Terms
A legal representative of an insurance company
Agent/Producer
The transfer of risk of loss
Insurance
Owned by stockholders
Stock Company
The amount charged for a particular amount of coverage
Insurance Rate
Named Insured
A person who receives the benefits of an insurance policy
Beneficiary
Situations that can only result in a loss or no change
Pure risk
Owned by policy holders and issue participating policies
Mutual Companies
The practice of computing price per unit that applies to all possessing a given set of characteristics
Class (or manual) Rating
Termination of an in-force policy prior to the expiration date
Cancellation
The money paid to an insurance company of an insurance policy
Premium
The conditions that increase the probability of a loss occurring
Hazard
Carries insurance not available in the regular marketplace
Surplus Lines
Used when credible statistics are lacking. May also be referred to as "A" rated
Judgement rating
The dollar amount that must be made prior to the policy providing coverage
Deductible
Reduction in value, particularly due to wear and tear
Depreciation
The causes of loss insured against in an insurance policy
Perils
Includes; Social Security, Medicare, Medicaid, Federal Crop Insurance, and National Flood Insurance
Government Insurers/Social Insurance Programs
Rates developed by applying a schedule of charges and credits to a base rate
Schedule rating
Liberalization
A written law passed by a legislative body
Statute
Financial, blood relative, business partner, are all elements of what?
Insurable Risk
A liability insurance company owned by it's members
Risk Retention Group
Premium is based on factors that indicate the probability that a loss with occur. Most commonly used in personal auto insurance
Merit Rating
The insurer's right to seek damages from a third party
Subrogation