Risk: Your Best Friend and Worst Enemy -- The Motley Fool
A few things you should know about it. Risk fills in the gaps between your plans and the relentless power of chance, accident, luck, and misinformation. It sits over your shoulder while you're plannin...
Risk: Your Best Friend and Worst Enemy -- The Motley Fool
A few things you should know about it. Risk fills in the gaps between your plans and the relentless power of chance, accident, luck, and misinformation. It sits over your shoulder while you're plannin...
Captive insurance
Captive insurance companies are insurance companies established by a parent group or groups with the specific objective of covering the risks to which the parent is exposed. Hence it is a type of sel...
Beneficiary
A beneficiary (also, in trust law, cestui que use) in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary ...
Systemic risk
In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can...
Cash value
The cash value of an insurance contract, also called the cash surrender value or surrender value, is the cash amount offered to the policyowner by the issuing life carrier upon cancellation of the con...
Probable maximum loss
Probable Maximum Loss (PML) is a term used in the insurance industry as well as Commercial Real Estate. Although the definition is not consistent in the insurance industry, it is generally defined as ...
Third-party administrator
A third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. This can be viewed as "outsourcing" the admin...
Certificate of life
A Certificate of Life (also called a Proof of Life, Certificate of Existence or Letter of Existence) is a certificate produced by a trusted entity to confirm that an individual is still alive.Governme...
Loss reserving
Loss reserving or Outstanding claims reserves refers to the calculation of the required reserves for a tranche of general insurance business.Typically, the claims reserves represent the money which sh...
Participating policy
A with-profits policy (Commonwealth) or participating policy (U.S.) is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance...
Insurance broker
An insurance broker (also insurance agent) sells, solicits, or negotiates insurance for compensation. The three largest insurance brokers in the world, by revenue, are Marsh & McLennan, Aon, and ...
Actual cash value
In the property and casualty insurance industry, Actual Cash Value (ACV) is a method of valuing insured property, or the value computed by that method.Actual Cash Value (ACV) is not equal to replaceme...
RONOCO Wheel
A wheel calculator is made of concentric paper or plastic discs, used to make calculations involving time periods. They have applications in pregnancy (to calculate the due date) and insurance.
An...
Certified marine insurance professional
Certified marine insurance professional (CMIP) is a specialized insurance designation offered by International Institute of Marine Insurance Studies.
Total loss
In insurance, a total loss or write-off is a judgment, by an insurer, that the lost value or repair cost of a damaged property exceeds the value of its policy, resulting in what it concludes is a "tot...
Risk equalization
Risk equalization is a way of equalizing the risk profiles of insurance members in order to avoid loading premiums on the insured to some predetermined extent.In health insurance it enables private he...
Contingent commissions
Contingent commissions is a term used in the American insurance industry for any kind of commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In ...
2011 European Union bank stress test
A European Union-wide banking stress test has been conducted by the Committee of European Banking Supervisors every year since 2009. The second instance (2010 European Union banking stress test exerci...
Certified Insurance Counselor
In the United States, Certified Insurance Counselor (CIC) is an insurance agent professional certification designation. The CIC certification program was started by the National Alliance for Insurance...
New business strain
For a life insurer, even if profitable business is written, the value of the company may appear to worsen (when viewed from a regulatory basis, for example) because of new business strain. This is a c...
Quota share
A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity.For example, the United States imposes an import quota on cars from ...
Procyclical and countercyclical
Procyclical and countercyclical are terms used to describe how an economic quantity is related to economic fluctuations. Their meanings may vary with regard to business cycle theory and economic poli...
Omnibus clause
An omnibus clause is a clause that provides or includes all residuary not specifically mentioned.A very common omnibus clause deals with automobile liability insurance. The clause provides coverage f...
Independent insurance agent
Independent insurance agents, also known as insurance sales agents or "producers", typically sell a variety of insurance and financial products, including property insurance and casualty insurance, li...
Contingent coverage
Contingent coverage is designed to apply when the party who is supposed to purchase the builder's risk policy fails to do so, or obtains the coverage but fails to maintain it.
Adjustment clause
In insurance, an adjustment clause in a contract specifies how the amount of a claim (particularly a claim against an insurance company) will be determined for the purposes of a settlement, giving con...
Policy term
An insurance policy may be canceled before the end of the policy period. This has the effect of ending the policy coverage on the date of the policy cancellation.
Three different calculation meth...
Gross premiums written
Gross premiums written is the sum of both direct premiums written and assumed premiums written before the effect of ceded reinsurance. Direct premiums written represents the premiums on all policies t...