The portion of an insurance rate used to cover claims and the costs of adjusting claims. Insurance companies typically determine their rates by estimating their future loss costs and adding a provision for expenses, profit, and contingencies.
All expenditures of an insurer associated with its adjustment, recording, and settlement of claims, other than the claim payment itself. The term encompasses both allocated loss adjustment expenses (ALAE) which are loss adjustment expenses identified by a claim file in the insurer’s records, such as attorney’s fees; and unallocated loss adjustment expenses (ULAE), which are … Read more
A reduction in the quality or value of a property, or a legal liability.
Coverage that, under specified conditions, provides skilled nursing, intermediate care, or custodial care for a patient (generally over age 65) in a nursing facility or his or her residence following an injury.
A term used to describe a Risk that may have Claims notified or settled long after the Risk has expired. So that he can close the underwriting account for the year, it is often necessary for an Underwriter to arrange Reinsurance protection to cover Claims which may arise after the account has been closed. A … Read more
Coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.
The ability and speed with which a security can be converted into cash.
Enables the state insurance department as liquidator or its appointed deputy to wind up the insurance company’s affairs by selling its assets and settling claims upon those assets. After receiving the liquidation order, the liquidator notifies insurance departments in other states and state guaranty funds of the liquidation proceedings. Such insurance company liquidations are not … Read more
The general classification of business as utilized in the insurance industry, i.e., fire, allied lines, homeowners, etc.
Type or kind of insurance, such as personal lines.
