An insurance professional skilled in the analysis, evaluation, and management of statistical information. Evaluates insurance firms' reserves, determines rates and rating methods, and determines other business and financial risks.

Additional Insurance

One who qualifies as "insured'' under the terms of a policy even though not named as insured. Officers of a corporation may be included as insureds under the terms of a policy written in the name of the corporation.

Additional Living Expenses

Extra charges covered by homeowner's policies over and above the policyholder's customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.

Adjuster

An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.

Aftermarket Parts

Auto crash parts produced by firms that are not associated with car manufacturers. Insurers consider these parts, when certified, at least as good as those that come from the original equipment manufacturer (OEM). They are often cheaper than the identical part produced by the OEM.

Annual Statement

Summary of an insurer's or reinsurer's financial operations for a particular year, including a balance sheet. It is filed with the state insurance department of each jurisdiction in which the company is licensed to conduct business.

Appraisal

Survey to determine a property's insurable value or the amount of a loss.

Arbitration

Procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party.

Arson

The deliberate setting of a fire.

Auto Insurance Policy

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:Bodily injury liability, for injuries the policyholder causes to someone else.Medical payments or Personal Injury Protection (PIP): For treatment of injuries to the driver and passengers of the policyholder's car.Property damage liability, for damage the policyholder causes to someone else's property.Collision, for damage to the policyholder's car from a collision.Comprehensive, for damage to the policyholder's car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots) and theft.Uninsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

Auto Insurance Premium

The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft, and other losses. Prices vary from company to company, as with any product or service.Premiums also vary depending on the amount and type of coverage purchased; the make and model of the car; and the insured's driving record, years of driving, and the number of miles the car is driven per year. Other factors taken into account include the driver's age and gender, where the car is most likely to be driven and the times of day—rush hour in an urban neighborhood or leisure-time driving in rural areas, for example. Some insurance companies may also use credit history-related information.

Auto/Home Discount

This discount is applied if a participant has both auto and home policies with WEA Property & Casualty Insurance Company.

Binder

Temporary authorization of coverage issued prior to the actual insurance policy.

Bodily Injury

A term that refers to physical injury, sickness, disease, or death resulting therefrom. In some jurisdictions "bodily injury" includes emotional injury.

Bodily Injury Liability Coverage

Portion of an auto insurance policy that covers injuries the policyholder causes to someone else.

Book of Business

Total amount of insurance on an insurer's books at a particular point in time.

Cancellation; flat, pro rata, or short rate

In a flat cancellation the full premium is returned to the insured. A pro rata cancellation means the insurer has charged for the time the coverage was in force. Short rate cancellation entails a penalty in excess of pro rata for early termination.

Catastrophe

Term used for statistical recording purposes to refer to a single incident or a series of closely related incidents causing severe insured property losses totaling more than a given amount, currently $25 million.

Catastrophe Reinsurance

Reinsurance (insurance for insurers) for catastrophic losses. The insurance industry is able to absorb the multibillion dollar losses caused by natural and man-made disasters such as hurricanes, earthquakes, and terrorist attacks because losses are spread among thousands of companies, including catastrophe reinsurers who operate on a global basis. Insurers' ability and willingness to sell insurance fluctuates with the availability and cost of catastrophe reinsurance.After major disasters, such as Hurricane Andrew and the World Trade Center terrorist attack, the availability of catastrophe reinsurance becomes extremely limited. Claims deplete reinsurers' capital and, as a result, companies are more selective in the type and amount of risks they assume. In addition, with available supply limited, prices for reinsurance rise. This contributes to an overall increase in prices for property insurance.

Claim

A demand for payment of a policy benefit because of the occurrence of an insured event, such as the death or disability of the insured, the maturity of an endowment, the incurrence of hospital or medical bills, the destruction or damage of property, and related deaths or injuries; defects in, liens on, or challenges to the title to real estate, or the occurrence of a surety loss.

Claim Severity

The relative magnitude of an individual claim, as opposed to the frequency or number of several claims.

Claimant

The person or entity submitting a claim with an insurance company that is not their own.

Collision Coverage

Portion of an auto insurance policy that covers the damage to the policyholder's car from a collision.

Comprehensive Coverage

Portion of an auto insurance policy that covers damage to the policyholder's car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots) and theft.

Condominium

Type of dwelling where the structure is owned jointly while spaces within the structure are owned individually. Special property and liability forms cover the interests of the condominium association and of unit owners.

Coverage

Synonym for insurance.

Coverages for Damage to Your Vehicle

Because your vehicles are a significant financial investment, usually second only to your home, it is important to protect yourself from financial hardship when your car is damaged in an accident and needs to be repaired or replaced.There are two common coverages available for your vehicles: collision coverage and comprehensive coverage. With these coverages, you don't need to select a limit of coverage as you do with liability coverage. Your protection is provided without a limit. However, you do need to select an appropriate deductible for each coverage. The deductible is the amount that you will pay before we pay for any remaining damage. The higher the deductible you choose, the more you share in any loss and the lower your premium. Deductibles can range from $100 to $5,000.If you have a loan from a bank on your vehicle, your financial institution may require you to carry collision and comprehensive coverage.

Covered Loss

An accident, including accidental damage by forces of nature, which brings a contract of insurance into play.

Declaration

Part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and supplemental information. Referred to as the "dec page."

Deductible

A deductible is what you pay before the insurance company pays.It is the amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

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