I Flashcards
Incurred But Not Reported (IBNR)
claims that have occurred but the insurer has not been notified of them at the reporting date. Estimates are established to book these claims. May include losses that have been reported to the reporting entity but have not yet been entered into the claims system or bulk provisions. Bulk provisions are reserves included with other IBNR reserves to reflect deficiencies in known case reserves. IBNR can sometimes include estimates of incurred but Not Enough Reported (IBNER)
Incurred Claims
paid claims plus amounts held in reserve for those that have been incurred but not yet paid.
Incurred Losses
sustained losses, paid or not, during a specified time period. Incurred losses are typically found by combining losses paid during the period plus unpaid losses sustained during the time period minus outstanding losses at the beginning of the period incurred in the previous period.
Indemnity, Principle of
a general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss. Legal principle limiting compensation for damages be equivalent to the losses incurred.
Independent Adjuster
freelance contractor paid a fee for adjusting losses on behalf of companies.
Independent Agent
a representative of multiple insurance companies who sells and services policies for records which they own and operate under the American Agency System.
Independent Contractor
an individual who is not employed for a company but instead works for themselves providing goods or services to clients for a fee.
Inland Marine
coverage for property that may be in transit, held by a bailee, at a fixed location, a movable good that is often at different locations (e.g., off road constructions equipment), or scheduled property (e.g., Homeowners Personal Property Floater) including items such as live animals, property with antique or collector’s value, etc. This line also includes instrumentalities of transportation and communication, such as bridges, tunnels, piers, wharves, docks, pipelines, power and phone lines, and radio and television towers.
Insurable Interest
A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it.
Insurance
an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.
Insurance Holding Company System
consists of two or more affiliated persons, one or more of which is an insurer.
Insurance Regulatory Information System (IRIS)
a baseline solvency screening system for the National Association of Insurance Commissioners (NAIC) and state insurance regulators established in the mid-1970s.
Insurance to Value
Amount of insurance purchased vs. the actual replacement cost of the insured property expressed as a ratio.
Insured
party(ies) covered by an insurance policy.
Insurer
an insurer or reinsurer authorized to write property and/or casualty insurance under the laws of any state.
