Random Terms
An insurance professional who acts as an intermediary between an insured and an insurance company?
What is an agent and or broker.
Liability arising from the assumption of liability through a contract or agreement.
What is contractual liability?
Refers to the actual amount of funds set aside in an insurer's financial statement?
What are bulk reserves?
A form of liability coverage that is triggered if 1) an event takes place after the retroactive date but prior to the termination of coverage, and 2) the claim is made against the Insured while the policy is in effect.
What is claims-made coverage?
Computed by dividing the number of occupied beds by the number of licensed beds, and then multiplying by 100.
What is an occupancy rate?
Refers to all of the resources owned by a company.
What are assets?
A question and answer session in which witnesses provide sworn testimony.
What is a deposition?
Refers to defense costs that can be directly allocated to an individual claim, such as defense Attorney fees, expert witness fees, etc.
What are allocated loss adjustment expenses (ALAE)?
A written document attached to the original policy that may add, delete, or modify the provisions of the original insurance policy.
What is an endorsement?
A rating factor applied to a base rate when higher limits are purchased. An ILF adjusts the premium to reflect the increased exposure that exists when higher limits of liability are purchased.
What is an increased limit factor?
A partnership between two or more business entities for a specific project or within a specified period.
What is a joint venture?
Refers to claims arising from the healthcare provider's own acts and omissions in the course of providing healthcare services.
What is direct liability?
Means the loss run includes the total of payments and reserves valued as of a recent date.
What are currently valued claims?
A component of an insurance policy, usually the first page, that provides information about the property, person(s), or activity(ies) that are insured, policy limits, deductibles, and coverages. Also called a Coverage Summary.
What is a declarations page?
A method of adjusting premiums applied when the Insured has a unique risk characteristic that the Underwriter believes makes it more or less likely than average to incur a loss.
What is schedule rating?
Insurance companies owned and controlled by a parent company, which exclusively insure the exposures of the parent company.
What is a captive?
Refers to an act that falsely harms an individual's or an organization's reputation.
What is defamation?
Refers to the payment made to the plaintiff for special and general damages assessed against the insured healthcare provider.
What is an indemnity payment?
The portion of a loss for which the Insured is responsible. It may apply to the indemnity payment or defense costs, or both. The payment is typically paid by the Insurer and then collected from the Insured.
What is a deductible?
The practice of performing healthcare services beyond the scope of healthcare professional's formal employment, for other healthcare professionals or organizations.
What is moonlighting?
A legal principle that holds individual defendants responsible only for their proportionate part of the total damages attributable to their negligence.
What is proportionate liability?
A risk transfers method in which one party assumes, by contract, the liability for the negligence of another party. In the absence of such an agreement, each party would be responsible for its own negligence.
What is a hold-harmless and indemnity agreement?
A specific sum or percentage of loss that is the lnsured's responsibility and is not covered under the policy.
What is a self insured retention?
Extends the claims-reporting provisions for a specific time period beyond the policy expiration date, for any claims arising from incidents that occurred after the retroactive date and prior to the expiration of the policy.
What is an Extended Reporting Period (ERP)?
A doctrine that provides that a party is held responsible for the negligence of another based solely on the relationship between the parties, such as employer and employee or principal and agent.
What is vicarious liability?