Term
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Definition
| the average amount of money an insurer must charge per exposure unit in order to be able to cover the total anticipated losses for that line of buisness. |
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Term
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Definition
| measures of loss potential |
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Term
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Definition
| the amount of money per unit of coverage required to cover the insurer's losses, expenses, and profit for a line of buisness. |
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Term
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Definition
| reflects the basic cost of specific individual insurance policies. |
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Term
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Definition
| average incurred loss per exposure unit for a long line of buisness, risk classification, or coverage. |
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Term
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Definition
| describes payment-related changes, such as increases and decreases in reserve amounts, over the life of a claim. |
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Term
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Definition
| the formation of different premiums for the same coverage based on a homogeneous group's characteristics. The group formed for this purpose is also reffered to as a risk classification or a rate class. |
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Term
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Definition
| a number by which a base rate may be multiplied to reflect the relativity higher or lower loss exposure of one homogeneous group compared to that of another. |
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Term
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Definition
| one rate class, selected as a baseline, to which all other rate classes are compared. |
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Term
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Definition
| the profit earned by an insurer when an asset, such as a bond or stock, is sold for more than its cost. |
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Term
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Definition
| exists when the market price of an asset exceeds its cost and the insurer continues to hold the asset. It is a profit that is not yet earned. |
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Term
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Definition
| level of confidence placed on predictive value of loss data. |
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Term
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Definition
| a standard block of insurance protection used in rating a line of buisness. |
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Term
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Definition
| interest, dividends, and net realized capital gains received by an insurer from the insurer's financial assets minus its investment expenses. |
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