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
Account in which the same interest rate is credited on all premiums regardless of the time period and amount contributed. ...
Means of paying the cost of benefits of pension plan participants including retirement, death, and disability. ...
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Massachusetts commissioner of insurance responsible for the passage of legislation (1861) that guaranteed policy owners of that state equity in the cash value of their life insurance. The ...
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Reduction in the amount that the insured receives from the insurer, after having incurred a property loss, because the insurer failed to carry the amount of coverage required by the ...
Exemption in ocean marine policy for losses caused by strikes, riots, and civil commotion. ...
Policies that have been sold to and paid for by an insured, but not yet delivered to the insured. ...
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