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330 Cards in this Set
- Front
- Back
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ACCELERATED DEATH BENEFIT |
A SUPPLEMENTAL BENEFIT THAT GIVES A POLICYOWNER-INSURED THE RIGHT TO RECEIVE ALL OR PART OF THE POLICY'S DEATH BENEFIT BEFORE HER DEATH IF CERTAIN CONDITIONS ARE MET (ALSO CALLED A LIVING BENEFIT) |
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ACCESS TO RECORDS PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT GIVES THE REINSURER THE AUTHORITY TO EXAMINE THE DIRECT WRITER'S RECORDS RELATED TO THE BUSINESS CONDUCTED BETWEEN COMPANIES |
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ACCOUNTING |
THE FUNCTIONAL AREA OF AN INSURANCE COMPANY THAT COLLECTS, RECORDS, SUMMARIZES, ANALYZES, AND REPORTS DATA ABOUT A COMPANY'S FINANCIAL CONDITION |
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ACQUISITION EXPENSES |
THE COSTS A DIRECT WRITER INCURS IN DEVELOPING, MARKETING, AND ISSUING NEW BUSINESS |
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ACTIVELY AT WORK PROVISION |
A PROVISION WHICH REQUIRES THAT AN EMPLOYEE MUST BE ACTIVELY AT WORK (RATHER THAN ILL OR ON LEAVE) ON THE DAY THE GROUP COVERAGE IS TO TAKE EFFECT |
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ACTUARY |
A TECHNICAL EXPERT IN INSURANCE, ANNUITIES, AND FINANCIAL INSTRUMENTS WHO APPLIES MATHEMATICAL KNOWLEDGE TO INDUSTRY AND COMPANY STATISTICS TO CALCULATE VARIOUS FINANCIAL VALUES |
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ADMINSTRATION SYSTEM |
AN INFO SYSTEM THAT AN INSURER USES TO MANAGE INFO ABOUT INSURANCE POLICIES |
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ADVERSE ACTION |
A DENIAL OR REVOCATION OF INS COVERAGE, A CHANGE IN THE TERMS OF EXISTING COVERAGE, OR A REFUSAL TO GRANT INS IN SUBSTANTIALLY THE AMOUNT OR ON SUBSTANTIALLY THE TERMS REQUESTED |
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AFFINITY GROUP |
A GROUP OF PPL WHO SHARE A COMMON BOND, BACKGROUND, OR INTEREST AND WHO BELONG TO AN ASSOCIATION OR ORGANIZATION |
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AGE AND AMOUNT REQUIREMENTS CHART |
TYPICALLY INCLUDED IN FIELD UNDERWRITING MANUALS THAT SPECIFIES THE KINDS OF INFO THE UNDERWRITER MUST OBTAIN AND REVIEW IN ASSESSING THE INSURABILITY OF A PROPOSED INS |
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AGE DISCRIMINATION IN EMPOLYMENT ACT (ADEA) |
A US FEDERAL LAW THAT PROTECTS WORKERS WHO ARE AGE 40 AND OLDER FROM BEING DISCRIMINATED AGAINST BC OF THEIR AGE |
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AGENT'S STATEMENT |
A SECTION INCLUDED IN MOST INDIVIDUAL INS APPS IN WHICH THE PRODUCER CAN COMMENT ON ANY FACTORS RELEVANT TO THE CASE AND THE RISK IT INVOLVES |
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ALLOWANCE |
AN AMOUNT THE REINSURER REIMBURSES TO THE DIRECT WRITER AND THAT IS DESIGNED TO RECOGNIZE THE DIRECT WRITER'S ACQUISITION, MAINTENANCE, AND OTHER EXPENSES RELATED TO THE CEDED BUSINESS |
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AMERICAN'S WITH DISABILITY ACT (ADA) |
US FEDERAL LAW THAT PROHIBITS DISABLED INDIVIDUALS AGAINST ALL TYPES OF DISCRIMINATION, INCLUDING EMPLOYMENT DISCRIMINATION |
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ANNUAL REPORT |
A FINANCIAL DOCUMENT THAT A CORPORATION ISSUES TO ITS STOCKHOLDERS TO REPORT THE BUSINESS'S ACTIVITIES AND FINANCIAL STATUS FOR A SPECIFIED PERIOD, WHICH IS USUALLY THE PRECEDING YEAR |
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APPROVAL PREMIUM RECEIPT |
A CONDITIONAL PREMIUM RECEIPT THAT PROVIDES TEMP INSURANCE COVERAGE ONLY WHEN THE INSURER APPROVES THE PROPOSED INSURED AS A STANDARD OR BETTER-THAN-AVERAGE RISK |
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ARBITRATION PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION WHICH REQUIRES THE REINSURANCE PARTIES TO SUBMIT DISPUTES THAT THEY CANNOT RESOLVE THROUGH AN ARBITRATION PANEL RATHER THAN TO A COURT OF LAW |
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ASSOCIATION GROUP |
CONSISTS OF THE MEMBERS OF AN ASSOCIATION, WHICH IS AN ORGANIZATION OF EMPLOYERS OR INDIVIDUALS FORMED FOR A PURPOSE OTHER THAN TO OBTAIN INSURANCE |
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ASSUMPTION CERTIFICATE |
A NEW INSURANCE CERTIFICATE ISSUED BY A REINSURER TO ALL AFFECTED POLICYOWNERS |
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ASSUMPTION REINSURANCE |
REINSURANCE DESIGNED TO PERMANENTLY AND ENTIRELY TRANSFER BLOCKS OF EXISTING INSURANCE BUSINESS FROM ONE COMPANY TO ANOTHER |
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ATTENDING PHYSICIAN'S STATEMENT (APS) |
A REPORT BY A PHYSICIAN WHO HAS TREATED OR IS CURRENLY TREATING A PROPOSED INSURED |
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AUTO-ADJUDICATION |
AN ELECTRONIC CLAIM PROCESSING SYSTEM FOR PROCESSING CLAIMS THAT FIT CERTAIN PARAMETERS SPECIFIED FOR ELECTRONIC HANDLING |
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AUTOMATED WORKFLOW SYSTEM |
A TECHNOLOGY USED TO CREATE COMPUTER BASED RECORDS PERTAINING TO THE STATUS AND PROCESSING OF SPECIFIC TRANSACTIONS |
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AUTOMATIC BINDING LIMIT |
REPRESENTS THE MAXIMUM MONETARY AMOUNT OF RISK THE REINSURER WILL ACCEPT AUTOMATICALLY ON A GIVEN POLICY OR CASE W/OUT MAKING AN INDEPENDENT UNDERWRITING ASSESSMENT |
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AUTOMATIC REINSURANCE |
A REINSURANCE CESSION ARRANGEMENT IN WHICH THE DIRECT WRITER AGREES IN ADVANCE TO CEDE ALL RISKS THAT MEET THE SPECIFICATIONS IN THE REINSURANCE AGREEMENT AND THE REINSURER AGREES IN ADVANCE TO ASSUME THESE RISKS |
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BALANCE SHEET |
A FINANCIAL STATEMENT THAT SHOWS THE BUSINESS'S FINANCIAL POSITION ON A CERTAIN DATE |
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BENEFIT SCHEDULE |
A TABLE OR SCHED THAT SPECIFIES THE TYPES AND AMOUNTS OF COVERAGE THAT WILL BE PROVIDED FOR EACH CLASS OF GROUP INSUREDS |
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BINDING PREMIUM RECEIPT |
A PREMIUM RECEIPT THAT PROVIDES TEMP INSURANCE COVERAGE THAT BECOMES EFFECTIVE ON THE DATE SPECIFIED IN THE RECEIPT |
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BLENDED RATING |
A PREMIUM RATING METHOD THAT USES A COMBINATION OF MANUAL RATING AND EXPERIENCED RATING |
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BUSINESS CONTINUATION INSURANCE PLAN |
AN INSURANCE PLAN DESIGNED TO ENABLE A BUSINESS TO CONTINUE OPERATIONS UPON THE DEATH OR DISABILITY OF AN OWNER OR OTHER PERSON IMPORTANT TO THE BUSINESS |
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BUSINESS FINANCIAL SUPPLEMENT |
A DOCUMENT THAT REQUIRES INFORMATION ABOUT THE TYPE OF BUSINESS, THE CURRENT FINANCIAL CONDITION OF THE BUSINESS, AND THE PURPOSE FOR WHICH THE INSURANCE IS BEING REQUESTED |
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BUSINESS PROCESS MANAGEMENT (BPM) |
A STRATEGY FOR OPTIMIZING BUSINESS PROCESS OR ADAPTING THEM TO MEET CHANGING NEEDS |
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BUSINESS RULES ENGINE (BRE) |
APPLICATION SOFWARE THAT AUTOMATES THE DECISION-MAKING PROCESS BY CREATING AND APPLYING RULES TO ALL AVAILABLE INFO |
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BUSINESS-TO-BUSINESS (B2B) E-COMMERCE |
THE ELECTRONIC TRANSMISSION OF DATA OR INFO BETWEEN ORGANIZATIONS TO PERFORM OR FACILITATE BUSINESS TRANSACTIONS |
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BUY-SELL AGREEMENT |
AN AGREEMENT IN WHICH ONE PARTY AGREES TO PURCHASE A SECOND PARTY'S FINANCIAL INTEREST IN A BUSINESS FOLLOWING THE SECOND PARTY'S DEATH AND THE SECOND PARTY AGREES TO DIRECT HIS ESTATE TO SELL HIS INTEREST IN THE BUSINESS TO THE PURCHASING PARTY |
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CASE |
IN REINSURANCE CONTEXT, A SINGLE POLICY OR A GROUP OF POLICIES |
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CASE ASSIGNMENT SYSTEM |
A METHOD OF ASSIGNING CASES TO UNDERWRITERS BASED ON THE CHARACTERISTICS OF THE CASE |
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CATASTROPHE COVERAGE |
A TYPE OF NONPROPORTIONAL REINSURANCE DESISIGNED TO PARTIALLY PROTECT DIRECT WRITERS FROM (1) A SINGLE CATASTROPHIC EVENT RESULTING IN MULTIPLE CLAIMS OR (2) AN ANNUAL TOTAL OF CLAIMS IN A CATASTROPHIC AMOUNT |
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CENSUS |
LISTS DEMOGRAPHIC INFO ABOUT THE GROUP PROSPECT AS A UNIT AND ABOUT INDIVIDUAL MEMBERS WITHIN THE GROUP |
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CENTRALIZED DATA REPOSITORY |
A DATABASE THAT HOUSES ALL THE RELEVANT DATA CONTAINED IN AN INSURER'S SEPARTE ADMINSTRATION SYSTEMS |
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CERTIFICATE OF COVERAGE |
ISSUED IN THE EVENT AN ORIGINAL POLICY IS LOST OR DESTROYED TO VERIFY THAT COVERAGE EXISTS, BUT DOES NOT CONTAIN ALL THE PROVISIONS AND RIDERS THAT TORIGINAL POLICY MAY HAVE CONTAINED |
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CERTIFICATE OF INSURANCE |
A DOCUMENT THAT IS PROVIDED TO EACH GROUP INSURED AND THAT DESCRIBES (1) THE COVERAGE THE MASTER GROUP INSURANCE CONTRACT PROVIDES AND (2) THE FROUP INSURED'S RIGHTS UNDER THE CONTRACT |
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CESSION |
THE UNIT OF INSURANCE RISK THAT A DIRECT WRITER TRANSFERS TO A REINSURER |
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CESSION AGREEMENT |
IDENTIFIES THE DIRECT WRITER'S OBLIGATIONS AND RIGHTS TO CEDE RISKS, AND IDENTIFIES THE REINSURER'S OBLIGATIONS TO ACCEPT RISK AS WELL AS ITS RIGHTS TO REJECT A RISK |
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CHANGE IN HEALTH STATEMENT |
A DOCUMENT, CONTAINED IN MOST INDIVIDUAL LIFE INSURANCE APPS AND PREMIUM RECEIPTS, THAT REQUIRES A PROPOSED INSURED TO NOTIFY THE INSURER IN WRITING IF HIS HEALTH OR ANY MATERIAL INFO IN THE APPLICATION CHANGES BEFORE THE POLICY IS DEIVERED |
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CHURNING |
OCCURS WHEN A PRODUCER INDUCE A CUSTOMER TO REPLACE ONLCY AFTER ANOTHER SO THAT THE PRODUCER CAN EARN A SERIES OF FIRST-YEAR COMMISSIONS ON THE REPLACEMENTS |
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CIVIL RIGHTS ACT OF 1964 |
A US FEDERAL LAW THAT PROHIBITS EMPLOYMENT DISCRIMINATION ON THE BASIS OF RACE, COLOR, SEX, RELIGION,OR NATIONAL ORGIN |
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CLAIM PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT TYPICALLY STATES THE TERMS AND CONDITIONS OF THE REINSUER'S LIABILITY OR CLAIMS SUBMITTED UNDER REINSURED POLICIES |
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CLASS |
A GROUP OF GROUP MEMBERS CATEGORIZED ACCORDING SOMEN NONDISCRIMINATORY CHARACTERISTIC FOR PURPOSES OF DETERMINING ELIGIBILITY OF COVERAGE AND BENEFIT LEVELS |
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CLASS DESIGNATION |
A LIFE INSURANCE BENEFICIARY DESIGNATION THAT IDENTIFIES A CERTAIN GROUP OF PPL RATHER THAN NAMING EACH PERSON INDIVIDUALLY |
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COINSURANCE |
A PLAN OF PROPORTIONAL REINSURANCE UNDER WHICH THE DIRECT WRITER AND THE REINSURER PROPORTIONATELY SHARE MONETARY RESPONSIBILITY FOR ALMOST EVRY ASPECT OF EACH POLICY COVERED UNDER THE ARANGEMENT |
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COINSURANCE ALLOWANCE |
A TYPE OF REINSURANCE ALLOWANCE SHARED PROPORTIONALL BETWEEN THE DIRECT WRITER AND THE REINSURER FOR THE DIRECT WRITER'S EXPENSES SUCH AS COMMISSIONS, ADMINISTRATIONS, AND SOME PREMIUM TAXES |
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COLLATERAL ASSIGNMENT |
THE TRANSFER OF SOME OF A POLICYOWNER'S RIGHTS IN A FE INSURANCE POLICY TO PROVIDE SECURITY FOR A DEBT |
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COMMITTEE UNDERWRITING |
A WORK DIVISION APPROACH IN WHICH A COMMITTEE OF HIGHLY QUALIFIED PPL FROM INSIDE AND OUTSIDE THE UNDERWRITING FUNCTION IS CALLED TOGETHER FOR A CASE ASSIGNMENT |
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COMORBIDITY |
THE SIMULTANEOUS APPEARANCE OF TWO OR MORE UNRELATED ILLNESSES OR CONDITIONS THAT MAY ACT IN CONJUNCTION WITH ONE ANOTHER |
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COMPENSATORY DAMAGES |
MONETARY AWARDS INTENDED TO COMPENSATE AN INJURED PARTY FOR THE AMOUNT OF THE MONETARY LOSSES THAT RESULTED FROM THE DEFENDANT'S IMPROPER CONDUCT |
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CONCURRENT BENEFICIARY |
TWO OR MORE LIFE INSURANCE BENEFICIARIES WHO SHARE THE POLICY PROCEEDS ON THE DEATH OF THE INSURED; SHARES ARE DISTRIBUTED EVENLY UNLESS OTHERWISE STATED |
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CONDITIONAL PREMIUM RECEIPT |
A PREMIUM RECEIPT THAT SPECIFIES CERTAIN CONDITIONS THAT MUST BE MET BEFORE A TEMPORARY INSURANCE COVERAGE PROVIDED BY THE RECEIPT BECOMES EFFECTIVE |
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CONSUMER REPORT |
UNDER THE FAIR CREDIT REPORTING ACT (FCRA) ANY COMMUNICATION OF INFO BY A CONSUMER REPORTING AGENCY THAT (1) SHOWS AN INDIVIDUAL CONSUMER'S CREDITWORTHINESS, CREDIT STANDING, CREDIT CAPACITY, CHARACTER, REPUTATION, CHARACTERISTICS, OR MODE OF LIVING AND (2) REPORTED TO 3RD PARTIES FOR A FEE |
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CONTEST |
A COURT ACTION TO DETERMINE THE VALIDITY OF AN INSURANCE CLAIM |
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CONTINUATION |
OCCURS EITHER WHEN (1) THE PROVISIONS OF AN IN-FORCE POLICY ARE SIGNIFICANTLY MODIFIED (2) A POLICY REPLACES AN EXISTING POLICY FROM THE SAME DIRECT WRITER, BUT DIFFERS FROM A NEW INSURANCE POLICY IN A SPECIFIC WAY |
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CONTINUATION PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT ADDRESSES WHICH REINSURER(S) SHOULD PROVIDE THE REINSURANCE, THE AMOUNT OF REINSURANCE, AND THE EFFECTIVE DATE OF REINSURANCE FOR CONTINUED POLICIES |
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CONTRIBUTORY PLAN |
A GROUP INSURANCE PLAN FOR WHICH GROUP INSUREDS MUST PAY SOME OR ALL OF THE PREMIUMS FOR THEIR COVERAGE |
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COOKIE |
A FILE THAT A SERVER-A COMPUTER THAT CONTAINS SHARED RESOURCES-PLACES ON A USER'S PERSONAL COMPUTER THAT ENABLES THE SERVER TO RECOGNIZE THE PERSONAL COMPUTER |
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COST BASIS |
EQUAL TO THE PREMIUMS PAID MINUS THE TOTAL ACCUMULATED POLICY DIVIDENDS |
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COUPON PLAN |
A POLICY LOAN REPAYMENT PLAN IN WHICH THE INSURER SUPPLIES THE POLICYOWNER WITH COUPONS TO RETURN WITH PERIODIC PAYMENTS AGAINST THE LOAN AMOUNT |
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CREDIBILITY FACTOR |
A PERCENTAGE THAT REPRESENTS THE AMOUNT OF WEIGHT GIVEN TO A GROUP'S ACTUAL CLAIM EXPERIENCE FOR PREMIUM RATE CALCULATION PURPOSES |
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CREDITOR INSURANCE |
COVERAGE DESIGNED TO PAY FOR THE ECONOMIC LOSS SUFFERED BY A CREDITOR WHEN A KEY PERSON OF A DEBTOR BUSINESS DIES BEFORE THE DEBT IS PAID |
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CREDITS |
A PROPOSED INSURED'S RISK FACTORS THAT HAVE A FAVORABLE EFFECT ON MORALIT ARE ASSIGNED "MINUS" VALUES (SUCH AS -25) |
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CROSS-PURCHASE AGREEMENT |
A TYPE OF BUY-SELL AGREEMENT IN WHICH A PARTNER AGREES TO PURCHASE A SHARE OF A DECEASED PARTNER'S INTEREST IN THE PARTNERSHIP BY FUNDING THE AGREEMENT WITH AN INSURANCE POLICY ON THE LIFE OF THE OTHER PARTNERS |
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CURRENT ASSETS |
ITEMS THAT A COMPANY PRESENTLY HAS R OWNS THAT CAN BE READILY CONVERTED TO CASH AT A CLOSE APPROXIMATION OF TRUE VALUE |
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CURRENT LIABILITIES |
ALL COMPANY DEBTS AND OBLIGATIONS DUE AND PAYABLE WITHIN THE NEXT ACCOUNTING PERIOD |
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CURRENT RATIO |
A FINANCIAL RATION CALCULATED BY DIVIDING CURRENT ASSETS BY CURRENT LIABILITIES |
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DATA MINING |
THE ANALYSIS OF LARGE AMOUNTS OF DATA TO DISCOVER PREVIOUSLY UNKNOWN TRENDS, PATTERNS, AND RELATIONSHIPS |
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DATA WAREHOUSE |
A TYPE OF DATABASE MANAGMENT SYSTEM THAT COLLECTS DATA FROM THE COMPANY'S EXISTING DATABASES AND POSSIBLY FROM SOURCES OUTSIDE THE COMPANY, SCREEN, AND EDITS DATA, PUTS THE DATA IN A STANDARD FORMAT, AND THEN STORES THE DATA IN A CENTRALIZED DATA REPOSITORY |
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DATABASE MANAGEMENT SYSTEM (DBMS) |
A GROUP OF COMPUTER PROGRAMS THAT ORGANIZES DATA IN A DATABASE AND ALLOWS USERS TO OBTAIN INFO THEY NEED |
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DATE OF EXPIRY |
THE DATE ON WHICH THE REINSURER WILL CANCEL THE RESERVATION OF REINSURANE CAPACITY IF THE REINSURER DOES NOT RECEIVE A CESSION OR OTHER PLACEMENT INFO FROM THE DIRECT WRITER |
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DEBITS |
A PROPOSED INSURED'S MEDICAL AND PERSONAL RISK FACTORS THAT HAVE AN UNFAVORABLE EFFECT ON MORALITY ARE ASSIGNED "PLUS" VALUES (SUCH AS +25) |
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DEBIT-CREDITOR GROUP |
CONSISTS OF INDIVIDUALS WHO HAVE BORROWED MONEY FROM A SPECIFIC LENDER OR LENDERS |
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DEBT-TO-EQUITY RATIO |
A FINANCIAL RATIO WHICH IS CALCULATED BY DIVIDING A COMPANY'S TOTAL DEBT BY IT'S OWNER'S EQUITY |
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DEFAMATION |
A CIVIL WRONG THAT OCCURS WHEN A PERSON MAKES A FALSE STATEMENT THAT TEND TO DAMAGE THE REPUTATION OF ANOTHER |
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DEPENDENT |
A (1) SPOUSE, (2) AN UNMARRIED CHILD WHO IS UNDER 19 AND WHO RELIES ON THE GROUP MEMBER FOR FINANCIAL SUPPORT, (3) A CHILD AGE 19 OR OLDER UP TO 25 IF SHE IS A FULL TIME STUDENT, (4) A DISABLED CHILD FOR AS LONG AS THE DISABILITY EXISTS REGARDLESS OF AGE |
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DIRECT RESPONSE DISTRIBUTION SYSTEM |
A TYPE OF DISTRIBUTION CHANNEL IN WHICH CUSTOMERS PURCHASE PRODUCTS DIRECTLY FROM A COMPANY BY RESPONDING TO ADVERTISEMENTS, INTERNET WEB SITES, OR TELEPHONE SOLICIATIONS |
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DIRECT RESPONSE POLICY |
A POLICY, DISTRIBUTED THROUGH A DIRECT RESPONSE SYSTEM, WHICH MAY BE FULLY UNDERWRITTEN, UNDERWRITTEN ON A NONMEDICAL BASIS, OR UNDERWRITTEN ON A GUARANTEED-ISSUE BASIS |
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DIRECT WRITER |
IN A REINSURANCE ARRANGEMENT, AN INSURER SELLS INSURANCE COVERAGE TO THE PUBLIC (CEDING COMPANY) |
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DIVIDEND PLAN |
A POLICY LOAN REPAYMENT PLAN IN WHICH THE INSURER APPLIES AVAILABLE DIVIDENDS PLUS FUTURE DIVIDENDS AGAINST THE LOAN AMOUNT |
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DIVISIBLE SURPLUS |
THE PORTION OF AN INSURANCE COMPANY'S EARNINGS THAT IS AVAILABLE FOR DISTRIBUTION TO POLICYOWNERS |
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DOCUMENT MANAGEMENT SYSTEM |
A TYPE OF TECHNOLOGY THAT STORES, ORGANIZES, AND RETRIVES DOCUMENTS THAT HAVE BEEN CONVERTED TO DIGITAL IMAGES |
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DREAD DISEASE (DD) BENEFIT |
AN ACCELERATED DEATH BENEFIT UNDER WHICH THE INSURER AGREES TO PAY A PORTION OF THE POLICY'S BENEFIT TO A POLICYOWNER-INSURED IF HE SUFFERS FROM ONE OF A NUMBER OF SPECIFIED DISEASES |
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DROP NOTICE |
A WRITTEN EXPLANATION FROM A DIRECT WRITER TO A REINSURER STATING THAT THE DIRECT WRITER NO LONGER NEEDS REINSURANCE THAT IT PREVIOUSLY REQUESTED AND ASKING THE REINSURER TO CANCEL THE RESERVATION |
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DURATION OF AGREEMENT PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT ADDRESSES WHEN THE RESINURANCE AGREEMENT BECOMES EFFECTIVE AND WHEN IT ENDS |
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ELECTROCARDIOGRAM (ECG) |
A GRAPHIC RECORD OF THE ELECTRICAL FORCES PRODUCED BY THE HEART AND A DIAGNOSTIC TOOL FOR DETECTING A DISEASE OR AN ABNORMALITY OF THE HEART |
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ELECTRONIC APPLICATION SYSTEM |
A TECHNOLOGY THAT ALLOWS PRODUCERS OR APPLICANTS TO ENTER APPLICATION INFO INTO A COMPUTER, RATHER THAN ON PAPER, AND TRANSMIT THE INFO TO THE INSURER OVER A COMPUTER NETWORK |
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ELECTRONIC COMMERCE (E-COMMERCE) |
THE USE OF THE INTERNET AND OTHER NETWORKS TO DELIVER COMMERCIAL INFO AND TO FACILITATE BUSINESS TRANSACTIONS AND THE DELIVERY OF PRODUCTS AND SERVICES |
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ELECTRONIC DATA INTERCHANGE (EDI) |
THE COMPUTER-TO-COMPUTER EXCHANGE OF DATA BETWEEN ORGANIZATIONS USING A DATA FORMAT AGREED UPON BY THE SENDING AND RECEIVING PARTIES |
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ELECTRONIC FUNDS TRANSFER (EFT) |
A MEHTOD OF TRANSFERRING FUNDS BETWEEN FINANCIAL INTERMEDIARIES THROUGH AN ELECTRONIC COMPUTER NETWORK |
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ELIGIBILITY PERIOD |
THE PERIOD OF TIME (USUALLY 31 DAYS) DURING WHICH ELIGIBLE GROUP MEMBERS MAY ENROLL FOR CONTRIBUTORY GROUP INSURANCE COVERAGE WITHOUT HAVING TO PROVIDE EVIDENCE OF INSURABILITY |
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EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) |
A US FEDERAL LAW THAT REGULATES EMPLOYEE RETIREMENT PLANS AND SPECIFIES MINIMUM REQUIREMENTS THAT EMPLOYEE WELFARE BENEFIT PLANS MUST MEET |
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ENROLLMENT CARD |
A DOCUMENT THAT MUST BE COMPLETED AND SIGNED BY A GROUP MEMBER TO ENROLL IN A GROUP INSURANCE PLAN |
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ENTIRE AGREEMNET PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT STATES THAT THE REINSURANCE AGREEMENT REPRESENTS THE WHOLE AGREEMENT BETWEEN THE PARTIES, AND THAT THEY HAVE NO FURTHER AGREEMENT THAN THAT STATED IN THE WRITTEN DOCUMENT |
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ENTITY AGREEMENT |
A TYPE OF BUY-SELL AGREEMENT UNDER WHICH THE PARTNERSHIP-RATHER THAN THE INDIVIDUAL PARTNERS-AGREES TO PURCHASE THE SHARE OF ANY PARTNER WHO DIES |
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EQUITY |
THE AMOUNT OF THE BUSINESS OWNED-AND NOT FINANACED-BY THE OWNERS |
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ERRORS AND OMISSIONS PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT STATES THAT, IF EITHER PARTY TO THE AGREEMENT FAILS TO COMPLY WITH THE TERMS OF THE AGREEMENT THROUGH UNINTENTIONAL ADMINISTRATIVE MISTAKE OR CLERICAL ERROR, THEN BOTH PARTIES WILL BE RESTORED TO THE POSITION THEY WOULD HAVE OCCUPIED IF THE MISTAKE OR ERROR HAD NOT OCCURED |
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EXCESS OF RETENTION |
THE MONETARY AMOUNT OF RISK REMAINING AFTER THE DIRECT WRITER'S RETENTION LIMIT IS SUBTRACTED FROM THE NET AMOUNT AT RISK ON A CASE |
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EXCESS QUOTA SHARE ARRANGEMENT |
A METHOD FOR ASSIGNING RISK IN PROPORTIONAL REINSURANCE IN WHICH THE DIRECT WRITER KEEPS ITS FULL RETENTION LIMIT AND CEDES THE REMAINING RISK TO TWO OR MORE REINSURERS ON A PERCENTAGE BASIS |
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EXCESS-OF-RETENTION ARRANGEMENT |
A METHOD FOR ASSIGNING RISK IN PROPORTIONAL REINSURANCE IN WHICH THE DIRECT WRITER ESTABLISHES A DOLLAR AMOUNT AS ITS RETENTION LIMIT AND THE REINSURER AGREES TO ASSUME MONETARY AMOUNTS GREATER THAN THE DIRECT WRITER'S SPECIFIED RETENTION LIMIT, UP TO THE REINSURER'S AUTOMATIC BINDING LIMIT |
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EXCULPATORY STATUTE |
A LAW THAT PERMITS AN INSURER TO PAY LIFE INSURANCE PROCEEDS ACCORDING TO THE TERMS OF A POLICY WITHOUT FEAR OF DOUBLE LIABILITY |
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EXPERIENCE RATING |
A METHOD OF ESTABLISHING GROUP INSURANCE PREMIUM RATES USING A GROUP'S OWN CLAIM EXPERIENCE |
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EXPERIENCE REFUND |
THE PORTION OF A GROUP INSURANCE PREMIUM THAT IS RETURNED TO A GROUP POLICYHOLDER IF THE GROUP'S CLAIM EXPERIENCE DURING THE YEAR WAS MORE FAVORABLE THAN EXPECTED WHEN THE PREMIUM WAS CALCULATED (ALSO CALLED A DIVIDEND OR PREMIUM REFUND) |
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EXTENTENSION REQUEST |
A REQUEST FROM A DIRECT WRITER TO A REINSURER TO EXTEND THE DIRECT WRITER'S RESERVATION OF CAPACITY FOR A SPECIFIED PERIOD SO THAT THE DIRECT WRITER CAN GATHER ALL INFO NEEDED TO MOVE THE CASE FROM RESERVED TO PLACED STATUS |
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EXTERNAL REPLACEMENT |
A SITUATION IN WHICH A NEW POLICY IS PURCHASED FROM AN INSURER OTHER THAN THE INSURER THAT ISSUED THE ORIGINAL POLICY |
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EXTRA-PERCENTAGE TABLE |
A DOCUMENT THAT PRESENTS THE TOTAL MORTALITY FOR EACH SUBSTANDARD GROUP AND THAT LISTS ALL THE TABLES USED IN THE TABLE RATING METHOD |
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FACTOR TABLE |
A CHART THAT SHOW THE MAXIMUM AMOUNT OF INSURANCE-EXPRESSED IN MULTIPLES OF A PERSON'S SALARY OR CURRENT GROSS EARNED INCOME-THAT AN INSURER TYPICALLY WILL APPROVE IN EACH OF SEVERAL AGE RANGES |
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FACULTATIVE REINSURANCE |
A REINSURANCE CESSION ARRANGEMENT IN WHICH A DIRECT WRITER CHOOSES WHETHER TO CEDE A RISK AND THE REINSURER CHOOSES WHETHER TO ACCEPT THAT RISK |
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FACULTATIVE-OBLIGATORY (FAC-OB) REINSURANCE |
A REINSURANCE CESSION ARRANGEMENT IN WHICH (1) THE DIRECT WRITER MAY CHOOSE TO SUBMIT SPECIFIC CASES TO THE REINSURER AND (2) THE REINSURER MUST ACCEPT THE CASES BASED ON THE DIRECT WRITER'S UNDERWRITING, UP TO A STATED MAXIMUM AMOUNT, IF THE REINSURER HAS AVAILABLE FINANCIAL CAPACITY |
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FAIR CREDIT REPORTING ACT (FCRA) |
A US FEDERAL LAW THAT REGULATES THE REPORTING AND USE OF CONSUMER INFORMATION AND THAT SEEKS TO ENSURE THAT CONSUMER REPORTS CONTAIN ONLY ACCURATE, RELEVANT, AND RECENT INFO |
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FIELD UNDERWRITING MANUAL |
A DOCUMENT THAT (1) PRESENTS SPECIFIC GUIADANCE FOR A PRODUCER'S ASSESSMENT OF THE RISK REPRESENTED BY A PROPOSED INSURED AND (2) GUIDES THE PRODUCER SUBMITTING THE APP AND ANY OTHER INFO NEEDED FOR THE UNDERWRITER TO EVALUATE THE RISK |
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FINANCIAL CAPACITY |
THE TOTAL MONETARY AMOUNT OF RISK THE COMPANY CAN ACCEPT BASED ON THE INVESTABLE FUNDS IT HAS AVAILABLE TO WRITE NEW BUSINESS |
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FINANCIAL RATIO ANALYSIS |
THE PROCESS OF CALCULATING THE RELATIVE PAIRS OF FINANCIAL VALUES 'S FINANCIAL CONDITION |
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FINANCIAL RISK FACTOR |
FINANCIAL INFO THAT AN UNDERWRITER CONSIDERS TO DETERMINE WHETHER A PERSON IS APPLYING FOR MORE INSURANCE THAN HE REASONABLY NEEDS OR CAN AFFORD |
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FINANCIAL STATUS |
A PERSON'S (1) CURRENT INCOME EXPRESSED IN TERMS OF AMOUNT, SOURCES, AND PERMANENCY AND (2) NET WORTH |
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FINANCIAL UNDERWRITING |
ASSESSMENT OF THE PROPOSED INSURED'S FINANCIAL CONDITION, CONDUCTED BY AN INDIVIDUAL LIFE INSURANCE UNDERWRITER, TO DETERMINE (1) THE PROPOSED INSURED NEEDS THE COVERAGE, (2) A REASONABLE RELATIONSHIP EXISTS BTW THE NEED FOR THE COVERAGE AND THE AMT OF COVERAGE APP FOR, AND (3) THE PREMIUMS ARE AFFORDABLE |
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FINANCIAL WORKSHEET |
A DOCUMENT THAT ENABLES AN UNDERWRITER TO ORGANIZE FINANCIAL INFO AND DEVELOP A CLEAR PICTURE OF A PERSON'S FINANCIAL SITUATION |
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FIRST-DOLLAR QUOTA SHARE (FDQS) ARRANGEMENT |
A METHOD FOR ASSIGNING RISK IN PROPORTIONAL REINSURANCE IN WHICH THE DIRECT WRITER RETAINS A STATED PERCENTAGE OF THE RISK FOR EACH POLICY IN A GIVEN BLOCK OF BUSINESS, UP TO ITS RETENTION LIMITS, AND CEDES THE REMAINING RISK TO ONE OR MORE REINSURERS |
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FIXED-AMOUNT OPTION |
A SETTLEMENT OPTION UNDER WHICH THE INSURANCE COMPANY PAYS EQUAL INSTALLMENTS OF A STATED AMOUNT UNTIL THE POLICY PROCEEDS, PLUS THE INTEREST EARNED, ARE EXHAUSTED |
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FIXED-PERIOD OPTION |
A SETTLEMENT OPTION UNDER WHICH THE INSURANCE COMPANY PAYS EQUAL INSTALLMENTS OF A STATED AMOUNT UNTIL THE POLICY PROCEEDS PLUS THE INTEREST EARNED ARE EXHAUSTED |
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FLAT EXTRA PREMIUM METHOD |
A METHOD OF CHARGING FOR SUBSTANDARD INDIVIDUAL LIFE INSURANCE IN WHICH THE INSURER ADDS TO THE STANDARD PREMIUM A SPECIFIED EXTRA DOLLAR AMOUNT FOR EVERY $1000 OF INSURANCE |
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FULLY INSURED GROUP PLAN |
A PLAN FOR WHICH AN INSURANCE COMPANY IS FINANCIALLY RESPONSIBLE FOR INCURRED CLAIMS |
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FUNDS WITHHELD COINSURANCE |
A PLAN OF PROPORTIONAL REINSURANCE UNDER WHICH THE DIRECT WRITER AND REINSURER PROPORTIONATELY SHARE RESPONSIBILITY FOR ALMOST ALL ASPECTS OF A REINSURED POLICY, BUT THE DIRECT WRITER RETAINS THE GROSS REINSURANCE PREMIUM AND THE REINSURER RETAINS THE INITIAL COINSURANCE ALLOWANCE |
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GRAMM-LEACH-BLILEY (GLB) ACT |
A US FEDERAL LAW THAT REMOVED MANY OF THE BARRIERS TO AFFILIATIONS AMONG INSTITUTIONS IN THE VARIOUS SEGMENTS OF THE FINANCIAL SERVICES INDUSTRY |
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GROUP LIFE INSURANCE DEFINITION AND GROUP LIFE INSURANCE STANDARD PROVISIONS MODEL ACT (GROUP LIFE INSURANCE MODEL ACT) |
A NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW THAT DEFINES THE TYPES OF GROUPS ELIGIBLE FOR GROUP LIFE INSURANCE AND SETS FORTH PROVISIONS THAT GROUP POLICIES MUST CONTAIN |
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GROUP MEMBER |
THE INDIVIDUALS WHO ARE PART OF A GROUP BUT ARE NOT COVERED BY INSURANCE |
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GROUP INSURED |
AN INDIVIDUAL COVERED BY A MASTER GROUP INSURANCE CONTRACT |
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GROUP PROSPECT |
A GROUP THAT HAS APPLIED, BUT HAS NOT YET BEEN APPROVED, FOR GROUP COVERAGE FROM AN INSURANCE COMPANY |
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GROUP REPRESENTATIVE |
SALARIED INSURANCE COMPANY EMPLOYEES SPECIFICALLY TRAINED IN THE TECHNIQUES OF MARKETING AND SERVICING GROUP PRODUCTS |
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GUARANTEED INSURABILITY (GI) BENEFIT |
A SUPPLEMENTAL BENEFIT THAT GIVES THE POLICYOWNER THE RIGHT TO PURCHASE ADDITIONAL INSURANCE OF THE SAME TYPE AS THE BASIC LIFE INSURANCE POLICY-FOR AN ADDITIONAL PREMIUM-ON SPECIFIED OPTION DATES DURING THE LIFE OF THE POLICY W/OUT SUPPLYING EVIDENCE OF INSURABILITY |
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HUMAN RESOURCES |
THE FUNCTIONAL AREA OF AN INSURANCE COMPANY THAT RECRUITS AND SCREENS JOB APPLICANTS; HELPS SELECT QUALIFIED EMPLOYEES; PLANS AND PRESENTS APPROPRIATE ORIENTATION, TRAINING, AND DEVELOPMENT FOR EACH EMPLOYEE; ADMINISTERS EMPLOYEE BENEFIT PROGRAMS; AND MAINTAINS EMPLOYEE RECORDS |
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IMPAIRMENT GUIDE |
A LIST OF COMMON IMPAIRMENTS AND THE PROBABLE UNDEWRRITING DECISION FOR PROPOSED INSUREDS WHO HAVE EACH TYPE OF IMPAIRMENT |
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INCOME STATEMENT |
A FINANCIAL DOCUMENT THAT REPORTS THE BUSINESS'S REVENUES AND EXPENSES DURING A SPECIFIED PERIOD AND INDICATES WHETHER THE BUSINESS EXPERIENCED NET INCOME OR A NET LOSS DURING THE PERIOD (ALSO CALLED PROFIT AND LOSS STATEMENT) |
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INDEMNITY REINSURANCE |
A COMMON TYPE OF REINSURANCE UNDER WHICH A REINSURER IS OBLIGATED TO REIMBURSE A DIRECT WRITER ONLY AFTER THE DIRECT WRITER PAYS BENEFITS UNDER REINSURED POLICIES |
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INDEPENDENT UNDERWRITING |
A WORK DIVISION SYSTEM IN WHICH UNDERWRITERS WORK ALONE TO ASSESS EACH RISK |
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INDUSTRY EXPERIENCE |
THE COLLECTIVE DATA ABOUT INSURANCE CLAIM EXPERIENCE GENERATED BY INDUSTRY-WIDE STUDIES |
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IN-FORCE POLICY REPORT |
A REINSURANCE REPORT THAT LISTS ALL IN-FORCE REINSURED POLICIES AS OF A GIVEN DATE AND PROVIDES DETAILED INFO ABOUT EACH POLICY |
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INFORMATION MANAGEMENT |
THE USE OF INFORMATION SYSTEMS TO PROVIDE A COMPANY'S INFORMATION USERS WITH THE INFORMATION THEY NEED TO CARRY OUT THEIR JOB RESPONSIBILITIES |
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INFORMATION SYSTEM |
AN INTERACTIVE COMBINATION OF TECHNOLOGY, PEOPLE, AND PROCESSES THAT COLLECTS, MANIPULATES, AND DISSEMINATES INFORMATION |
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INSOLVENCY |
THE OPPOSITE OF SOLVENCY; AN ORGANIZATION'S INABILITY TO PAY ITS FINANCIAL OBLIGATIONS AS THEY COME DUE |
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INSOLVENCY PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT TYPICALLY DESCRIBES THE RIGHTS AND RESPONSIBILITIES OF THE DIRECT WRITER AND THE REINSURER IN THE EVENT THAT EITHER PARTY BECOMES INSOLVENT |
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INSPECTION REPORT |
A TYPE OF INVESTIGATIVE CONSUMER REPORT THAT A CONSUMER REPORTING AGENCY PREPARES ABOUT A PROPOSED INSURED |
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INSURABILITY PREMIUM RECEIPT |
A CONDITIONAL PREMIUM RECEIPT THAT PROVIDES TEMPORARY INSURANCE COVERAGE ON CONDITION THAT THE INSURER FINDS THAT THE PROPOSED INSURED WAS INSURABLE AT LEAST AS A STANDARD RISK ON A CERTAIN DATE SPECIFIED IN THE PREMIUM RECEIPT |
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INSURANCE ADMINISTRATION |
THOSE INSURANCE COMPANY ACTIVITIES SPECIFICALLY ASSOCIATED WITH ADMINISTERING INSURANCE POLICIES, SUCH AS UNDERWRITING, REINSURANCE, CLAIMS , AND CUSTOMER SERVICE |
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INSURANCE FRAUD PREVENTION MODEL ACT |
A STATE LAW, BASED ON THE NAIC MODEL LAW, DESIGNED TO PERMIT THE STATE INSURANCE DEPTS TO INVESTIGATE AND DISCOVER FRAUDULENT INSURANCE ACTS MORE EFFECTIVELY, HALT FRAUDULENT INSURANCE ACTS, AND RECEIVE ASSISTANCE FROM STATE, LOCAL, AND FEDERAL LAW ENFORCEMENT AND REGULATORY AGENCIES IN ENFORCING LAWS |
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INSURANCE INFO AND PRIVACY PROTECTION MODEL ACT (MODEL PRIVACY ACT) |
A NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW THAT ESTABLISHES STANDARDS FOR THE COLLECTION, USE, AND DISCLOSURE OF INFO GATHERED IN CONNECTION WITH INSURANCE TRANSACTIONS |
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INSURER-ADMINISTERED PLAN |
A GROUP INSURANCE PLAN FOR WHICH THE INSURER HANDLES MOST OF THE ADMINISTRATIVE ASPECTS OF THE PLAN (COMPARED TO SELF-ADMINISTERED PLANS) |
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INTEREST OPTION |
A SETTLEMENT OPTION UNDER WHICH THE INSURANCE COMPANY INVESTS THE POLICY PROCEEDS AND PERIODICALLY PAYS INTEREST ON THOSE PROCEEDS. |
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INTERNAL REPLACEMENT |
A SITUATION IN WHICH A NEW POLICY IS PURCHASED FROM THE SAME INSURER THAT ISSUED THE ORIGINAL POLICY |
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INTERPLEADER |
A PROCEDURE BY WHICH THE INSURER PAYS THE POLICY PROCEEDS TO A COURT, ADVISED THE COURT THAT THE INSURER CANNOT DETERMINE THE CORRECT RECIPIENT OF THE PROCEEDS, AND ASKS THE COURT TO DETERMINE THE PROPER RECIPIENT OR RECIPIENTS |
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INVESTIGATIVE CONSUMER REPORT |
A CONSUMER REPORT THAT CONTAINS INFO OBTAINED THROUGH PERSONAL INTERVIEWS WITH AN INDIVIDUAL'S NEIGHBORS, FRIENDS, ASSOCIATES, OR OTHERS WHO MAY HAVE INFO ABOUT THE INDIVIDUAL |
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JET ISSUE ELECTRONIC SYSTEM |
AN INFORMATION SYSTEM THAT USES BUSINESS RULES ENGINES TO DETERMINE THAT (1) CERTAIN CRITERIA ARE MET AND AN APP FOR INSURANCE IS APPROVED FOR ISSUE OR (2) THE CRITERIA ARE NOT MET, AND AN APP FOR INSURANCE IS EITHER DECLINED OR SENT TO AN UNDERWRITER |
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JET UNIT UNDERWRITING |
A WORK DIVISION APPROACH IN WHICH A SEPARATE GROUP OF EMPLOYEES ARE AUTHORIZED TO APPROVE CERTAIN TYPES OF INDIVIDUAL INSURANCE APPLICATIONS FOR IMMEDIATE POLICY ISSUE |
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JOINT LIFE INSURANCE POLICY |
A MULTI-LIFE POLICY UNDER WHICH PROCEEDS WILL BE PAID WHEN THE FIRST OF TWO (OR MORE) INSUREDS COVERED BY THE POLICY DIES (ALSO CALLED A FIRST-TO-DIE LIFE INSURANCE POLICY) |
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JUMBO LIMIT |
THE MAXIMUM ALLOWABLE MONETARY AMOUNT OF TOTAL INSURANCE (IN FORCE AND YET-TO-BE-PLACED) WITH ALL COMPANIES ON ANY ONE LIFE THAT A REINSURER WILL ACCEPT FOR AUTOMATIC CESSION |
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KEY PERSON |
A PERSON (INCLUDING AN OWNER, TOP SALESPERSON, OR AN EMPLOYEE POSSESSING THE SKILLS, KNOWLEDGE, OR ABILITIES) WHOSE CONTINUED PARTICIPATION IN THE BUSINESS IS NECESSARY TO ITS SUCCESS AND WHOSE DEATH WOULD CAUSE SUBSTANTIAL FINANCIAL LOSS TO THE BUSINESS |
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KEY-PERSON LIFE INSURANCE |
INDIVIDUAL LIFE INSURANCE THAT A BUSINESS PURCHASES ON THE LIFE OF A KEY PERSON |
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KNOWLEDGE MANAGEMENT SYSTEM |
A TECHNICAL RESOURCE THAT REPRESENTS THE STRATEGIES, RESOURCES, AND PROCESSES THAT ORGANIZATIONS USE TO APPLY INSTITUTIONAL KNOWLEDGE TO BUSINESS ACTIVITIES |
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LAST SURVIVOR LIFE INSURANCE POLICY |
A MULTI-LIFE POLICY UNDER WHICH PROCEEDS WILL BE PAID WHEN THE SECOND (OR LAST) OF TWO (OR MORE) INSUREDS COVERED BY THE POLICY DIES (ALSO CALLED SECOND-TO-DIE LIFE INSURANCE) |
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LATE ENROLLEE |
GROUP MEMBERS AND ELIGIBLE DEPENDENTS WHO ARE NOT ENROLLED WHEN COVERAGE IS FIRST OFFERED AND LATER DECIDE TO ENROLL IN THE PLAN |
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LIFE INCOME OPTION |
A SETTLEMENT OPTION UNDER WHICH THE INSURANCE COMPANY AGREES TO PAY THE POLICY PROCEEDS IN PERIODIC INSTALLMENTS OVER THE PAYEE'S LIFETIME |
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LIFE SETTLEMENT |
THE SALE OF A LIFE INSURANCE POLICY TO A 3RD PARTY FOR A DISCOUNT FROM THE POLICY'S FACE AMOUNT |
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LIQUIDITY |
A COMPANY'S ABILITY TO READILY CONVERT ITS ASSETS TO CASH FOR AN APPROXIMATION OF THEIR TRUE VALUE |
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LONG-TERM CARE (LTC) INSURANCE BENFIT |
AN ACCELERATED DEATH BENEFIT UNDER WHICH THE INSURER AGREES TO PAY PERIODIC BENEFITS TO A POLICYOWNER-INSURED IF HE REQUIRES CARE IN HIS OWN HOME OR A QUALIFIED FACILITY |
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LUMP SUM PLAN |
A POLICY LOAN REPAYMENT PLAN IN WHICH THE POLICYOWNER SUBMITS A CHECK OR MONEY ORDER FOR THE ENTIRE LOAN PLUS THE LOAN INTEREST DUE |
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MAINTENANCE EXPENSES |
THE DIRECT WRITER'S ONGOING EXPENSE FOR ADMINISTERING AND SERVICING A POLICY OR A BLOCK OF BUSINESS AFTER IT HAS BEEN IN FORCE |
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MANUAL RATING |
A METHOD OF ESTABLISHING GROUP INSURANCE PREMIUM RATES UNDER WHICH THE INSURER ESTABLISHES RATES FOR VERY BROAD CLASSIFICATIONS OF GROUP INSUREDS |
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MARKET CONDUCT EXAMINATION |
A FORMAL INVESTIGATION OF AN INSURER'S NONFINANCIAL OPERATIONS THAT IS CARRIED OUT BY ONE OR MORE STATE INSURANCE DEPARTMENTS AND IS DESIGNED TO DETERMINE WHETHER THE INSURER'S MARKET CONDUCT OPERATIONS COMPLY WITH APPLICABLE LAWS AND REGULATIONS |
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MARKETING |
THE FUNCTIONAL AREA OF AN INSURER THAT HAS PRIMARY RESPONSIBILITY FOR IDENTIFYING THE INSURER'S PROSPECTIVE CUSTOMERS AND WHAT THEY WANT, AS WELL AS PLANNING THE PROMOTION OR DISTRIBUTION OF THE INSURER'S PRODUCTS |
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MASTER APPLICATION |
AN APPLICATION FOR GROUP INSURANCE THAT CONTAINS THE SPECIFIC PROVISIONS OF THE REQUESTED PLAN OF INSURANCE AND IS SIGNED BY AN AUTHORIZED OFFICER OF THE PROPOSED POLICYHOLDER |
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MEDICAL REPORT |
A TYPE OF THE PART II APP THAT CONTAINS THE PROPOSED INSURED'S ANSWERS TO MEDICAL HISTORY QUESTIONS RECORDED BY A PHYSICIAN AND THE RESULTS OF A MEDICAL EXAM CONDUCTED BY A PHYSICIAN (THE RESULTS OF THE MEDICAL EXAM DO NOT BECOME PART OF THE CONTRACT) |
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MINIMUM CESSION |
THE SMALLEST MONETARY AMOUNT OF RISK A REINSUER WILL ACCEPT OR A DIRECT WRITER WILL CEDE IN AN AUTOMATIC CESSION |
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MODIFIED COINSURANCE (MODCO) |
PROPORTIONAL REINSURANCE WHERE THE DIRECT WRITER & RENSURER SHARE PROPORTIONATELY IN POLICY RESERVE OBLIGATION, DIRECT WRITER'S GROSS PREMS, & THE RISK OF LOSS FROM EXPENSE FOR DEATH, SURRENDER, OR OTHER BENEFITS OR LAPSE (THE DIRECT WRITER HOLDS THE ENTIRE RESERVE FOR EA REINSURED POLICY) |
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MORTALITY RATE |
THE RATE AT WHICH DEATH OCCURS AMONG A SPECIFIED GROUP OF PEOPLE DURING A SPECIFIED PERIOD, TYPICALLY ONE YEAR |
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MULTIPLE-EMPLOYER GROUP |
CONSISTS OF THE EMPLOYEES OF (1) TWO OR MORE EMPLOYERS IN THE SAME INDUSTRY, (2) TOWN OR MORE LABOR UNIONS, OR (3) ONE OR MORE EMPLOYERS AND ONE OR MORE LABOR UNIONS |
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NET AMOUNT AT RISK (NAR) |
THE DIFFERENCE BETWEEN THE FACE AMOUNT OF A LIFE INSURANCE POLICY-OTHER THAN A UNIVERSAL LIFE POLICY-AND THE POLICY RESERVE (OR CASH VALUE) AT THE END OF ANY GIVEN POLICY YEAR |
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NET CASH SURRENDER VALUE |
THE ACTUAL CASH VALUE AVAILABLE TO A POLICYOWNER UPON SURRENDER OR LAPSE; EQUALS THE CASH VALUE, INCREASED BY ANY CASH VALUES OF PAID UP ADDITIONS, DIVIDEND ACCUMULATIONS, AND ADVANCE PREMIUM PAYMENTS AND DECREASED BY OUTSTANDING LOANS AND CHARGES IMPOSED ON THE SURRENDER |
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NET WORTH |
DIFFERENCE BETWEEN A PERSON'S ASSETS AND LIABILITIES |
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NETTING OFF |
A PROCESS BY WHICH A DIRECT WRITER SUBTRACTS THE CLAIM AMOUNT OWED TO IT BY A REINSURER FROM THE AMOUNT THAT THE DIRECT WRITER OWES THE REINSURER FOR REINSURANCE PREMIUMS |
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NICHE PERSONAL LIFE INSURANCE POLICIES |
LIFE INSURANCE POLICIES, INCLUDING MULTI-LIFE POLICIES, JUVENILE POLICIES, AND DIRECT RESPONSE POLICIES, THAT AN INSURER DESIGNS TO FULFILL THE NEEDS OF A SPECIFIC MARKETING SEGMENT |
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NONCONTRIBUTORY PLAN |
A GROUP INSURANCE PLAN FOR WHICH THE GROUP INSUREDS ARE NOT REQUIRED TO PAY ANY PART OF THE PREMIUM FOR THE COVERAGE; THE PREMIUMS ARE PAID ENTIRELY BY THE POLICYHOLDER AND ALL ELIGIBLE GROUP MEMBERS ARE PROVIDED WITH COVERAGE AUTOMATICALLY |
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NONMEDICAL BASIS |
A CIRCUMSTANCE UNDER WHICH THE PROPOSED INSURED IS NOT REQUIRED TO PROVIDE MEDICAL PROOF OF INSURABILITY BY UNDERGOING ANY TYPE OF PHYSICAL EXAM |
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NONMEDICAL SUPPLEMENT |
A TYPE OF PART II APPLICATION THAT CONTINS THE PROPOSED INSURED'S ANSWERS TO MEDICAL HISTORY QUESTIONS RECORDED BY A PRODUCER OR TELEUNDERWRITER |
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NONPROPORTIONAL REINSURANCE |
A TYPE OF REINSURANCE IN WHICH NEITHER THE REINSURER NOR THE DIRECT WRITER KNOWS IN ADVANCE WHAT SHARE OF A RISK THE REINSURER ULTIMATELY WILL ASSUME |
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NOTICE OF EXPIRY |
A DOCUMENT THAT THE REINSURER USES TO NOTIFY THE DIRECT WRITER THAT AN OFFER TO REINSURE IS DUE TO EXPIRE AND TO REQUEST ADDITIONAL INFO, A CESSION, A DROP NOTICE, OR AN EXTENSION REQUEST FROM THE DIRECT WRITER |
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NUMERICAL RATING SYSTEM |
A RISK CLASSIFICATION METHOD IN WHICH AN UNDERWRITER CALCULATES A NUMERICAL VALUE FOR THE DEGREE OF A RISK A PROPOSED INSURED PRESENTS TO THE INSURER; THE UNDERWRITER THEN PLACES THE PROPOSED INSURED INA RISK CLASS ACCORDING TO THE NUMERICAL VALUE |
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OPEN CLAIMANT |
GROUP INSUREDS RECEIVING SHORT OR LONG TERM DISABILITY INCOME BENFITS |
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ORPHAN POLICYHOLDER |
A POLICYOWNER WHOSE ORIGINAL PRODUCER IS NO LONGER AVAILABLE TO PROVIDE SERVICE |
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PARAMEDICAL REPORT |
A TYPE OF THE PART II APP THAT CONTAINS THE PROPOSED INSURED'S ANSWERS TO MEDICAL HISTORY QUESTIONS RECORDED BY A PARAMEDICAL EXAMINER AND THE RESULTS OF A PARAMEDICAL EXAMINATION CONDUCTED BY THE EXAMINER |
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PARTICIPATING POLICY |
AN INSURANCE POLICY UNDER WHICH THE POLICYOWNER SHARES IN THE INSURANCE COMPANY'S SURPLUS |
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PARTIES TO THE AGREEMENT PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISOIN THAT TYPICALLY STATES THAT THE REINSURANCE AGREEMENT EXISTS SOLEY BETWEEN THE DIRECT WRITER AND THE REINSURER |
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PAYEE |
THE PERSON OR ENTITY WHO IS TO RECEIVE THE POLICY PROCEEDS UNDER A SETTLEMENT OPTION |
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PER CAPITA BENEFICIARY DESIGNATION |
A TYPE OF LIFE INSURANCE POLICY BENEFICIARY CLASS DESIGNATION IN WHICH THE CLASS MEMBERS ALL STAND IN THE SAME RELATIONSHIP TO THE POLICYOWNER AND THE CLASS MEMBERS WHO SURVIVE THE INSURED SHARE THE POLICY PROCEEDS EQUALLY |
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PER STIRPES BENFICIARY DESIGNATION |
A TYPE OF LIFE INSURANCE POLICY BENEFICIARY CLASS DESIGNATION IN WHICH THE DESCENDANTS OF A DECEASED CLASS MEMBER TAKE THE DECEASED CLASS MEMBER'S SHARE OF THE POLICY PROCEEDS BY RESPRESENTATION |
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PERCENTAGE-OF-INCOME RULE |
THE AMOUNT OF MONEY A PROPOSED INSURED CAN AFFORD TO SPEND ON INSURANCE ANNUALLY ACCORDING TO A SPECIFIED PERCENTAGE OF THE PROPOSED INSURED'S CURRENT GROSS EARNED AND UNEARNED ANNUAL INCOME |
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PERMANENT FLAT EXTRA PREMIUM |
AN AMOUNT ADDED TO THE PREMIUM FOR CASES IN WHICH A PERSONAL RISK FACTOR IS EXPECTED TO REMAIN CONSTANT THROUGHOUT THE LIFE OF THE POLICY |
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PERSISTENCY BONUS |
A SUM OF MONEY PAID AS COMPENSATION TO AN INSURANCE PRODUCER WHEN A POLICY CONTINUES IN FORCE BEYOND AN INITIAL PERIOD, USUALLY FIVE YEARS |
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PERSISTENCY RATE |
THE PERCENTAGE OF A SPECIFIED GROUP OF CONTRACTS THAT REMAIN IN FORCE DURING A SPECIFIED PERIOD, SUCH AS A YEAR |
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PERSONAL INFORMATION PROTECTION AND ELECTRONICS DOCUMENT ACT (PIPEDA) |
A CANADIAN FEDERAL LAW THAT GOVERNS THE COLLECTION, USE, AND DISCLOSURE OF PERSONAL INFORMATION BY ORGANIZATIONS IN THE PRIVATE SECTOR |
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PLACEMENT |
A PROCESS IN WHICH THE DIRECT WRITER AND REINSURER ACTIVATE REINSURANCE COVERAGE FOR A NEW AUTOMATIC, FACULTATIVE, OR GAB-OB CESSION (ALSO CALLED SUBMISSION STAGE) |
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PLAN ADMINISTRATOR |
THE PARTY RESPONSIBLE FOR HANDLING THE ADMINISTRATIVE ASPECTS OF A GROUP PLAN |
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POLICY CHANGE REPORT |
A REINSURANCE REPORT THAT SHOWS DETAILS FOR ALL POLICIES, THAT DURING THE REPORTING PERIOD, HAVE CHANGED IN A WAY THAT AFFECTS THE AMOUNT OF THE REINSURANCE COVERAGE, THE REINSURANCE PREMIUM, OR THE ALLOWANCE |
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POLICY DIVIDEND |
A POLICYOWNER'S SHARE OF DIVISIBLE SURPLUS, PAYABLE TO OWNERS OF PARTICIPATING POLICIES AT THE END OF THE POLICY YEAR OR ON THE POLICY ANNIVERSARY |
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POLICY EXHIBIT |
A REINSURANCE REPORT THAT SUMMARIZES AND RECONCILES THE CHANGES THAT HAVE OCCURRED IN REINSURED POLICIES DURING THE REPORTING PERIOD |
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POLICY GRACE NOTICE |
A WRITTEN NOTIFICATION THAT A POLICY'S GRACE PERIOD IS ABOUT TO EXPIRE (ALSO CALLED LAPSE NOTICE) |
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POLICY ISSUE |
THE INSURANCE COMPANY UNIT THAT PREPARES THE INSURANCE CONTRACT AND FACILITATES THE DELIVERY OF THE POLICY TO THE CUSTOMER |
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POLICY RESERVES |
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 |
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POLICY RIDER |
AN AMENDMENT TO AN INSURANCE POLICY THAT BECOMES PART OF THE INSURANCE CONTRACT AND EITHER EXPANDS OR LIMITS THE BENEFITS PAYABLE UNDER THE CONTRACT |
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POLICYHOLDER |
THE EMPLOYER OR OTHER ORGANIZATION THAT DECIDES WHAT KIND OF INSURANCE COVERAGE TO PURCHASE FOR A GROUP AND NEGOTIATES THE TERMS OF AND ENTERS INTO THE MATER GROUP INSURANCE CONTRACT WITH THE INSURER |
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POOLING |
A RATING METHOD BY WHICH THE INSURER COMBINES SEVERAL SMALL GROUPS INTO ONE LARGE GROUP, OR POOL |
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PREDICTIVE MODELING |
AN AUTOMATED TECHNIQUE FOR PREDICTING FUTURE BEHAVIOR OR EVENTS |
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PREFERRED BENEFICIARY |
IN CANADA, A CERTAIN FAMILY MEMBER OF THE INSURED FOR WHOM POLICYOWNERS OF IN-FORCE POLICIES ISSUED PRIOR TO JULY 1, 1962 IN COMMON LAW JURISDICTIONS HAVE LIMITATIONS ON THEIR ABILITY TO CHANGE THE BENEFICIARY |
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PREGNANCY DISCRIMINATION ACT |
A US FEDERAL LAW, PART OF THE CIVIL RIGHTS ACT, THAT REQUIRES EMPLOYERS TO TREAT PREGNANCY, CHILDBIRTH, AND RELATED MEDICAL CONDITIONS THE SAME AS ANY OTHER MEDICAL CONDITION |
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PREMIUM TAXES |
AMOUNTS OF TAX GOVERNMENTS LEVY ON A DIRECT WRITER'S PREMIUM INCOME |
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PREPLACEMENT |
THE PROCESS BY WHICH A REINSURER (1) REVIEWS A DIRECT WRITER'S REQUEST FOR COVERAGE (2) ESTABLISHES APPROPRIATE RECORDS AND RESERVES CAPACITY FOR THE CASE, AND (3) AS NECESSARY, FOLLOWS UP ON RESERVATIONS FOR CAPACITY THAT HAVE BEEN INACTIVE FOR A SPECIFIED PERIOD OF TIME |
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PRESUMPTIVE DEATH CERTIFICATE |
A COURT-ISSUED DOCUMENT STATING THAT A PERSON IS PRESUMED TO BE DEAD |
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PRETEXT INTERVIEW |
AN INTERVIEW IN WHICH ONE PERSON ATTEMPTS TO GAIN INFO FROM ANOTHER PERSON BY (1) PRETENDING TO BE SOMEONE HE IS NOT (2) PRETENDING TO REPRESENT SOMEONE HE DOES NOT, (3) REFUSING TO IDENTIFY HIMSELF, OR (4) MISREPRESENTING THE PURPOSE OF THE INTERVIEW |
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PRIVACY OF CONSUMER FINANCIAL AND HEALTH INFO REGULATION (MODEL PRIVACY REGULATION) |
A NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW THAT INCLUDES REQUIREMENTS SIMILAR TO THOSE CONTAINED IN THE GRAMM-LEACH-BLILEY ACT (GLB), INCLUDING LIMITS ON AN INSURER'S RIGHT TO DISCLOSE NONPUBLIC PERSONAL INFO ABOUT A CONSUMER WITHOUT THE CONSUMER'S CONSENT |
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PRIVILEGED INFORMATION |
INFO THAT RELATES TO EITHER AN INSURANCE CLAIM OR A COURT PROCEEDING |
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PROBATIONARY PERIOD |
THE LENGTH OF TIME (TYPICALLY FROM 1 TO 6 MTHS) THAT A NEW GROUP MEMBER MUST WAIT BEFORE BEOMING ELIGIBLE TO ENROLL IN A GROUP PLAN (ALSO CALLED A WAITING PERIOD) |
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PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT |
A CANADIAN FEDERAL LAW THAT REQUIRES COMPANIES, INCLUDING LIFE INSURERS, TO REPORT EVERY FINANCIAL TRANSACTION THAT OCCURS FOR WHICH THERE ARE REASONABLE GROUNDS TO SUSPECT THAT THE TRANSACTION IS RELATED TO MONEY LAUNDERING OR FINANCIAL TERRORISTS |
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PROCESS CONTROL |
A PROCEDURE THAT ALLOWS AN ORGANIZATION TO MONITOR THE ACCURACY OF ITS PROCESSES ON A REGULAR, ONGOING BASIS |
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PROCESS COMPLETED |
A QUANTITATIVE PERFORMANCE MEASUREMENT OF HOW MANY TRANSACTIONS ARE HANDLED WITHIN A SPECIFIC TIME |
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PRODUCER |
A PERSON OR ENTITY THAT (1) SELLS INSURANCE, INCLUDING AGENTS, BROKERS, FINANCIAL ADVISORS, AND BANK PERSONNEL OR (2) IS INVOLVED IN INSURANCE SALES MADE THROUGH DIRECT MARKETING OR THE INTERNET |
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PROFESSIONAL ASSOCIATION GROUP |
A GROUP OF PEOPLE WHO SHARE THE SAME TYPE OF OCCUPATION AND WHO BELONG TO THE ASSOCIATION |
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PROFITABILITY |
THE DEGREE TO WHICH A COMPANY IS SUCCESSFUL IN CONSISTENTLY GENERATING RETURNS TO ITS OWNERS; MEASURES THE PRODUCTIVITY OF THE COMPANY'S ASSETS AND ITS RETURN ON THE OWNERS' INVESTMENTS IN THE COMPANY |
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PROPORTIONAL REINSURANCE |
A TYPE OF REINSURANCE UNDER WHICH THE DIRECT WRITER AND THE REINSURER AGREE TO SHARE PREMIUMS AND CLAIM OBLIGATIONS ACCORDING TO A SPECIFIED AMOUNT OR PERCENTAGE |
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PROPOSAL FOR INSURANCE |
A DOCUMENT THAT DETAILS THE SPECIFICATIONS OF A GROUP INSURANCE PLAN PROPOSED BY AN INSURER FOR A GROUP PROSPECT |
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PUBLIC CURATOR |
A PERSON AUTHORIZED TO HANDLE THE AFFAIRS OF MISSING PEOPLE |
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PUNATIVE DAMAGES |
MONETARY AWARDS WHICH ARE IN ADDITION TO COMPENSATORY DAMAGES WHEN A DEFENDANT'S CONDUCT MEETS THE JURISDICTION'S STANDARDS FOR BEHAVIOR THAT IS SO EGREGIOUS AS TO WARRENT SUCH DAMAGES |
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QUALITATIVE PERFORMANCE MEASUREMENT |
A TYPE OF PERFORMANCE MEASUREMENT THAT FOCUSES ON THE BEHAVIORS, ATTITUDES, OR OPINIONS TO DETERMINE HOW EFFICIENTLY AND EFFECTIVELY PROCESSES AND TRANSACTIONS ARE COMPLETED |
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QUALITY CONTROL |
THE PROCESS OF ENSURING THAT AN ORGANIZATIONS ACCOMPLISHES ITS OBJECTIVES AND FOLLOWS ITS STANDARDS |
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QUALITY RATE |
A QUANTITATIVE PERFORMANCE MEASUREMENT OF THE ACCURACY OF A PARTICULAR TYPE OF TRANSACTION |
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QUANTITATIVE PERFORMANCE MEASUREMENT |
A TYPE OF PERFORMANCE MEASUREMENT THAT USES NUMERICAL METHODS TO TRACK AND REPORT RESULTS TO DETERMINE HOW QUICKLY, OFTEN, ACCURATELY, AND PROFITABLY PROCESSES AND TRANSACTIONS ARE COMPLETED |
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QUEBEC PENSION PLAN (QPP) |
A CANADIAN PROVINCIAL PROGRAM THAT FUNCTIONS IN THE SAME MANNER AS THE CANADA PENSION PLAN (CPP) EXCEPT THAT THE QPP APPLIES ONLY TO WAGE EARNERS IN QUEBEC |
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QUICK RATIO |
A FINANCIAL RATIO CALCULATED BY DIVIDING A COMPANY'S MOST LIQUID CURRENT ASSETS (CONSISTING OF CASH, LIQUID INVESTMENTS, AND ACCOUNTS RECEIVALBE, WHICH ARE CALLED QUICK ASSETS) BY THE COMPAY'S CURRENT LIABILITIES |
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QUOTA SHARE ARRANGEMENTA |
METHOD FOR ASSIGNING RISK IN PROPORTIONAL REINSURANCE IN WHICH THE DIRECT WRITER RETAINS A SPECIFIED AMOUNT OR PERCENTAGE OF THE RISK ON A CASE AND CEDES THE REMAINING RISK TO ONE OR MORE REINSURERS |
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RATING |
APPROVING A HIGHER-THAN-AVERAGE RISK BY CHARGING A HIGHER-THAN-USUAL PREMIUM RATE FOR THE COVERAGE APPLIED FOR |
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REAL-TIME UNDERWRITING |
A STRAIGHT THROUGH PROCESSING SYSTEM THAT EVALUATES INSURANCE APPLICATIONS TYPICALLY SUBMITTED OVER THE INTERNET AND THAT ALMOST INSTANTLY PROVIDES THE APPLICANT OR PRODUCER WITH AN UNDERWRITING DECISION (ALSO CALLED INSTANT ISSUE UNDERWRITING) |
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RECAPTURE |
THE PROCESS BY WHICH A DIRECT WRITER TAKES BACK SOME OR ALL CEDED BUSINESS FROM A REINSURER |
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RECAPTURE PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT ADDRESSES THE TERMS UNDER WHICH A DIRECT WRITER CAN RECAPTURE SOME OR ALL OF ITS REINSURED RISK |
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RECEIVER |
AN INDIVIDUAL WHO IS APPOINTED BY A COURT TO HOLD AND ADMINISTER AN INSOLVENT INSURER'S ASSETS AND LIABILITES |
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RECORDS INSPECTION PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT STATES THE RIGHTS OF EACH PARTY TO INSPECT THE OTHER PARTY'S RECORDS AND DOCUMENTS RELATING TO THE REINSURANCE PROVIDED UNDER THE AGREEMENT |
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REDUCTION OF INSURANCE |
THE PROCESS OF REDUCING THE AMOUNT OF REINSURANCE COVERING AN INSURANCE POLICY |
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REINSURANCE |
INSURANCE THAT ONE COMPANY OBTAINS FROM ANOTHER INSURANCE COMPANY ON RISKS ASSOCIATED WITH THE INSURANCE POLICIES ISSUED BY THE FIRST COMPANY |
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REINSURANCE ADMINISTRATION |
ALL THE DAY-TO-DAY ACTIVITES CONDUCTED BY THE DIRECT WRITER AND REINSURER TO PROCESS AND MANAGE EACH RISK THAT THE DIRECT WRITER CEDES AUTOMATICALLY OR SUBMITS FOR FACULATIVE OR FACULATIVE-OBLIGATORY CONSIDERATION |
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REINSURANCE AGREEMENT |
A DOCUMENT THAT CONTAINS THE TERMS OF THE BUSINESS TO BE CONDUCTED, INCLUDING THE NATURE OF THE RISK TRANSFER, REINSURANCE ADMINISTRATION PROCEDURES, INFORMATION EXCHANGES, AND THE RIGHTS AND DUTIES OF EACH PARTY UNDER THE AGREEMENT |
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REINSURANCE ANALYST |
ANY DIRECT WRITER OR REINSURER EMPLOYEE (EXCEPT THE PERSON HOLDING TOP LEADERSHIP RESPONSIBILITY) WHO IS INVOLVED IN ANY PHASE OF REINSURANCE ADMINISTRATION |
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REINSURANCE ARRANGEMENT |
THE BUSINESS DEAL THAT TWO COMPANIES (THE DIRECT WRITER AND THE REINSURER) MAKE FOR THE TRANSFER OF RISK FROM ONE COMPANY TO THE OTHER |
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REINSURANCE CERTIFICATE |
A DOCUMENT THAT NOTIFIES THE DIRECT WRITER THAT REINSURANCE IS OFFICIALLY IN FORCE |
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REINSURANCE EFFECTIVE DATE |
THE DATE ON WHICH THE REINSURANCE COVERAGE FOR A SPECIFIC RISK TAKES EFFECT |
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REINSURANCE MARKETING OFFER |
A REINSURER'S EMPLOYEE WHO SELL REINSURANCE AND COORDINATES THE MARKETING PROCESS FOR THE REINSURER |
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REINSURANCE PREMIUM |
IN INDEMNITY REINSURANCE, THE PERIODIC PAYMENTS MADE BY THE DIRECT WRITER TO THE REINSURER AS COMPENSATION FOR THE REINSURANCE COVERAGE |
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REINSURER |
AN INSURER THAT PROVIDES REINSURANCE COVERAGE BY ACCEPTIN, OR ASSUMING, INSURANCE RISK FROM A DIRECT WRITER OR ANOTHER INSURANCE COMPANY |
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RENEWAL UNDERWRITING |
THE PROCESS BY WHICH AN UNDERWRITER ASSESSES THE RISK PRESENTED BY A GROUP THAT HAS REQUESTED TO RENEW ITS GROUP INSURANCE CONTRACT |
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REPLACEMENT OF LIFE INSURANCE AND ANNUITIES MODEL REGULATION |
A NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW THAT STATES THAT REPLACEMENT OF POLICIES IS GENERALLY PERMISSIBLE IF THE REPLACING INSURER PROVIDES FULL AND FAIR DISCLOSURE AND NO DECEPTION PRACTICES ARE INVOLVED |
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REQUEST FOR COVERAGE |
UNDER FACULTATIVE OR FAC-OB REINSURANCE AGREEMENTS, A DOCUMENT IN WHICH THE DIRECT WRITER REQUESTS REINSURANCE COVERAGE ON A PARTICULAR INSURED OR GROUP OF INSUREDS (ALSO CALLED FACULATIVE APPLICATION) |
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REQUEST FOR PROPOSAL (RFP) |
A DOCUMENT THAT PROVIDES DETAILED INFO ABOUT THE GROUP AND THE REQUESTED COVERAGE AND SOLICITS A BID FROM AN INSURER FOR PROVIDING THAT COVERAGE |
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RECISSION |
A REMEDY PROVIDED BY LAW TO AN INSURER THAT DISCOVERS THAT IT HAS ISSUED A POLICY BASED ON MATERIAL MISREPRESENTATION |
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RECESSION PROVISION |
A REINSURANCE AGREEMENT POLICY PROVISION THAT DESCRIBES THE NOTIFATION AND ADMINISTRATIVE PROCEDURES REQUIRED WHEN A DIRECT WRITER RESCINDS A REINSURED POLICY |
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RESERVE LISTING |
A REINSURANCE REPORT THAT SHOWS ALL POLICIES REINSURED AND THE RESERVE HELD FOR EACH POLICY |
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RESERVED CAPACITY |
THE PORTION OF A REINSURER'S FINANCIAL CAPACITY THAT THE REINSURER SETS ASIDE TO FUND ITS FINANCIAL OBLIGATIONS UNDER ANTICIPATED NEW BUSINESS |
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RETENTION LIMIT |
A SPECIFIED MAXIMUM MONETARY AMOUNT OF INSURANCE THAT AN INSURER IS WILLING TO CARRY AT ITS OWN RISK WITHOUT TRANSFERRING SOME OF THE RISK TO A REINSURER |
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RETROCESSION CLAIM FILE |
A FILE CONTAINING ALL THE INFO RELEVANT TO THE CLAIM PLUS INFO ABOUT THE RETROCESSION |
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RETROCESSIONAIRE |
AN INSURANCE COMPANY THAT ACCEPTS RISKS FROM (AND PROVIDES REINSURANCE TO) A REINSURER |
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RETURN-ON EQUITY (ROE) RATIO |
A FINANCIAL RATIO CALCULATED BY DIVIDING NET INCOME BY OWNER'S EQUITY |
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RIGHT OF RECOMMENDATION |
THE RIGHT OF A REINSURER TO REVIEW THE CLAIM AND OFFER ITS OPTION TO THE DIRECT WRITER ON WHETHER TO PAY THE CLAIM |
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RISK ASSESSMENT |
THE PROCESS OF DETERMINING THE DEGREE OF RISK REPRESENTED BY EACH PROPOSED INSURED USING A NUMBER OR FACTORS ESTABLISHED WHEN THE INSURANCE PRODUCT WAS DESIGNED AND PRICED |
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RISK FACTOR |
FOR INDIVIDUAL INSURANCE, ANY ASPECT OF A PROPOSED INSURED'S PRESENT HEALTH, MEDICAL HISTORY, FAMILY HISTORY, HEALTH HABITS (SUCH AS SMOKING), FINANCIAL CONDITION, REPUTATION, DRIVING RECORD, CRIMINAL RECORD, OCCUPATION, OR ACTIVITES THAT INCREASE THE LIKLIHOOD THAT THE PERSON WILL SUFFER A COVERED LOSS |
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SECTION 1035 EXCHANGE |
A TAX-FREE REPLACEPMENT OF AN INSURANCE POLICY FOR ANOTHER POLICY INSURING THE SAME PERSON AND MEETING CONDITIONS SPECIFIED IN THE TAX CODE |
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SECURITY |
THE PHYSICAL, TECHNICAL, AND PROCEDURAL STEPS A COMPANY TAKES TO PREVENT THE LOSS, WRONGFUL DISCLOSURE (ACCIDENTAL OR INTENTIONAL), OR THEFT OF DATA OR INFO |
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SELF-ADMINSTERED PLAN |
A GROUP INSURANCE PLAN FOR WHICH THE GROUP POLICYHOLDER HANDLES MOST OF THE ADMINSTRATIVE ASPECTS OF THE PLAN (COMPARED TO INSURER-ADMINISTERED PLAN) |
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SELF-DIRECTED TEAM |
A TYPE OF WORK TEAM IN WHICH THE MEMBERS HANDLES MANY TRADITIONAL MANAGEMENT RESPONSIBILITIES, SUCH AS PLANNING AND MONITORING WORK |
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SELF-INSURED GROUP PLAN |
A PLAN FOR WHICH THE GROUP SPONSOR TATHER THAN AN INSURANCE COMPANY IS FINANCIALLY RESPONSIBLE FOR THE CLAIMS INCURRED BY GROUP INSUREDS |
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SEMI-AUTONOMOUS TEAM |
A TYPE OF WORK TEAM IN WHICH THE MANAGER OR SUPERVISOR MANGES THE TEAM, WHILE THE OTHER TEAM MEMBERS, IN ADDITION TO DOING THEIR "REGULAR" WORK, PROVIDE INPUT INTO PLANNING, ORGANIZING, AND MONITORING THE WORK |
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SERVICE RECOVERY |
THE EFFORTS AN ORGANIZATION MAKES TO FULLY RESOLVE THE PROBLEM THAT CAUSED A CUSTOMER'S DISSATISFACTION AND WIN BACK THE CUSTOMER'S GOODWILL |
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SETTLEMENT OPTION |
AN ALTERNATIVE METHOD (OTHER THAN A LUMP-SUM SETTLEMENT) OF RECEIVING THE PROCEEDS OF A LIFE INSURANCE POLICY |
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SIMULTANEOUS DEATH ACT |
A LAW THAT SAYS IF BOTH INSURED AND THE BENEFICIARY DIE UNDER CIRCUMSTANCES WHICH MAKE IT IMPOSSIBLE TO DETERMINE WHICH OF THEM DIED 1ST, THE INSURER IS TO PRESUME THAT THE INSURED SURVIVED THE BENEFICIARY, UNLESS THE POLICY PROVIDES OTHERWISE |
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SINGLE-EMPLOYER GROUP |
CONSISTS OF THE EMPLOYEES OF ONE EMPLOYER (ALSO KNOWN AS EMPLOYER-EMPLOYEE GROUP) |
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SOLE PROPRIERTORSHIP |
A BUSINESS OWNED BY ONE PERSON (OR, IN SOME JURISDICTIONS BY A HUSBAND AND WIFE) |
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SOLVENCY |
AN ENTITY'S ABILITY TO MEET ITS FINANCIAL OBLIGATIONS ON TIME |
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SOLVENCY LAWS |
LAWS DESIGNED TO ENSURE THAT INSURANCE COMPANIES ARE FINANCIALLY ABLE TO MEET THEIR DEBTS AND TO PAY POLICY BENEFITS WHEN THEY COME DUE |
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SPECIAL INVESTIGATIONS UNIT (SIU) |
A GROUP OF INDIVIDUALS WHO ARE EMPLOYED BY AN INSURANCE COMPANY AND ARE RESPONSIBLE FOR DETECTING, INVESTIGATING, AND RESOLVING CASES INVOLVING INSURANCE FRAUD |
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SPECIALIZED MEDICAL QUESTIONNAIRE |
A DOCUMENT THAT REQUESTS DETAILED INFORMATION ABOUT A SPECIFIC ILLNESS OR CONDITION FROM A PROPOSED INSURED'S ATTENDING PHYSICIAN OR EXAMINING PHYSCIAN |
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SPECULATION |
THE UNETHICAL PURCHASE OF INSURANCE TO MAKE A PROFIT ON PROCEEDS RATHER THAN TO PROTECT AGAINST THE RISK OF FINANCIAL LOSS |
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SPLIT-DOLLAR LIFE INSURANCE PLAN |
UNDER IRS REGULATIONS, ANY ARRANGEMENT BTW AN OWNER OF A LIFE INSURANCE CONTRACT & A NON-OWNER OF THE CONTRACT UNDER WHICH EITHER PARTY PAYS ALL OR PART OF THE PREMIUMS, & ONE OF THE PARTIES PAYING THE PREMIUMS IS ENTITLED TO RECOVER (CONDITIONALLY OR UNCONDITIONALLY) ALL OR ANY PORTION OF THE PREMIUMS AND SUC RECOVERY IS TO BE MADE FROM, OR IS SECURED BY, THE PROCEEDS OF THE CONTRACT |
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STATEMENT OF CASH FLOWS |
A FINANCIAL STATEMENT THAT INDICATES THE AMOUNTS OF CASH RECEIVED AND PAID IN THE OPERATING, INVESTING, AND FINANCING ACTIVITIES ASSOCIATED WITH THE BUSINESS |
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STATEMENT OF OWNERS' EQUITY |
A FINANCIAL STATEMENT THAT SHOWS THE CHANGES IN OWNERS' EQUITY DURING A SPECIFIED PERIOD |
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STEP RATES |
GROUP INSURANCE PREMIUM RATES BASED ON AN INSURER'S EXPERIENCE EXPRESSED IN AGE-GRADED, AND SOMETIMES SEX-SPECIFIC, STEP RATE TABLES |
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STRAIGHT THROUGH PROCESSING (STP) |
THE ELECTRONIC PROCESSING OF EVERY STEP OF A TRANSACTION WITHOUT MANUAL INTERVENTION |
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SUPPLEMENTAL BENEFITS |
BENEFITS ADDED TO THE COVERAGE SPECIFIED IN THE BASIC INSURANCE POLICY |
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SURPLUS |
THE AMOUNT OF ASSETS A COMPANY HAS OVER AND ABOVE ITS POLICY RESERVES AND OTHER FINANCIAL OBLIGATIONS |
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SURPLUS RELIEF |
A DECREASE IN POTENTIAL SURPLUS STRAIN THAT STRENGTHENS AN INSURER'S FINANCIAL POSITION |
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SURPLUS STRAIN |
THE DECREASE IN SURPLUS CAUSED BY THE HIGH INITIAL COSTS AND RESERVE REQUIREMENTS ASSOCIATED WITH ISSUING NEW INSURANCE POLICIES (ALSO CALLED NEW BUSINESS STRAIN) |
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SURVIVORSHIP CLAUSE |
A CLAUSE CONTAINED IN SOME LIFE INSURANCE POLICIES THAT STATES THAT THE BENEFICIARY MUST SURVIVE THE INSURED BY A SPECIFIED PERIOD, USUALLY 30 TO 60 DAYS, TO BE ENTITLED TO RECEIVE THE POLICY PROCEEDS |
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TABLE RATING METHOD |
A METHOD FOR ADJUSTING INDIVIDUAL LIFE INSURANCE PREMIUM RATES TO COMPENSATE FOR EXTRA MORTALITY THAT DIVIDES SUBSTANDARD RISKS INTO BROAD GROUPS (OR TABLES) ACCORDING TO THEIR NUMERICAL VALUE |
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TEAM UNDERWRITING |
A WORK DIVISION SYSTEM IN WHICH UNDERWRITERS ARE DIVIDED INTO SMALL GROUPS |
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TECHNOLOGY PLATFORM |
THE COMBINATION OF HARDWARE AND OPERATING SYSTEM SOFTWARE ON WHICH AN ADMINISTRATION SYSTEM RULE |
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TELEUNDERWRITING |
A METHOD BY WHICH THE INSURER, RATHER THAN A PRODUCER, TAKES RESPONSIBILITY FOR GATHERING FROM THE PROPOSED INSURED MOST OF THE INFO NEEDED FOR UNDERWRITING |
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TEMPORARY FLAT EXTRA PREMIUM |
AN AMOUNT ADDED TO THE PREMIUM FOR A RISK FACTOR FOR WHICH AN EXTRA MORTALITY RISK IS EXPECTED TO DECREASE AND EVENTUALLY DISAPPEAR OVER A LIMITED TIME PERIOD |
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TEMPORARY INSURANCE AGREEMENT (TIA) |
A CONTRACT BETWEEN AN INSURER AND AN APPLICANT THAT PROVIDES TEMPORARY COVERAGE ON THE PROPOSED INSURED BEFORE A POLICY IS ISSUED AND DELIVERED; SUCH COVERAGE MAY BE SUBJECT TO CERTAIN CONDITIONS |
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TEMINAL ILLNESS (TI) BENEFIT |
AN ACCELERATED DEATH BENEFIT UNDER WHICH THE INSURER PAYS A PORTION OF THE POLICY'S DEATH BEFIT TO A POLICYOWNER-INSURED IF HE SUFFERS FROM A TERMINAL ILLNESS AND HAS A PHYSICIAN-CERTIFIED LIFE EXPECTANCY OF 12 MONTHS OR LESS |
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TERMINATION |
THE COMPLETE CANCELLATION OF A REINSURANCE AGREEMENT FOR BOTH NEW BUSINESS AND IN-FORCE BUSINESS |
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TERMINATION FOR NEW BUSINESS |
OCCURS IF ONE OF THE PARTIES TO A REINSURACE AGREEMENT NOTIFIES THE OTHER PARTY THAT THE PARTIES NO LONGER CEDE OR ASSUME BUSINESS UNDER THE AGREEMENT, BUT REINSURANCE COVERAGE CONTINUES ON BUSINESS ALREADY IN PLACE |
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TERMINATION OF REINSURANCE |
A REINSURANCE AGREEMENT POLICY PROVISION THAT DESCRIBES THE PROCESS BY WHICH A DIRECT WRITER CANCELS THE REINSURANCE COVERING A POLICY ISSUED BY THE COMPANY |
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THIRD-PARTY ADMINISTRATOR (TPA) AN ORGANIZATION THAT IS NOT AFFILIATED WITH AN INSURER AND THAT PROVIDES VARIOUS ADMINISTRATIVE SERVICES TO INSURERS AND GROUP POLICYHOLDERS |
AN ORGANIZATION THAT IS NOT AFFILIATED WITH AN INSURER AND THAT PROVIDES VARIOUS ADMINISTRATIVE SERVIES TO INSURERS AND GROUP POLICYHOLDERS |
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TRADITIONAL INDEMNITY REINSURANCE |
A REINSURANCE AGREEMENT THAT IS USED TO TRANSFER A PORTION OF THE DIRECT WRITER'S ACCEPTED RISK ON AN ONGOING BASIS AND THAT IS INTENDED TO BE A PERMANENT TRANSFER |
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TRANSACTION PROCESSING SYSTEM |
AN ORGANIZED COLLECTION OF PROCEDURES, SOFTWARE, DATABASES, AND DEVICES USED TO PERFORM HIGH-VOLUME, ROUTINE, AND REPETITIVE BUSINESS TRANSACTIONS |
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TREASURY OPERATIONS |
THE FUNCTIONAL AREA OF AN INSURANCE COMPANY THAT MANAGES CASH AS IT FLOWS THROUGH THE COMPANY |
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TWISTING |
OCCURS WHEN A PRODUCER MISREPRESENTS THE FEATURES OF A POLICY TO INDUCE A CLIENT TO PURCHASE A POLICY |
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UNDELIVERABLE |
AN INSURANCE POLICY THAT THE APPLICANT CHOOSES NOT TO ACCEPT WHEN A PRODUCER ATTEMPTS TO DELIVER IT |
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UNDERWRITING CAPACITY |
THE HIGHEST MONETARY AMOUNT OF RISK THAT A DIRECT WRITING COMPANY WILL ACCEPT ON AN INDIVIDUAL INSURED SO THAT UNUSUAL FLUCTUATIONS IN CLAIMS WILL NOT DAMAGE COMPANY SOLVENCY |
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UNDERWRITING MANUAL |
A DOCUMENT THAT CONTAINS A PROPOSED INSURED'S DEBITS AND CREDITS AND TYPICALLY PROVIDES DESCRIPTIVE INFO ON IMPAIRMENTS AND SERVES AS A GUIDE TO UNDERWRITING ACTION |
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UNDERWRITING PHILOSOPHY |
A SET OF OBJECTIVES THAT GUIDES ALL OF AN INSURER'S UNDERWRITING ACTIONS, GENERALLY REFLECTS THE INSURER'S STRATEGIC BUSINESS GOALS AND INCLUDES ITS PRICING ASSUMPTIONS FOR PRODUCTS |
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UNDERWRITING WORKSHEET |
A DOCUMENT THAT CONTAINS RECORDS OF PHONE CALLS, LETTERS, & OTHER COMMUNICATIONS; DOCUMENTATION OF REQUESTS FOR REINSURACE; LISTS OF REPORTS & OTHER INFO REQUESTED; & OTHER NOTATIONS THAT WILL EXPLAIN CLEARLY THE MANNER IN WHICH THE UNDERWRITER HAS HANDLED THE CASE BEGINNING WITH THE APP |
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UNFAIR CLAIMS SETTLEMENT PRACTIVES ACT |
A STATE LAW, BASED ON THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW, WHICH LISTS A NUMBER OF ACTIONS THAT ARE CONSIDERED UNFAIR CLAIMS PRACTICES IF COMMITTED BY AN INSURER (1) IN CONSCIOUS DISREGARD OF THE LAW OR (2) SO FREQUENTLY AS TO INDICATE A GENERAL BUSINESS PRACTICE |
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UNFAIR LIFE, ACCIDENT AND HEALTH CLAIMS SETTLEMENT PRACTICES MODEL REGULATION |
A STATE LAW, BASED ON THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) MODEL LAW, WHICH ESTABLISHES MINIMUM STANDARDS THAT INSURERS MUST MEET IN HANDLING LIFE AND HEALTH INSURANCE CLAIMS |
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USA PATRIOT ACT OF 2001 |
A US FEDERAL LAW DESIGNED TO STRENGTHEN THE FEDERAL GOVERNMENT'S ABILITY TO INVESTIGATE, PROSECUTE, AND SEIZE THE ASSETS OF TERRORISTS |
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VARIABLE LIFE INSURANCE |
A FORM OF CASH VALUE LIFE INSURANCE IN WHICH PREMIUMS ARE FIXED, BUT THE DEATH BENEFIT AND OTHER VALUES MAY VARY, REFLECTING THE PERFORMANCE OF THE INVESTMENT SUBACCOUNTS SELECTED BY THE POLICYHOWNER |
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WAGERING AGREEMENT |
AN AGREEMENT UNDER WHICH EITHER PARTY MAY GAIN OR LOSE DEPENDING ON THE OUTCOME OF AN UNCERTAIN EVENT, SUCH AS THE TIMING OF AN INDIVIDUAL'S DEATH |
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WAIVER OF PREMIUM FOR DISABILITY (WP) BENEFIT |
A SUPPLEMENTAL INSURANCE BENFIT THAT PROVIDES THAT, IN THE EVENT AN INSURED IS TOTALLY DISABLED, THE INSURANCE COMPANY WILL WAIVE THE PREMIUMS DUE DURING THE PERIOD OF DISABILITY |
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WAIVER OF PREMIUM FOR PAYOR BENEFIT |
A SUPPLEMENTAL BENFIT THAT PROVIDES THAT THE INSUER WILL WAIVE PAYMENT OF POLICY PREMIUMS IF THE PAYOR BECOMES DISABLED OR DIES PRIOR TO THE INSURED CHILD'S ATTAINMENT OF A SPECIFIED AGE |
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WORK DIVISION SYSTEM |
A METHOD OF ASSIGNING CASES TO UNDERWRITERS THAT DIVIDES CASES ACCORDING TO THE PERSON OR GROUP THAT UNDERWRITES THEM |
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YEARLY RENEWALBE TERM (YRT) REINSURANCE |
A PLAN OR REINSURANCE THAT IS USED TO REINSURE ONLY THE MORTALITY PORTION OF A LIFE INSURANCE RISK |
