Term
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Definition
| The difference between the premium income and the losses and expenses, for a specific period of time. |
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Term
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Definition
| Interest, dividends and net realized capital gains received by the insurer from the financial assets it owns, minus investment expenses. |
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Term
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Definition
| A reduction in the average cost of a product or a process as the size of the company increases. |
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Term
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Definition
| Specify the characteristics of those customers who are likely to file the numbers and types of claims for which the insurer's products and rates were designed. |
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Term
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Definition
| An event that results in insured losses, exceeding a threshold of $25 million and that affects a significant number of policyholders. |
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Term
| Extracontractual Liability |
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Definition
| An insurer's obligation that goes beyond the terms of a contract. |
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Term
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Definition
| Involves using computerized simulations to identify the potential extent of damage from a single catastrophic event such as a hurricane or an earthquake. |
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Term
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Definition
| Refers to public awareness of receiving compensation for a personal misfortune. Can increase the frequency of claims |
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Term
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Definition
| A method for delivering servies that approaches the customer as an associate rather than as a source for sales. |
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Term
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Definition
| An activity aimed at fullfilling a customer's needs at the time of a triggering event. |
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Term
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Definition
| A group of insurance company employees or employees of associated organizations. Team members might not work at the same location, but they share information though a database and converse through electronic media. |
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Term
| Residual Market or involuntary Market or Automobile Insurance Plan |
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Definition
| Makes auto insurance available to most drivers who cannot obtain insurance in the voluntary market. |
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Term
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Definition
| Common characteristcs of a group of people. Demographic profiles can be used to identify market segments. |
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Term
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Definition
| A primary insurer purcheses treaty reinsurance policies that cover entire product lines or portions, such as liability or property. All policies written by the primary insurer that fall within the coverage provided under the reinsurance treaty are covered. |
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Term
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Definition
| Written to provide coverage for a single account or policy. Is rarely applied in personal lines. |
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Term
| Guaranteed Replacement Cost |
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Definition
| A homeowners policy with an endorsement attached. If a loss occurs to a residence, the limits of liability will be amended to equal the current replacement of the dwelling. |
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