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
Same as term Ceding Company: insurance company that transfers a risk to a reinsurance company. ...
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Early type of no-fault automobile insurance developed by two law professors, Robert Keeton and Jeffrey O'Connell. Its basic premise is that for many accidents it is impossible to place the ...
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Procedure in employee benefit plans to calculate life insurance and retirement benefits to which an employee is entitled. ...
Entitlement to pension benefits without a reduction, even though an employee is no longer in the service of an employer at retirement. For example, under the ten year vesting rule, an ...
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