Estimation of the liability for unpaid claims that have occurred as of a given date, including the IBNR claims, claims due but not yet paid,

See Retention Loss run. See Loss report.

Adjusting historical losses to account for inflationary trends so that the ultimate value is more current or meaningful. Loss trend factors are multiplied by actual

Study of changes, the relationship of one period to a previous period. The process involves graphs in which the data is displayed in an inverted

Benefits paid to the beneficiary all at once rather than in installment payments.

Provides greater benefits for services such as in-patient and out-patient hospital care, intensive care, physician charges and other medical services.

A partnership between insurers and providers through contracts to provide care at discounted costs for benefits defined in the policy.

Incorporates basic utilization programs such as case management, pre-certification and recertification of certain services into a traditional indemnity plan.

An internal accounting system that provides accurate and timely financial information for use by managers to make short-term and day-by-day financial decisions.

Planning, organizing, leading and evaluating the resources of people, funds, materials, and time to protect the organization’s assets and positively affect the organization’s performance.

A person or firm who has an independent business that performs for one or more insurers some or all of the functions typically attributable to

Rates as promulgated by a rating bureau before application of any credits, discounts, surcharges or deviations. Such rates are referred to as “manual rates” because

Measures of the value of a corporation’s common stock in the financial market.

Amount a willing buyer will give to a willing seller.

Measure of the market price of a share of common stock divided by its book value per share.

Highly liquid securities that have a low but positive yield, normally publicly traded stocks and bonds.

Exterior walls of masonry material (adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials) with floor and roof of metal or

An attempt by insurance companies to provide some forms of insurance in a more economical fashion.

The date cash value equals the face value of a whole life or endowment policy and becomes payable to the policy owner.

The amount paid under a whole life insurance contract if the insured reaches the age of the mortality table on which the contract was based.

Worst possible Property loss that could occur.

Maximum that can be charged under a retro plan regardless of the losses; maximum paid by the insured under a retro plan.

See Probable Maximum Loss

In retrospective rating, a factor established by agreement between the insured and the insurer to determine the maximum premium. Excess loss premiums may be included

Sum of all observations divided by the number of observations; the average (also known as the arithmetic mean).