h�23�P0P03�T07W���w�/�+Q0���L)�6�0J)�Ic0i The term may also include claims that have been incurred but not reported. Morbidity Table - a statistical record of the rate of illness among the defined age groups. Medical Professional Liability is also known as Medical Malpractice. Investment grade - the obligation has been determined to be in one of the top four generic lettered rating classifications by a securities rating agency acceptable to the commissioner, that the obligation has been identified in writing by such a rating agency to be of investment grade quality, or, if the obligation has not been submitted to any such rating agency, that the obligation has been determined to be investment grade (Class 1 and Class 2) by the Securities Valuation Office of the National Association of Insurance Commissioners. (May cover motor vehicles, mobile equipment, boats, appliances, electronics, residual structures, etc.). Losses Incurred But Not Reported (IBNR) - An estimated amount set aside by the insurance company to pay claims that may have occurred, but for some reason have not yet been reported to the insurance company. Independent Agent - a representative of multiple insurance companies who sells and services policies for records which they own and operate under the American Agency System. Financial Statement - balance sheet and profit and loss statement of an insurance company. Federal Flood Insurance - coverage for qualifying residents and businesses in flood prone regions through the National Flood Insurance Act, a federally subsidized flood insurance program enacted in 1968. Examples of items covered are pension plans, group life insurance, group health insurance, group disability income insurance, and accidental death and dismemberment. Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss. Continuation of Care Requirement - statutory or contractual provision requiring providers to deliver care to an enrollee for some period following the date of a Health Plan Company's insolvency. Carrying Value (Amount) - the SAP book value plus accrued interest and reduced by any valuation allowance and any nonadmitted adjustment applied to the individual investment. Coverage includes barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock. Actual Cash Value - repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation, Actuarial Report - (PC Insurance)a document or other presentation, prepared as a formal means of conveying to the state regulatory authority and the Board of Directors, or its equivalent, the actuary's professional conclusions and recommendations, of recording and communicating the methods and procedures, of assuring that the parties addressed are aware of the significance of the actuary's opinion or findings and that documents the analysis underlying the opinion. The contract provides for the initiation of payments at some interval that may vary, however the annuity payouts must begin within 13 months. Concurrent Causation - property loss incurred from two or more perils in which only one loss is covered but both are paid by the insurer due to simultaneous incident. Expense Ratio - percentage of premium income used to attain and service policies. FEMA - Federal Emergency Management Agency - an independent agency, tasked with responding to, planning for, mitigating and recovery efforts of natural disasters. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. Credit Disability - makes monthly loan/credit transaction payments to the creditor upon the disablement of an insured debtor. Term Insurance - life insurance payable only if death of insured occurs within a specified time, such as 5 or 10 years, or before a specified age. Does not include self-insured business as well as FEHBP or Medicare and Medicaid programs. Bodily Injury - physical injury including sickness or disease to a person. Contractual Liability - liability coverage of an insured who has assumed the legal liability of another party by written or oral contract. Public Adjuster - independent claims adjuster representing policyholders instead of insurance companies. Ceded Premium - amount of premium (fees) used to purchase reinsurance. Assumed Reinsurance - the assumption of risk from another insurance entity within a reinsurance agreement or treaty. Copay - a cost sharing mechanism in group insurance plans where the insured pays a specified dollar amount of incurred medical expenses and the insurer pays the remainder. h��W_o�6�*z�0�eQ���M�b�m��t�Ê>�R�5��E�b�IK����-�@�����S:!�)K���J)�\��u�#S�,I���P���Q�e!������������w��nYo:�K-�y��}�<>u��}[���B��jU=�D���v��f�_w`˄�ڰ�{�^U�f���m��w��Sܴ�j�5ˮ�u������[-�m�-���v��V���FK�}�U���Nf���5�R���k��'�����{̐R&�#�~�Y���1��l.7�&~_5�]7��x��=?�]�c�5@�x��Q(�ۗ�c�����iwg��%)��( Structured Securities - loan-backed securities that have been divided into two or more classes of investors where the payment of interest and/or principal of any class of securities has been allocated in a manner that is not proportional to interest and/or principal received by the issuer from the mortgage pool or other underlying securities. Members are allowed benefits for non-participating provider services on an indemnity basis with significant copayments and providers are often, but not always, paid on a discounted fee for service basis. Mortgage - a note used to secure a loan for real property. Hull Insurance - coverage for damage to a vessel or aircraft and affixed items. Fraternal, Property and Casualty, Title, Life, Accident & Health and Health, in numeric order by company code. Also include short-term care policies that provide coverage for less than one year for medical and other services provided in a setting other than an acute care unit of the hospital. Domestic Insurer - an insurance company that is domiciled and licensed in the state in which it sells insurance. Aggregate - the maximum dollar amount or total amount of coverage payable for a single loss, or multiple losses, during a policy period, or on a single project. Insurance Holding Company System - consists of two or more affiliated persons, one or more of which is an insurer. Independent Contractor - an individual who is not employed for a company but instead works for themselves providing goods or services to clients for a fee. Fire Legal Liability - coverage for property loss liability as the result of separate negligent acts and/or omissions of the insured that allows a spreading fire to cause bodily injury or property damage of others. Insurance Holding Company System - consists of two or more affiliated persons, one or more of which is an insurer. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Equity Indexed Annuity - a fixed annuity that earns interest or provides benefits that are linked to an external reference or equity index, subject to a minimum guarantee. Declarations - policy statements regarding the applicant and property covered such as demographic and occupational information, property specifications and expected mileage per year . FAIR Plan - Fair Access to Insurance Requirements - state pools designed to provide insurance to property owners who are unable to obtain property insurance through conventional means. Unearned Premium Reserve - all premiums (fees) received for coverage extending beyond the statement date; appears as a liability on the balance sheet. Disability Income - a policy designed to compensate insured individuals for a portion of the income they lose because of a disabling injury or illness. Insurable Interest - A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it. For life insurance, this is the premium including dividends. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies. Pet Insurance Plans - veterinary care plan insurance policy providing care for a pet animal (e.g., dog or cat) of the insured owner in the event of its illness or accident. Separate Account - segregated funds held and invested independently of other assets by an insurer for the purpose of a group retirement fund. Employers Liability - employers' liability coverage for the legal liability of employers arising out of injuries to employees. Medical Malpractice - insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured's misconduct, negligence, or incompetence, in rendering or failure to render professional services. Credit Health Insurance - policy assigning creditor as beneficiary for insurance on a debtor thereby remitting balance of payment to creditor should the debtor become disabled. Direct Writer - an insurance company that sells policies to the insured through salaried representatives or exclusive agents only; reinsurance companies that deal directly with ceding companies instead of using brokers. The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. Valued Policy - an insurance contract for which the value is agreed upon in advance and is not related to the amount of the insured loss. Creditor-Placed Auto - single interest or dual interest credit insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss to property that would either impair a creditor's interest or adversely affect the value of collateral on automobiles, boats, or other vehicles. Medicaid - policies issued in association with the Federal/State entitlement program created by Title XIX of the Social Security Act of 1965 that pays for medical assistance for certain individuals and families with low incomes and resources. Personal Earthquake - earthquake property coverage for personal, family or household purposes. Mortgage Insurance - a form of life insurance coverage payable to a third party lender/mortgagee upon the death of the insured/mortgagor for loss of loan payments. The interval may vary, however the annuity payouts must begin within 13 months. Contingency Reserves - required by some jurisdictions as a hedge against adverse experience from operations, particularly adverse claim experience. Indemnity, Principle of - a general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss. Accidental Death & Dismemberment - an insurance contract that pays a stated benefit in the event of death and/or dismemberment caused by accident or specified kinds of accidents. Individual Annuities – Deferred Variable - an annuity contract that provides an accumulation based fund where the accumulation varies in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. Policy Period - time period during which insurance coverage is in effect. Incurred losses are typically found by combining losses paid during the period plus unpaid losses sustained during the time period minus outstanding losses at the beginning of the period incurred in the previous period. Provisions - contingencies outlined in an insurance policy. Estimates are established to book these claims. Premiums are made for same time period. Insurance - an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling. Vision - limited benefit expense policies. Collateralized Bond Obligations (CBOs) - an investment-grade bond backed by a pool of low-grade debt securities, such as junk bonds, separated into tranches based on various levels of credit risk. Standard Risk - a person who, according to a company's underwriting standards, is considered a normal risk and insurable at standard rates. Aircraft - coverage for aircraft (hull) and their contents; aircraft owners' and aircraft manufacturers liability to passengers, airports and other third parties. Private Passenger Auto (PPA) - filings that include singularly or in any combination coverage such as the following: Auto Liability, Personal Injury Protection (PIP), Medical Payments (MP), Uninsured/Underinsured (UM/UIM); Specified Causes of Loss, Comprehensive, and Collision. This statement is used by the NAIC, and by State Insurance Commissioners to regulate an insurance company according to reserve requirements, assets, and other liabilities. Morbidity risk excludes the potential for an individual's death, but includes the potential for an illness or injury that results in death. The amount varies with the value of equities (separate account) purchased as investments by the insurance companies. 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