Homogeneous Exposures
Elements within a group under study that have the same characteristic (s), have the same expectation of loss, are very much alike with respect to the variable under consideration, and do not show significant differences through any given time periods. Homogeneity of exposure units is extremely important to the accuracy of the prediction of future losses based on historical loss experience. For example, if an ACTUARY is going to predict the number of wood-frame houses likely to suffer a fire loss, the sample upon which the prediction is based should consist of wood-frame houses, not brick-frame houses.
Popular Insurance Terms
To accept by a reinsurer, part or all of a risk transferred to it by a primary insurer or another reinsurer. ...
Expenses added to the beginning of a premium payment period. For example, an annuity with a 10% front load would include $10 of expenses for each $100 premium paid. ...
Coverage for persons whose medical history includes serious illness such as heart disease or whose physical condition is such that they are rated below standard. A policy may specifically ...
Combination of coverages from property, liability, health, and life insurance into a single insurance policy from one insurance company. ...
Money that is lent. In life insurance, a loan can be taken against the cash value of a life insurance policy at any time. The policyholder does not have to repay the loan until the policy ...
Feature of pension plans whereby an employee whose service has been interrupted can have that period credited toward retirement. ...
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Regulatory: representative of the commissioner of insurance who conducts an audit of the insurance company's records. Life and Health: physician appointed by an insurance company to ...
Base upon which a mortality table is built by beginning with a randomly selected group of people who are alive at the earliest age for which statistics are available on the number of people ...
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