Underwriting

In insurance, a carrier is the insurer that underwrites and issues policies.

The insurer that passes risk to a reinsurer through a reinsurance arrangement.

In insurance, a class is a group of similar risks used to set actuarial assumptions and premiums.

A clear space clause requires certain materials to be kept separate to reduce risk, especially for fire and hazard losses.

The minimum ratio of insurance to property value required under a policy.

An insurer that participates with other insurers on the same policy and shares part of the risk.

A commercial property floater covers movable business property that may travel or be used at multiple locations, often on a scheduled or blanket basis.

A performance-based reinsurance commission paid when profit or loss criteria are met.

Insurance arranged or administered under structured conditions to maintain policy and service consistency.

A clause allowing a policyholder to convert a policy form without full new underwriting under defined conditions.

A life insurance concept where surrender value and death benefit move within predefined corridors.

Standardized premium tables and minimum rates used across broad markets in commercial underwriting manuals.

Common underwriting and rating rules used across classes and territories as a baseline for commercial policy issuance.

An insuring module inside a policy that defines one block of risk, such as a liability or property coverage section.

A cross-purchase life insurance structure lets business co-owners fund a buyout if one owner dies.

A decreasing term policy has a death benefit that declines over the coverage period.

In pension and annuity contexts, a deposit is a scheduled or required contribution that funds future retirement entitlements.

The process of pooling, tracking, and accounting for contributions before they become covered annuity assets.

A deposit administration group annuity accumulates contributions for participants before annuity purchase or retirement income conversion.

An insurance premium rate that departs from a standard reference because of specific risk or business factors.

The pricing difference between an applied policy rate and a benchmark or manual rate.

In insurance, a direct selling system is a distribution model where the insurer sells policies directly to customers instead of relying mainly on outside agencies or brokers.

Earthquake insurance covers direct physical loss caused by earthquake, usually through a separate policy or endorsement because standard property forms often exclude that peril.

The date and time when an insurance policy or coverage change begins to apply.

The insured's age when a life or annuity contract is issued and used to calculate premium rates, benefits, or policy values.

A retrospective-rating charge that helps fund the protection created when a workers compensation plan limits large individual losses.

The anticipated rate of sickness, disability, or medical utilization in a defined insured group.

In insurance, expenses are the insurer's operating costs, such as commissions, salaries, technology, servicing, and administration, apart from claim payments.

In insurance, experience means the recorded claim or loss history of an insured, class of business, territory, producer, or book of business.

A pricing method that adjusts premium based on the insured's own prior loss results instead of relying only on class averages.

The condition, person, property, or activity that creates the possibility of loss for an insurer or insured.

Field force refers to the insurer's producers, supervisors, and local distribution personnel who work in the market rather than only at the home office.

A slip is the Lloyd's underwriting submission that records coverage terms and the underwriters' signed subscription lines.

Discover the importance of housekeeping in general insurance underwriting, particularly for property insurance. Learn how property upkeep influences your insurance policy.

A provisional actuarial or underwriting table that is under development and not yet approved for direct premium rating use.

A life policy feature that advances unpaid premiums from policy cash value to keep coverage in force temporarily.

A legal agreement where owners each own life insurance on the other owners to fund ownership transfer.

The average remaining lifetime for a person at a given age, as shown by a mortality table.

A single aggregate payment cap that applies to a group, block, or set of similar risks under one policy framework.

A rating approach that applies one rate structure across a broad set of insured risks.

An underwriting and program design approach that mixes exposure or risk segments under an integrated insurance structure.

A capped maximum amount that applies to a specific group or block of similar exposures.

A group of related insurance policies managed together for underwriting, renewal, and claims administration.

A risk profile that is close to underwriting acceptance standards and requires heightened review.

A maritime loan secured by ship or cargo, with repayment linked to successful completion of the voyage.

Failure to perform a material obligation under a valid contract.