IASA. Insurance Accounting Statistical Association.
IASS. Insurance Accounting and Statistical Society.
IBNR. See Incurred But Not Reported.
ICA. International Claim Association.
ICC. Interstate Commerce Commission.
ICEDS. Insurance Company Education Directors Society.
ICPI. Insurance Crime Prevention Institute.
Identification Card. A card given to an insured that identifies him or her as being eligible for benefits.
Identification of Benefits. A provision that says the cost of putting a disabled insured in touch with and in the care of relatives will be reimbursed, usually up to a maximum amount.
“If” Clauses. Clauses that terminate coverage “if” certain conditions are created or discovered (e.g., the concealment or misrepresentation provision, which states that if this is discovered, the coverage is void). Contrast with “While” Clauses.
IHOU. Institute of Home Office Underwriters.
IIA. See Insurance Institute of America, Inc.
IIAA. See Independent Insurance Agents of America.
IIC. Independent Insurance Conference or Insurance Institute of Canada.
III. See Insurance Information Institute.
IIS. See International Insurance Seminars, Inc.
Illegal Occupation Provision. A health insurance policy provision that voids liability if the loss results from the insured’s committing or attempting to commit a felony or from the insured’s engaging in an illegal occupation.
Illness. A loss sustained due to sickness or disease usually due to an organic cause.
Immature Policies. Claims-made coverage that has not been in effect, on an uninterrupted basis, for at least five years. For rating purposes, a discount applies to manual rates for immature policies.
Immediate Annuity. An annuity that commences payment to the annuitant at the end of the first prescribed payment period. If an insured buys an immediate annuity with monthly payments, he will start receiving benefits at the end of the first month after the purchase.
Immediate Vesting. A term used in pension or retirement plans, indicating that an employee’s right to benefits begin as soon as he enters the plan. See also Vesting.
Impaired Insurer. An insurer that is in financial difficulty to the point where its ability to meet financial obligations or regulatory requirements is in question.
Impaired Property. Tangible property that cannot be used or has become less useful because it incorporates the insured’s product or work, which is defective or inadequate, or because the insured has failed to fulfill a contractual obligation.
Impaired Risk. A risk, or subject of insurance, with insurable qualifications below the standard of risks on which the premium for the coverage was based (e.g., a life insurance prospect with heart disease). See also Substandard Risk and Standard Risk.
Impairment of Capital. When the surplus account of a stock insurer has been exhausted such that it must invade the capital account (amounts contributed by stockholders) to meet liabilities. Some jurisdictions allow a percentage invasion of capital; some do not.
Impeach. Evidence that tends to detract from the credibility of the witness.
Implied Authority. Authority of an agent that the public may reasonably believe the agent has. If the authority to collect and remit premiums is not expressly granted in the agency contract, but the agent does so on a regular basis and the insurer accepts, the agent has implied authority to do so.
Implied Coinsurance. After determining rebuilding costs, an insured must determine how much insurance he needs. If an insured is insured for less than 80 percent, the insurance company makes two estimates and pays the larger. This significant risk is called implied coinsurance.
Implied Seaworthiness. The assumption that a sea vessel, its equipment and its crew are in good condition and prepared to make the voyage.
Implied Warranty. In certain cases the law says that one has given a warranty to another even though the warranty is not in writing (e.g., in sales, a seller implies that the product is fit for the purpose it purports to serve).
Import. Goods or services purchased from another country and brought into one’s own country.
Improvements and Betterments. Additions or changes made by a lessee at his own cost to a building that he occupies, which enhance its value. These become part of the realty and require special insurance consideration.
Imputed. When actions of one party, usually the agent, are deemed to be actions of the other party, usually the principal.
In Kind. An expression relating to the insurer’s right in many property contracts to replace damaged objects with new or equivalent (in kind) material, rather than to pay a cash benefit.
In-Area Services. Services provided within the authorized service area as designated by a plan.
Incentive Stock Option (ISO) Plans. A stock plan whereby executives are granted options to purchase company stock without incurring a tax liability.
Inchmaree Clause. Reimburses an insured in the event of a loss due to the negligence of the master or crew of a vessel.
Incidental Locations. Locations other than those described, reported and acquired, where the value of insured property is $25,000 or less.
Incidents of Ownership. Various rights that may be exercised under the policy contract by the policyowner, including: 1) the right to cash in the policy; 2) to receive a loan on the cash value of the policy; and 3) to change the beneficiary.
Income Continuation Benefit. See Lost Wages.
Income Loss. Coverage for the amount of an insured’s take-home pay when injuries from an accident keep him from working.
Income Policy. A life insurance contract that provides income on a monthly basis instead of a lump sum.
Incompetent. A person who cannot manage his or her own affairs. Children and legally insane people are often considered incompetent.
Incontestable Clause. A clause that states an insured’s statements in his application cannot be contested by the insurer after the policy has been in effect for a given time (two or three years). For example, in life policies, if an insured lied about the condition of his health at the time the policy was taken out, that lie could not be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause.
Increased Cost of Construction Insurance. Covers the additional cost of reconstructing a damaged or destroyed building where ordinances require rebuilding with more expensive materials, services or techniques.
Increased Hazard. Property insurance policies suspend coverage when the hazard in a risk goes beyond that contemplated when the policy was written (e.g., if an insured commences manufacturing dynamite in his home, the hazard is extremely increased, and coverage could be denied by the insurer if there were a loss).
Increasing Premium Term. Term life insurance that provides a growing amount of insurance.
Increasing Term Insurance. A term life insurance policy where the death benefit increases but the premium remains level for the policy term. See also Decreasing Term Insurance, Level Term Insurance and Term Insurance.
Incurred But Not Reported. Losses that have occurred during a stated period, usually a calendar year, but have not yet been reported to the insurer as of the date under consideration (e.g., insurance company statements prepared after the end of the calendar year would have to include an estimate of losses that occurred during that year but have not yet been reported).
Incurred Expense. Expenses not yet paid. Includes paid expenses in some accounting systems.
Incurred Loss Ratio. The percentage of losses incurred to premiums earned.
Incurred Losses. The losses occurring within a fixed period, whether or not adjusted or paid during the same period (e.g., in workers’ compensation claims, losses occur during a given policy period but benefits may continue for many years. The estimated value of the total claim would be an incurred loss for the policy period during which the loss occurred).
Indemnification. Payment in money or replacement of the property. Stolen property may be returned and payment made for any damage, or the company may keep the property and pay an agreed or appraised amount in money.
Indemnify. To restore the victim of a loss to the same position as before the loss occurred, either by payment, repair or replacement.
Indemnitor. An entity/person who enters an agreement with a surety to hold the surety harmless from loss incurred as a result of issuing a contract bond to an applicant who falls just short of acceptability. If the principal defaults, the indemnitor, rather than the surety, assumes the obligation.
Indemnity Basis. Most long-term care policies are issued on an indemnity basis, which means the contracts provide a daily maximum benefit, such as $100 per day, for each day of confinement in a nursing home or other long-term care facility. If the policy also includes benefits for home care, the daily limit for home care expenses typically is 50 percent of the daily nursing home benefit amount.
Indemnity Bond. A bond that indemnifies an obligee against loss that may arise as the result of failure to perform on the part of the principal.
Independent Adjuster. Adjusters who work as independent contractors, hiring out to insurance companies, etc., for the investigation and settlement of claims. They represent the interests of insurance companies. Contrast with Public Adjuster.
Independent Agency System. An insurance distribution system within which independent contractors, known as agents, sell and service property liability insurance solely on a commission or fee basis under contract with one or more insurers that recognize the agent’s ownership use, and control of policy records and expiration data.
Independent Agent. An agent operating as an independent contractor under the independent agency system. They sell policies from several companies for a commission, attempting to find the lowest price available.
Independent Contractor. One who agrees to perform according to a contract and who is not an employee.
Independent Contractors Insurance. See Owners and Contractors Protective Liability Policy.
Independent Insurance Agents of America (IIAA). An association of independent insurance agents historically known to represent stock insurance companies more than mutual companies. Members are also members of their state associations.
Index Bureau Experience. A measure of losses relating to claims reported through a claim office during a 12-month period.
Indexing Year. The second year prior to attainment of age 62, death or disability, whichever occurs first, used to adjust wages to allow for inflation when calculating Social Security benefits.
Indigent. The state of being with no assets at risk.
Indirect Loss (or Damage). Loss resulting from a peril but not caused directly and immediately by that peril (e.g., loss of property due to fire is a direct loss, while the loss of rental income due to the fire would be an indirect loss). See also Consequential Loss.
Individual Account Plan. A defined contribution plan or profit sharing plan that provides an individual account for each participant and whose benefits are based solely upon the amount contributed to a participant’s account and any income, expenses, gains and losses, as well as forfeitures that may be allocated to the remaining participant’s account.
Individual Contract. A contract made with an individual that covers that individual and perhaps specified members of his family for benefits as described in the policy.
Individual Contract Pension Trust. A pension plan under which a trust holds title to individual insurance or annuity contracts for employees covered by the plan.
Individual Life Insurance. (1) A life insurance contract that covers usually one insured. (2) The term used to distinguish this type of life insurance from group life insurance.
Individual Practice Association (IPA) Model HMO. An individual practice association contracted to provide health care services. The IPAs contract with individual physicians or groups of physicians for their services.
Individual Retirement Account (IRA). A qualified retirement plan established by ERISA for anyone under age 70 1/2 with earned income, allowing them to set aside up to $2,000 per year on a tax favorable basis for retirement purposes.
Individual Risk Premium Modification Rating Plan. A plan that modifies the premium on large package policies by considering such factors as reduced expenses for handling costs (expense modification) and special characteristics of the risk not contemplated by the basic rate (risk modification).
Industrial Life Insurance. One of the major classes of insurance. It is generally sold in amounts of less than $1,000 by agents who service insureds on debits. Premiums are collected weekly or monthly at the address of the insured. See also Debit.
Industrial Risk Insurers. A consortium of major stock property and casualty insurers that write large, highly protected risks.
Inevitable Accident. See Accident.
Inflation Factor. A premium loading to provide for future increases in medical costs and loss payments resulting from inflation.
Inflation Guard Coverage. Coverage that provides for automatic periodic increases in the amount of insurance on buildings to keep an appropriate “limit to value” considering the effect of inflation on building replacement costs. An endorsement is usually used to add this coverage to a homeowners policy. On the latest commercial property forms, inflation guard coverage is an option that may be activated by an entry in the declarations.
Inflation Protection. Provisions in a health insurance policy that increase benefit levels to account for anticipated increases in the cost of services.
Inflation. An economic period characterized by rising prices, low unemployment, an expanding economy and erosion of consumer’s purchasing power due to the higher cost of living.
In-Force Business. Life or health insurance for which premiums are being paid or for which premiums have been fully paid. It refers to the total face amount of a life insurer’s portfolio of business. In health insurance it refers to the total premium volume of an insurer’s portfolio of business.
Informal Plan. A retirement system whereby the employer has no legal obligation and the employee has no legal rights. These plans have no standard of benefits to be paid, and have no special method of funding.
Inherent Explosion. An explosion caused by a condition existing in and natural to an insured’s premises (e.g., a dust explosion in a grain elevator).
Inherent Vice. A fault in property that leads to its self-destruction. Insurance contracts usually exclude such damage.
Initial Eligibility Period. The time period during which prospective members can apply for coverage without providing evidence of insurability.
Initial Premium. An amount paid at the inception of an insurance contract, usually subject to adjustment at the end of the policy period.
Injunction. A court order intended to prevent a person from doing something.
Inland Marine Insurance. A branch of the insurance business that developed from the insuring of shipments not involving ocean voyages. These forms borrowed their language from fire, ocean marine, theft and other contracts. Exposures eligible for this protection are described in the nationwide definition of marine insurance and include bridges, tunnels, jewelry and furs.
Innkeepers Legal Liability. Coverage for motel and hotel operators, protecting them against the legal liability they have for the safekeeping of the property of guests. The policy usually has a limit per guest and an aggregate limit per policy year.
Innocent Spouse Doctrine. This doctrine holds that, if one spouse is not involved in and unaware of activity in which the other spouse has engaged and which nullifies an insurance contract, the innocent spouse must remain insured. Some policies state specifically that any misconduct of an insured bars recovery by any other insured. Courts frequently back up the insurance companies in these disputes.
In-Patient. A patient admitted to a hospital or other similar medical facility as a resident patient.
Inside Limits. Limits placed on hospital expense benefits, which modify benefits from the overall maximums listed in the policy. An inside limit when applied to room and board, limits the benefit to not only a maximum amount payable, but also limits the number of days the benefit is paid.
Insolvency Clause. A clause that holds a reinsurer liable for its share of a loss assumed under a treaty even though the primary insurer has become insolvent. See also Strike-Through Clause.
Insolvency Funds. See Guarantee Funds.
Insolvent. When a person’s or business’s liabilities exceed their assets.
Insolvent Insurer. An insurer that is unable to meet its financial obligations.
Inspection. Independent checking on facts about an applicant, policyholder or claimant, usually by a commercial inspection agency.
Inspection Bureau. An organization created by property and liability insurers to investigate exposures and to establish rates.
Inspection Report. A summary of the physical, financial and moral attributes of an insured or an applicant for insurance on the insured’s property. Such reports are prepared by inspection bureaus, specialized organizations and insurers.
Installment Refund Annuity. An annuity that promises to continue the periodic payments after the death of the annuitant, until the combined benefits paid to the annuitant and to the beneficiary have equaled the purchase price of the annuity.
Installment Refund Option. An annuity option that provides for continued payments after the death of the annuitant until the total benefits paid have equaled the purchase price of the annuity.
Installment Sales Floater. See Conditional Sales Floater.
Installment Settlement. Payment of the proceeds of a life insurance policy or its cash value in installments rather than in a lump sum. The term refers to any one of the options in a life insurance policy that has this result.
Installments Certain. A settlement option that guarantees to pay proceeds in equal installments for a specified period of time.
Institute of Life Insurance. Formerly an agency responsible for building the image of life insurance through a variety of programs. It is now a division of the American Council of Life Insurance.
Institutional Property. Property eligible for special treatment under package policies, often properties occupied by sanitariums and educational, religious, charitable, government and non-profit organizations.
Insurability. Acceptability to the insurer of an applicant for insurance.
Insurable Interest. Any interest a person has in a possible subject of insurance, such as a car or home, of such a nature that a certain happening might cause that person financial loss. This condition provides that the company will not pay an amount greater than the insured’s interest in the property or the amount of coverage under the policy. If an insured loss occurs—but the company denies the claim because the insured hasn’t complied with some condition or requirement—payment would still be made up to its insurable interest. This usually means the balance of whatever an insured owes on the property, be it a mortgage or an auto loan.
Insurable Net Worth. The sum of the equity value an insured has in his house and other property, major personal possessions like jewelry or collectibles and any savings or liquid investments he has.
Insurable Risk. A risk that meets most of the following requisites: 1) The loss must be capable of being defined; 2) It must be accidental; 3) It must be large enough to cause a hardship to the insured; 4) It must belong to a homogeneous group of risks large enough to make losses predictable; 5) It must not be subject to the same loss at the same time as a large number of other risks; 6) The insurance company must be able to determine a reasonable cost for the insurance; and 7) The insurance company must be able to calculate the chance of loss.
Insurance. A formal social device for reducing risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the insured.
Insurance Carrier. See Insurer.
Insurance Commissioner. Head of a state’s insurance regulatory agency. Some states use the title of Director or Superintendent.
Insurance Company Ed ucation Directors Society (ICEDS). An organization of insurance company educators whose primary purposes are to promote insurance education and exchange information on the subject.
Insurance Company. See Insurer.
Insurance Department. A governmental bureau in each state and the federal government in Canada charged with the administration of insurance laws, including the licensing of agents and insurers and their regulation and examination. In some jurisdictions the department is a division of another state department or bureau.
Insurance Examiner. The representative of a state insurance department assigned to participate in the official audit and examination of an insurer.
Insurance Guaranty Act. The legislation enacted in many states providing for guaranty funds for the policyholders of insolvent insurers. See Guaranty Funds.
Insurance Hall of Fame. An institution honoring those who have made outstanding contributions to insurance thought and practice. Selections are made on an international basis.
Insurance in Force. (1) The face amounts of contracts still to be paid out to insureds. (2) The annual premium payable on current contracts of insurance.
Insurance Information Institute (III). The agency of the property and liability business designed to deal with the public relations programs of various segments of the business.
Insurance Institute of America, Inc. (IIA). An organization that develops programs and conducts national examinations in general insurance, risk management, management, adjusting, underwriting, auditing and loss control.
Insurance Policy. The form that serves as the contract between an insurer and an insured. It sets forth the rights and duties of parties to the contract.
Insurance Regulatory Examiners Society (IRES). An organization made up of the state regulatory examiners who conduct financial and market conduct examinations of insurers, and whose purpose it is to foster educational programs, cooperation and support between state examiners.
Insurance Regulatory Information System (IRIS). Information and early-warning system used by the National Association of Insurance Commissioners to keep track of the financial soundness of insurers.
Insurance Services Office (ISO). An organization of the property and liability insurance business designed to gather statistics, promulgate rates and develop policy forms.
Insurance to Value. Insurance written in an amount approximating the value of the property insured.
Insured. The party to an insurance arrangement whom the insurer agrees to indemnify for losses, provide benefits for or render services to. See also Named Insured.
Insured Contract. A definition that shapes the extent of contractual liability coverage by describing the types of insured contracts. On modern liability forms, “insured contract” includes leases of premises, sidetrack agreements, elevator maintenance agreements, easement agreements and other agreements related to the insured’s business.
Insured Location. A sweeping definition that frequently applies to liability coverages. It includes all of the following: the residence premises; that part of any other premises, other structures and grounds, used by the named insured as a residence that is either shown in the declarations or acquired during the policy period; any premises used by the named insured in connection with the residence premises or a newly-acquired premises; any part of a non-owned premises where an insured temporarily resides; vacant land owned by or rented to an insured (but not farm land); individual or family cemetery plots or burial vaults of any insured; and any part of a premises occasionally rented to any insured for other than business use.
Insured, Named. See Named Insured.
Insured Plan. A retirement plan under which somekind of benefits are guaranteed by an insurance carrier. It does not imply that there is an element of life insurance connected with the plan.
Insured Status. In addition to meeting the eligibility requirements of an employee and paying Social Security taxes, eligibility for Social Security benefits is determined by insured status. Insured status is based on an insured’s quarters of coverage for Social Security tax purposes. There are basically three forms of insured status, which determine eligibility for certain OASDHI benefits: fully insured; currently insured; and disability insured.
Insurer. The party to an insurance arrangement who agrees to indemnify for losses, provide pecuniary benefits or render services. The term is preferred over carrier and company since it is a functional word applicable without ambiguity to all types of individuals or organizations performing the insurance function.
Insuring Agreement (or Clause). That portion of an insurance contract which defines the scope or extent of the policy’s benefits (i.e., the perils insured against, the persons and/or property covered, their locations and the period of the contract).
Intangible Damages. Damages awarded for such things as pain and suffering following an accident (e.g., when an insured damages another car, his liability might be limited to the value of the vehicle. But if he injures a person in that car, causing a permanent disability or pain and suffering, which prevents the person from working, courts can award millions in damages.
Integrated LTC Rider. An LTC rider that is added to a life insurance policy whereby LTC benefits paid will reduce the policy’s benefits. LTC benefits are dependent on the life insurance benefits available.
Integrated Plan. A pension plan that builds benefits according to an approved Treasury Department formula.
Intellectual Property. A company’s most valuable assets—copyrights, patents, trademarks, trade secrets and brand names.
Intentional Injury. An injury resulting from an act intended to inflict injury. In an accident insurance contract, this type of injury is not covered (because it is not an accident). In general, intentional injuries inflicted on the insured are covered (assuming no collusion).
Intentional Loss. Damage caused intentionally by an insured person. Most policies exclude coverage for this type of loss.
Intentional Torts. May involve infringement of property and privacy rights (e.g., trespassing). Property rights also can be violated by nuisance-type activities, which interrupt the property owner’s ability to use the property. Other intentional torts involve personal injury, which include (besides the traditional bodily injury) damage to reputation through untrue statements, be it libel or slander).
Inter Vivos Transfer. Transfer of all or a portion of the assets of a person’s estate while that person is still alive. Contrast with Testamentary Transfer.
Inter Vivos Trust. A trust created to take effect during the lifetime of the grantor. Contrast with Testamentary Trust.
Interest. In the calculation of premium, it is the rate of return on the company’s investment of premium dollars over the lifetime of the policy. Insurance company investment experience will affect life insurance cost.
Interest Adjusted Cost. A method of determining the cost of life insurance, taking into account the interest that might have been earned on premium money if it had been invested rather than put into premiums.
Interest Only Option. An option for paying the proceeds of a life insurance policy to beneficiaries in which the insurance company holds the entire proceeds and makes period payments of the earned interest only. The interest rate may be flexible but a minimum rate of interest is usually guaranteed.
Interest, Post-Judgment. Money the plaintiff would have earned if the favorable judgment had been paid at the time of the first judgment, before the appeal.
Interest, Pre-Judgment. Money the plaintiff would have earned if the favorable judgment had been paid at the time of injury or damage, before trial.
Interest Rate Risk. A risk faced by investors who invest in bonds characterized by an individual being locked into a lower interest rate when interest rates are generally increasing in the economy.
Interest Sensitive Provision. Provisions in variable and flexible premium policies that guarantee certain interest earnings plus an additional interest percentage should the current interest rate rise above a specified percentage.
Interinsurance Exchange. See Reciprocal Insurance Exchange.
Interline Endorsement. Commercial endorsements that apply, or could apply, to more than one coverage part of a package policy. These were developed to reduce redundancy.
Intermediary. A reinsurance broker who negotiates contracts of reinsurance on behalf of the insured. These transactions normally take place with those reinsurers who recognize brokers and pay them commissions on reinsurance premiums ceded.
Intermediate Care. Medically supervised health care for those who do not require the degree of care and supervision provided by hospitals or skilled nursing homes, but who need daily medical care and other assistance.
Intermediate Care Facility. A facility licensed by the state, which provides nursing care to persons who do not require the degree of care that a hospital or skilled nursing facility provides.
Intermediate Disability. See Temporary Partial Disability and Permanent Partial Disability.
Intermediate Report. A claim report on the condition of a continuing disability.
Internal Explosion. Explosion occurring in a dwelling or other covered structure, excluding breakage of water pipes or loss by explosion of steam boilers or steam pipes. Provides coverage for an explosion where a fire doesn’t ensue.
International Association of Health Underwriters. An association of agents and related personnel on the health insurance business.
International Insurance Seminars, Inc. (IIS). An institution that promotes worldwide exchanges of ideas and techniques among people, including academicians and insurance practitioners.
Interrogatories. A procedure for gaining evidence which involves one party submitting questions to the other party in order to gather facts and information to prepare for a trial.
Interstate Carrier. A transportation company that does business across state lines.
Interstate Commerce Commission Endorsement. An endorsement required on all policies issued to interstate motor carriers who haul goods for hire. It guarantees that all losses to cargo will be paid by the insurer, up to specified minimum limits, regardless of the perils specified in a policy. The common carrier, however, agrees to repay the insurer for any loss that is not covered by the policy.
Intervening Cause. A possible defense against negligence. Negligence may be avoided or reduced if it can be shown that an intervening cause broke the uninterrupted chain of events required to establish a proximate cause. Contrast with Proximate Cause.
Intestate. Dying without a will thus permitting the probate court to appoint an administrator to settle the estate.
Intoxicants and Narcotics Provision. A health insurance provision that voids liability if the loss results from the insured’s being intoxicated or under the influence of any narcotic unless administered on the advice of a physician.
Intrastate Carrier. A transportation company whose business is confined to one state.
Invalidity. Sickness.
Invasion of Privacy. The publicizing of another’s private affairs for which there is no legitimate public purpose, or the invasion into another’s private activities that causes shame or humiliation to that person.
Investigative Consumer Report. A report ordered on an insured or applicant under which information about the person’s character, reputation or lifestyle is obtained through personal interviews with the person’s neighbors, friends, associates or acquaintances. Contrast with Consumer Report.
Investment Company Act of 1940. A federal law that regulates the organization and activities of investment companies and requires the registration of investment companies with the government.
Investment Income. The return received by insurers from their investment portfolios, including interest, dividends and realized capital gains on stocks. Realized capital gains means the profit realized on stocks that have actually been sold for more than their purchase price.
Investment Manager. A fiduciary (other than a trustee or a plan’s named fiduciary) who manages, acquires or disposes of a pension plan’s assets.
Investment Reserve. An item in the balance sheet of an insurance company that represents a setting aside of assets to compensate for a possible reduction in the market value of securities owned by the company.
Invitee. One who has been expressly or implicitly invited onto the premises of another (e.g., customers entering a store).
Involuntary Unemployment Insurance. Coverage for consumer credit repayment obligations when an insured is involuntarily unemployed due to individual or mass layoff, general strike, termination by employer, unionized labor dispute and lockout. Usually sold to borrowers under a master group policy issued to a creditor (bank, association or other financial institution). Also called job loss insurance. Can be classified as either property/casualty or life/ health insurance.
IRA. See Individual Retirement Accounts.
IRIS. See Insurance Regulatory Information System.
Iron Safe Clause. A provision in a property insurance policy that requires the insured to keep records in a safe when they are not used.
Irrevocable Beneficiary. A beneficiary designation that cannot be changed without the beneficiary’s consent. See Change of Beneficiary.
Irrevocable Trust. A trust instrument that cannot be revoked by the person who created it. Contrast with Revocable Trust.
ISO. See Insurance Services Office.
Issue and Participation Limits. A question on an application for insurance that requires an insured to indicate the name of the insurer and particulars regarding the additional coverage. Any other coverage will cause the amount requested to be limited to the insurer’s underwriting limits.
Issued Business. Contracts actually written by an insurer and paid for but not yet delivered to or accepted by the insured.
Item. (1) A term used to identify a statement in a policy as to what is insured. In a fire policy one might refer to the contents item, meaning the coverage in the policy which applies to the contents. (2) An individual entry, such as a piece of jewelry, listed with its description and valuation on a schedule by a policy showing items covered.
Jettison. The act of throwing overboard part of a vessel’s cargo or hull in hopes of saving the ship from sinking.
Jewelers Block Insurance. An open perils (all risk)insurance contract that provides jewelers with coverage on most types of losses to which they are exposed. It covers both owned property and property in their care, custody and control.
Jewelry Floater. An all-risk policy covering listed jewelry. Usually each item is described and insured for a specific amount.
Joint and Several Liability. A legal doctrine permittingrecovery from any of several codefendants based on ability to pay, rather than the degree of negligence. See “Deep Pockets” Liability.
Joint and Survivorship Annuity. An annuity payable to the named annuitants during the period of their joint lives, which continue to the survivor when the first annuitant dies.
Joint and Survivorship Option. An option in a life insurance contract that permits the cash value of the policy to be paid out as a joint and survivorship annuity. Under this option, two beneficiaries receive the proceeds of a life insurance policy. When the first beneficiary dies, the second beneficiary (if he or she is still living) continues to receive the proceeds of the policy, in installments, for his or her lifetime (or for a specified period). See also Joint and Survivorship Annuity.
Joint Annuity. An annuity that is paid to the two named persons until the first one dies, at which time the annuity ceases.
Joint Committee on Interpretation and Complaint. A committee formed to rule on what types of insurance can come within the standard definition of marine insurance. See Nationwide Definition of Marine Insurance.
Joint Control. Control of the handling of an estate by both the surety (bonding company) and the fiduciary (administrator, executor, etc.). Funds are kept in joint accounts, and disbursements made only with both signatures.
Joint Insurance. Insurance written on two or more persons with benefits usually payable upon the first death.
Joint Insured. One whose life is insured by a joint insurance contract. See Joint Insurance.
Joint Liability. Liability that rests upon more than one person or corporate entity.
Joint Life and Survivorship Annuity. A contract that provides income to two or more people and continues so long as any one of them survives.
Joint Life Annuity. This policy pays a benefit that continues throughout the joint lifetime of two people but terminates at the first death.
Joint Life Insurance. See Joint Insurance.
Joint Ownership Coverage. An endorsement attached to a standard personal auto policy that insures vehicles normally ineligible under the standard ownership rules.
Joint Tenancy. Ownership of property shared equally by two or more parties under which the survivor assumes complete ownership. Compare with Fee Simple and Tenants in Common.
Joint Underwriting Association (JUA). An unincorporated association of insurance companies formed to provide a particular type of insurance to the public. Those who insure with a JUA pay assessments in addition to their premiums, which provide monies for the operation of the association. They usually set their own rate levels and use whatever coverage forms are deemed proper, subject to approval by state authorities.
Joint Venture. An expression applied most often to construction ventures where several contractors agree to combine together on a construction project rather than act as separate contractors. Under the joint venture agreement, they share profits and losses in some agreed-upon proportion.
Joint-Survivor Option. An annuity option that provides for a guaranteed income to the annuitant and upon death of the annuitant, a continued income to the annuitant’s survivor.
Joisted Masonry Construction. A building that has exterior walls constructed of masonry materials, such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or other similar materials, and a roof and floor constructed of combustible materials. A floor that rests directly on the ground is an exception and may be disregarded.
Jones Act. A federal act that provides for the covering of ships’ crews under workers’ compensation plans.
JUA. See Joint Underwriting Association.
Judgment or Decree. The formal decision by a judge or court.
Judgment Rates. See “A” Rates.
Judicial Bond. A bond required in civil and criminal court actions.
Jumping Juvenile. A popular name for a life insurance contract written on the life of a child, usually in units of $1,000. When the child reaches a prescribed age, generally 21, the face of the policy is increased automatically without the imposition of either an additional premium charge or a medical examination. Hence the term “jumping” juvenile.
Jurisdiction. Authority of the court to decide cases of a particular type or in a particular area.
Juvenile Insurance. Life insurance written on a child.