The Institutes Glossary


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In homeowners insurance, an unoccupied dwelling in which all furniture and other property have been removed for more than sixty consecutive days.
Coverage that helps to defray additional costs incurred by the insured while on vacation if the insured's covered recreational vehicle becomes uninhabitable because of damage or destruction while he or she is on vacation.
A contract that meets all of the requirements to be enforceable.
The consideration necessary and sufficient to support a valid contract.
Filed inland marine form that covers direct physical loss to valuable papers and records, such as an architect’s blueprints and plans.
Insurance that covers direct physical loss to valuable papers and records, such as architect's blueprints and plans.
Threshold value such that a specified probability of loss on the portfolio over the given time horizon exceeds this value.
A threshold value such that the probability of loss on the portfolio over the given time horizon exceeds this value, assuming normal markets and no trading in the portfolio.
An intangible asset on a life insurer's balance sheet that reflects future profits embedded in life and annuity policies acquired from another insurer.
A premium base used for annual transit policies equal to the invoice cost plus prepaid freight charges.
The total values for all autos written on a blanket basis for collision coverage for auto dealers under a Garage Coverage Form divided by the number of rating units used in determining the liability premium.
A commercial property form that bases the insured's premium for business personal property on the values that the insured reports to the insurer periodically during the policy period.
A set of precepts or rules of conduct defining acceptable and unacceptable behavior.
The increase in the worth of a product because of an enhancement added to that product.
Form that pays the insured a fixed amount of income for each day, week, or month that a business must close because of a covered loss.
A contract that, upon satisfying certain conditions, pays a stated sum of money rather than an amount that reimburses the insured for his or her actual economic loss.
A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss.
A law that specifies that insureds may recover the policy limit for certain losses regardless of the actual value of the property.
Those outcomes that satisfy stakeholders, including economic performance, social justice, and environmental stewardship.
An organization’s values reflect its sense of acceptable ways of doing business.
Willful and malicious damage to or destruction of property.
An annuity contract whose value fluctuates with that of an underlying securities portfolio or another index of performance.
A budgeting method that is based on expense per unit.
Costs that change when the quantity of output changes.
Expenses that change relative to premium volume increases or decreases.
A form of permanent life insurance under which a policyowner allocates a portion of his or her premiums among investment options to an insurer’s separate investment account, thereby increasing or decreasing the cash value.
Permanent life insurance under which a policyowner may allocate some or all premiums to the insurer’s separate account, thereby increasing or decreasing the cash value.
A life insurance policy under which a policyowner may allocate some or all premiums to an insurer’s separate account.
A form of life insurance providing a death benefit that may change with time due to its variable cash value.
A quota share reinsurance treaty in which the cession percentage retention varies based on specified predetermined criteria such as the amount of insurance needed.
Permanent life insurance with flexible premiums and death benefits as well as a separate account to which the policyowner may allocate some or all premium, thereby increasing or decreasing the cash value.
A form of universal life insurance that allows the policyholder to make fund choices for the investment component but that has no guaranteed cash value and no guaranteed interest rate.
A form of universal life insurance that allows the policyholder to make fund choices for the investment component, but which has no guaranteed cash value and no guaranteed interest rate.
An exception to the strict application of a zoning ordinance to permit a use that is not permitted otherwise.
A measure of dispersion; a measure of the deviation of each variable in a data set from the mean of the data set.
Inconsistencies in the attributes of output.
A room or compartment designed to protect valuable property against theft, fire, and perhaps other causes of loss.
Damage caused by a motor vehicle to some other kind of property.
A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.
Requires a causal connection between the auto and a person.
The purchaser of real property.
The seller of real property.
The locale in which the lawsuit may be brought.
In a no-fault system, the designated criteria that are verbally "set forth in the statute that limit the right to sue."
A comparison of alternative sources of information to confirm data's accuracy.
The arrangement of the cervical vertebrae, thoracic vertebrae, lumbar vertebrae, sacrum, and coccyx. Alternatively referred to as the backbone, spine, or spinal column.
A combination of two companies involved in related lines of business but at different stages of production.
The use of common-size statements to highlight basic relationships among items within a single set of financial statements.
A corporate-level strategy through which a company either produces its own inputs or disposes of its own outputs.
A reinsurance relationship in which the ceding company sustains a fixed percentage of losses in excess of the retention.
Employees’ rights to retain retirement benefits funded by employers’ contributions, even if employment is terminated.
A retirement plan participant's nonforfeitable right to his or her accrued plan benefit.
A legal responsibility that occurs when one party is held liable for the actions of a subordinate or an associate because of the relationship between the two parties.
The corporate officer whose implied authority derives from the related job function.
The tendency of an animal to try to harm other people or animals, as evidenced by its chasing people or acting in some other menacing way.
Further descriptive documentation (in addition to R help) in some packages.
A statute that makes insurance fraud a federal crime when it affects interstate commerce.
A digital simulation with which a person can interact.
A group of personnel, some or all of whom are geographically dispersed, who interact primarily through use of telecommunication technology as they work toward a common goal.
An idea of what an organization wants to become.
The aspirational description of what an organization will accomplish in the long-term future.
The ability to see details.
The ability to see objects in the periphery of vision.
Testing for job placement that assesses a person’s intelligence, academic achievement level, aptitude, vocational interests, and personality.
Services to return an impaired or disabled person to a meaningful occupation as soon as possible after an injury.
The output measures that describe customers’ needs, wants, and expectations.
The output measures that describe actual outputs and capabilities of the process.
An agreement that, despite the parties' intentions, never reaches contract status and is therefore not legally enforceable or binding.
A contract that one of the parties can reject (avoid) based on some circumstance surrounding its execution.
The process of examining potential jurors about their possible interest in the matters presented at trial, their ability to decide the case fairly and without prejudice, and their overall competence to serve as jurors.
Frequent fluctuations, such as in the price of an asset.
A cause of loss involving lava flow, ash, dust, particulate matter, airborne volcanic blast, or airborne shock waves resulting from a volcanic eruption.
A discharge from a vent in the earth’s crust.
When a defense lawyer charges a lower hourly rate in consideration for a large volume of work. Complex work might warrant a higher rate than routine work.
This occurs when a business acts in a way that implies a duty to assume protection of and security for patrons.
Endorsement that amends the WC&EL policy to cover employees who are not subject to a workers compensation statute.
Insurance coverage that provides compensation to employees who are not subject to the workers' compensation law, to an extent that would be payable if the employees had been subject to the workers' compensation law.
Any bond that is filed by a plaintiff when he or she voluntarily begins litigation.
In a no-fault system, a plan that offers first-party coverage comparable to modified and add-on plans on a strictly voluntary basis.
Pays for damage to property of others without regard to fault or legal liability.
A report provided by an insured that describes exposure information on the business operation, such as payroll or receipts, and that can be used to perform an audit of the account.
Aircraft passenger no-fault type coverage providing a stipulated amount for damages caused by death or dismemberment of guest passengers and, for an additional premium, the crew; to recover, the passenger must sign a release.
An agreement among stockholders to vote their shares in a certain way.
A procedure that enables the principal and indemnitors to respond before the surety must pay claims and before the surety seeks indemnification.
A shipper that charters a vessel for a particular voyage.
A policy that covers cargo for a single trip specified in the policy.
Policy that covers cargo for a single trip specified in the policy; comparable to an inland marine trip transit policy.