AINS 21 Glossary | 286 Questions with 100 % correct answers | Verified& Updated 2024 Graded A+

loss exposure - any condition or situation that presents the possibility of a loss law of large numbers - a mathematical principle stating that as the number of similar but independent exposure units increases, the relative accuracy of predictions about future outcomes (losses) based on these exposure units also increases exposure unit - a measure of the loss exposure assumed by the insurer, used in pricing insurance property loss exposure - any condition or situation that presents the possibility that a property loss will happen real property - land, buildings, and other structures attached to the land or embedded in it personal property - all tangible or intangible property that is not real property net income - revenue minus expenses and taxes during a given time period net income loss - an indirect loss caused by a reduction in revenue, an increase in expenses, or both during a given time periodliability loss exposure - any condition or situation that presents the possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party liability loss - a claim for monetary damages because of injury to another party or damage to another party's property personal loss exposure - any condition or situation that presents the possibility of a financial loss to an individual or a family by such causes as death, sickness, injury, or unemployment personnel loss exposure - any condition or situation that presents the possibility of a financial loss to a business because of the death, disability, retirement, or resignation of key employees indemnify - to restore a party who has sustained a loss to the same financial position that party held before the loss occurred fire and allied line insurance - insurance that covers direct damage to or loss of insured property business income insurance (business interruption insurance) - insurance that covers the loss of net income or additional expenses incurred by a business as the result of a covered loss to its propertycrime insurance - insurance that covers money, securities, merchandise, and other property from various causes of loss such as burglary, robbery, theft, and employee dishonesty ocean marine insurance - insurance that covers ships and their cargo against such causes of loss as fire, lightning, and "perils of the seas" inland marine insurance - insurance that covers miscellaneous types of property, such as movable property, goods in domestic transit, and property used in transportation and communication auto physical damage insurance - insurance that covers loss of or damage to specified vehicles from collision, fire, theft, or other causes auto liability insurance - insurance that covers an insured's legal liability arising out of the ownership, maintenance, or use of an automobile commercial general liability insurance - insurance that covers liability loss exposures arising from a business organization's premises and operations, its products, or its completed work personal liability insurance - insurance that provides liability coverage to individuals and families for bodily injury and property damage arising from the insured's personal premises or activitiesprofessional liability insurance - insurance that provides liability coverage to professionals for errors and omissions arising out of their professional duties whole life insurance - life insurance that provides lifetime protection, accrues cash value, and has premiums that remain unchanged during the insured's lifetime cash value - the monetary amount, considered to be a form of savings, that accumulates in a whole life insurance policy term insurance - life insurance that provides coverage for a specified period, such as ten or twenty years, with no cash value universal life insurance - insurance that provides life insurance protection and a savings component medical insurance - insurance that covers medical expenses that result from illness or injury disability income insurance - a type of health insurance that provides periodic income payments to an insured who is unable to work because of sickness or injury stock insurer - an insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholdersmutual insurer - an insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them demutualization - the process by which a mutual insurer owned by its policyholders becomes a stock company, which is then owned by its stockholders reciprocal insurance exchange (interinsurance exchange) - an insurer owned by its policyholders, formed as an unincorporated association for the purpose of providing insurance coverage to its members (called subscribers) and managed by an attorney-in-fact subscribers - the policyholders of a reciprocal insurance exchange who agree to insure each toher attorney-in-fact - in a reciprocal insurance exchange, the contractually authorized manager of the reciprocal who administers its affairs and carries out its insurance transactions captive insurer (captive) - an insurer formed as a subsidiary of its parent company, organization, or group, for the purpose of providing all or part of the insurance on the parent company or companies reinsurance - a contractual agreement that transfers some or all of the potential costs of insured loss exposures from policies written by one insurer to another insurerprimary insurer - the insurer that transfers some or all of the potential costs of its insured loss exposures to another insurer in a reinsurance contractual agreement reinsurer - the insurer that assumes some or all of the potential costs of insured loss exposures of the primary insurer in a reinsurance contractual agreement monopolistic state fund - a state workers' compensation insurance plan that is the only source of workers' compensation insurance allowed in that state competitive state fund - a state workers' compensation insurance plan that competes with private insurers to provide workers' compensation insurance residual market plan (shared market plan) - a program that makes workers' compensation insurance available for those who cannot obtain voluntary coverage from private insurers guaranty fund - a state fund that provides a syst