GLOSSARY OF INSURANCE TERMSThere are 528 entries in this glossary.
A technique that consists of staggering the maturity dates and the mix of different types of bonds.
When the insurance policy is cancelled because the renewal premium has not been paid by the conclusion of the grace period
|LAW OF LARGE NUMBERS||
The theory of probability on which the business of insurance is based. Simply put, this mathematical premise says that the larger the group of units insured, such as sport-utility vehicles, the more accurate the predictions of loss will be.
|LEVEL PREMIUM POLICIES||
Premiums that insurance that stays the same every year for as long as the contract is in force.
Individual responsible for causing, through negligence, injury to another person or damage to another person’s property. Also called Personal Liability. **
(1)Insurance that pays and renders services on behalf of a policyholder who is unintentionally, but legally responsible for bodily injury or property damage that is caused to another person and covered in the policy. ** (2)Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.
A policy that guarantees the payment of a stated amount of monetary benefits upon the death of the insured to a designated beneficiary, typically a family member or business. **
Maximum amount of insurance that can be paid for a covered loss.
Type or kind of insurance, such as personal lines.
Enables the state insurance department as liquidator or its appointed deputy to wind up the insurance company’s affairs by selling its assets and settling claims upon those assets. After receiving the liquidation order, the liquidator notifies insurance departments in other states and state guaranty funds of the liquidation proceedings. Such insurance company liquidations are not subject to the Federal Bankruptcy Code but to each state’s liquidation statutes.
The ability and speed with which a security can be converted into cash.
Coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.
|LLOYD'S OF LONDON||
A marketplace where underwriting syndicates, or mini-insurers, gather to sell insurance policies and reinsurance. Each syndicate is managed by an underwriter who decides whether or not to accept the risk. The Lloyd’s market is a major player in the international reinsurance market as well as a primary market for marine insurance and large risks. Originally, Lloyd’s was a London coffee house in the 1600s patronized by shipowners who insured each other’s hulls and cargoes. As Lloyd’s developed, wealthy individuals, called “Names,” placed their personal assets behind insurance risks as a business venture. Increasingly since the 1990s, most of the capital comes from corporations.
Corporation formed to market services of a group of underwriters. Does not issue insurance policies or provide insurance protection. Insurance is written by individual underwriters, with each assuming a part of every risk. Has no connection to Lloyd’s of London, and is found primarily in Texas.
|LONG-TERM CARE INSURANCE||
Long-term care (LTC) insurance pays for services to help individuals who are unable to perform certain activities of daily living without assistance, or require supervision due to a cognitive impairment such as Alzheimer’s disease. LTC is available as individual insurance or through an employer-sponsored or association plan.