Category 1
Premiums on policies put into effect in a given period
Written
Claim payments an insurer has made
Paid losses
Expenses associated with writing new business
Acquisition Expenses
Condition that increases the likelihood of loss
Hazard
Financial statement that shows a company’s financial position at a particular point in time
Balance Sheet
Combined ratio minus the investment ratio
Overall Operating Ratio
List of policy holders and their policies
Expiration List
Net investment income divided by earned premium for a given period of time
Investment Income Ratio
An insurer licensed to do business in their home state
Domestic
A rating approach that leverages probabilities within a group
Class rating
Portion of premium allocated for services not yet rendered
Unearned
Money set aside for losses that have occurred but not yet paid
Loss Reserves
Contract where the insurer agrees to pay an amount directly related to the loss
Contract of indemnity
An insurance marketing systems that uses sales agents or employees
Direct Writer
Transfer of insurance from one insurer to another
Reinsurance
Property owned by an entity including money, stocks, buildings, furniture, etc
Assets
The difference between assets and liabilities
Policyholder Surplus
Money paid to shareholders
Dividend
A person who uses mathematical method to analyze risk to assist in developing rates
Actuary
Measurement of incurred losses and earned premium for a given period of time
Loss ratio
Business that operates for the benefit of the owner, selling insurance on behalf of multiple insurance companies
Independent Agency
An obligation to act in complete honesty and to disclose all relevant facts
Utmost good faith
Underwriter who is responsible implementing the steps in the underwriting process
Line Underwriter
The ability of an insurer to meet their financial obligations
Solvency
Passing score for the National Exam
70%