Cyber Insurance Glossary

A complete glossary of essential Insurance terms.

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  • Generally Accepted Accounting Principle (GAAP)
    an aggregate of the accounting standards, principles and best practices for the preparation of financial statements allowing for consistency in reporting.
  • Goodwill
    the difference between the cost of acquiring the entity and the reporting entity's share of the book value of the acquired entity
  • Gramm-Leach Bliley Act (GLBA)
    act, repealing Glass-Steagal Act of 1933, allows consolidation of commercial banks, investment institutions and insurance companies. Established a framework of responsibilities of federal and state regulators for these financial industries. It permits financial services companies to merge and engage in a variety of new business activities, including insurance, while attempting to address the regulatory issues raised by such combinations.
  • Gross Paid-In and Contributed Surplus
    amount of capital received in excess of the par value of the stock issued.
  • Gross Premium
    the net premium for insurance plus commissions, operating and miscellaneous commissions. For life insurance, this is the premium including dividends
  • Group Annuities- Deferred Non-Variable and Variable
    an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some designated future date.
  • Group Annuities- Immediate Non-Variable and Variable
    an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some interval that may vary, however the annuity payouts must begin within 13 months.
  • Group Annuities- Unallocated
    annuity contracts or portions thereof where the Insurer purchases an annuity for the retirees
  • Group Annuity
    a contract providing income for a specified period of time, or duration of life for a person or persons established to benefit a group of employees
  • Group Code
    a unique three to five digit number assigned by the NAIC to identify those companies that are part of a larger group of insurance companies.
  • Group Credit-Life
    contracts sold in connection with loan/credit transactions or other credit transactions, which do not exceed a stated duration and/or amount and provide insurance protection against death.
  • Group Health
    health insurance issued to employers, associations, trusts, or other groups covering employees or members and/or their dependents, to whom a certificate of coverage may be provided.
  • Guaranty Fund
    funding mechanism employed by states to provide funds to cover policyholder obligations of insolvent reporting entities.
  • Hard Market
    a market characterized by high demand and low supply
  • Hazard
    circumstance which tends to increase the probability or severity of a loss.
  • Hold-Harmless Agreement
    A risk transfer mechanism whereby one party assumes the liability of another party by contract
  • Incontestability Provision
    a life insurance and annuity provision limiting the time within which the insurer has the legal right to void the contract on grounds of material misrepresentation in the policy application
  • Incurred but Not Reported
    (Pure IBNR) claims that have occurred but the insurer has not been notified of them at the reporting date. Estimates are established to book these claims. May include losses that have been reported to the reporting entity but have not yet been entered into the claims system or bulk provisions. Bulk provisions are reserves included with other IBNR reserves to reflect deficiencies in known case reserves. IBNR can sometimes include estimates of incurred but Not Enough Reported (IBNER)
  • Incurred Claims
    paid claims plus amounts held in reserve for those that have been incurred but not yet paid.
  • Incurred Losses
    sustained losses, paid or not, during a specified time period. Incurred losses are typically found by combining losses paid during the period plus unpaid losses sustained during the time period minus outstanding losses at the beginning of the period incurred in the previous period.
  • Indemnity, Principle of
    a general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss. Legal principle limiting compensation for damages be equivalent to the losses incurred.
  • Independent Adjuster
    freelance contractor paid a fee for adjusting losses on behalf of companies.
  • Independent Agent
    a representative of multiple insurance companies who sells and services policies for records which they own and operate under the American Agency System.
  • Independent Contractor
    an individual who is not employed for a company but instead works for themselves providing goods or services to clients for a fee.
  • Index Annuity
    an interest bearing fixed annuity tied to an equity index, such as the Dow Jones Industrial Average or S & P 500.
  • Individual Annuities- Deferred Non-Variable and Variable
    an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some designated future date.
  • Individual Annuities- Immediate Non-Variable and Variable
    an annuity contract that provides an accumulation based on both (1) funds that accumulate based on a guaranteed crediting interest rates or additional interest rate applied to designated considerations, and (2) funds where the accumulation vary in accordance with the rate of return of the underlying investment portfolio selected by the policyholder. The contract provides for the initiation of payments at some interval that may vary, however the annuity payouts must begin within 13 months.
  • Individual Credit- Credit Disability
    makes monthly loan/credit transaction payments to the creditor upon the disablement of an insured debtor.
  • Individual Credit- Life
    contracts sold in connection with loan/credit transactions or other credit transactions, which do not exceed a stated duration and/or amount and provide insurance protection against death.
  • Individual Health
    health insurance where the policy is issued to an individual covering the individual and/or their dependents in the individual market. This includes conversions from group policies.
  • Industrial Life
    Industrial life insurance, also called "debit" insurance, is insurance under which premiums are paid monthly or more often, the face amount of the policy does not exceed a stated amount, and the words "industrial policy" are printed in prominent type on the face of the policy.
  • Insurable Interest
    A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it. (Bickelhaupt and Magee )
  • Insurance
    an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling
  • Insurance Holding Company System
    consists of two or more affiliated persons, one or more of which is an insurer.
  • Insurance Regulatory Information System (IRIS)
    a baseline solvency screening system for the National Association of Insurance Commissioners (NAIC) and state insurance regulators established in the mid-1970s.
  • Insurance to Value
    Amount of insurance purchased vs. the actual replacement cost of the insured property expressed as a ratio.
  • Insured
    party(ies) covered by an insurance policy
  • Insurer
    an insurer or reinsurer authorized to write property and/or casualty insurance under the laws of any state.
  • Intermediary
    a person, corporation or other business entity (not licensed as a medical provider) that arranges, by contracts with physicians and other licensed medical providers, to deliver health services for a health insurer and its enrollees via a separate contract between the intermediary and the insurer.
  • International
    includes all business transacted outside the U.S. and its territories and possessions where the appropriate line of business is not determinable.
  • Internet Liability
    Coverage for cyber commerce including copyright infringement, libel, and violation of privacy
  • Investment Grade
    The obligation has been determined to be in one of the top four generic lettered rating classifications by a securities rating agency acceptable to the commissioner, that the obligation has been identified in writing by such a rating agency to be of investment grade quality, or, if the obligation has not been submitted to any such rating agency, that the obligation has been determined to be investment grade (Class 1 and Class 2) by the Securities Valuation Office of the National Association of Insurance Commissioners.
  • Investment Income Accrued
    investment income earned as of the reporting date but not legally due to be paid to the reporting entity until subsequent to the reporting date.
  • Investment Income Due
    investment income earned and legally due to be paid to the reporting entity as of the reporting date
  • Investment Income Gross
    shall be recorded as earned and shall include investment income collected during the period, the change in investment income due and accrued, the change in unearned investment income plus any amortization (e.g., discounts or premiums on bonds, origination fees on mortgage loans, etc.)
  • Irrevocable Beneficiary
    a life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured's lifetime because the policy owner has the right to change the beneficiary designation only after obtaining the beneficiary's consent.
  • Joint and Last Survivor Annuity
    retirement plan that continues to payout so long as at least one, of two or more, annuitants is alive.
  • Joint-Life Annuity
    an annuity contract that ceases upon the death of the first of two or more annuitants.
  • Joint Underwriting Association (JUA)
    a loss-sharing mechanism combining several insurance companies to provide extra capacity due to type or size of exposure.
  • Key-Persons Insurance
    a policy purchased by, for the benefit of, a business insuring the life or lives of personnel integral to the business operations