Personal injury protection (PIP) coverage. Calendar Year Deductible - in health insurance, the amount that must be paid by the insured during a calendar year before the insurer becomes responsible for further loss costs. Policyholders Surplus - assets in excess of the liabilities of a company or net income above any monies indebted to legal obligation. Retention Limit - maximum amount of medical and hospital expense an insurer will carry on its own. It specifies that only one deductible has to be satisfied if two or more family members are injured in the same accident. Reported Losses - Includes both expected payments for losses relating to insured events that have occurred and have been reported to the insurance company, but not yet paid. Joint-Life Annuity - an annuity contract that ceases upon the death of the first of two or more annuitants. Individual Health - health insurance where the policy is issued to an individual covering the individual and/or their dependents in the individual market. Annuitant - the beneficiary of an annuity payment, or person during whose life and annuity is payable. Short-term Disability - a company standard defining a period of time employees are eligible for short-term disability coverage, typically for 2 years or less. Collateral Loans - unconditional obligations for the payment of money secured by the pledge of an investment. Protected Cell - an insurance-linked security retained within the insurance or reinsurance company and is used to insulate the proceeds of the securities offering from the general business risks of the insurer, granting an additional comfort level for investors of the securitized instrument. Net Income - total revenues from an insurer's operations less total expenses and income taxes. BLOCK, J.D., LLM, CLU, FLMI Only about one in three contracts issued specifically includes a common accident provision, or what is sometimes called a survivorship clause or common disaster clause. Compensation for the injured party is equal to the difference between the losses incurred and the liability covered by the motorist at fault. It may also cover some services and expenses not covered by Medicare. Net Premiums Earned - premiums on property/casualty or health policies that will not have to be returned to the policyholder if the policy is cancelled. A common accident is one in in which two or more persons are injured. Insurer maintains the right to seek reimbursement for losses incurred by insurer at the fault of a third party. NYC Car Accident Statistics In 2023 - Forbes Advisor Watch on While the occurrence of death during travel on a common carrier is rare, it is still important to have a visitors insurance plan that includes common carrier accidental death coverage. Capital and Surplus Requirement - statutory requirement ordering companies to maintain their capital and surplus at an amount equal to or in excess of a specified amount to help assure the solvency of the company by providing a financial cushion against expected loss or misjudgments and generally measured as a company's admitted assets minus its liabilities, determined on a statutory accounting basis. Studies show that considering a person's credit behavior can help in predicting potential losses more accurately. This method is prohibited under the conditions for federal qualification. Unearned Premium - amount of premium for which payment has been made by the policyholder but coverage has not yet been provided. Environmental Impairment Liability (EIL) - coverage for negligence or omission resulting in pollution or environmental contamination. 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. Benefits (Medical & Hospital Expenses) - total expenditures for health care services paid to or on behalf of a member. Auto Physical Damage - motor vehicle insurance coverage (including collision, vandalism, fire and theft) that insures against material damage to the insured's vehicle. Advance Premiums - occur when a policy has been processed, and the premium has been paid prior to the effective date. Your Free Online Legal Dictionary Featuring Black's Law Dictionary, 2nd Ed. Separate Account - segregated funds held and invested independently of other assets by an insurer for the purpose of a group retirement fund. Ceding Company - an insurance company that transfers risk by purchasing reinsurance. Here's what they mean: Indemnification is an agreement where your insurer helps cover loss, damage or liability incurred from a covered event. Frequently includes fire, allied lines, various other coverages (e.g., difference in conditions) and liability coverage. Personal Property - single interest or dual interest credit insurance (where collateral is not a motor vehicle, mobile home, or real estate) that covers perils to goods purchased or used as collateral and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part; or covers perils to goods purchased in connection with an open-end credit transaction. Mortgage-Backed Securities - a type of asset-backed security that is secured by a mortgage or collection of mortgages. Cash Equivalent - short-term, highly liquid investments that are both (a) readily convertible to known amounts of cash, and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Non-controlled stock insurers - insurers in which a parent company has: 1) a financial interest represented by the direct or indirect ownership of less than 50% of voting shares, and 2) does not have the ability to exercise control over the insurer, e.g., through voting stock or management contract. Disability Income - Long-Term - policies that provide a weekly or monthly income benefit for more than five years for individual coverage and more than one year for group coverage for full or partial disability arising from accident and/or sickness. "Dual Interest" includes insurance commonly referred to as "Limited Dual Interest.". Discover tools and resources to help you understand different types of insurance, claims processes, and practical tips to help support you through every stage of your life. The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. If the insured fails to maintain the amount specified in the clause (Usually at least 80%), the insured shares a higher proportion of the loss. Policy - a written contract ratifying the legality of an insurance agreement. What is Common Carrier Accidental Death Coverage? Fidelity - a bond or policy covering an employer's loss resulting from an employee's dishonest act (e.g., loss of cash, securities, valuables, etc.). Variable Universal Life - combines the flexible premium features of universal life with the component of variable life in which excess credited to the cash value of the account depends on investment results of separate accounts. Business Interruption - loss of income as a result of property damage to a business facility. 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. Dwelling Property/Personal Liability - a special form of package policy composed of dwelling fire and/or allied lines, and personal liability insurance. 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. Commercial General Liability - flexible & broad commercial liability coverage with two major sub-lines: premises/operations sub-line and products/completed operations sub-line. Business owners Policy - business insurance typically for property, liability and business interruption coverage. This is an insurance policy that provides coverage for losses, body injuries, damage of property, or death cause by an unforeseen event or accident. The payment can be taken as cash, applied to a purchase an increment of paid-up insurance, left on deposit with the insurance company or applied to purchase term insurance for one year. Manufacturers Output Policies - provides broad form coverage of personal property of an insured manufacturer including raw material, goods in process, finished goods and goods shipped to customers. Risk Retention Act - a 1986 federal statute amending portions of the Product Liability Risk Retention Act of 1981 and enacted to make organization of Risk Retention Groups and Purchasing Groups more efficient. Asset - probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. This annuity contract provides for the initiation of payments at some designated future date. Disability Income - a policy designed to compensate insured individuals for a portion of the income they lose because of a disabling injury or illness. Limited Benefit - policies that provide coverage for vision, prescription drug, and/or any other single service plan or program. Change in Valuation Basis - a change in the interest rate, mortality assumption or reserving method or other factors affecting the reserve computation of policies in force. Capital and Surplus - a company's assets minus its liabilities. Representatives from diverse groups who provide varied perspectives on insurance regulatory issues. Short-Term Medical - policies that provide major medical coverage for a short period of time, typically 30 to 180 days. Gramm-Leach Bliley Act (GLBA) - act, repealing Glass-Steagal Act of 1933, allows consolidation of commercial banks, investment institutions and insurance companies. The formula reflects market value adjustments. The term may also include claims that have been incurred but not reported. For example not taking proper care to protect insured property because the insured knows the insurance company will replace it if it is damaged or stolen. is a liability insurance term that includes bodily harm, sickness, or disease,. Retrocession - the portion of risk that a reinsurance company cedes or amount of insurance the company chooses not to retain. Loss Payable Clause - coverage for third party mortgagee in case of default on insured property, secured by a loan, that has been lost or damaged. It permits financial services companies to merge and engage in a variety of new business activities, including insurance, while attempting to address the regulatory issues raised by such combinations. Dental Insurance - policies providing only dental treatment benefits such as routine dental examinations, preventive dental work, and dental procedures needed to treat tooth decay and diseases of the teeth and jaw. Select a state or jurisdiction for insurance department contact information. Coverage also includes inspection of the equipment. Incurred But Not Reported (IBNR) - (Pure IBNR) claims that have occurred but the insurer has not been notified of them at the reporting date. The Patient Protection and Affordable Health . Can be classified into two broad categories: Defense and Cost Containment (DCC) and Adjusting and Other (AO). Burglary and Theft - coverage for property taken or destroyed by breaking and entering the insured's premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and off-premises exposure.
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