GLOSSARY

401(k) Plan

An employer-sponsored defined contribution retirement plan that provides certain tax benefits to both employees and employers.

Read More »

Abandonment

The giving up of property by the insuredPerson(s) protected under an insurance contract. to the insurance company in order to collect the value of the

Read More »

Absolute Assignment

The transferA technique involving one party transferring the uncertainty of loss to another party or parties. More of ownership of a life insurance policy to

Read More »

Absolute Liability

Responsibility without regard to fault or negligenceFailure to exercise a degree of care which a reasonably prudent person would exercise under the same circumstances. The

Read More »

Accident

An unplanned event, definite as to time and place, that results in injury or damage to a person or property.

Read More »

Accidental Death Benefit

A benefit that typically equals the face value of the contract or principalThe entity whose performance is being guaranteed in a surety bond. More sum,

Read More »

Accounting

Process to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time.

Read More »

Accounting System

Organized set of accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time. More methods, procedures, and

Read More »

Accumulation Phase

The period during which deposits are made and investment earnings accrue between purchase of a deferred annuityPayment of a benefit where an individual receives a

Read More »

Accumulation Value

During the accumulation period of a deferred annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life

Read More »

Acquisition

One organization takes over another organization and is established as the new ownerThe individual or entity controlling all rights, benefits, and privileges of a life

Read More »

Active Retention

Planned acceptance of losses to be financed internally through the use of deductibles on insurance policies, lossA reduction in value. More sensitive insurance plans, and

Read More »

Actual Cash Value

Replacement costThe cost to replace damaged property with like kind and quality without taking into account depreciation. More less an allowance for insurance depreciation, wear

Read More »

Actuarial Services

Provide information for risk financingThe acquisition of internal and external funds to pay losses at the most favorable cost; a step of the Risk Management

Read More »

Actuary

An individual who calculates premiumAmount of money an insurance carrier charges to provide the coverage described in the policy. More rates, reserves, dividendsDistributions to shareholders

Read More »

Acute Care

Care requiring constant monitoringExamining and evaluating the results of risk management actions and plans; an element of the Risk Administration step of the Risk Management

Read More »

ACV

Abbreviation for Actual Cash ValueReplacement cost less an allowance for insurance depreciation, wear and tear, or obsolescence. https://www.youtube.com/watch?v=IOwFExvdr-c More. Defined as replacement costThe cost to

Read More »

ADL

Person’s ability to perform such activities as bathing, dressing, toileting, maintaining continence, transferring, and eating.

Read More »

Admitted Assets

Assets whose value is included in the annual statement of an insurance company to insurance regulators; include cash and short-term deposits readily convertible into cash,

Read More »

Adult Day Care Center

A facility that provides long-term careA blanket term for a wide range of services designed to meet medical, personal, and social needs in a variety

Read More »

Adverse Selection

Individuals with poor health who are more apt to apply for or continue insurance than those with average or better-than-average health.

Read More »

Agency

A relationship, express or implied, wherein one party (principalThe entity whose performance is being guaranteed in a surety bond. More) delegates authority to another person

Read More »

Agency Captive

A captive owned by an insurance agencyA relationship, express or implied, wherein one party (principal) delegates authority to another person (agent or proxy) to undertake

Read More »

Agency; Insurance

An office where insurance is sold. It may be directed towards property and liabilityLegal responsibility or fault. More insurance or life and health insurance, or

Read More »

Agent; Insurance

A representative of one or more companies, who solicits, completes applications, collects initial premiums, issues binders and/or conditional receipts, delivers policies, and services insurance contracts.

Read More »

Aggregate Limit

The maximum amount of protectionAs related to property, the safeguards, equipment and measures provided by the building owner or occupant to minimize hazards. More for

Read More »

ALAE

An expense directly assigned to or that arises from a particular claimA demand or obligation for payment as a result of a loss. More; examples

Read More »

Aleatory Contract

A contract in which there is an unequal exchange between parties because the element of chance is involved in performance under the contract.

Read More »

Alien Insurer

An insurance company formed and domiciled in a country outside the United States and permitted to do businessIncludes trade, profession, or occupation. More in the

Read More »

Alternative Risk Financing Facilities

Any risk financingThe acquisition of internal and external funds to pay losses at the most favorable cost; a step of the Risk Management Process. More

Read More »

Amortization

An accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time. More concept; expense (short-term) or capitalizing

Read More »

Amount Subject

Total value at riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome over time; the difference between expected losses and

Read More »

Annuitant

The individual on whose life the annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life or

Read More »

Annuitization

The period when annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life or for a specified

Read More »

Annuitize

The beginning of a series of payments from an annuityPayment of a benefit where an individual receives a regular stream of income from the insurer,

Read More »

Annuity

Payment of a benefit where an individual receives a regular stream of income from the insurerInsurance company that assumes risks for insureds and performs other

Read More »

Any Occupation

The insuredPerson(s) protected under an insurance contract. is unable to perform the material and substantial duties of his or her own occupationThe specific regular occupation

Read More »

API

Enables machines to interact with cloud software in the same way the user interface facilitates interaction between humans and computers.

Read More »

Application

The statement of information given when a person applies for insurance. The insurerInsurance company that assumes risks for insureds and performs other insurance-related operations, such

Read More »

Appointment

Providers are selected or appointed to represent the organization for all insurance coverage or for a specific purpose; an insurance procurement provider selection method.

Read More »

ARR

In financial management, the measurement of the percentage return of average annual cash flows on initial investment.

Read More »

Asset

Anything of commercial value, including real or personal, tangible or intangible property.

Read More »

Assignment

The transferA technique involving one party transferring the uncertainty of loss to another party or parties. More of all or part of a policy owner’s

Read More »

Assisted Living Facility

A residential licensed facility that provides 24-hour care sufficient to assist clients who need long-term careA blanket term for a wide range of services designed

Read More »

Attending Physician Statements

Used when an applicationThe statement of information given when a person applies for insurance. The insurer underwriter uses this information as a basis in determining

Read More »

Auto

A land motor vehicle, trailer, or semi-trailer designed for use on public roads, but does not include “mobile equipment.”

Read More »

Automatic Insureds

Persons who are granted insuredPerson(s) protected under an insurance contract. status because they fit into a category or class of persons described in the policy

Read More »

Avoidance

A risk controlAny conscious action or inaction to minimize at the optimal cost, the probability, frequency, severity, or unpredictability of loss; a step of the

Read More »

B Value

In computing workers compensation experience modifications, a specific value taken from a rating manual table used to limit the effect of a single severe accidentAn

Read More »

Backdating

A procedure for making the effective dateThe date an insurance policy goes into effect, sometimes referred to as the policy date. More of a policy

Read More »

Bail Out Provision

An annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life or for a specified number of

Read More »

Bailee

Person or organization that has possession of the property of others, usually for storage, repair, or servicing. A dry cleaning operation is a common example

Read More »

Bailment

Situation in which property of one has been entrusted to another. A bailmentSituation in which property of one has been entrusted to another. A bailment

Read More »

Bailor

Person or organization that owns property that has been entrusted to another. The ownerThe individual or entity controlling all rights, benefits, and privileges of a

Read More »

Balance Sheet

An accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time. More concept, a measurement of the

Read More »

Ballast Value

In computing workers compensation experience modifications, a specific value taken from a rating manual table used to limit the effect of a single severe accidentAn

Read More »

Basic Premium

In retrospectively rated plans, usually a percentage of the standard premiumPremium that is determined on the basis of authorized rates, any experience modification rating, applicable

Read More »

Basic Premium Factor

In retrospectively rated plans, a factor based on the Table of Expense Ratios, the Table of Insurance Charges, and the individual lossA reduction in value.

Read More »

Basic Rate

Manual rate that is adjusted to compensate for varying exposureA situation, practice or condition that may lead to an adverse financial consequence; an activity or

Read More »

Benchmarking

The process of comparing an organization’s businessIncludes trade, profession, or occupation. More processes and performance measures to another organization’s processes and performance measures to provide

Read More »

Beneficiary

An individual who is eligible to receive or is receiving benefits under an insurance policy. (Also see Irrevocable BeneficiaryA beneficiary that cannot be changed without

Read More »

Benefit-cost Ratio

Discounted values of the cash inflows divided by the net investment. Used to compare the net present valueValue today of a future payment or payments,

Read More »

Binding Authority

Authority that is granted to the insurance agentA person authorized by an insurer to solicit applications, collect premiums, and write policies on behalf of the

Read More »

Blanket Insurance

A method for combining the value of property of different types or at different locations into a single limit of insurance on a property insurance

Read More »

Bond

Contract that guarantees the performance of a contract, as in suretyPromisor under a bond; the party that promises to fulfill the obligation of the bonded

Read More »

Book Value

Historical costOriginal purchase price. More less accumulated depreciation as recorded on the organization’s accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash

Read More »

Bottom-up Pricing

Commonly known as loss ratingRating technique that establishes the prospective rate based upon historical losses that will be applied to an exposure base to compute

Read More »

Budgeted Losses

Planned retentionAcceptance or assumption of the risk of loss, which means any loss is paid out of pocket. More based upon the portion of expected

Read More »

Burglary

The taking of property from within a premises by a person unlawfully entering or breaking out of a premises as evidenced by marks of forcible

Read More »

Business Decision

As related to the Business Judgment RuleSingle most powerful defense available to a director or officer and recognizes that not all decisions of the directors

Read More »

Business Ethics

Knowing what is right or wrong in the workplace and then doing what is right; fundamental ground rules of our work lives; the process of

Read More »

Business Judgment Rule

Single most powerful defense available to a director or officer and recognizes that not all decisions of the directors or officers will benefit the organization

Read More »

Buy-Sell Agreement

An arrangement for the orderly disposition or transferA technique involving one party transferring the uncertainty of loss to another party or parties. More of a

Read More »

Cancellable Policy

A policy, typically disabilityA physical or mental incapacity. More insurance or long-term careA blanket term for a wide range of services designed to meet medical,

Read More »

Captive Expenses

Include management and acquisitionOne organization takes over another organization and is established as the new owner with the ownership interests continuing unchanged. More expenses, domicileLegal

Read More »

Captive Insurer

A closely held insurance company whose insurance businessIncludes trade, profession, or occupation. More is supplied by and controlled by its owners and in which the

Read More »

Captive Pool

Group of individually owned captives that combine to re-insure one another; riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome

Read More »

CAS

Professional society for actuaries in areas of insurance work other than life insurance. This society grants the designation of Associate and Fellow of the Casualty

Read More »

Case Management

A team that carefully reviews and monitors the entire treatment process when unusually high expenses are projected or incurred for a condition.

Read More »

Case Reserve

Amount the claims adjuster puts on an individual claimA demand or obligation for payment as a result of a loss. More that has not yet

Read More »

Cash Discounting

Used to prepare cost-benefit analyses to determine the present valueValue today of a future payment or payments, discounted at the appropriate discount rate. More (or

Read More »

Cash Flow

Measure of cash flowing through an organization arising from operations, financing, and investing activities.

Read More »

Cash Flow Plan

Insurance plans or retentionAcceptance or assumption of the risk of loss, which means any loss is paid out of pocket. More plans that allow the

Read More »

Cash Surrender Value

The amount of cash due an insuredPerson(s) protected under an insurance contract. who surrenders a Cash ValueThe amount of cash due an insured who surrenders

Read More »

Cash Value

The amount of cash due an insuredPerson(s) protected under an insurance contract. who surrenders a Cash ValueThe amount of cash due an insured who surrenders

Read More »

Causality

In statistics, the relationship between one variable and another variable where the second variable is a direct consequence of the first.

Read More »

CDHC

CDHCCDHC or Consumer-Driven Healthcare – Originated in the late 1990’s with the intention of increasing healthcare consumer awareness of the rising cost of healthcare by

Read More »

Cede

To transferA technique involving one party transferring the uncertainty of loss to another party or parties. More to a reinsurerInsurer who accepts all or a

Read More »

Ceding Company

Direct or primary insurerInsurance company that assumes risks for insureds and performs other insurance-related operations, such as loss control and claims settlements. More that contracts

Read More »

Central Limit Theorem

In statistics, the theorem states that with an appropriately large sampleIn statistics, a subset of a larger group having the same characteristics of the group.

Read More »

Certified Insurance Counselor (CIC)

Certified Insurance Counselor (CIC)Certified Insurance Counselor (CIC) is an insurance professional designation. The CIC program was started by the National Alliance for Insurance Education & Research in Austin, Texas in

Read More »

Cession

Transaction that transfers liabilityLegal responsibility or fault. More from the ceding companyDirect or primary insurer that contracts with a re-insurer to share all or a

Read More »

Claim Reserve

Estimation of the liabilityLegal responsibility or fault. More for unpaid claims that have occurred as of a given date, including the IBNRRepresents the liability for

Read More »

Claims Management

Prompt resolution of an organization’s losses subject to insurance or an active retentionPlanned acceptance of losses to be financed internally through the use of deductibles

Read More »

Claims Run

Listing of reported claims providing such information as the date of occurrenceAn accident with the limitation of time removed; an “accident” that is extended over

Read More »

Closed-Panel HMO Model

The most restrictive HMOProvides a comprehensive benefits package including physician visits, laboratory services, hospitalization and surgery, and focuses on preventive care, early diagnosis and outpatient

Read More »

COBRA

A federal regulation that requires employers with 20 or more employees in a prior year to allow employees and their covered dependents who lose employer-sponsored

Read More »

Coefficient of Determination

In statistics, the coefficient of determinationIn statistics, the coefficient of determination, or r2, ranges between 0 and 1, and describes the strength of the regression

Read More »

Coinsurance; Health

A form of cost sharingWhere insureds pay part of health insurance costs through deductibles, copayments, and coinsurance. More between the insuredPerson(s) protected under an insurance

Read More »

Coinsurance; Property and Casualty

A rating and underwritingThe process of selecting a risk and assigning a proper rating classification (to calculate the correct premium) in a manner that the

Read More »

Collateral

Property, usually in the form of funds or personal propertyAll property other than buildings or other structures. https://vimeo.com/442708554 More, pledged to secure a debt or

Read More »

Collateral Assignment

AssignmentThe transfer of all or part of a policy owner’s legal rights under the policy contract to another person or entity. More of a life

Read More »

Combined Ratio

Sum of total loss ratioRatio of the losses incurred and the Allocated Loss Adjustment Expense (ALAE) for those losses in a given period to the

Read More »

Common Law

Body of law consisting of prior precedents or rulings by judges and juries as to the facts of a case. These rulings form codes of

Read More »

Common Stock

Share or shares of ownership in a corporationA legal entity considered to be a separate tax and legal entity having an existence that is separate

Read More »

Communication

Process of exchanging information using a shared set of symbols and a means of transmission; can rangeThe difference between the largest and smallest values. More

Read More »

Commutation

A provision that disburses the experience accountAn account held by an insurer funded through the initial premium and subsequent premium deposits, if any. More back

Read More »

Compensatory Damages

Money awarded in a civil lawsuit to make an injured person whole, including recompense for damaged property, lost wages or profits, pain, bereavement, medical expenses,

Read More »

Competent Party

Under contract lawBody of law that governs the performance of a promise. An enforceable contract must have the following four characteristics: competent parties, agreement or

Read More »

Compounding

When an investor’s assetAnything of commercial value, including real or personal, tangible or intangible property. More generates earnings and those earnings are reinvested back in

Read More »

Conceptual Bidding

Providers are invited to present general proposals, ideas, or concepts for handling the insurance coverage and services without specific pricing of any coverage or service;

Read More »

Conditional Receipt

A form normally required to be signed by an agent and given to a prospective life insurance policy insuredPerson(s) protected under an insurance contract./owner at

Read More »

Confidence Interval

In statistics, set of numbers believed to include an unknown populationIn statistics, the entire group of observations. See Sample. More parameter.

Read More »

Conflict of Interest

Situation that places one between the duty to the employer and the employee’s own self-interest; including a situation that has the appearance of a conflict

Read More »

Construction Occupancy Protection Exposure

Also known as COPEA term referring to a building structure’s construction, occupancy, protection and exposure; used by underwriting to determine the risk of offering a

Read More »

Consumer-Driven Healthcare

CDHCCDHC or Consumer-Driven Healthcare – Originated in the late 1990’s with the intention of increasing healthcare consumer awareness of the rising cost of healthcare by

Read More »

Contestable Clause

A provision in an insurance policy setting forth the conditions and the period of time during which an insurerInsurance company that assumes risks for insureds

Read More »

Contract Law

Body of law that governs the performance of a promise. An enforceable contract must have the following four characteristics: competent parties, agreement or assent, legal

Read More »

Contractual Liability

LiabilityLegal responsibility or fault. More of another party assumed under a contract or agreement, either expressed or implied, as opposed to liabilityLegal responsibility or fault.

Read More »

Contractual Risk Transfer

Assumption or limiting exposures of certain liabilities relating to another party. See non-insurance risk transferTransfer of risk from one party to another party other than

Read More »

Contributory Plan

A group health plan structured so the employer and employeeA person in the service of another under a contract of hire, who acts under the

Read More »

Controlling

The actions a riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome over time; the difference between expected losses and

Read More »

Convertibility

The right of a policy ownerThe owner of an insurance policy. The policy owner can be different from the insured. More to exchange an existing

Read More »

Coordination of Benefits

Provision found in group health policies, specifying how benefits will be paid when more than one insurerInsurance company that assumes risks for insureds and performs

Read More »

Copayment

A flat fee the insuredPerson(s) protected under an insurance contract. pays each time covered services are provided or prescription drugs are purchased and is paid

Read More »

COPE

A term referring to a building structure’s construction, occupancyThe occupants or operations in the building. More, protectionAs related to property, the safeguards, equipment and measures

Read More »

Corporation

A legal entity considered to be a separate tax and legal entity having an existence that is separate and distinct from its owners.

Read More »

Correlation

Relationship of two or more variables; correlationRelationship of two or more variables; correlation does not imply causality. More does not imply causalityIn statistics, the relationship

Read More »

Correlation Coefficient

In statistics, a measure of the strength of a linear relationship between two variables ranging from -1 to +1. When the correlation coefficientIn statistics, a

Read More »

Cost Containment

Also known as “managed care”, provides appropriate and adequate medical care consistent with an insured’s healthcare needs, while avoiding unnecessary medical services and related expenses.

Read More »

Cost of Capital

Cost associated with various sources of financing to the organization and used to determine which alternative applications of funds are cost effective and should be

Read More »

Cost of Goods Sold

1) labor, material, and overhead expenses including inventory shrinkage; 2) the purchasing or production costs and expenses, both direct and indirect, of the merchandise sold

Read More »

Cost-of-Living Rider

Policy wording change or form designed to adjust policy benefits in relation to the change in the economic climate. The majority of such riders are

Read More »

Covered Expenses

All medical services covered by an insurance policy. Some health insurance plans will have a list of medical services they do not cover.

Read More »

COVID-19

COVID-19COVID-19 is a disease caused by a new strain of coronavirus. ‘CO’ stands for corona, ‘VI’ for virus, and ‘D’ for disease. Formerly, this disease

Read More »

Credibility

In statistics, relative confidence (statistical reliability) associated with a given body of data (e.g., lossA reduction in value. More experience for an individual division) and

Read More »

Credit Risk

A riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome over time; the difference between expected losses and actual losses.

Read More »

Crisis

Any critical incidentAn event that disrupts normal activities and may become a loss, claim or business interruption. More that involves death, serious injuryAn injury resulting

Read More »

Crisis Management

Act or process of managing a crisisAny critical incident that involves death, serious injury, or threat to people; damage to environment, animals, property and/or data;

Read More »

Current Assets

Cash or other assets that will be (or could be) converted into cash or consumed within an organization’s normal operating or accountingProcess to help quantify

Read More »

Custodial Care

In health or Long Term Care insurance, the care that is needed for personal needs such as eating, dressing, and bathing, which can be provided

Read More »

D-Ratio

Factor used in the workers compensation experience modification plan to separate the expected total losses into primary and excess losses. A D-ratioFactor used in the

Read More »

DART Rate

A Bureau of Labor Statistics measure of injury and illness cases involving days away, restricted duties, or transferA technique involving one party transferring the uncertainty

Read More »

DB Plan

A plan that traditionally provides lifetime monthly annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life

Read More »

DC Plan

A plan that allows participants and plan sponsors (optional) to contribute to a participant’s retirement account within the plan, but does not guarantee a specific

Read More »

Debt Ratio

Financial ratios measuring the ability of an organization to repay its creditors over the long term. Also a measure of the degree of leverageUse of

Read More »

Deductible Plan

A lossA reduction in value. More sensitive insurance plan in which the insuredPerson(s) protected under an insurance contract. agrees to reimburse the insurerInsurance company that

Read More »

Deductible; Health

The amount of eligible medical expenses an insuredPerson(s) protected under an insurance contract. must pay each year before the policy pays for eligible benefits.

Read More »

Deferred Compensation

A plan that allows selected individuals to defer receipt of current income in favor of a delayed benefit, in accordance with a written agreement with

Read More »

Defined Benefit Plan

A plan that traditionally provides lifetime monthly annuityPayment of a benefit where an individual receives a regular stream of income from the insurer, for life

Read More »

Defined Contribution Plan

A plan that allows participants and plan sponsors (optional) to contribute to a participant’s retirement account within the plan, but does not guarantee a specific

Read More »

Depletion

An accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time. More concept; the reduction in inventory

Read More »

Deposit Premium

The basic premiumIn retrospectively rated plans, usually a percentage of the standard premium, often determined by multiplying the standard premium by a basic premium factor.

Read More »

Depreciation; Accounting

An accountingProcess to help quantify an organization’s assets, liabilities, stakeholder equities, and cash flows at a point in time. More concept, generally for tax management,

Read More »

Development Factor

Factor designed to correct errors when estimating the reserves for known but unsettled losses and to make an allowance for incurred but not reportedRepresents the

Read More »

Direct Loss

A lossA reduction in value. More or damage as a direct result of a covered perilThe cause of a loss. More or cause of lossA

Read More »

Disability Benefit

The benefit payable under a disabilityA physical or mental incapacity. More income policyA life insurance contract that provides income on a monthly basis, as opposed

Read More »

Disappearance

When an insuredPerson(s) protected under an insurance contract. once had the money and/or “securities,” and now does not know where they are.

Read More »

Discount Rate

The organization’s average cost of capitalCost associated with various sources of financing to the organization and used to determine which alternative applications of funds are

Read More »

Discount Ratio

Factor used in the workers compensation experience modification plan to separate the expected total losses into primary and excess losses. A D-ratioFactor used in the

Read More »

Discounted Losses

LiabilityLegal responsibility or fault. More estimates that have been reduced to reflect the potential to earn investment on funds set aside to pay losses which

Read More »

Disinterestedness

As related to the Business Judgment RuleSingle most powerful defense available to a director or officer and recognizes that not all decisions of the directors

Read More »

Dividend Plan

A dividend planA dividend plan is a guaranteed cost plan with a dividend option. More is a guaranteed cost planAn insurance plan for which a

Read More »

Dividends

Distributions to shareholders of a corporation’s earnings. DividendsDistributions to shareholders of a corporation’s earnings. Dividends can also be distributed to policy owners of participating insurance

Read More »

Domicile

Legal and regulatory jurisdiction under which an insurance company chooses to be formed and operate.

Read More »

Due Care

As related to the Business Judgment RuleSingle most powerful defense available to a director or officer and recognizes that not all decisions of the directors

Read More »

Due Diligence

Actions taken to investigate documents and records of a businessIncludes trade, profession, or occupation. More and/or person prior to examination of a proposed action before

Read More »

Duration of Benefits

The length of time long-term careA blanket term for a wide range of services designed to meet medical, personal, and social needs in a variety

Read More »

Dynamics of Selling

The Dynamics of Selling Series is a multi-day insurance specific sales training course. Designed and taught by leadingThe behavior from a risk manager to cause

Read More »

Earned Surplus

Cumulative net incomeOperating income less interest expense and taxes; amount that can be distributed to an organization’s owners or kept as retained earnings. More, also

Read More »

Earnings Per Share

After-tax net incomeOperating income less interest expense and taxes; amount that can be distributed to an organization’s owners or kept as retained earnings. More divided

Read More »

Economic Risk

A general class of riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome over time; the difference between expected losses

Read More »

Elimination Period

The length of time an insuredPerson(s) protected under an insurance contract. must be disabled under a disabilityA physical or mental incapacity. More income and long-term

Read More »

ELR

When computing workers compensation experience modifications, the factor taken from actuarial tables used to calculate total expected lossesProjection of the frequency and/or severity of losses

Read More »

Emerging Risk

New exposures to lossA reduction in value. More for which a riskThe chance of loss; the uncertainty of loss; the variation from the expected outcome

Read More »

Empirical Rule

In statistics, the rule that nearly all values lie within 3 standard deviations of the meanSum of all observations divided by the number of observations;

Read More »

Employee

A person in the service of another under a contract of hire, who acts under the direction and control of the person who hired him/her.

Read More »

Employee Benefit Plan

Any plan, fund, or program established or maintained for the purpose of providing employeeA person in the service of another under a contract of hire,

Read More »

Employee Participation

A percentage of eligible employee participationA percentage of eligible employee participation required before an insurer will write an employer-sponsored group plan. More required before an

Read More »

Employee Retirement Income Security Act of 1974

A federal regulation enacted to protect participants and their beneficiaries. ERISAA federal regulation enacted to protect participants and their beneficiaries. ERISA contains provisions that stand

Read More »

Endorsement

Used by an insurerInsurance company that assumes risks for insureds and performs other insurance-related operations, such as loss control and claims settlements. More to clarify

Read More »

Endowment Life Insurance Contract

A type of permanent life insuranceA policy that offers lifetime protection by combining a cash value with death benefits. More where the cash valueThe amount

Read More »

Enterprise Risk Management

A systemic process of identifying, analyzing, assessing, and responding to all risks, regardless of the source, that affects the achievement of an organization’s strategic and

Read More »

EPO

A network of medical care providers structured in a similar manner to a PPO but have many of the requirements of an HMOProvides a comprehensive

Read More »

EPS

After-tax net incomeOperating income less interest expense and taxes; amount that can be distributed to an organization’s owners or kept as retained earnings. More divided

Read More »

Ergonomics

1) the applied science of equipment and workplace design intended to maximize productivity by reducing operator fatigue and discomfort; 2) fitting the work environment to

Read More »

ERISA

A federal regulation enacted to protect participants and their beneficiaries. ERISAA federal regulation enacted to protect participants and their beneficiaries. ERISA contains provisions that stand

Read More »

ERM

A systemic process of identifying, analyzing, assessing, and responding to all risks, regardless of the source, that affects the achievement of an organization’s strategic and

Read More »

Estate Tax

A tax payable to the federal government due to the death of an individual. It is a transferA technique involving one party transferring the uncertainty

Read More »

Estoppel

Legal concept that holds a party is barred or impeded by his/her own acts from claiming a right to the detriment of another party who

Read More »

Ethical

Pertaining to standards of right conduct or practice arising out of ethicsMoral principles of a group or individual as developed over time and with life

Read More »

Ethics

Moral principles of a group or individual as developed over time and with life experiences.

Read More »

Evidence of Insurability

A statement of information and proof of health condition for underwritingThe process of selecting a risk and assigning a proper rating classification (to calculate the

Read More »

Excess Insurance

Insurance protectionAs related to property, the safeguards, equipment and measures provided by the building owner or occupant to minimize hazards. More for limits above those

Read More »

Excess Per Occurrence

The reinsurerInsurer who accepts all or a portion of the liabilities of the ceding or primary company. More pays only when the aggregate lossA reduction

Read More »

Excess Reinsurance

A form of Treaty reinsuranceThe ceding company agrees to cede certain classes of business to a reinsurer. The reinsurer agrees to accept all business qualifying

Read More »

Exclusions From Coverage

Exclusions vary from one policy to another and limit or eliminate the insurer’s exposureA situation, practice or condition that may lead to an adverse financial

Read More »

Expected Loss Rate

When computing workers compensation experience modifications, the factor taken from actuarial tables used to calculate total expected lossesProjection of the frequency and/or severity of losses

Read More »

Expected Losses

Projection of the frequencyThe number of losses occurring in a given time period. More and/or severityThe dollar amount of a given loss or the aggregate

Read More »

Expected Mortality

The expected incidence of death within a given group during a given period of time, as shown in a mortalityThe measure of the probability of

Read More »

Experience Modifier

Factor developed by measuring the difference between the insured’s actual past experience and the expected experience of the class. The factor may be either a

Read More »

Experience Rating

A rating that considers the individual lossA reduction in value. More experience of a particular insuredPerson(s) protected under an insurance contract.. It applies lossA reduction

Read More »

Experienced Mortality

The mortalityThe measure of the probability of dying at a certain age. Mortality rates usually reflect the actual experience of an insurer with its insureds,

Read More »

Exposure

A situation, practice or condition that may lead to an adverse financial consequence; an activity or resource; people and assets

Read More »

Extended Death Benefit

A group policy provision that pays a life benefit when (1) the insuredPerson(s) protected under an insurance contract. is totally and continuously disabled at the

Read More »

Do you need an answer immediately?

Check out our FAQ page!

Skip to toolbar