Definitions

Legal entity to whose financial assets and liabilities the firm listed as the named insured in the declarations. It is the majority successor in interest.

The opposite of Return of Portfolio – permitting premiums and losses in respect of in-force business to run to their normal expiration upon termination of a reinsurance treaty.

In transactions of reinsurance, it refers to all the risks of the reinsurance transaction. For example, if one company reinsures all of another’s outstanding Automobile business, the reinsuring company is said to assume the “portfolio” of Automobile business and it is paid the total of the unearned premium on all the risks so reinsured (less some agreed … Read more

Coverage for businesses operating abroad against loss due to political upheaval such as war, revolution, or confiscation of property.

The amount of money remaining after an insurer’s liabilities are subtracted from its assets. It acts as a financial cushion above and beyond reserves, protecting policyholders against an unexpected or catastrophic situation.

Experience developed by charging all premiums and losses to the year in which the policy inception date falls, regardless of when the transaction takes place. Reinsurance experience calculated with all applicable premiums and losses assigned to the particular period (usually a 12 month period) in which each reinsured policy becomes effective. See also Accident Year … Read more

Combination of all coverage units issued by the company to the named insured and listed in the declarations, these general terms and conditions, and all applications for insurance submitted by the named insured with all supplements. A written contract for insurance between an insurance company and policyholder stating details of coverage.

Health insurance policy that allows the employee to choose between in-network and out-of-network care each time medical treatment is needed.

A term used in conjunction with a select and ultimate YRT scale. It refers to the premium rate appropriate for the insured’s original issue age and current duration.