Definition of "Equity"
Fairness (as an objective of insurance pricing). Premium rates are set according to expectation of loss among a classification of policy owners. The premise is that all insureds with the same characteristics should have the same expectation of loss and should be listed under the same underwriting classification. For example, in life insurance, individuals with a good personal health history, family health history, a job with no special hazards, and who are of good character, should be classified as standard risks and thereby pay standard rates.
Popular Insurance Terms
Certain fixed payment made in addition to the regularly scheduled premium. ...
Threatening act, physical and/or verbal, which causes a person to reasonably fear for life or safety. For example, if a boxing champion said he was going to hit someone, this would probably ...
Same as term Commercial Package Policy (CPP): insurance policy that is commercial lines in orientation and is composed of two or more of the following coverages: commercial property, ...
Property damage resulting from aircraft traveling faster than the speed of sound. Although the vibrations caused by such high speed can cause damage, it is excluded on most property forms. ...
Monthly benefit payable to retired or disabled worker under Social Security. It is calculated by using the average monthly earnings of the covered person while working. Under this formula, ...
Reinsurance: total of the limits of liability of all reinsurance policies that a reinsurer has outstanding on a single risk. The total of all such limits includes all ceding contracts from ...
Termination of a plan. Under federal tax law, a plan can only be terminated for reasons of business necessity. Otherwise, prior employer tax deductible contributions under the plan are ...
(stop loss) amount over which a health insurance plan pays 100% of the costs in a percentage participation plan. Here, an insured shares costs with the insurer according to some ...
Case where an insurance company is placed by the state court under the control of the state insurance department. Claims are paid in the order filed until the insurance company's ability to ...
Have a question or comment?
We're here to help.