Construction occupancy protection exposure (COPE) is defined as the chance of loss from fire, smoke, water, or collapse while a building is under construction. This exposure is typically covered by a builder’s risk insurance policy. What is coping and its types? Coping is a psychological process that helps us deal with difficult situations. It usually … Read more
A conditionally renewable policy is an insurance policy that can be renewed by the policyholder, subject to certain conditions. The conditions typically relate to the policyholder’s age, health, or payment of premiums. If the policyholder meets the conditions, the policy can be renewed. If the policyholder does not meet the conditions, the policy will not … Read more
Insurance defense is the legal defense provided by an insurance company to its policyholders. It is a type of third-party liability coverage, which pays for the policyholder’s legal expenses in the event that they are sued. Most insurance policies contain a clause that requires the insurance company to provide a defense for the policyholder in … Read more
An actuarial service is a service provided by an actuary. An actuary is a professional who uses mathematical and statistical methods to assess risk in the insurance and finance industries. Actuarial services can be used to assess a wide range of risks, including the risk of death, the risk of illness, the risk of injury, … Read more
A waiting period is a period of time that an employee must wait before they are eligible to receive benefits under an insurance plan. For example, an employee may have to wait 3 months after starting a new job before they are eligible to receive health insurance benefits. What is a 90-day probationary period? In … Read more
Adjusted net worth is a calculation used by insurance companies to determine the financial strength of a company. It is a measure of a company’s assets minus its liabilities, adjusted for certain items such as intangible assets and deferred taxes. The adjusted net worth calculation is used by insurance companies to assess the financial strength … Read more
Apportionment is the process of allocating risk and premium among the various insurers who provide coverage for a given policyholder. The apportionment of risk and premium is typically done on a pro rata basis, meaning that each insurer bears a proportionate share of the risk and premium based on the amount of coverage they provide. … Read more
Loss cost is the amount of money an insurance company pays out in claims and expenses, divided by the number of policies it has in force. The loss cost of a policy is used to help set the premium for that policy. Loss cost can also refer to the amount of money an insurance company … Read more
A claims adjuster is a professional who is responsible for investigating insurance claims and determining the extent of the insurer’s liability. Adjusters may work for insurance companies or as independent contractors. They typically have experience in the insurance industry and are familiar with the claims process. What’s another name for a claims adjuster? A claims … Read more
A period of indemnity is the time period during which an insured party is protected from financial losses by an insurance policy. The period of indemnity may be specified in the policy contract, or it may be left to the discretion of the insurer. In either case, the period of indemnity typically begins when the … Read more
