PRC 110

loss exposure

any condition or situation that presents a possibility of loss, whether or not that loss actually occurs

premium

the price of the insurance coverage provided for a specified period

pooling

all accounts working together to pay the negative claims

indeminify

to restore a party who has sustained a loss to the same financial position that the party held before the loss what incurred

insured

any person or organization who is insured under an insurance policy

life-health insurance

one of the two main sectors of the insurance industry, encompassing numerous types of insurance that covers the financial consequences of death, injury, or sickness

property-casualty insurance

one of the two main sectors of the insurance industry, encompassing numerous types of insurance, most of which cover the financial consequences of damage to one’s own property or legal liability to others

stock insurer

an insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholders

mutual insurer

an insurer that is owned by its policyholders and formed as a corporation for the purpose of providing them with insurance

surplus lines insurer

a nonadmitted insurer that is eligible to insure risks that have been exported by a surplus lines licensee in accordance with a surplus lines law

reinsurance

the transfer of insurance risk from one insurer to another through a contractual agreement under which one insurer (the reinsurer) agrees, in return for a reinsurance premium, to indemnify another insurer (the primary insurer) for some or all of the financial consequences of certain loss exposures covered by the primary’s insurance policies

pure risk

a chance of loss or no loss, but no chance of gain

speculative risk

a change of loss, no loss, or gain