling Team Team that manages claims.
Claim History Declaration The declaration made by a party applying for insurance about the claims he/she made in the past.
Claim Legal Expert Person or organization that provides legal advice in the handling of a claim.
Claim Notification A notification from one or more parties to another of a claim.
Claim Original Contract Information relating to a claim that is subject to a reinsurance recovery. For example, a reinsured pays out losses under a contract insuring the contractholder and is able to make a recovery under any type of reinsurance contract.
Claim Outstanding Amount Amount which the insurance company still expects to pay out in respect of the claim or claim item.
Claim Outstanding Reinsurance Recovery Amount Amount which the insurance company still expects to obtain in respect of the claim or claim item under any type of reinsurance.
Claim Responsible Party The person or organization that is responsible for the loss or accident that gave rise to a claim.
Claim Settlement An agreement between a claimant or beneficiary to an insurance policy and the insurance company as to the amount and method of a claim or benefit payment.
Claim Third Party A person or organization, other than insured or insurer who has incurred a loss and is entitled to receive a benefit.
Claimant The person or organization seeking financial restitution under the contract.
Claimed Amount This is the sum of all claims paid that would apply to the associated limit for this Coverage, Rider, or Option. It is not related to a single specific claim but is a total amount representing the total of all claims.
Claimee The person or organization receiving an insurance claim.
Claims Account Manager Position in the insurer's organization responsible for settling insurance claims within a defined business area. Claim adjusters report to the claims account manager.
Claims Administrator A person or an organization, designated by the insurance company, to manage the administration and handling of a claim.
Claims Department Part of the organization responsible for the processing of claims.
Claims Leader Claims leader for co-insurance contract.
Claims Made Basis A form of insurance that pays claims presented to the insurer during the term of the contract or within a specific term after its expiration.
Claims Reserves Sums placed by the insurer in reserve to meet future commitments to the insured. This includes claims reserves: an estimated amount of money that is reserved in a fund and used to pay benefits for unsettled claims or known future claims.
Claims Settling Agent See Claim Agent.
Claims Unit Part of the claims department dedicated to specific tasks for a subset of claims.
Class Of Business A means of grouping risks together based on characteristics such as property risks, homeowners risks, and casualty risks. They are grouped together for reporting or accounting purposes.
Class Rate A rate applied to risk with similar characteristics or to a specified class of risk.
Class Rated - Property A method of determining property insurance premium for properties occupied by businesses that fall into certain "classes", provided that they meet certain eligibility criteria.
Clause A section of a contract, or of an endorsement attached to it, dealing with a particular subject in the contract. For example, a clause might describe various coverages, exclusions, duties of the insured, conditions that suspend coverage, etc.
Client See Customer.
Client Category Actual Revenue Share?? Share of the budgeted revenue realized thru contracts for the client category. This is typically used in insurance contracts covering construction firms.
Client Type A classification assigned to client. Examples include: lead, prospect, qualified, etc.
Client Type - Prospect A type of client that is interested in services offered by the insurance service enterprise.
Client Type - Suspect A type of client that was chosen for a marketing campaign who has not shown any interest in the solicitations made to them.
Closed Claim A claim which has been settled and no further actions are required in the handling of the claim.
Co-Defendant Additional person or organization who is a co-defendant in a legal action relating to a claim.
Cognitive Impairment A deficiency in the ability to think, perceive, reason or remember resulting in the loss of ability to take care of one's daily living needs.
Coinsurer A person or organization that acts as insurer in a coinsurance agreement. The person or organization may be the insured. This person or organization also shares in the losses under an insurance contract (policies).
Collateral Borrower See Assignor.
Collateral Creditor See Assignee.
Commercial Vehicle Filing The documents provided to a governing authority as required to operate inter- and/or intra- state commerce or transportation of goods within that authority's jurisdiction.
Commission A payment for the performance of specific duties, generally a percentage of another sum such as the selling price of the contract. e.g. A percentage of the premium paid to a producer by the insurer or to a reinsured by a reinsurer. Insurance agents and brokers are usually compensated by being allowed to retain a certain percentage of the premiums they produce
Commission Basis Amount In Life and Annuities, gross amount of related transaction or assets or premiums that is the base on which the commission calculation was done.
Commission Bonus Financial compensation in excess of any standard compensation.
Commission Calculation Describes how a commission type is calculated.
Commission Calculation Basis The basis on which the commission is calculated, e.g. on Gross premium less premium reserve and tax.
Commission Calculation Period End Date And Time End date and time of period upon which the commission is based.
Commission Calculation Period Start Date And Time Start date and time of period upon which the commission calculation is based.
Commission Collection Method The way in which the producer collects commission. For example: paid by the financial services company (Direct) or retained by the producer (advanced commissions).
Commission Earned Date The date a commission is earned by a producer.
Commission Option A method which defines how a commission is managed by the insurance carrier on behalf of the producer.
Commission Payment Amount paid to a producer for compensation for acquiring or retaining insurance business.
Commission Percentage The percentage applied to a commission basis.
Commission Taxable Event An event or change to a commission in which a tax factor should be applied.
Commissionable Event An activity (event) that triggers the earning or creation of a premium.
Commissionable Event Date The date on which the commissionable event occurs.
Commissionable Premium An insurance premium amount on which a fee will be paid to a producer.
Communication Initiator Person or organization who is the source of the communication.
Communication Medium The method of communicating with prospects. An example could be: face-to-face, phone, direct mail, etc.
Communication Profile A communication profile describes the preferred, or actual, adaptation of the characteristics of communication to the needs of an individual, such as visual preferences, hearing preferences, cognitive preferences and mobility preferences.
Community Rate Class The classification assigned when community rating is used to determine a premium.
Community Rating This term is typically used in health insurance. A means of determining subscribers' fees by averaging the charge of the insurance among all insureds according medical and hospital costs in the community. No differentiation is made among the insured's in terms of individual risks assumed by the insured.
Commutation 1: In Life Insurance, the exchange of a series of installment payments, as the result of an installment settlement, for a lump sum distribution. 2: In reinsurance, refers to the cancellation or dissolution of a reinsurance contract in which there are profits or losses to be allocated. For example, estimation, payment, and complete discharge of all future obligations for reinsurance losses incurred regardless of the continuing nature of certain losses. For example, such as unlimited medical and lifetime benefits for Workers Compensation; enabling the ceding company to take back for its own retention the reinsurer's share of unpaid liability.
Company Headquarters Address? ? Postal address of the headquarters of the company.
Company Total Annual Gross Revenue Total gross revenue of the company for a fiscal year
Compensable Injury An accidental injury or occupational disease that requires compensation.
Competition Detail Details regarding one or more competitors products, services and organization.
Competitive Capability Analysis The analysis of factors designed to answer the question, "how well is a firm doing compared to its competitors?" The analysis goes well beyond sales and profit figures in assessing the firm's ratings on such factors as price, product, technical capabilities, quality, customer service, delivery, and other important factors compared to each of the major competitors.
Competitive Pricing Analysis The analysis factors applied to researching product pricing versus competitors' pricing in the marketplace.
Compound Financial Instrument A financial instrument, which has both a liability and an equity element. In this case, accounting standards may require that the component parts be split, with each part accounted for and presented separately according to its substance. To illustrate, a convertible bond contains two components.
Conditionally Renewable Contract An individual health insurance contract that gives the insurer a limited right to refuse to renew the contract at the end of a premium payment period for reasons specified in the contract. For example, a disability income contract might specify the continued employment of the insured, and a long-term care insurance contract might specify a maximum age limit.
Confining Sickness An illness that confines the insured to his or her home, a hospital or sanitarium.
Consequence Of Loss An outcome that logically or naturally follows from an action or condition that triggers a claim.
Construction Project Managers -Total Total number of construction project managers employed by the company.
Contact Address Preference The location or address by which a person or organization has indicated they prefer to be contacted.
Contact Point The various means (or contact points) through which this communication may be made with a person or organization. For example, the person's home address, work address and mobile telephone number.
Contact Preference Contact describes a person or organization's first choice (preference) regarding the purpose, manner and preferred contact point of the insurance company or producer communication with them.
Contact Strategy An approach defining the methods and techniques that have been identified as effective for initiating and managing communications with a contact. Communications can be used throughout the lifecycle including marketing, billing, etc. For example, an organization may elect not to use email as a communication medium for senior citizens or as a method for delivering past due notices.
Contingency Reserve A cash amount set aside to fund a contingent liability.
Contingent Asset An asset in which the possibility of ownership depends solely upon future events uncontrollable by the company, such as life insurance benefits to the beneficiaries.
Contingent Commission A commission that is paid based upon profitability or some other conditional event of the business written by producer or reinsurer. Examples of these events include: no claims, profitability clause, increase in contract counts, etc.
Contingent Commission Amount The total payment associated with the contingent commission.
Contingent Commission Basis The calculation on which contingent commission is determined.
Contingent Commission Calculation Frequency Indicates the frequency with which the contingent commission is to be calculated.
Contingent Commission Carryforward Coded indication of how deficits in each contract term will be carried forward when calculating contingent commission payable.
Contingent Commission Percentage Percentage of the amount based upon the conditional event (profit, no claims, contract counts, etc.) under a contract which will be payable as contingent commission.
Contingent Liability Liabilities that depend on uncertain events. All insurance is a contingent liability of the insurer because its indemnity obligations are triggered by uncertan events specified in the insurance contract.
Contract A Legal agreement between an insurer and the insured, describing the contract terms, coverages, premiums, deductibles, limits, promise to pay claims, etc. Examples include: Health Insurance Contract, Life Insurance Contract, Property and Casualty Contract, Annuity Contract, Reinsurance Contract, Retrocession Contract.
Contract Administrator A person or an organization designated by the insured to manage a contract or a portfolio of policies. The designation of an administrator can be specified for a particular risk, for the administration of premiums, claims or both.
Contract Aggregate Limit The maximum amount to be paid in respect of all claims of some type arising within a specified period of insurance. This typically is used when there is a reinstatement of a contract.
Contract Asset Arrangement Periodic fund transfers between financial holdings or within a single holding. Some examples include: Asset Rebalancing, Dollar Cost Averaging, Interest Sweep, Premium Allocation, etc.
Contract Asset Arrangement Threshold A maximum amount that when exceeded causes a rebalancing of funds to occur.
Contract Fee Amount added to the basic premium to reflect the cost of issuing a contract, establishing the required records, sending premium notices, and other related expenses. Examples include: lapse fee, withdrawal fee, expense charge, face increase fee, surrender charges, etc.
Contract Holder The person or organization with rightful possession of an insurance contract, usually the contractholder.
Contract Limit And Retention Basis Coded identification of the basis of the contract limits and retentions applicable to the claim being reported.
Contract Loan In life Insurance, when money is lent against the cash value of a life insurance contract. Loans can either be preferred, where the charged interest rate equals the credited interest rate, or regular, where they are subject to regular interest rates. The interest is usually pais either in advance, at the beginning of the contract anniversary year, or in arrears, at the end of a contract year.
Contract Loan Capitalized Interest Allocation Rule In Life Insurance, when a contract loan is taken, if the interest is capitalized, this is the rule which specifies how the interest is to be allocated among the subaccounts in the contract.
Contract Profile Grouping of contract attributes used to perform analysis on policies that share the same characteristics. An example would be a life insurance contract with a $500,000 death benefit along with a homeowners contract with dwelling values less than $250,000.
Contract Reinstatement The process by which an insurer puts back into force an insurance contract that has either been terminated for nonpayment of premiums or continued as extended term or reduced paid-up coverage.
Contract Reinstatement Reason The condition that occurred that resulted in a contract being reinstated. Example includes payment received.
Contract Retention The amount which the reinsured's losses must exceed before pauments may be collected on the resurance contract.
Contractholder The person in actual possession of an insurance contract. Often used loosely to refer to the contract owner and/or insured.
Contractholder Company A company owning an insurance contract. A representative of the company signs the insurance contract and makes a commitment to the insurer in the company's name
Contractholder Company Representative Person that legally represents a company in the context of this company being a contractholder of an insurance contract. The representative is authorized to sign documents for the company where it concerns the insurance contract.
Contribution Additional funds deposited into a financial investment, such as an insurance contract, or subaccounts within a contract. Some examples include: Employer match, Voluntary contributions, discretionary contributions, deferral, and custodial.
Conversion of Group A contractual provision that allows a certificate holder to convert group life and health coverage to an individual contract under specific conditions.
Conversion of Term A contractual provision to obtain new permanent life insurance.
Coordination Of Benefits Method used when several contracts cover the same loss, in order to ensure that a person will not get a total benefit greater than the expenses incurred.
Copayment A partial amount paid for a medical service by an insured person.
Corporate Owned Life Insurance (COLI) Life insurance on employees' lives that is owned by the employer corporation to hedge against the financial cost of losing key employees.
Correspondent Broker The maintenance agency or broker of a contract that is responsible for correspondence.
Cost Of Insurance In Life Insurance, the value or cost of the actual net protection, in any month or year.
Co-Surety Venture Amount The monetary amount of the bond or contract that another party is assuming.
Cover Holder Person or organization with authority to bind risks to an original Master Cover contract or Binding Authority.
Coverage The scope of the protection or indemnification provided under a contract of insurance.
Coverage Confirmation The indication whether coverage of this claim has been confirmed.
Coverage Description Text that describes a coverage. The description sometimes includes a list of the perils that are or are not covered.
Coverage Discount See Credit Surcharge.
Coverage Dispute Identifies the type of dispute or litigation occurring in the settlement of the claim. Examples include: excluded driver, excluded coverages, death without a death certificate, suicide, etc.
Coverage Option A condition that extends or restricts a specific coverage. An example: A $500 deductible on comprehensive can have full glass coverage option which removes the deductible if the windshield is broken.
Covered Amount Agreed amount that will be paid to the beneficiary.
Covered Expenses Expenses related to the provision of goods or services to an insured, and covered by the insurance company under the terms of a contract.
Covered Prescription Drug A drug which can be dispensed only by prescription and which has been officially approved and is included in the insurance contract.
Covered Vehicle Symbol For Commercial Lines only: Symbols are placed on the declaration page by each applicable coverage. The indicated coverage will then apply only to those autos defined by the symbol used. There are nine options: 1- Any Auto, 2 - Owned Autos only, 3 - Owned Private Passenger Autos only, 4 - Owned Autos other than Private Passenger Autos only, 5 - Owned Autos subject to No-Fault, 6 - Owned Autos Subject to a Compulsory Uninsured Motorist Law, 7 - Specifically Described Autos, 8 - Hired Autos only, 9 - Nonowned Autos only
Credit Surcharge An adjustment applied to the premium of an insurance contract.
Cresta Zones Aggregated global zones for insurance risk assessment.
Crew The personnel engaged on board a vehicle. For marine insurance, this excludes the master and officers and for passenger ships also the passengers.
Cross-Sell Cross-sell refers to the process of suggesting that customers buy additional, complementary, or related accessories or products. An example would be selling an automobile coverage to an existing homeowners customer.
Current Assets Total Amount Total assets on the balance sheet which are expected to be sold or otherwise used up in the near future, usually within one year. Typical current assets include cash, cash equivalents, accounts receivable, inventory, the portion of prepaid accounts which will be used within a year, and short-term investments.
Current Liabilities Debt that must be satisfied within the next twelve months.
Current Liabilities Total Amount Total liabilities of the business that are due within the fiscal year. For example, accounts payable for goods, services or supplies that were purchased for use in the operation of the business and payable within a normal period of time would be current liabilities.
Current Retroactive Date The date and/or time value of the retroactive date applicable to a claims made policy.
Current Term Amount The monetary value that constitutes the total gross amount that is for the current term, including premiums, plus taxes, fees, discounts, surcharges, etc. When a contract is issued for its normal full term, this is the amount due at inception.
Custom Use The covered item is used in a fashion other than its typical use. For example: in custom farming a piece of equipment is used for harvesting only (a tractor).
Customary Expense Item The permitted expense amount applicable to a claim or loss. This is typically used in the Coordination of Benefits. Common terms for this are Reasonable, Customary, and Necessary Amounts.
Customer A person or organization to whom services, goods or benefits are currently, have been previously or will be supplied.
Customer Acquisition Cost The administrative costs and commission associated with a successful target response (turning a prospect into a customer).
Customer Buying Habits The business and marketing technique of identifying and defining how a customer prefers to purchase products (buyer behavior or past history). An example would be a customer's propensity to purchase insurance via the web vs. call center interaction.
Customer Needs The financial objective or requirement of a customer that can be supported or achieved by insurance contracts.
Customer Segmentation See Market Segmentation.
D  
Death Benefit A payment made to a designated beneficiary upon the death of a covered party.
Death Benefit Option Type The method in which a life insurance contract benefit amount is calculated upon the death of the insured. An example includes: Increasing Death Benefit Option.
Death Benefit Payment Type The method in which a life insurance contract death benefit will be paid. Examples include: installment refund, guaranteed income, etc.
Declaration Section Section of the contract containing such information as name, description, and location of insured property; name and address of the insured; period a contract is in force; premiums payable; and the amount of coverage.
Declination A rejection by an insurance company of an application for a contract, risk or coverage.
Deductible The portion of an insured loss to be borne by the insured.
Deductible Basis The basis on which the deductible amount or quantity is to be applied. Examples include: per claim, per contract aggregate, per incident per year, etc.
Defensive Driver A person who has attended an accredited defensive driving course for the purpose of qualifying for a discount in premium.
Deferred Commission Released Amount The total amount of all commission relating to deferred premium now released, that was retained as a reserve in the previous accounting period.
Deferred Commission Retained Amount The total amount of commissions relating to all premiums retained (including additional premiums, return premiums and cancellations) for which payment has been deferred until due dates outside the period for which the account is rendered.
Deferred Installment Brokerage Amount Brokerage relating to deferred installment premium amounts (this allows international trading within the London Market and will be used in proportional treaty account transactions).
Deferred Installment Commission Amount Commission relating to deferred installment premium amounts (this allows international trading within the London Market and will be used in proportional treaty account transactions).
Deferred Installment Other Deductions Receiver Sha Other deductions relating to deferred installment premium amounts (this allows international trading within the London Market and will be used in proportional treaty account transactions).
Deferred Installment Overriding Commission Amount Overriding commission relating to deferred installment premium amounts (this allows international trading within the London Market and will be used in proportional treaty account transactions).
Deficiency Reserve Addition to an insurance companies reserves, required by various states, because the valuation premium is greater than the gross premium.
Deficit Reduction Act (DEFRA) Federal legislation adopted in 1984 as part of the Tax Reform Act that (1) prohibits tax deductions for contributions to 501(c)(9) trusts or premiums paid to experience-rated plans if reserves for benefits exceed specified benefit levels; (2) excludes most taxable benefits from being offered for flexible benefit plans and flexible spending accounts; (3) requires that employers provide retirement-age employee spouses with the opportunity to enroll in employee health insurance programs.
Delivery Channel See Communication Medium.
Deposit Premium The initial premium required by an insurance company to put a contract in force.
Direct Marketing The marketing of insurance products directly, typically without a producer meeting face to face with the customer. Sales are solicited via phone, web or mail.
Direct Writer Insurance companies that sell directly to the public using exclusive agents or their own employees, through the mail, or via Internet. In reinsurance, denotes reinsurers that deal directly with the insurance companies they reinsure without using a broker.
Direct Writer Agent See Captive Agent
Director/Officer A person appointed to some position of responsibility or authority in a corporation.
Disability Level 'Degree of reduction in the capacity to work (degree of disability) assessed by comparing a normal person of the same age in good health practicing the same profession or a socially equivalent profession.
Disaster Assistance Case Identifier The case number assigned by a jurisdictional agency for individual disaster losses.
Distance Type The distance the goods transported is based upon average or maximum distance. This term is typically used in Commercial Inland Marine to assess risk.
Distribution Agreement A contract governing the marketing of an insurance product.
Distribution Channel A means of marketing, distributing, or servicing insurance policies. It includes agents, agencies, direct sales forces, telecentres, branches, the Internet, kiosks, etc.
Distribution Level A distribution categorization defined by an insurance company. Some examples include: branch, national, regional, captive, field, etc.
Dividend Sum returned to a contract owner by an insurance company under a participating contract.
Dividend Option Method of handling contractholder dividends. For example: Add dividends to cash value, pay in cash, paid up addition, reduce loan value, etc.
Dividend Reduction A decrease in the premium due as a result of an earned dividend.
Dollar Cost Averaging In an annuity product, a systematic investment plan which allows investment of a fixed amount of money at fixed intervals.
Domestic Locations Count See Business Domestic Location Count.
Driver A person who operates a motorized vehicle (e.g. car, truck, boat).
Driver Training Credit A type of credit surcharge that reflects the completion of a driver training course.
Duplicate Coverage Indicates that the claimed losses are covered by more than one insurance contract.
Dwelling Design Style Is a subset characteristic of a building design style which is applicable to a residence. Examples include: colonial, ranch, cape code, etc.
E  
Earned Premium The portion of a premium that represents coverage already provided, based on the part of the contract period that the insurance has been in effect.
Earthquake Building Class A classification specifying the degree of rigidity and flexibility to withstand seismic waves based on building material, floor/roof material, area and number of stories as it relates to earthquake and earthquake sprinkler leakage coverage.
Earthquake Building Ground Condition A description specifying the existing circumstances (conditions) of the ground on which the structure is located.
Earthquake Retrofit Condition Indicates what type of modifications have been made to a completed structure as it relates to earthquake damageability. Examples include: cripple walls braced, anchor to foundation, etc.
Elimination Period See Waiting Period.
Employee A person working for an organization or individual under an employment agreement. An employee is not considered a contractor.
Employee Total Year-End Count The total number of employees of a business as of the fiscal year end date.
Employer An organization or individual utilizing the skills or services of an employee or contractor usually for some form of compensation.
Employer Liability A coverage for the liability of employers for damage resulting from injuries by accident or disease sustained by employees in the course and scope of employment, but not covered, under the workers? compensation laws who choose to sue the employer denying benefits payable under the workers' compensation laws.
Endorsement A written agreement that adds to or amends the provisions of the contract.
Endowment Insurance A type of life insurance under which an insured receives the face value of a contract if the individual survives the endowment period.
Entitled Beneficiary A person who has a relationship to the insured and as such is entitled to the benefits. Examples of relationships include: family, legal, employer.
Equity Shareholder This applies to US accounting practices. A person or organization that holds share equity (of at least 5%) in a listed company.
Estimate Type The kind of estimate being provided (i.e. the initial or revised estimated cost or duration.)
Estimated Incurred Expense The estimated total amount of a claim allocated to expenses.
Estimated Market Value The estimated value of property as established by the price a willing buyer would pay for property purchased from a willing seller.
Estimated Recovery Date This is the estimated recovery date that is used in reference to a claim estimate.
Event Location? ? See Accident Location.
Evidence Of Insurability A statement or proof of a person's physical or medical condition, occupation, and so on, affecting the acceptance of the applicant for insurance.
Examination Company An organization or individual utilizing the skills or services of an employee usually for some form of compensation.
Examination Interpreter The one who translates the results of an examination. (e.g. Interpreting the results of a medical examination, x-rays, etc.)
Examiner Reference to person or organization who performed an examination or the formal verification or validation of information learned/known, typically used to satisfy a requirement for licenses, registrations or other firm education.
Examining Institution The examining institution or authority.
Excess See Excess Coverage.
Excess Benefit In medical insurance, indicates whether the benefit combines a high deductible and high maximum benefit level and is intended to supplement older, low-limit major medical expense plans.
Excess Coverage Coverage for which limits apply once the amount of primary insurance (either contract or self-insured) has been satisfied.
Excess Insurance See Excess Coverage.
Excess Of Contract Limits Clause A clause in an insurance contract for which there is a situation of XPL (excess of contract limits) which are covered by the reinsurance.
Excess Of Loss Insurance Coverage for that portion of a loss which exceeds a certain amount retained by the insured or covered by other insurance, and then only for liability in excess of that figure.
Excess Of Loss, Surplus Cover Number A number assigned to a contact in the case of Excess Of Loss or Surplus Cover Reinsurance to express the layering of covers.
Exchange Traded A stock exchange upon which the stock is traded. Examples: Nasdaq, NYSE, SSEC, SSMI.
Exclusion A provision in an insurance contract that eliminates coverage for certain risks, people, property classes, or locations.
Exclusive Agent See Captive Agent.
Experience Modification Adjustment of premiums resulting from the prior loss experience of the risk.
Experience Rating The method in which the actual experience of the insured is compared to the experience that is normally expected by other risks in the insured's rating class.
Experience Refund Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium.
Experimental Medical Or Unproven Procedures Any health care treatment or service that is in trial stage (being tested on animals or humans) and not proven by scientific evidence to be effective.
Exposure The state of being subject to loss because of some hazard or contingency. Also used as a measure of the rating units or the premium base of a risk.
Exposure Base See Premium Base.
Exposure Distance The distance to the adjacent exposure.
Extended Warranty Period See Additional Warranty Period.
Extra Contractual Obligation A clause in a reinsurance contract for which there is a situation in which losses outside of the contract are covered by the reinsurer.
F  
Face Amount The death benefit of a life insurance contract.
Facultative Reinsurance A resinurance arrangement by which individuals risks are offered by the ceding insurer to a reinsurer, who has the right (faculty) to accept or reject each risk.
Farthest Zone Code An industry code specifying the location of the farthest zone from the vehicle's base of operation in which the vehicle is operated.
Feature Conflict This term is used in the life and annuity lines of business and indicates any other product feature(s) which is/are not available simultaneously with the feature being described. A reference to another Feature Product which, when elected, makes this Feature Product unavailable. If multiple Feature Products are included, the selection of any one makes the feature being described unavailable.
Feature Option Product The set of options available in an insurance product, such as the riders, investment arrangements, systematic withdrawal options, etc.
Field Personnel - Total Total number of personnel employed by the company who predominantly spend their time working outside of their assigned office. Such as: construction site workers, project managers, inspection engineers.
Financial Administrator A person or an organization (financial institution) responsible for arbitrating for the underwriter in order to meet the objectives associated with term, performance, or risk related with a financial services contract.
Financial Derivative A two-party financial contract the worth of which is derived from the value of some underlying asset (e.g. a currency security or commodity), reference interest rate (e.g. a rate based on the prime), or index (e.g. Standard & Poor's Composite Index). Examples are futures contracts swaps, call options, and put options.
Financial Disclosure Rule Rules, applied by the company, concerning the disclosure of information provided by the customer. Disclosure rules may be inherent to a financial product.
Financial Information Source The source of the financial business information (i.e. SEC Filing, Annual Report, etc.)
Financial Objective The financial objective of a person or an organization that can be supported or achieved by owning financial services products (for example, retirement funding, education funding).
Financial Responsibility Law A state law requiring that all automobile drivers show proof that they can pay damages up to a minimum amount if involved in an auto accident. Varies from state to state but can be met by carrying a minimum amount of auto liability insurance.
First Loss Insurance 1: Coverage that applies to only a single loss during the contract period or that provides coverage of multiple locations for only the first loss at each location during the contract period. 2: A contract whose limits are reduced (and not reinstated) by loss payments.
First Named Insured The first name on the declaration page of the contract. Explanation: Because there is wording in the contract specific to 'First Name Insured'. The first Named Insured is required to keep records. Audit and cancellations notices are sent to the first Named Insured. Non-renewal notice is sent to the first Named Insured. The contract is very specific.
First Party Damage The condition of damage to the insured or to the members of the insured organization.
Fixed Premium Schedule In life insurance, for fixed premium plans, the details in which the premiums wioll be paid. Some options include pay until maturity of the coverage, pay a specific number of payments, pay to a specified age, or one payment.
Flat Cancellation Cancellation of an insurance contract on the date that contract becomes effective.
Flat Extra Premium Allowance A fixed addition to the modal premium designed to offset the cost of a risk not included in the original cost basis.
Floating Rate Insurance Plan An insurance plan with an interest rate that varies depending upon the existing rate in the money market.
Flood Community A collection of data such as flood rating class, community number, flood rate map, etc. that provides information for rating and underwriting flood insurance for a specific geographical area. For example,in the US pieces of this information are provided by the Federal Emergency Mangement Association (FEMA).
Flood Community Rate Class A categorization that specifies the flood risk for a community as used in rating. In the US, a source of this code list is the Federal Emergency Management Agency (FEMA).
Flood Information Source This identifies the source of floos risk information. For example: flood map, mortgagee, community official, etc.
Flood Insurance Rate Map See Flood Map.
Flood Insurance Rate Map Panel This is a subset of the larger Flood Map. Note: this is used for pagination purposes only.
Flood Insurance Rate Map Panel Number This is number that identifies the individual panel (page) numbers within the larger Flood Map.
Flood Map A map of a community on which the jurisdiction has delineated both the special hazard areas and the risk premium zones applicable to the community. For example,in the US map is called the Flood Insurance Rate Map (FIRM).
Flood Waiting Period Describes the waiting period before a flood contract will be effective.
Flood Zone An area that been identified as flood-prone as defined by the applicable governmental authority. A flood zone can have various degrees of susceptibility to flood.
Free Look Investment Rule Provisions concerning how funds may be invested during the free look period of the contract.
Free Look Period The time period during which a consumer may cancel an insurance contract based upon the free look provision.
Free Look Provision A provision in which contractholders have a certain period of time to examine their contracts with the right to cancel.
Free Look Return Provision How the premium refund will be made if a free look provision is exercised and the initial deposits were invested. Some examples include account value, Initial Deposit, Net Premium, Per Unit Basis, etc.
Front End Load A fee charged at the time of purchase of an insurance product or investment.
Full Time Employees Total Count The total number of full time employees of a business.
Future Indemnity Payment Present Value The monetary value that constitutes the present value of total future indemnity payments amount.
G  
Gender Rate Basis The gender rate basis under which the coverage was issued. This is typically used in Life to calculate to premium rates.
Geriatric Assessment An evaluation of an older adult's medical condition, cognitive capacity and physical and psychological health, used to determine caregiver and environmental needs. This is typically used in nursing home insurance.
Good Student A person who is a student who has a good academic record for the purpose of qualifying for a discount in the contract premium. (Note: the definition of good is defined by the individual insurance carriers).
Grace Period Period after the date the premium is due during which the premium can be paid with no interest charged and the contract remains in force.
Gross (Original) From Group Up (FGU) The total gross loss arising from the event that caused the claim, irespective of any insurance or reinsurance cover applicable. This may instead be provided seperately in supporting documents, or may not be calcuable by the cedant or the broker.
Gross Net Earned Premium Income (GNEPI) The usual rating base for excess of loss reinsurance. It represents the earned premiums of the primary company for the lines of business covered net, meaning after cancellation, refunds, and premiums paid for any reinsurance protecting the cover being rated, but gross, meaning before deducting the premium for the cover being rated.
Gross Net Earned Written Income (GNWPI) Gross written premium less returned premiums and premiums paid for reinsurance which inures to the benefit of the cover in question. Its purpose is to create a base to which the reinsurance rate is applied. Similar to Gross Net Earned Premium Income (GNEPI) except premiums are written instead of earned.
Gross Net Premium Income (GNPI) The ceding company's premium income and receipts measured net, meaning after cancellations, refunds, and premiums paid for reinsurance.
Gross Premium The entire premium to be paid for the contract.
Gross Premium Receiver Share Amount Total premiums before deduction of original commissions, brokerage, discounts and reinsurance premiums.
Gross Sales Previous Year Total amount of gross revenue reported for the prior year end.
Group Insurance Single contract under which individuals in a natural group (such as employees of a business firm) and their dependents are covered.
Guaranteed Minimum Death Benefit A variable annuity promise that often equals the greater of the cash value or the amount invested in the contract if the annuity owner dies during the accumulation period.
Guaranteed Payout Amount The payout amount is based upon the guaranteed rates of a particular product.
Guaranteed Renewable Contract An individual health insurance contract that requires the insurer to renew the contract - as long as premium payments are made - at least until the insured attains a specified age. The insurer can change premium rates for broad classes of insured but not for an individual insured.
Guideline Annual Premium This is the premium that needs to be paid for all years to endow the contract, based on guaranteed assumptions. (The Guideline Annual Premium is determined using assumptions specified in Internal Revenue Code Section 7702, and used in the test for whether a contract qualifies as life insurance. This is a U.S. specific property.)
Guideline Premium A premium defined in Universal Life insurance policies as the maximum premium payable that will qualify the contract as life insurance for federal income tax purposes.
Guideline Premium Calculation Face Amount The monetary value of the face amount used for a coverage's guideline premium calculation. This is almost always the same as the current face. In some situations, such as in an integrated term rider, there could be a difference.
Guideline Single Premium The amount of premium paid in a one-time lump sum on the issue date of the contract where the cash value will equal the specified amount at a specific age (e.g. 100) based on individual Insurance Company's assumptions (a specified interest rate, CSO tables, etc.) (Applies to Universal Life only).
H  
Hazard Grade An insurance industry code used to specify the level of risk. A hazard is a "circumstance that would increase the likelihood and severity of a loss". In general for commercial lines, each class has a separate hazard grade for a specific line of business. The source of this code list is the individual insurer and/or A.M. Best.
Head Of Household A person, either married or unmarried, who maintains a household for a dependent (or nondependent relative) and provides more than half of the dependent's financial support.
Health History A form used by underwriters to assist in evaluating groups or individuals to determine whether they are acceptable risks. For individuals, also referred to as Personal health statement.
Healthcare Provider A person or organization providing services in the field concerned with the maintenance or restoration of the health of the body or mind
Heating Unit Protective Material Identifies the type of protective material or shielding associated with a heat source. (e.g. bricks, ceramic tile)
Historic Home District The indication of whether or not the structure is located within a designated Historic Home District.
Holding One or more financial products purchased or soon to be purchased under one owner, such as an insurance contract or mutual fund.
Holding Form Designates the basic form (legal attributes) of the contract. A group contract would be in a group master contract, an individual contract is on an insurance form filed with the jurisdiction. An Investment may be a stock certificate, a blip in an investment company file, etc.
Holding Purpose The financial reason (the intent) why the financial product is acquired.
Holistic Health Holistic health is a state of wellness and vitality that brings physical, mental and spiritual harmony to oneself. In other words, it is an integrated approach for enhancing the total personal health. (This is a type of healthcare coverage).
Home Health Care Medical and paramedical services delivered to patients at home as part-time skilled nursing care, speech therapy, physical or occupational therapy, part-time services of home health aides or help from homemakers or chore workers.
Hospice Care Care provided to terminally ill patients and their families that emphasizes emotional needs and coping with pain and death rather than cure.
Household A set of individuals who usually reside at the same address, are members of the same nuclear or extended family, share a common economic interest and who are to be treated for certain purposes (e.g., marketing campaigns, taxes) as a unit.
Household Family Insurance Family contract - (Life) A contract that provides insurance within a single contract for a family (e.g. father, mother, and born or unborn children). The primary coverage is typically Whole Life Insurance, with the spouse/partner and children are insured for smaller amounts of Term Insurance.
Housekeeping Condition An assessment of the general care, cleanliness and maintenance of an insured's property. This may be used in determination of rating or insurability.
Hydrant Location Identifies the location of a fire hydrant within a municipality or rural area. e.g. middle (of a municipality), isolated, etc.
I  
Illustration A life insurance sales presentation or depiction that portrays the coverage's, options, forms, premiums, cash value, death benefit, etc. based upon the needs outlined by the insurance prospect/customer.
Illustration Primary Type This identifies a primary transaction to be applied to this illustration. For example, primary transaction examples: specify a premium change, a distribution request, a coverage change, lump-sum payments.
Illustration Secondary Type The secondary transaction type provides further instructions on how to treat the primary transaction during the illustration. This further defines the Primary Transaction type. Examples would be: apply minimum premium, max distribution, annihilation. The sublist item for each secondary type code relates directly to a primary type code in order to indicate the full effect of the transaction
Immediate Care See Urgent Care.
Impaired Asset An asset that is specifically pledged to secure liabilities and not available to meet general obligations.
Incentive Plan Program that provides a bonus to a producer based on the overall performance of the producer. Also used as a support of marketing and promotion campaigns.
Incident Something that happens that may give rise to one or more losses which may result in one or more claims.
Incident Injury This contains information about injuries that occurred as a result of an incident. Information may be items such as: extent of the injury, equipment used, severity of the injury, etc.
Incident Reported By Party The person or organization who reported an incident or loss.
Incident Reported To Party The person or organization to whom an incident or loss was reported to.
Income Payout Option The choice or choices the annuitant has in deciding how the periodic payments from an immediate annuity will be made.
Increasing Benefit Information about the valuation of a coverage when it is a life product that is designed to return an increasing benefit to the beneficiary, such as an investment product.
Incurred But Not Reported (IBNR) An estimate of the amount of an insurer's (or self-insurer's) liability for claim-generating events that have taken place but have not yet been reported.
Incurred Loss Losses that have occurred within a stipulated time period, whether paid or not.
Indemnity Compensation for loss. This can vary based upon the insurance company.
Independent Agent Agent who is self-employed, is paid on commission, and represents several insurance companies.
Independent Contractor A person who provides services to a company but is not an employee or agent of that company.
Independent Financial Adviser See Financial Adviser. This term is applicable to the UK Life Market.
Indexed Life Insurance The type of insurance where the face value varies according to a prescribed index of prices. The index may be applied automatically or the insured may control the adjustment.
Indexing The sutomatic adjustment of a property or liability value to reflect the inflation rate in the country where the risk is located.
Individual Case Report In workers compensation, statistical reporting, this is a report providing details regarding an individual workers compensation claim.
Individual Compensation Information This contains information about individual compensation activity being reported.
Inherited Contract An insurance contract opened by an individual or entity using death benefit proceeds from a Contract from which they were named beneficiary.
Initial Amount Of Cover The amount of the coverage as initially issued (face amount). It does not include amounts associated with any options.
Initial Market Sizing The first estimate of the potential revenue opportunity within a specific market.
Injury Damage or harm done to or suffered by a person or thing.
Inpatient A patient who is formally admitted (or hospitalized) to an institution for treatment and/or care and stays for a minimum of one night in the hospital or other institution providing inpatient care.
Insurable Interest Any interest a person or organization has in a possible subject of insurance such as a car or home of such nature that a certain happening might cause financial loss.
Insurance Company An organization whose business it is to insure against loss, damage, or death. See Insurer.
Insurance Producer See Producer.
Insurance Product The packaging of coverages, conditions, underwriting, and pricing, into an insurance offering, marketed by an insurance company. There are many different types of insurance product; some examples include: Auto, Boat, Cancer, Life, Critical Illness, Disability Income, etc.
Insurance Professional Association Represents an organization or association of insurance practitioners. An example would be the Insurance Data Management Association (IDMA) which represents a group of insurance practioners brought together for the enhancement of data management in the insurance industry.
Insured Any person or organization whose interest in the subject matter of the insurance is protected under the insurance contract. The insured does not necessarily need to be the contractholder or the beneficiary. (Alternate definition: A person or organization covered as defined in the insurance contract. In life insurance policies there is one designated insured, the person so named; or a contract can be issued to numerous insured on a group basis. The insured persons in property and casualty policies may also include residents of the insured's household, such as a spouse, relatives of either, and other individuals under their care, custody, and control if under age 21. See also Named Insured.
Insurer A person or organization that undertakes to provide insurance services in exchange for the payment of premiums
Insurer (Cedent) From Ground Up (FGU) The ceding company's total loss so far on this reinsurance contract.
Intended Recipient Person or department within an insurance company who the sender of a transaction expects will process it.
Interest Rate Cap Upper limit on the maximum possible interest rate the insurance company will pay.
Interest Rate Collar Combination of an Interest Rate Cap and an Interest Rate Floor, creating a band within which interest rates can range.
Interest Rate Floor Lower limit on the maximum possible interest rate an insurance company will pay.
Interest Rate Swap A financial derivative where the counterparties agree to exchange a fixed interest rate and a floating interest rate.
Interest-Sensitive Life Insurance A life insurance contract that credits the contractholder with interest , based upon the investment return earned by the insurance company on all of the contracts in a particular group.
Interlocking clause A clause in a reinsurance contract designated to mesh and apportion loss from a single occurrence between two or more reinsurance contracts. The exact opposite is the event approach, designed to cause all loss from one occurence to have one deemed date of loss, regardless of the number of dates of loss or reinsurance contracts invovled.
Intermediary A person or organization who is authorized by the insurance company to sell or service its products. Thus it includes brokers, agents and the insurance company's own sales force.
Intermediary Market See Brokerage Market.
Intermediary Registration Number?? A unique identifier used by the insurance authorities, such as Financial Intermediaries, Managers and Brokers Regulatory Association (FIMBRA), to identify the insurance Producer person as an intermediary.
Inured To The Benefit Of To take effect for the benefit of either the reinsurer or the reinsured. With the respect to a given reinsurance contract (usually treaty), other reinsurances which are first applied to reduce the loss subject to the given contract are said to inure to the benefit of the reinsurer of that given contract. If the other reinsurances are to be disregarded as respects loss to a given contract, they are said to inure to the benefit of the reinsured.
Inuring Reinsurance that reduces the amount otherwise recoverable under a particular reinsurance cover. Premium for inuring reinsurance is deducted from the subject base premium for the cover it protects (i.e. to which it inures).
Inuring Annuity 'The amount of annuities which has been billed by the ceding company to the inuring excess of loss reinsurances for a claim.
Inuring Expenses The total amount of expenses which have been billed by the ceding company to the inuring excess of loss reinsurances for a claim.
Inuring Interest The total amount of interest which has been billed by the ceding company to the inuring excess of loss reinsurances for this claim.
Inuring Losses The total amount of losses, excluding expenses which have been billed by the ceding company to the inuring excess of loss reinsurance for a claim.
Inuring Reinsurance A designation of other reinsurances which are first applied purusant to the terms of the reinsurance agreement to reduce the loss subject to a particular reinsurance agreement.
Investment Manager A person or an organization which manages financial assets. They are responsible for the safekeeping of the assets and have a duty to take reasonable care to ensure that the financial assets are managed in accordance with regulations in force and with predetermined investment objectives.
Investment Product An insurance product that offers a return through market performance or interest applied. For example: Fixed annuities, variable annuities, and variable life products.
Investment Risk Objective The expression of how a portfolio, offered in a variable insurance product, will be run and by what means it will achieve its desired objectives. Some examples include: Balanced, Conservative Growth, Aggressive Growth, Government Bond, etc.
Issued Units Number of shares of an annuity fund for which a physical certificate has been issued, usually for the purposes of using as collateral.
Issuing Bank The bank/financial institution which debits and credits are posted for a financial account. The financial account is different from that of a bank or credit card account .
Item Viewable Address The location at which an item involved in a claim can be viewed.
J  
Joint Age Basis A method for calculating a single premium for defining a premium and benefits for joint coverage (insurance).
Joint Covered Life 'Estimated life expectancy for covered persons under joint insurance.
Joint Liability The sharing of legal obligation by two or more persons.
Joint Life Insurance Coverage for two or more individuals where benefits are payable depending upon the life status of the individuals, details vary by contract.
Joint Venture Participant A member or participant involved in an agreement of two or more insurance companies to provide a product or service.
Jurisdiction The sphere of legal authority who's legal processes apply.
L  
Lapse Insurance contract termination due to the insured's failure to make premium payments.
Lapse Period The span of time for which a contract is in a lapse status.
Lead Is an unrelated person/organization who expresses interest in becoming a client.
Lead Insurer When several insurers accept the risk of an insurance or reinsurance contract, this is the lead insurer/underwriter or the one who oversees the contract and normally takes over all communications with the insured.
Lead Underwriter See Lead Insurer.
Legal Advisor An organization employed by a person or organization to give legal advice on the way the latter conducts business. For example, on the fund's investments and asset management practices of a financial services company.
Legal Entity Is a legal construct through which the law allows a group of natural persons to act as if it were an individual for certain purposes. The most common purposes are lawsuits, property ownership, and contracts. Sometimes referred to as corporate personhood, this concept allows for easy conduct of business by having ownership, lawsuits, and agreements under the name of the legal entity instead of the several names of the people making up the entity. Examples include: associations, corporations, estates, municipalities, partnerships.
Legal Object Owner Person or organization who has legal ownership rights to the object.
Lessee A person or organization who leases property or workers (the receiver of the lease). In the case of real estate this is the tenant. In workers' compensation this is the company who leases the workers.
Lessor A person or organization who provides property or workers via a lease. In worker's compensation, this is a company who provides leased employees to another company.
Liability Insurance Coverage for an insured' legal liability, excluding criminal acts, most intentional torts, and breach of contract.
License Permission to perform a function as authorized by a governmental entity.
Licensed Professionals - Total The total number of licensed professionals employed by a company, such as architects, accountants and engineers.
Licensing Fee The fees charged by the regulating jurisdiction for the right to function in that jurisdiction. Examples include: Agent, Insurer, etc.
Life Coverage Option In Life and Disability Coverage, information about an additional benefit or supplement that applies to a coverage and generally may or may not generate additional premium. Examples include: accelerated benefits, accidental death and dismemberment, etc.
Life Insurance Contract Pledging Pledging a life insurance contract as loan collateral.
Lifestyle Activity Activities of people which are useful for evaluating underwriting risk to determine premium payment and coverage offered by an insurer. Some examples include aviation, parasailing, snow climbing, trail climbing, rodeo riding, etc.
Lifestyle Activity Violation Activity of an insured which classifies as a hazardous activity; if not disclosed during the application process and benefits need to be paid as a result, claims may be denied.
Limit Maximum amount of insurance that can be paid for a covered loss.
Line Of Authority A condition of an appointment as an insurance or surety producer that defines the authorization to sell products on behalf of the company. Examples include group health, surety, travel, umbrella, life, etc.
Line Of Business A general classification of business as used in the insurance industry (life, health, annuity, property, liability, etc.).
Line slip A facility provided by one or more insurers or reinsurers which allows a broker to submit individual risks meeting a given set of criteria - e.g. Class of business and inception date - for acceptance. The insurers are bound only after acceptance by the Lead Underwriter(s) of the original contract.
Loading Addition to the pure cost of insurance that reflects agent commissions, premium taxes, administrative costs associated with putting business on an insurance company's books, and contingencies.
Location A generic term used to describe a physical place/position or geographic area. This could be the longitude/latitude, real estate description (plot), farm location, ports, launch pads, etc.
Long Term Liabilities Amount An obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. Long-term liabilities are those that are not reasonably expected to be liquidated within a year.
Loss A reduction in the quality or value of property of a person's health, or a legal liability. See also Loss Expense.
Loss Act Code An insurance industry code that corresponds to the portion of the Workers' Compensation law under which the claim is covered. The source of this code list is the Workers' Compensation Insurance organizations (WCIO).
Loss Adjustment Expense (LAE) The cost of adjusting losses, excluding the amount of the loss itself.
Loss Cause See Cause of Loss.
Loss Condition An industry code that contains information on the loss conditions of a claim (e.g. the condition type, settlement, recovery and jurisdiction). The source of this code list is the Workers Compensation Insurance Organizations (WCIO).
Loss Control A risk management technique that seeks to reduce the possibility that a loss will occur and/or reduce the severity of those that do occur.
Loss History This contains information regarding past losses.
Loss Location Information regarding the location reporting the loss incident. Examples include: street, city, state, floor in a hospital, nursing home, milepost 475, employers parking lot, etc.
Loss Of Use The condition of complete or partial restriction of use or any prohibition of use of a property due to a covered loss event or condition.
Loss Payee Party that is not the insured but to whom losses under the contract will be payable (e.g. a mortgagee).
Loss Retention 'The monetary value of the amount which the reinsured's losses (excluding expenses and interest), arising from a single occurrence, must exceed before they may be collected on the reinsurance contract.
Loss Settlement Date The date on which the agreement is reached to pay the loss.
Losses In Excess Of Contract Limits An expression used in reinsurance agreements that refers to damages awarded by a court against an insurer in favor of the insured, due to the insurer's having failed to settle a third-party claim against the insured within the contract limits by reason of bad faith, fraud or gross negligence.
Lost Capability Identifies any specific diminished capacity associated with the medical condition within the context of a claim.
Lowest Adjacent Grade A measurement of the height (elevation) of the lowest lying adjacent land. This is typically used in flood insurance.
Lump Sum Benefit A sum of money payable as a single payment to the insured, beneficiary, claimant, etc.
M  
Malingering Feigning a disability or an illness in order to collect insurance benefits, especially following a recovery from a covered disability.
Management Expenses Expenses that cover all costs related to the management of the reinsurance premium. It is normally based on a percentage of the reinsurance premium.
Management Expenses Allowance Basis Code Code which indicates the basis on which the management expenses allowance is determined on profit commission calculations.
Management Expenses Allowance Percentage Percentage allowed for reinsurer's management expenses in profit/loss calculations.
Managing General Agent Any person, partnership or corporation representing an insurer or reinsurer, and underwriting for that insurer's or reinsurer's account.
Mandated Benefit Benefits or coverages required by law to be included in health insurance contracts.
Manner Of Loss See Cause of Loss.
Market Plan A document composed of an analysis of the current marketing situation, opportunities and threats analysis, marketing objectives, marketing strategy, action programs, and projected or pro-forma income (and other financial) statements.
Market Research & Analysis The business capability to understand the market for financial services products and recommend ways to capitalize on the market.
Market Segment One of two or more subgroups within a target market. These subgroups may be distinguished by one or more salient differences. For example, different marketing mix strategies can be developed to reach each of the target market segments.
Market Segmentation The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs.
Market Segmentation Strategy Having segmented a market, the task is then to determine which segments are profitable to serve. The business can adopt one of three market segmentation strategies : (1) undifferentiated marketing-in which the business attempts to go after the whole market with a product and marketing strategy intended to have mass appeal; (2) differentiated marketing-in which the business operates in several segments of the market with offerings and market strategies tailored to each segment; (3) concentrated marketing-in which the business focuses on only one or a few segments with the intention of capturing a large share of these segments.
Market Segmentation Strategy Plan A Market Segmentation Strategy Plan is a deliverable/outcome of the process of developing a Market Segmentation Strategy.
Market Strategy The business capability to understand the market for financial services products and recommend ways to capitalize on the market.
Market Value Adjustment (MVA) In a life insurance contract, the increase or decrease in the surrender charge of the life insurance contract or annuity depending on the current financial markets. The Cash Value is adjusted upward if the policy interest rate is greater than the current interest rate on new money and thus, if interest rates decline after the insurance policy or annuity contract purchase date, the surrender charge becomes less than that exhibited. Conversely, the cash value is adjusted downward if the policy interest rate is less than the current interest rate on new money and thus, if interest rates rise after the insurance policy or annuity contract purchase date, the surrender charge becomes greater than that exhibited.
Marketing Calculation Method Calculation method or formula used for calculating the rate of return. The method can be Dollar-weighted (expense vs. revenue generated) or Time-weighted (start date of marketing campaign vs. date initial favorable response received).
Marketing Campaign A specific, defined series of activities used in marketing a product or service, or in using new marketing channels and methods. Like a promotion, the future estimated effects of a new marketing campaign must be included in demand and resource planning.
Marketing Campaign Acquisition Cost The administrative costs and commissions associated with a target campaign response. The specific costs included in the calculation are determined by the individual company.
Marketing Campaign Activity Description of the key task or steps to be performed during the marketing campaign. An example would be distributing or mailing printed material to prospects.
Marketing Campaign Category The category to which the campaign belongs. An example would be advertising campaign, promotional campaign, etc.
Marketing Campaign Cell The maximum number of parties from the target group allocated to a campaign cell.
Marketing Campaign Communication Cost - Actual The actual marketing campaign communication costs associated with interacting with prospects. The actual calculation will vary by individual company.
Marketing Campaign Communication Cost - Forecast The forecasted cost of interacting with prospects using various communication media, including the cost of phone calls, stationery, brochures, etc.
Marketing Campaign Costs Total costs (variable and fixed) resulting from the campaign. These costs can include costs such as communications costs and acquisition costs.
Marketing Campaign Financial Gain Total financial gain resulting from the campaign.
Marketing Campaign Fixed Cost The total fixed costs of the campaign that are fully or locally invariant with respect to the number of prospects. An example would be graphic design, marketing staff salaries, etc.
Marketing Campaign Plan The combination of various advertising, public relations, sales promotion, and personal selling activities used by the marketer over a period of time to achieve predetermined goals.
Marketing Campaign Rate Of Return The gain or loss of a marketing campaign over a specified period, expressed as a percentage increase over the initial market share.
Marketing Campaign Targeted Segment Market segment targeted in campaign. Ex : Customer Segment identified by a data mining algorithm.
Marketing Campaign Themes A marketing technique used to define the approach subject, topic or idea (a theme) to be used as part of a marketing campaign.
Marketing Campaign Type Marketing campaigns are categorized by type, such campaign types that include direct mail, telemarketing, conventions and trade advertising. By categorizing marketing campaigns, the system can provide the results of similar marketing efforts for management's comparison. This allows management to have a better understanding of the campaigns profitability. (i.e. IRA contribution letters, direct mail letters, life up sell, term conversion, to home newsletters, etc.)
Marketing Campaign Variable Costs The total variable costs of the campaign that are fully dependent upon the number of prospects. An example would be the cost of printed materials, postage, etc.
Marketing Communication Plan A market planning technique used to outline the strategy in which to marketing messages including items such as: market messages, target audiences, frequency, etc. are executed.
Marketing Plan and Strategy A statement (implicit or explicit) of how a brand or product line will achieve its objectives. The strategy provides decisions and direction regarding variables such as the segmentation of the market, identification of the target market, positioning, marketing mix elements, and expenditures. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions.
Marketing Support The type of support/service provided to the channel role (i.e. mailing, basic advertising brochures, advertising in local newspapers and gifts).
Marketplace Situational Analysis The systematic collection and study of past and present data to identify trends, forces, and conditions with the potential to influence the performance of the business and the choice of appropriate strategies. The situation analysis is the foundation of the strategic planning process. The situation analysis includes an examination of both the internal factors (to identify strengths and weaknesses) and external factors (to identify opportunities and threats). It is often referred to by the acronym SWOT.
Marketplace Trend Analysis Analytical techniques such as time series analysis applied to insurance marketplace information to discern trends.
Medicaid Indicator Indicates the person is covered by Medicaid or Medi-Cal, but not Medicare.
Medical Examiner The physician who examines an applicant or claimant on behalf of the insurer and as an intermediary of the insurer.
Medical Expense Type A description of the source of the expense. Examples include: hospital, doctor, pharmacy, etc.
Medical Expert Person or organization that provides expert advice in assessing damages to someone's health. For example, assessing the level of invalidity of a person.
Medical Facility The place where medical examinations and treatments are provided.
Medical Primary Health Care First contact and continuing health care, including basic or initial diagnosis and treatment, health supervision, management of chronic conditions, preventive care services, and appropriate referral.
Medical Secondary Health Care Specialized ambulatory care and common place hospital care (outpatient care and inpatient care services). Access is often via referral from primary health care services. Does not include highly specialized, technical inpatient medical services (which is tertiary health care).
Medically Necessary Treatment A treatment which is appropriate and necessary in treating a patient and which could adversely affect the patient's condition if it were omitted.
Minimum And Deposit Premium The premium payable under the terms of a contract which is the minimum premium payable, and at the same time the deposit premium paid at the start of the contract period.
Minimum Premium The lowest premium amount for which an insurance company will provide or maintain coverage for a contract or a subset of a contract.
Modal Premium A regularly scheduled payment amount contractually obligated by the policy.
Modified Endowment Contract Status of Universal Life Insurance contracts which fall under the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). The contracts were entered into or changed, on or after June 21, 1988 and have had large premium payments within the first seven years that exceed the established guidelines within TAMRA, which result in tax implications for withdrawals and other early distributions.
Modified Endowment Contract 7-Pay Period The 7-year time period in which a Universal Life Insurance contract is subject to being monitored to identify if it needs to move into Modified Endowment Contract status as defined in the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). It is calculated at issue and as a result of any material change (as defined by TAMRA).
Modified Endowment Contract 7-Pay Premium The maximum premium that can be paid into a Universal Life Insurance contract during each of the first seven years, as calculated by the 7-Pay Test. If exceeded, based on the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), the contract is classified as a Modified Endowment Contract (MEC). This only applies to contracts that were entered into or changed, on or after June 21, 1988.
Modified Endowment Contract 7-Pay Test A test applied to Universal Life Insurance contracts entered into or changed on or after June 21, 1988 against the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). The test is applied at issue and as a result of a material change (as defined by TAMRA). It determines the amount of premium (7-Pay Premium) that will put a contract into Modified Endowment Contract (MEC) status and also determines the period of time (7-Pay Period) the contract will need to be monitored.
Moral Hazard The effect or risk from any personal characteristic, living habit or financial responsibility of an applicant or insured that may have an impact on the general insurability of the individual.
Morbidity Rate The rate at which sickness and injury occur within a defined group of people. Insurers base health insurance premiums in part on the morbidity rate for a proposed insured?s age group.
Mortality and Expense Fees (M&E) In an investment product, a fee that covers such annuity contract guarantees such as death benefits.
Mortality Assumption A statistical projection of future illness, sickness, and disease.
Mortality Rate The rate at which death occurs among a defined group of people of a specified age and sometimes of a specified gender. Insurers base the premiums for life insurance in part on the mortality rate for a proposed insured?s age group.
Mutual Fund Company An investment company that stands ready to buy back its shares at their current net asset value, which is the total market value of the fund's investment portfolio divided by the number of shares outstanding. Most mutual funds continuously offer new shares to investors.
Mutual Insurance Company A private organization managed by employees and employers, in equal number. These organizations can be inter-professional, professional or corporate, with the ability to act at the national or local level. They offer both group and individual coverage to former employees or entitled beneficiaries.
N  
Named Additional Insured A person or organization, or unit thereof, that is named as additional insured in the insurance contract. The organization is covered in the insurance contract because of its relationship with the organization that is the main insured. A subcontractor of a contractor can be named as additional insured in the contractor's contract, in which case he will be covered when performing activities for which he was contracted by the insured contractor. He is not insured when performing activities for another contractor. A subsidiary of a company can be named as additional insured in the parent company's contract, in which case its activities will be covered due to the nature of the parent company's liability in the activities of the subsidiary.
Named Insured The name on the declaration page of the contract. Explanation: There is wording in the CGL form that specifically refers to the Named Insured. For instance, 'No personal or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations.' See also Insured.
Named Traveler A person named as traveler in a travel insurance contract. Being named as traveler makes the person an insured person in the travel insurance contract.
Natue Of Business See Business Classification.
Nearest Zone Code An industry code specifying the location from which the vehicle is operated.
Needs Scenario A scenario is used by the selling function of the insurance company to demonstrate to the customer which risks he is running. It identifies certain needs (risks) that could be covered by an insurance contract. An example in P&C would be to identify the need for flood insurance or earthquake coverage for someone residing in a floodplain or fault. In Life an example would be the need to fund post-secondary education in the event of the death of the primary income provider.
Neighborhood Watch Whether the building is part of a Neighborhood Watch scheme A neighborhood surveillance program or group in which residents keep watch over one another's houses, patrol the streets, etc., in an attempt to prevent crime.
Net Amount At Risk In life insurance, the difference between the face value of a life insurance contract, and its cash value.
Net Income Amount Previous Year Total amount of net income for the previous year.
Net Premium The gross premium minus expenses, taxes, and fees.
Net Present Value Net Present Value (NPV) is the process of calculating the value of an investment by adding the present value of expected future cash flows to the initial cost of the investment; the difference between the cost of an investment and the discounted present value of all future earnings from that investment. This calculation is used to determine the NPV of Marketing Campaigns.
Network A grouping of individuals, organizations and agencies organized on a non hierarchical basis around common issues or concerns, which are pursued proactively and systematically, based on commitment and trust. Depending on the type of network, its structure and its membership rules may or may not be defined by the Insurance company. See also Preferred provider and Intermediary, network. Example: KIG Insurance Company's network of preferred garages. MIA Insurance Company's network of preferred physicians. Previously organized in single-handed practices, physicians now formed networks to provide continuous round-the-clock care to patients under the new reformed primary health care system.
No-Claims Bonus Information about premium pricing mechanism based upon claims history, normally being the number of years without claims. Also known as No Claims Bonus (NCB) or No Claims Discount (NCD).
No-Claims Discount Period The number of years (or other period) prior to the contract issue date during which the contractholder has not made a claim on any insurer for this type of contract or coverage. A premium discount is often given if the period is sufficiently long.
Non-Cancellable and Guaranteed Renewable Contract An individual health insurance contract, which stipulates that, until the insured reaches a specified age (usually age 65), the insurer will not cancel the coverage, increase the premiums, or change the contract provisions as long as the premiums are paid when due.
Non-Forfeiture Benefit Provision that the equity of an insured in a life insurance contract cannot be forfeited. There are four benefits a contractholder can select from under the option: cash surrender value, paid-up insurance value, loan value, and the extended term insurance value.
Non-Owned Vehicle Group Indicates the category of covered persons to which Non Owned coverage pertains. For example: Employees, volunteers, partners, etc.
Nonqualified Contract An insurance plan that is not qualified under Internal Revenue Service rules to receive tax deductions for employer contributions to fund the plan.
Non-Renew A decision or notification to discontinue coverage at the expiration date of the current contract.
Non-Scheduled Indemnity Payment Payments for a specific party on a workers compensation claim where the payment is not associated with a jurisdiction's indemnity payment schedule.
Non-Standard Conditions An indication that conditions other than standard conditions apply. An example in workers compensation is "excludes medical."
O  
Object Of Insurance In boiler and machinery insurance, the name of the vessel insured.
Obligee The person or entity for whom or which a surety guarantees the performance of the principal's obligations.
Occupational Disease 'Impairment of health not caused by accident, but by exposure to conditions arising out of or in the course of one's employment.
Operating Cedent The operating company used by the Cedent to transact business.
Optionally Renewable Contract An individual health insurance contract that gives the insurer the right to refuse to renew the contract on specified dates, to add coverage limitations, and to increase the premium rate if it does so for a class of policies.
Ordinary Life Insurance A type of life insurance contract that remains in full force and effect for the life of the insured, with premium payments being made for the same period.
Organization A business concern or a group of individuals that are systematically bound by a common purpose. Organizations may be legal entities in their own right. This includes commercial organizations such as limited companies, publicly quoted multinationals, subsidiaries etc. It also includes organizational units such as branches, departments or teams and more informal groupings such as clubs, societies, charities and interest groups consisting of two or more people.
Original Cedent Original ceding company involved in an underlying reinsurance, in text form.
Original Contract Limit Claim Limit Amount that is associated with a contract (i.e. per occurrence, or aggregate limit).
Original Contract Limit Per Occurrence Limit of liability per occurrence on the insurance contract.
Original Contractholder The person or organization that took the original insurance with the insurance company that ceded the business.
Original Insurer Name of the original insurer.
Original Policy Commission Allowance made, usually based on a percentage of premium as stipulated in the original contract, to cover part or all of a company's acquisition and other costs.
Original Reinsurer Name of the original reinsurer (in the case of retrocession's) in text form.
Other Deductions The basis, description, percentage etc. on which the other deductions are calculated. (e.g. Fire Brigade/Protection Charges, Other Deductions, Overriding Commission, Tax on Loss Reserve Interest, Tax on Premium Reserve Interest.
Other Deductions Percentage The percentage of the premium that will be withheld as other deductions.
Other Original Cedent's Underwriting Expenses Amou Cedent's original underwriting expenses with the exception of loss prevention and internal loss adjustment expenses not covered by another code.
Outpatient Patient who is not formally admitted to the facility (physician's private office, hospital outpatient centre or ambulatory-care centre) and does not stay overnight. See also Inpatient (per contrast).
Outpatient Care Medical and paramedical services delivered to a patient (called outpatient) who is not formally admitted to the facility (physician's private office, hospital outpatient centre or ambulatory-care centre) and does not stay overnight. See also Inpatient car
Outstanding Expense Actual amount of total expenses not paid by an insurance company during a specific time interval.
Outstanding Loss Actual amount of total losses not paid by an insurance company during a specific time interval.
Overriding Cedent Commission Percentage Percentage of the premium amounts under a contract payable to the cedent as overriding commission.
Overriding Commission 1. For RLC - a fee or percentage of money which is paid to a party responsible for placing a retrocession of reinsurance. 2. In insurance, a fee or percentage of money which is paid by the insurer to an agent or general agent for premium volume produced by other agents in a given geographic territory.
Overriding Commission Basis The basis on which overriding commission is calculated e.g. on Gross premium less commission and tax.
Overriding Profit Commission See Super Profit Commission Amount.
Overriding Retrocession Fee Amount Fee to compensate retro ceding company's administration expenses. European requirement for aviation treaties.
Owner A person or organization which has or possesses a property (ies) or has rights and/or interest in financial contract.
P  
Paid Loss Actual amount of losses paid by an insurance company during a specific time interval.
Palliative Care Care which provides the best quality of life for the critically or terminally ill by ensuring their comfort and dignity. An important objective of palliative care is the relief of pain and other symptoms. Palliative care is planned to meet not only physical needs, but also psychological, social, cultural, emotional, and spiritual needs of the ill person and his or her family. Associated with the hospice care concept.
Paramedical Examination Physical examination of an applicant by a qualified medical practitioner other than a physician.
Parent Carrier The senior company in a group or fleet of insurers.
Part Time Employees Total Count The number of workers working part-time as defined by the applicable labor law.
Participating Contract Life insurance agreement that entitles beneficiaries to a share of the insurer's profits. Examples of participation types include: nonparticipating with coupons, nonparticipation with guaranteed annual endowments, etc.
Party Profile Grouping of person or organization attributes used to perform analysis on parties that share the same characteristics. For example, Person Profile or Household Profile
Patient A person in contact with the health system seeking attention for a health condition.
Payee A person or organization who receives payments.
Paying Financial Institution The paying financial institution in relation to a whole financial account or a financial account item.
Payment Clearance Date The date on which the payment is confirmed to be cleared.
Payment Expense The expense amount payment under the contract.
Payment Frequency The frequency of a payment. For example: annual, monthly, weekly, or daily. In life Insurance, this may also be known as Payment Mode.
Payment Inuring Losses And Expenses The amount recoverable by the ceding company from inuring reinsurance for this claim.
Penalty Amount The maximum monetary amount for which the surety may normally be held liable under the bond.
Penalty Phase In Life Insurance, the period during which surrender charges are in force, as defined in the contract.
Pension Scheme Member An individual member of an employer pension scheme.
Permanent Total Disability A condition deriving from injury or illness, in which a wage earner is forever prevented from working. See also Permanent and partial disability, Temporary and total disability, Temporary and partial disability (per contrast).
Person A unique human being who exists or existed in the past.
Personal Property Tangible or intangible property that is not real property.
Placed Insurance An application for coverage that has been signed by the propsective insured, the medical examination has been completed, the initial premium payment has been tendered, and the policy has been delivered.
Placing Broker The broker that is responsible for presenting an insurance business transaction to the (re)insurance market for underwriting consideration.
Placing Exchange A forum in which (re)insured or brokers can select (re)insurers, allocate shares and request for quotations and deals from each of their selected (re)insurers. (Re)insurers in return can submit quotes and counter-offer quotes.
Policy Reserve For an insurer, a liability amount that, together with future premiums and investment income, the insurer estimates it will need to pay contractual benefits as they come due under in-force policies. contract reserves represent the insurer?s obligations to customers.
Portfolio Transfer Transfer of book of business between different organizations. It can include the transfer of both the premium and loss portfolio.
Pre-Authorization Authorization given by an insurance company to an insured to receive specific services or goods covered in his contract, when this authorization is required in the product rules. Usually, an insurance company will reduce the level of benefit granted when pre-authorization is required and has not been requested. Example: MIA Insurance Company authorizes John Doe's orthodontics treatment planned from September 1, 2002 to August 31, 2003.
Precautionary Advice Claim advice provided on a precautionary basis to the (re)insurer to comply with the contract conditions stipulating that claims above a given limit must be advised even if they do not result in any immediate liability to the (re)insurer.
Pre-Certification Pre-authorization in case of hospital confinement.
Pre-Existing Condition Health condition for which the insured received medical treatment or which he was aware of, before the start of the contract.
Preferred Pharmacy A provider of pharmaceutical goods and services with whom the insurer has negotiated lower prices.
Preferred Provider A provider of goods and services with whom an individual or organization has negotiated preferred terms and conditions for items such as glass repairs, medical network.
Preliminary Rating A tentative rate or premium that is subject to subsequent adjustment.
Preliminary Rating Factor A temporary experience modification factor that is issued to an insured until such time that the rates are approved in a given state.
Premium The price for coverage of a particular risk or set of risks described in the insurance contract or contract, during a specific period of time.
Premium Advice Note A notification sent to an insurer or a policy signing office by an insurance broker when the broker's client is debited with the premium or credited with a return premium.
Premium Audit A survey of the insured's records to determine the premium which should be paid by the insurance company for the protection provided.
Premium Basis The basis to which rates are applied to determine premium. Exposures may be measured by payroll (as in workers compensation or general liability), receipts, sales, square footage, area, man hours, etc.
Premium Calculation Method Rules as to how various regulatory defined premiums are to be calculated, based on IRS Guidelines. Some types of premiums subject to these rules include: 7-Pay Premiums, guideline annual premiums, guideline single premiums, etc.
Premium Deposit Fund A reserve (generally interest bearing) held for future contractual obligations.
Premium Discount A percentage reduction based on the size of the premium, due to the cost of issuing and servicing decreasing as the premium increases.
Premium Payer A person or an organization who pays the premium due under a financial services agreement.
Premium Portfolio A defined body of insurance contracts in force.
Premium Rate A life insurance contract with large premium payments in its initial years that are used to quickly build up cash value. After an adequate cash value is accumulated, remaining premium payments are made by borrowing against the cash value.
Premium Transfer Provision Text giving details of circumstances under which premium will be transferred between years of account for long-term contracts.
Presumptive Disability A disability involving loss of sight, hearing, speech, or any two limbs, which is presumed to be a permanent and total disability. In such cases, the insurer does not require the insured to submit to periodic medical examinations to prove continuing disability.
Preventive Care Program of health care designed for the prevention and/or reduction of illnesses by providing such services as regular physical examinations and protective vaccinations.
Preventive Care Service A provider of a health care program designed for the prevention and/or reduction of illnesses by providing such services as regular physical examinations and protective vaccinations.
Previous Insurer Recent insurer(s) of the risk for a particular person or organization this may be the immediately preceding contract.
Previous Workers Compensation Coverage Source A description and/or indicator which identifies the origin of the data provided for the prior workers compensation coverage.
Pricing Modification See Rate Modification.
Primary Care Physician A general practitioner (or another health care provider) who is responsible for overseeing and coordinating all the medical needs of a patient. The primary care physician must authorize any referral of the patient to a specialist or hospital. Except in cases of emergency, the authorization must be given prior to care (see Pre-authorization). This physician sometimes is referred to as the 'gatekeeper'.
Primary Carrier 1. The carrier in which an agent or broker places the majority of its business. (producer view). 2. This is the carrier that typically provides the producer with commission schedules, expense allowances and the availability of markets for the producer's business. 3. In reinsurance this is the insurer on the primary insurance contract, where the current claim only applies to excess layers.
Principal The entity obligated with the surety to the obligee.
Principal Insurer An insurance company that employs or contracts with an insurance agent to represent it.
Principal Operator The individual who uses a covered auto the greatest part of the time, regardless of ownership.
Principal Unit At Risk The indication of whether or not this structure is the primary unit at risk when referencing a collection of related structures. For example,a home estate which includes a main house (the principal unit at risk), a pool house, and a detached garage.
Principals - Total Total number of principals employed by a company. (Note: A principal is a person who authorizes an agent to act to create a legal relationship with a third party).
Prior Insurer See Previous Insurer.
Producer A person or an organization, who solicits, negotiates or effects contracts of insurance on behalf of an insurer. The producer's right to exercise various functions, authority, and obligations, as well as the obligations of the insurer to the producer, are subject to the terms of the agency contract with the insurer, to statutory law, and to common law. Types of producers include General Agents, Registered representatives, brokerage firms, etc.
Producer Appointment Fee In Life Insurance and Annuities, the fees permitting the producer to represent the carrier.
Producing Broker The brokering organization that has the primary relationship with the client and who has engaged another brokering organization (the broker/placing broker) to place part of the risk.
Product Positioning Strategy An approach and plan that is outlined by the insurance carrier as to how to best position their product offerings in a way so that consumers, users, buyers, and others can compare against competitive brands or types of insurance products. As determined by market research techniques, the various products are plotted onto maps, using product attributes as dimensions.
Product Profitability Scenarios Analysis with corresponding options (scenarios) to determine the projected financial profitability of insurance products.
Production Calculation Percentage This is the applicable production percentage. If omitted, the percentage equals the Commission Calc Pct.
Profit Commission See Contingent Commission.
Profit Commission Amount See Contingent Commission.
Profit Commission Basis See Contingent Commission Basis.
Profit Commission Calculation Frequency. See Contingent Commission Calculation Frequency.
Profit Group Group of people with similar profit characteristics.
Progressive Care Method for providing the degree of health care that is medically necessary at any given stage in illness or recovery, ranging from acute care in a hospital to recuperation at home.
Projected Market Share An anticipated proportion of the total quantity or sales revenue in a market that an insurance company is projected to attain in comparison to its competitors.
Property Improvements Permanent additions or changes made to a building by a lessee at his own expense that may not legally be removed.
Property Schedule A listing of risk details about a collection of property - both real and personal - included in and integral to the insurance contract.
Pro-Rata A cancellation type that indicates the termination of an insurance contract or bond with the premium charge being adjusted in proportion to the exact time the protection had been in force.
Prospect A person or an organization who has been or will be the target of a marketing initiative. A person/organization who is a potential or likely client. The prospect may have started out as a lead.
Protective Material This contains information concerning protective material and related details.
Provider The role played by a third party about which the insurance company wishes to keep information with regard to their involvement in the insurance business as activity providers. Also referred to as contractor or subcontractor.
Provisional Commission The tentative amount of the commission which is subject to subsequent adjustment.
Provisional License A license that is temporary, under supervision, or only valid for one case.
Provisional Rating See Preliminary Rating.
Provisional Rating Factor See Preliminary Rating Factor.
Public Fire Protection Class The grading of fire protection, determined by the Grading Schedule of Cities and Towns, for a given area.?
Pure Premium A term used in insurance rate making. It refers to that portion of the premium which is needed to pay expected losses. It does not take into account money needed for other company expenses.
Q  
Qualified Annuity An annuity that is purchased to either fund or distribute funds from a tax qualified employee benefit retirement plan and that is exempt from current income taxation during the accumulation period.
Qualified Distribution Withdrawals or payments from an insurance contract that are tax and penalty free. In order to be qualified it must meet certain IRS requirements.
Qualified Plan Defines which entities are appropriate for a collection of tax qualified plan types.
Qualified Plan Market A market consists of customers able and eager to carry out an exchange, enabling them to satisfy a need or desire through a product or service.
Qualified Retirement Plan In the United States, an employer sponsored retirement plan that satisfies complex legal requirements to receive federal income tax benefits. Some examples include: 410A, 401K, 403B, 414H, SIMPLE, SEP, IRA, etc.
Quota Share Percentage The percentage of each original risk which will be ceded to a quota share reinsurance treaty.
Quotation This aggregate contains all of the elements necessary to reflect a quoted coverage.
Quote Conditions Conditions associated with the quotation.
R  
Radius Of Operations The distance traveled by commercial vehicles from the place of garaging to the destination as used in commercial auto rating. For example, local (not more than 50 miles), intermediate (between 50 and 200 miles), and long distance (more than 200 miles).
Rate Effective Date The date the rate is applicable. For example, a start date of flood rate in property and casualty, or the start date of an interest rate on an investment product.
Rate Level A number indicating which level of the rating scale is reported in this occurrence. For instance: 01=first, 02 = second. If scaled rating data is not being sent, 01 will always be used. This term is used in the rating process for Surety.
Rating Bureau An industry organization that defines rates, loss costs and prepares new contract forms according to guidelines and regulations.
Rating Class Specifies the classification of a risk, which is used for purposes of rating.
Rating Classification The grouping of risks that have similar exposures and/or experience used rating purposes.
Rating Credit 1: Specifies the type of credits applied to a risk for purposes of ratings. 2: As used for employee benefits in life insurance: annual contributions to a pension plan that exceed or are smaller than (1) the minimum required for future employee benefits currently being earned; and (2) any supplemental liability for past benefits earned but not previously funded.
Rating Factor A factor, based on the risk class that is used in determining premium.
Rating Symbol A variable used in calculating the cost of insurance for specific types of vehicles, trailers or mobile equipment based on but not limited to factors such as make, model, performance and cost new.
Rating Territory A geographic area for which a rating applies.
Real Property Land, as well as buildings and other structures attached to the land or embedded in it.
Recapture The process by which a ceding company takes back a risk or risks that previously were ceded to a reinsurer.
Receiving Financial Institution The maintenance agency of the Financial Account Receiving Financial Institution Identification code given. (Needs better definition)
Recovery Amount which the insurance company still expects to obtain in respect of the claim or claim item from all third parties other than reinsurers.
Recovery Expense The cost incurred in pursuing salvage, subrogation, and reinsurance claim recoveries.
Registered Keeper Person or organization who is the registered keeper (or tenant) of an object.
Registration Body An organization in which an insurance carrier or producer is required to file products, rates, producer appointments.
Regulatory Examiner Representative of the commissioner of insurance who conducts an audit of an insurance company's records.
Rehabilitation Care The process of restoration of skills by a person who has had an illness or injury so as to regain maximum self-sufficiency and function in a normal or as near normal manner as possible. For example, rehabilitation after a stroke may help the patient walk again and speak clearly again.
Reinstate Effect Type A description of the impact (effect) that a contract reinstatement caused. An example would be to apply premiums to bring any negative cash value positive or Zero a negative cash value.
Reinstatement Restoration of coverage under a contract.
Reinstatement Brokerage Percentage The percentage of reinstatement premiums that will be deducted as brokerage.
Reinstatement Premium The premium payable to restore the coverage under a contract.
Reinsurance Commission (1) Percentage of premium paid to the reinsurance intermediary; a ceding company expense.? Compare to ceding commissions, which are an expense to the assuming reinsurer.? (2) A profit commission paid to the cedent or the intermediary by the retrocessionaire.? See Contingent Commission.
Reinsurance Commission Amount Allowance made, usually expressed as a fixed percentage of premium, or as original of ceded as stipulated in the reinsurance contract, to cover part or all of a company's acquisition and other costs. The percentage is not linked to the result.
Reinsurance Commissions An allowance granted by the reinsurer on the gross premium received on the risk intended to be used to reimburse the primary insurance company for the commission paid to its agents, plus taxes and overhead.
Reinsurance Contract Commission Allowance made, usually expressed as a fixed percentage of premium, or as original of ceded as stipulated in the reinsurance contract, to cover part or all of a company's acquisition and other costs.
Reinsurance Contract Overriding Commission See Overriding Commission Amount.
Reinsurance Deductions Amount All other types of reinsurance deductions for which no specific identifying code has been defined. The type of deduction must be specified in an additional text field.
Reinsurance intermediary Intermediary party between ceding company and reinsurance.
Reinsurance Recovery Amount Total amount which the insurance company has so far obtained in respect of the claim under all reinsurance treaties.
Reinsurer An insurance company that assumes all or part of an insurance or reinsurance contract written by a primary insurance company (cedent).
Reinsurer's Insurance Agent Commission Amount Reinsurer's contribution in the allowance made by the insurer to agents for their insurance placement services. Specific for some countries (e.g. Hong Kong and Taiwan).
Relay Service Provider An organization that provides the relay service, converting speech to text via teletype and vice-versa.
Renewable Term Life Insurance Coverage that is renewable at the option of the insured, who is not required to take a medical examination.
Renewal The reinstatement or continuation of a contract that is about to expire.
Reparations Payment made by an insurer due to a loss that caused harm to the claimant.
Replacement Contract A contract that has been issued to replace one currently in force.
Replacement Cost The actual cost of replacing property that has been damaged or destroyed with new property of like kind and quality without regard to physical depreciation.
Replacement Money Transfer Transfering money from one contract to another during a replacement.
Reportable Contribution Additional funds deposited into an insurance contract that may only be claimed for tax purposes during the current year.
Requester A person who submits a request to create or modify an existing agreement, or for executing a transaction or service according to the terms and conditions of an agreement. Example: Gregory Michael , as requester of a partial surrender of his life contract.
Required Minimum Distribution (RMD) US tax code requirement, that an individual must withdraw a minimum sum annually from retirement savings that have accumulated on a tax-deferred basis. This withdrawal must begin by April 1 of the year one reaches age 70 1/2.
Reserve Sums placed by the insurer in reserve to meet future commitments to the insured. This includes claims reserves: an estimated amount of money that is reserved in a fund and used to pay benefits for unsettled claims or known future claims. Claims reserves are an indication of the insurer's known liabilities and appear on the insurer's balance sheet as liabilities.
Reserve Function The method used to calculate reserves. Examples include: Continuous, curtate, discounted and immediate payment of claims.
Residence Type A classification specifying the type, not design style, of premises in which the insured/applicant resides, such as an apartment, mobile home, farm, etc.
Residual Disability Disability which becomes defined as temporary and partial disability when an insured has returned to work immediately following a period of temporary and total disability.
Residual Market Plan A mechanism in which individuals or businesses who cannot obtain conventional insurance are provided coverage.
Respite Care Associated with Hospice care, respite care is about helping the family members of a patient whereby the family is provided with a break or respite from caring for the patient.
Restricted Work Period A period of time the party was engaged in controlled work duties as a result of this incident.
Retail Bank Market The retail banking marketplace, where insurance products are offered in the traditional bank channel.
Retained Commission In Life Insurance, commissions that are held by the agent, when the application and cooresponding money are sent in to the insurer.
Retention The amount of insurance liability (in pro rata, for participation with the reinsurer) or loss (in excess of loss, for indemnity of excess loss by the reinsurer) which an insurer assumes (or retains) for its own account.
Retrocession The transfer of assumed reinsurance to another reinsurer; the further spreading of a large risk assumed by a reinsurer among other reinsurance companies.
Retrocessionaire A reinsurer that contractually assumes all or part of a reinsurance risk from another reinsurer. The transfer is known as retrocession.
Return Premium The portion of the premium returned as a result of cancellation, rate adjustment, deletion, reduction in coverage, experience refund, an error in calculation of the initial premium, etc.
Reversionary Bonus Additional benefit to the basic sum insured in life insurance, payable (normally yearly) to a contractholder. The bonus is a share in the profits or surplus of the insurer. The profit sharing amount is proportional to the underwriting reserves without increasing the premiums paid. This bonus is invariably used to buy more life coverage.
Rider A written agreement that adds to or amends the provisions of the contract.
Risk Group Group of people with similar risk characteristics
Risk Location The location of where the risk, either person or property, is docimiled. E.g. the physical location for where a car is garaged.
Risk Type Coded identification of the type of risk under which the claim has been advised.
Role Player The role player is a classification used for different analytical purposes. It covers contractholder, Underwriter, Beneficiary, Insured, Premium Payer, and so on.
S  
Salvage Damaged property an insurer takes over to reduce its loss after paying a claim.
Schedule A list of covered exposures/risks across insurance, such as surgical operations, dismemberment, homes, corporate operations, fractures, laboratory tests, drugs, x-ray services, and so on.
Scheduled Change Provides a schedule of changes to a particular coverage (i.e. specified amount increase, specified amount decrease, planned payment amount, etc.)
Scheduled Item This contains information about scheduled items as part of a contract.
Screened Porch A screen-enclosed exterior appendage to a building, forming a covered approach or vestibule to a doorway.
Second Low Bidder This is the person or organization identified as the second lowest bidder.
Second Surgical Opinion Process that records a consulting physician's evaluation of the need for surgery that another physician has recommended.
Secondary Health Care Specialized ambulatory care and common place hospital care (outpatient care and inpatient care services). Access is often via referral from primary health care services. Does not include highly specialized, technical inpatient medical services.
Section 1035 Exchange In the United States, a tax free replacement of an insurance contract for another insurance contract covering the same person that is performed in accordance with the conditions of Section 1035 of the Internal Revenue Code.
Securities And Exchange Commission Annual Premium The Securities and Exchange Commission annual premium. It is calculated with a 5% interest assumption and? used to test the 'reasonableness' of the surrender charges on a VUL contract.? This property only applies to policies that are Variable Universal Life
Self-Employed Professional A non-salaried worker. American Heritage: Earning one's livelihood directly from one's own trade or business rather than as an employee of another.
Self-Insured A company or person who insures itself or its possessions against loss by regularly setting aside funds.
Self-Insured Retention A dollar amount specified in an insurance contract (usually a liability insurance contract) that must be paid by the insured before the insurance contract will respond to a loss.
Self-Insured Workers Compensation Bond Workers' Compensation laws, at the state and federal level, require employers to compensate employees injured on the job. An employer may comply with these laws by purchasing insurance or self-insuring by posting a workers' compensation bond to guarantee.
Service Provider A person or organization that provides services to or for the organization. Examples include: doctors, hospitals, laboratories, paramedics, garages, experts, vendors and other financial institutions.
Settlement Vendor The settlement vendor person or organization is the vendor providing money settlement services between trading partners.
Settling Agent The agent or agency responsible for managing the settlement of a claim.
Shareholder A shareholder is an owner of shares in a company.
Short Rate A cancellation type (procedure) in which the premium returned to the insured is not in direct proportion to the number of days remaining in the contract period. In effect, the insured has paid more for each day of coverage than if the contract had remained in force for the full term.
Signer The person who signed or completed a form.
Single Premium Insurance An insurance contract or annuity bought with one premium with no further premiums due during the term of the contract.
Skilled Nursing Facility An organization with professional nursing staff who provide care to a patient.
Skipper Any person - usually an officer, such as the captain - who is licensed to command a ship.
Sliding Scale Commission Percentage of commission that has an inverse relationship to the loss experience on the business brought in.
Source Of Business Subdivision of new business to separate reinsurance from other ('direct') business, i.e. according to where it arises. For example, New Business may be subdivided by source into Direct business, business from reinsurance accepted which is external to the insurance group, and business from reinsurance accepted which is from within the insurance group.
Special Acceptance An agreement by the reinsurer to include under a reinsurance contract, a risk which is not automatically included within the terms of the contract.
Special Acceptance Premium The amount of premium payable in respect of an agreement by the reinsurer to include a risk which is not automatically included under the terms of the contract.
Special Rated A published rate (as opposed to a tariff rate) that applies to an individual location or building.
Specifically Rated A published rate (as opposed to a tariff rate) that applies to an individual location or building.
Specified Beneficiary An individual designated in a will to receive an inheritance, or the individual designated to receive the proceeds of an insurance contract, retirement account, trust, or other asset.
Specified Perils Vehicle Symbol Code A subcategory of the Vehicle symbol code. A classification specifying the vehicles for which this contract provides specified perils coverage. The source of this code list is the Insurance Services Office CLM or rating manuals of individual insurers.
Split Percent Commission The designation that a commission will be divided. Examples: 1.Split percent the paid producer receives on this commission. 2. The designated split between the fixed and variable portions of payout for an annuity.
Statutory Reserve Reserves required for state legislatures.
Stock Information Details Contains stock information for a publicly traded organization. This information is typically defined by the appropriate governing body.
Stock Information Exchange Ticker Symbol Text The exchange ticker symbol associated with the organization.
Stock Information Fund Current Investment Amount The total amount of money currently invested in the fund.
Stock Information Fund Name Name of the fund allocated for identification or communication purposes.
Stock Information Highest Amount The monetary value that constitutes the highest stock price reached as measured during a specified period of time.
Stock Information Interest Rate The interest rate applicable to this derivative. A derivative is a financial instrument whose characteristics and value depend upon the characteristics and value of an underlying instrument or asset, typically a commodity, bond, equity or currency. Examples are futures and options.
Stock Information Lowest Amount The monetary value that constitutes the lowest stock price reached as measured during a specified period of time.
Stock Information One Share Fund Amount The calculated value of 1 share of a fund on a given date, based on the total value of all financial assets that are included in the fund and the total number of shares in the fund.
Stock Information Security Price Amount The selling price of a security in the market.
Stock Shares As Of Date The date for which a status/snap shot of the share information is being requested.
Stock Shares Issued The number of shares issued of different classes (i.e. common, preferred) of shares the company has issued as of a certain date.
Stock Shares Outstanding Number of shares (i.e. common, preferred) outstanding of each class.
Stock Shares Price The monetary value that constitutes the price of an individual outstanding share.
Stop Option Conditional: only used if the Stop Option selected is "To an Attained Age", or "For a Number of Years." Enter the attained age of the primary insured or the specified number of years to project.
Structure Not Retrofitted The completed structure has not been modified in accordance with earthquake damageability measures.
Subaccount 1: In (Re)Insurance, a manner of dividing accounting events falling underneath an individual (re)insurance contract. 2: In an investment product, the funds underlying the contract.
Sub-Broker A broker engaged by another broker, For example,to place part of a risk.
Sub-Claim Part of a larger claim resulting from a single incident which is typically tracked and settled independently.
Sub-Contractor A company that commits itself to establish part of a construction for the account of a contractor.
Subject Premiums 1: The reinsured company's premiums (written or earned) to which the reinsurance premium rate is applied to produce the reinsurance premium. 2: In workers compensation, the premium which is subject to experience rating.
Subrogation The legal process by which an insurance company, after paying a loss, seeks to recover the amount of a loss from another party who is legally liable for it.
Substandard Insurance Coverage for risks deemed uninsurable at normal rates.
Sum Insured 1. The monetary value of the limit or sum insured for this cover. 2. Maximum amount payable in the event of a valid claim.
Sum Insured Premium 'The percentage or rate per thousand of the monetary value of the limit or sum insured to provide the maximum amount payable in the event of a valid claim.
Super Profit Commission Amount An agreed extra profit commission payable under a reinsurance contract over and above normal profit commission. Note: Sometimes known as overriding profit commission.
Superannuation A pension whereby employers are required by law to pay a proportion of an employee's salaries and wages into a superannuation fund which can be accessed when the employee retires. Currently only in Australia.
Surcharge Amount An additional sum added to the usual amount or cost.
Surety A person or entity which guarantees the acts of another.
Surplus Lines Surplus Lines that make up the deductible.
Surrender In life insurance, the relinquishing of a contract by the owner for the cash value.
Surrender Charge In an investment product, a fee imposed by an insurer when a withdrawal is taken from accumulated value during the surrender period as defined in the contract.
Surrender Charge Schedule In an investment product, a listing of the contract premium years and associated surrender charges as defined in the contract.
Surrender Free Amount In an investment product, an amount that can be withdrawn from the investments without incurring any redemption charges during a given calendar year.
Surrender Terms Information about the surrender terms that apply to a coverage.
Surveyor The person or organization that acts for the original insurers to review and assess the resulting damages incurred in a loss and corresponding claim.
Switching Operation enabling the contractholder to transfer all or part of his savings made up of one or several investment vehicles to one or several other ones proposed as part of the contract.
T  
Tail Coverage This supplemental insurance covers incidents that occurred during the active period of a claims-made contract but are not brought as claims against an insured, nor reported to the insurer, by the time the claims-made contract has been terminated. Needed at various times including when leaving a claims-made carrier, upon the decision to change claims-made carriers, at the time of retirement or due to death or total disability of the member. Tail coverage is purchased from an insured's previous claims-made carrier."
Target Change Indicator An indicator telling that the event represents a decrease. True indicates that the event is a decrease. False or missing indicates that this event is an increase. Commonly used for events like coverage change or target change.
Target Group Prospective buyers of insurance products classified according to various demographics such as age, sex, insurance.
Target Market The particular segment of a total population on which the insurance company or producer focuses its expertise to satisfy that submarket in order to accomplish its profit objectives.
Target Market Share The percentage of the total opportunity within a target market that an insurance carrier or producer is striving to attain.
Target Premium In Universal Life Policies, this is the recommended premium the contract owner should pay on a regular basis. The contract owner can pay more or less premium as desired, subject to limits specified in the contract.
Tariff Rate Standard property-liability insurance premium set by regulation or rating bureau for a particular class of risk.
Task Performer The one that acts upon an activity to be performed.
Tax Exempt Organization Indicator An indication of whether or not an organization is exempt from payment of taxes.
Technical Account The technical account is used by a sender to report to a receiver the latter's position in the sender's books with respect to one single reinsurance contract. It is in this sense a type of account for services rendered, and may initiate a payment flow either directly or via a periodical overview statement.
Temporary Insurance Agreement See Binder.
Temporary Partial Disability Disability in which a wage earner is prevented from working at full physical capability because of injury or illness for a specified period of time.
Temporary Total Disability Inability of an individual to perform any and all important daily duties of that individual's occupation for a specified period of time.
Termination Reason The condition which resulted in the formal ending of an insurance agreement by its natural expiration, cancellation or commutation by the contract parties.
Tertiary Health Care Refers to medical and related services of high complexity and usually high cost. Those referred from secondary health care for diagnosis and treatment, and which are not available in primary health care and secondary health care.
Third Party Administrator An entity that has been contracted by an insurer or reinsurer to administer identified services. These services may include claims administration, premium collection, enrollment, and other administrative functions. Within the London subscription market this will include the "bureau" that provides contract signing, premium and claims processing, and settlement of balances, etc. on behalf of all insurers/reinsurers.
Third Party Claims Liability claims brought by persons allegedly injured or harmed by the insured. The insured is the first party, the insurer the second party, and the claimant is the third party.
Third Party Data Supplier Person or organization who provides a company with information such as medical information, driver history, credit score, lab reports, replacement costs, risk information, etc. (For example: ISO, MIB)
Third Party Liability A legal obligation to a person or organization other than the insured.
Time Off Work Length of time that an individual is not able to work due to an illness or injury.
Total Indemnity Amount Paid The compensation paid for the loss.
Total Loss A loss of significant size so that it can be said there is nothing left of value. The complete destruction of the property. The term is also used to be a loss requiring the maximum amount a contract will pay.
Total Payroll Amount The monetary value of the annual total salary (payroll, total compensation, bonus, etc.) for this business.
Transport Means Owner The owner of the means of transport associated with a risk (e.g. ship owner, haulage contractor).
Travel Coverage And Geographical Areas The geographical areas in which coverage is effective in the context of travel insurance.
Travel Environment Travel environment of the places you frequent most or plan to travel to most.
Travel Family Group of people that are all members of a household under one roof or who share common ancestry that are traveling together on a same trip.
Travel Group A collection of people traveling together on a same trip.
Treatment Facility The person or organization providing medical or health treatments.
Treatment Physician The primary medical physician prescribing and administering treatment.
Trust An organization established to manage assets for the benefit of a person or group of persons. The trust is managed by one or more persons called 'trustees'. The person or group of persons receiving the benefits generally have no control over the management of the trust.
Trust Agreement 1: An attachment or rider to a life insurance contract stipulating that proceeds should be paid into a trust under certain conditions. 2: A legal document setting out the rules to be followed by a trustee in administering the assets under a trust, or agreement whereby a person transfers property to another person or entity to hold and manage for the benefit of another. (beneficiary)
Trustee A person or an organization which holds and manages assets on behalf of another via a trust agreement. For example, trustees are appointed to manage a scheme. They are responsible for investing the contributions, paying out the benefits and generally looking after scheme members' interests. The trustees may be appointed from management or staff; sometimes trustees independent of the insurance company are used.
U  
Ultimate Ceded Amount For coverages that have an increasing risk amount, this is the maximum amount that will ever be reinsured
Uncompensated Care Health care rendered by health care providers to persons unable to pay and not covered by private or governmental health insurance plans.
Underlying Premium Underlying premium for the period as defined in the contract - gross or net - to which the premium rate is applied to produce the contract premium.
Underwriter The skilled person who determines whether an insurance or reinsurance organization should participate in a risk and under what conditions.
Underwriting Authority The limits on underwriting decisions that can be made without receiving approval from someone at a higher level.
Underwriting Manager The organization or person overseeing the risk evaluation process.
Underwriting Organization The organization which underwrote a specified financial services contract.
Unearned Premium The portion of premiums paid by an insured that represents the unexpired part of the contract period.
Unearned Premium Reserve Fund that contains the portion of the premium that has been paid in advance for insurance that has not yet been provided. For example, if a business pays an annual premium of $1000 on January 1, the money is not earned by the insurer until the insurance coverage has been provided. On July 1, $500 would have been earned and $500 would remain as unearned premium, belonging to the policyholder. If either party cancels the contract, the insurer must have the unearned premium ready to refund. For this reason, insurance regulators require that insurers maintain an unearned premium reserve so that, in the event an insurer must be liquidated, there is enough money to pay claims and refund the unearned premium. Because computations for individual policies were cumbersome, formulas were devised in the past for calculating unearned premium reserves. E.g. 1/12th or 1/24th premium reserve calculation.
Unearned Premium Reserve Basis A formula used to calculate the amount to be retained as a premium reserve. For example, gross premium or net premium.
Uninsurable High-risk person or organization that fails to meet the risk qualification and underwriting guidelines or requirements.
Uninsured Loss Recovery Indicates for the claim that there are losses for which the claimant is not insured and for which the insurer attempts to recover the loss and expenses from a third party or its insurer.
Unit Report A form submitted by companies for reporting workers compensation insurance statistical data. It includes contract level detail regarding exposures, classifications and premiums, and losses at an individual employer level by state.
Unlicensed Operator An individual who lacks proper credentials to operate a certain class of vehicle or equipment.
Unscheduled Premium A Life, Annuity, or Health contract provision that allows a contractholder to make additional, unscheduled premium payments at any time to build equity in the contract investment feature.
Up-Sell Up-sell is a marketing term for the practice of suggesting higher priced products or services to a customer who is considering a purchase. An up-sell offer is typically for a better version of the same product or service you are considering.
Up-Sell / Cross Sell Strategy A plan on how to utilize up-sell and cross-sell techniques.? An example would be: identify and analyze an existing customer base and develop target customer groups who have certain characteristics and outline techniques to up-sell and cross-sell new products.
US DOT Rating A rating provided by the US Department of Transportation (DOT) for use when ICC (Interstate Commerce Commission) or PUC (Public Utilities Commission) filings are made.
V  
Valuation The process of determining the current worth of an asset or company. In Property & Casualty, it is often used in assessing property soon to be insured or that which suffered a loss. In Life, it can be determining the value of a contract or company reserves.
Valuation Class The product category is required to determine those reserve calculations that represent the amount an insurer estimates it will need to pay contract benefits as they come due.
Valuation of Loss Method of setting a dollar value on loss suffered by an insured.
Vanishing Premium A life insurance contract with large premium payments in its initial years that are used to quickly build up cash value. After an adequate cash value is accumulated, remaining premium payments are made by borrowing against the cash value.
Variable Projection Method This is only used for variable, unit-based products, and indicates how to treat the underlying variable accounts during the life of the illustration. The variable projection type will allow you to select from several options: using a designated fixed, interest-bearing, projection account, using hypothetical future fund values, or using historical account values.
Variable Universal Life This combines features of the Universal Life and Variable Life Insurance in that excess interested credited to the cash value account depends on investment results of separate accounts (equities, bonds, real estate, etc.).
Vehicle Primary Class Code See Primary Class Code.
Vehicle Primary Rating Factor The factor used, along with the secondary rating factor, in determining the liability premium. The primary rating factor, which is always positive, is based on the primary class. The primary rating factors for liability are Insurance Services Office standard.
Vehicle Secondary Rating Factor The number used along with primary rating factors in determining premium. The secondary rating factor is based on the secondary class; unlike the primary rating factor, the secondary rating factor may be either positive or negative.
Vehicle Special Equipment Any special equipment that was put into the vehicle.
Vehicle Symbol Code For Private Passenger rated vehicles there are symbols used to estimate risk potential. Examples include: collision symbol code, combined physical damage symbol, comprehensive symbol.
Vehicle Use Information Details about the predominant use of the vehicle.
Vocational Rehabilitation Evaluation Amount The monetary value that constitutes the amount of money incurred to cover vocational rehabilitation evaluation.
Vocational Rehabilitation Indemnity Amount The monetary value that constitutes the amount of money incurred for vocational rehabilitation indemnity.
Vocational Rehabilitation Training Amount The monetary value that constitutes the amount of money incurred to cover vocational rehabilitation training.
Voluntary Market A term where an insurance company freely agrees to insure a risk, using its own rules, rates and forms.
W  
Wage Determination Basis methods used to determine payroll renumeration. Wage determination is typically used for workers compensation contract. An example of a wage determination would be actual wages.
Waiting Period Period of time that must elapse before benefits are payable.
Waiver Of Premium A provision in an insurance contract that may relieve the obligation to pay premiums under specified conditions.
Withdrawal A reduction in the cash value of an insurance contract or annuity contract due to the contract owner withdrawing a cash payment up to the amount of the contract or contract cash value.
Workers Compensation Insurance that employers are required (in most states and for most employers) to provide to cover employees against loss of income and/or medical expenses that result from job-related injury, disease or death.
Workers Compensation Assigned Risk This contains the information on the Assigned Risk for Commercial Workers Comp. The information like Multi State risk, and previous coverage are found here.
Workers Compensation Claim Type A categorization assigned which specifies the current benefit classification of the claim. Examples include: Medical indemnity, became loss time, etc.
Written Premium The total premium at contract inception.
Y  
Young Driver Provides additional information specific to a driver that the insurance company considers to be in the category of young drivers and for which some additional information must be kept.
Z  
Zone Rating A commercial auto rating system that divides the country into numerous zones with different rating tables applicable for each zone.

 

General Advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on advice, consider its appropriateness. Consider our disclosure documents, which include our FSG and Product disclosure Statements (PDS) for some products.