Insurance GlossaryThere are 17 entries in this glossary.
|Paid-Up Additional Insurance|
The cause of a possible loss.
|Personal Injury Protection||
Pays basic expenses for an insured and his or her family in states with no-fault auto insurance. No-fault laws generally require drivers to carry both liability insurance and personal injury protection coverage to pay for basic needs of the insured, such as medical expenses, in the event of an accident.
Insurance for individuals and families, such as private-passenger auto and homeowners insurance.
Health insurance policy that allows the employee to choose between in-network and out-of-network care each time medical treatment is needed.
The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.
|Policy or Sales Illustration|
Auto coverage for drivers who have never had an accident and operates vehicles according to law. Drivers are not a risk for any insurance company that writes auto insurance, and no insurance company would be afraid to take them on as risk.
|Preferred Provider Organization||
Network of medical providers who charge on a fee-for-service basis, but are paid on a negotiated, discounted fee schedule.
The price of insurance protection for a specified risk for a specified period of time.
|Premium to Surplus Ratio||
This ratio is designed to measure the ability of the insurer to absorb above-average losses and the insurer's financial strength. The ratio is computed by dividing net premiums written by surplus. An insurance company's surplus is the amount by which assets exceed liabilities. The ratio is computed by dividing net premiums written by surplus. For example, a company with $2 in net premiums written for every $1 of surplus has a 2-to-1 premium to surplus ratio. The lower the ratio, the greater the company's financial strength. State regulators have established a premium-to-surplus ratio of no higher than 3-to-1 as a guideline.