Third Party person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured. What i...
Unearned Premium Reserve all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet. What is U...
Subsequent Event events or transactions that occur subsequent to the balance sheet date, but before the issuance of the statutory financial statements and befor...
Underlying Interest the asset(s), liability(ies) or other interest(s) underlying a derivative instrument, including, but not limited to, any one or more securit...
Short term Disability a company standard defining a period of time employees are eligible for short term disability coverage, typically for 2 years or less. W...
Proximate Cause event covered under insured's policy agreement. What is Proximate Cause , What does mean Proximate Cause , Insurance Guide, Insurance Glossary
Residence the domicile location of a member as shown by his or her determination as a resident. What is Residence , What does mean Residence , Insurance Guide...
Pro rata (proportional) Reinsurance portion of the losses and premium reinsurer shares with the ceding entity. What is Pro rata (proportional) Reinsurance port...
Renters Insurance liability coverage for contents within a renter's residence. Coverage does not include the structure but does include any affixed items provid...
Statutory Accounting Principles (SAP) a set of accounting principles set forth by the National Association of Insurance Commissioners used to prepare statutory...
Specified Disease Coverage coverage that provides primarily pre determined benefits for expenses of the care of cancer and/or other specified diseases. What is...
Private Passenger Auto (PPA) filings that include singularly or in any combination coverage such as the following: Auto Liability, Personal Injury Protection (P...
Risk Based Capital (RBC) Ratio ratio used to identify insurance companies that are poorly capitalized. Calculated by dividing the company's capital by the minim...
Short Term Medical policies that provide major medical coverage for a short period of time, typically 30 to 180 days. These policies may be renewable for multip...
Public Adjuster independent claims adjuster representing policyholders instead of insurance companies. What is Public Adjuster , What does mean Public Adjuste...
Residual Market Plan method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels. What is...
Protected Cell an insurance linked security retained within the insurance or reinsurance company and is used to insulate the proceeds of the securities offering...
Replacement Cost the cost of replacing property without a reduction for depreciation due to normal wear and tear. What is Replacement Cost , What does mean Re...
Securitization of Insurance Risk a method for insurance companies to access capital and hedge risks by converting policies into securities that can be sold in f...
Specified/Named Disease policies that provide benefits only for the diagnosis and/or treatment of a specifically named disease or diseases. Benefits can be paid...
Producer an individual who sells, services, or negotiates insurance policies either on behalf of a company or independently. What is Producer , What does mean...
Risk Uncertainty concerning the possibility of loss by a peril for which insurance is pursued. What is Risk Uncertainty, What does mean Risk Uncertainty, Insu...
Situs of Contract the jurisdiction in which the contract is issued or delivered as stated in the contract. What is Situs of Contract , What does mean Situs of...
Pure Premium that portion of the premium equal to expected losses void of insurance company expenses, premium taxes, contingencies, or profit margin. What is...
Retention a mechanism of internal fund allocation for loss exposure used in place of or as a supplement to risk transfer to an insurance company. What is Rete...
Security a share, participation, or other interest in property or in an enterprise of the issuer or an obligation of the issuer. What is Security a share, par...
Reported Losses Includes both expected payments for losses relating to insured events that have occurred and have been reported to the insurance company, but no...
Product Liability insurance coverage protecting the manufacturer, distributor, seller, or lessor of a product against legal liability resulting from a defective...
Reinsurance a transaction between a primary insurer and another licensed (re) insurer where the reinsurer agrees to cover all or part of the losses and/or loss...
Risk Retention Act a 1986 federal statute amending portions of the Product Liability Risk Retention Act of 1981 and enacted to make organization of Risk Retenti...
Social Insurance compulsory insurance plan administered by a federal or state government agency with the primary emphasis on social adequacy. What is Social I...
Pure Risk circumstance including possibility of loss or no loss but no possibility of gain. What is Pure Risk , What does mean Pure Risk , Insurance Guide, In...
Retention Limit maximum amount of medical and hospital expense an insurer will carry on its own. The limit can be for an individual claim and/or for the insurer...
Self Insurance type of insurance often used for high frequency low severity risks where risk is not transferred to an insurance company but retained and account...
Provider Sponsored Network (PSN) formal affiliations of providers, sometimes called "integrated delivery systems", organized and operated to provide an integrat...
Professional Errors and Omissions Liability coverage available to pay for liability arising out of the performance of professional or business related duties, w...
Risk Retention Group group owned insurer organized for the purpose of assuming and spreading the liability risks to its members. What is Risk Retention Group ,...
Soft Market a buyer's market characterized by abundant supply of insurance driving premiums down. What is Soft Market , What does mean Soft Market , Insurance...
Qualified Actuary a person who meets the basic education, experience and continuing education requirements (these differ by line of business) of the Specific Qu...
Retrocession the portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain. What is Retrocession , What does m...
Separate Account segregated funds held and invested independently of other assets by an insurer for the purpose of a group retirement fund. What is Separate A...
Reserve Credit reduction of reserve amounts for reinsurance ceded. Reductions may include the claim reserve and/or the unearned premium reserve. What is Reser...
Property coverage protecting the insured against loss or damage to real or personal property from a variety of perils, including but not limited to fire, lighte...
Renewable Term Insurance insurance that is renewable for a limited number of successive terms by the policyholder and is not contingent upon medical examination...
