Definition of "Equity"
Fairness (as an objective of insurance pricing). Premium rates are set according to expectation of loss among a classification of policy owners. The premise is that all insureds with the same characteristics should have the same expectation of loss and should be listed under the same underwriting classification. For example, in life insurance, individuals with a good personal health history, family health history, a job with no special hazards, and who are of good character, should be classified as standard risks and thereby pay standard rates.
Popular Insurance Terms
Proposed new small business pension plan advocated in President Clinton's administration's fiscal year 1999 budget. This plan would be made available to small businesses with 100 or fewer ...
Extremely aggressive behavior by an insurance agent to convince a prospect to purchase the insurance product without due regard for the prospect's ability to pay the premiums and/or needs ...
Retirement center with a focus on group living arrangements for senior citizens. The center has separate apartments for each resident as well as an on-site nursing facility. Generally, ...
prospective buyers of insurance classified according to various demographics such as age, sex, and insurance. risk so hazardous that it is difficult to obtain insurance coverage. ...
Authority of states to tax the insurance companies they regulate. States levy income taxes, real and personal property taxes, and special levies, the most important of which is a premium ...
Contract first written in 1918 that provided the basis for modern-day property insurance, both personal and commercial. Forms and endorsements must be added to complete the policy and ...
Strategy of regularly investing a fixed amount of dollars into a variable dollar annuity over a substantial period of time regardless of the accumulation unit value. The investment will be ...
Securement of funds from outside sources such as by borrowing or by attracting equity control. Use of leverage to improve the profitability of a business. Achievement of an investment ...
Federal law passed in 1920 that allows any seaman incurring bodily injury as the result of the performance of one or more functions of the job to bring a suit for damages against the ...
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