A waiver of premium for payer benefit is an insurance rider that waives the policyholder’s premium payments if the policyholder becomes disabled and is unable to work. The rider is typically added to disability income policies. What does waived mean in insurance policy? In insurance, the term “waived” means that the policyholder is no longer … Read more
The broker of record is the insurance broker that an insured has designated to represent them with their insurance carrier. The broker of record is responsible for placement of the insurance coverage, handling premium payments, and servicing the account. If the insured wants to change insurance companies, they must first notify their current broker of … Read more
What is underwriting? What are the different types of underwriting? How do they work? Why is it called underwriting? The word “underwriting” comes from the insurance practice of having prospective policyholders undergo a medical exam in order to determine their eligibility for coverage. The medical exam would typically be performed by a physician, and the … Read more
Concealment is a term used in insurance to describe a situation where the insured party withholds information from the insurer that is material to the risk being insured against. In most cases, concealment will void the insurance policy. What is laches and estoppel? Laches is a legal term that describes the failure to assert a … Read more
Combined Ratio: Definition and Formula. What is a good combined ratio for insurance? There is no definitive answer to this question as every insurance company is different and will have different standards for what constitutes a “good” combined ratio. However, a combined ratio of below 100 is generally considered to be good, as it indicates … Read more
An underwriter is an individual who assesses the risk of insuring a person or property and sets the premium for the insurance policy. Underwriters are employed by insurance companies and their job is to protect the insurer from losses. Underwriters use their knowledge of the market and of the specific person or property being insured … Read more
A GIF is a type of investment fund that is guaranteed by the government to provide a certain level of return on investment. These funds are typically used by investors who want to protect their capital from market volatility. Who created the GIF? The GIF was created by a team of web developers at the … Read more
The attained age definition is a method used by insurance companies to calculate premiums. The attained age definition takes into account the policyholder’s age at the time the policy is purchased, and then uses that age to calculate premiums for the duration of the policy. This method is sometimes also referred to as the “age-nearest” … Read more
Excess of loss reinsurance is a type of insurance coverage that provides protection for an insurer against losses that exceed a certain amount. The insurer purchases this type of coverage from a reinsurer, and pays the reinsurer a premium for the coverage. If the insurer has a loss that exceeds the amount of the coverage, … Read more
Incurred but not reported (IBNR) is an insurance accounting term used to describe the estimated amount of losses that have been incurred by an insurance company but have not yet been reported to the company. IBNR is a key metric used by insurers to measure their loss reserves, as it can have a significant impact … Read more
