Insurance GlossaryThere are 155 entries in this glossary.
A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted. Independent insurance adjusters are hired by insurance companies on an "as needed" basis and might work for several insurance companies at the same time. Independent adjusters charge insurance companies both by the hour and by miles traveled. Public adjusters work for the insured in the settlement of claims and receive a percentage of the claim as their fee. A.M. Best's Directory of Recommended Insurance Attorneys and Adjusters lists independent adjusters only.
|Insurance Institute of America (IIA)|
|Insurance Regulatory Information System||
Introduced by the National Association of Insurance Commissioners in 1974 to identify insurance companies that might require further regulatory review.
The return received by insurers from their investment portfolios including interest, dividends and realized capital gains on stocks. It doesn't include the value of any stocks or bonds that the company currently owns.
|Investments in Affiliates||
Bonds, stocks, collateral loans, short-term investments in affiliated and real estate properties occupied by the company.
Purchasing bond investments that mature at different time intervals.
The ratio of the number of life insurance policies that lapsed within a given period to the number in force at the beginning of that period.
Broadly, any legally enforceable obligation. The term is most commonly used in a pecuniary sense.
Insurance that pays and renders service on behalf of an insured for loss arising out of his responsibility, due to negligence, to others imposed by law or assumed by contract.
Indicates the company is incorporated (or chartered) in another state but is a licensed (admitted) insurer for this state to write specific lines of business for which it qualifies.
|Lifetime Reserve Days|
Liquidity is the ability of an individual or business to quickly convert assets into cash without incurring a considerable loss. There are two kinds of liquidity: quick and current. Quick liquidity refers to funds--cash, short-term investments, and government bonds--and possessions which can immediately be converted into cash in the case of an emergency. Current liquidity refers to current liquidity plus possessions such as real estate which cannot be immediately liquidated, but eventually can be sold and converted into cash. Quick liquidity is a subset of current liquidity. This reflects the financial stability of a company and thus their rating.
|Loss Adjustment Expenses||
Expenses incurred to investigate and settle losses.