Risks related to an organization’s financial activities resulting in upside and downside outcomes.

Used by primary insurance companies and large self-insurers; the accepted term used to describe a spectrum of loss financing concepts that combine internal and external

An accounting method used to value inventory and the cost of goods sold. Sales are considered to be made against the earliest-purchased or produced merchandise

Insurance policy on two lives, with a death benefit to be paid to the surviving insured upon the death of one of the insureds (also

Assets with an expected life in excess of one year.

A benefit, the dollar amount of which does not vary.

Costs that do not vary with the level of output, especially fixed financial costs such as interest, lease payments, and sinking fund payments.

Fixed, periodic benefit payments are made until the principal and interest are exhausted.

Benefits are guaranteed to be paid in equal installments for a specified period of time.

Insurance that pays out a death benefit when the life insured dies during the term of the policy.

A whole life contract and a security vehicle that features flexible premium payments, non-guaranteed cash values and either a minimum guaranteed death benefit or no

A federal regulation that provides employees who have been employed at least 12 months and have worked at least 1,250 hours within that 12 month

In the law of insurance, a superior or irresistible force. Also common to construction contracts to protect parties in the event that a part of

Insurer domiciled outside a state that operates in that state under a certificate of authority granted by that state’s insurance department. A foreign insurer may

Event subject to chance without the implication of suddenness.

Material used to construct the building.

An intentional manipulation of the truth, and the act of getting someone to rely on that manipulation of the truth, which results in the person’s

A period of time (usually 10, 20 or 30 days) during which a policy owner may examine a newly issued policy of life and surrender

The number of losses occurring in a given time period.

Use of one insurance company, usually a domestic, admitted carrier, to issue policies on behalf of the captive.

A healthcare reimbursement account that allows employees to set aside money through payroll deductions on a pre-tax basis to pay for anticipated eligible medical expenses,

A plan where the policyholder (individual or employer) pays a defined premium to an insurer and does not share in the risk associated with actual

Used by larger organizations to assume management of all exposures; useful when losses for both frequency and severity are very predictable and often used in

Employer retains 100% of the cost of claims. Because there is no reinsurance protection most employers choose a partially self-funded financial arrangement.

Cost to repair or replace damaged or destroyed property with materials that are functionally the equivalent of the damaged or destroyed property.