Insurance Regulatory Information System (iris)
Financial analysis method established by the national association of insurance commissioners (naic) to detect problems of property and casualty insurance companies and life and health insurance companies according to these audit ratios:
- Property and casualty insurance companies: current year increase or decrease in net written premiums to net written premiums in previous year; net written premiums to adjusted policyowners' surplus; loss ratio for two years; expense ratio for two years; net investment income to average invested assets; liabilities to liquid assets; unpaid premiums to surplus; and previous year adjusted surplus to current year adjusted surplus. (Other property and casualty audit ratios concern measurement of the adequacy of a company's reserve.)
- Life and health insurance companies: yield on investments; nonadmitted assets to assets; net gain to total income; investments in affiliates to capital and surplus; expenses (including agents commissions) to premiums; exchange in capital and surplus; and surplus increase or decrease.
Popular Insurance Terms
Computer system established by London trade associations for processing insurance policies. The work of LIMNET involves the notification and settlement of insurance policy claims. ...
Statistical function that displays the probability of determining a stated number of successes in a series of trials in which the probability of success is the same in each trial. In ...
Life insurance policy clause. If at the end of the grace period the premium due has not been paid, a policy loan will automatically be made from the policy's cash value to pay the premium. ...
Component of necessary coverage determined by the "needs approach" to life insurance for a family. It is intended to cover last-minute expenses as well as those that surface after the death ...
Plan whereby adjustments are made in the premium, as the premium increases to reflect the non proportionate increases in expenses. Generally, the expenses of acquisition costs, ...
Coverage under which initial premiums are less than normal for the first few years, then gradually increase for the next several years until they become level for the duration of the policy. ...
Statement in which a life insurance applicant is charged a higher-than-standard premium to reflect a unique impairment, occupation, or hobby, such as a history of heart disease or a circus ...
Type of coverage of property owned by one person at several locations, including merchandise, materials, fixtures, furniture, specified machinery, betterments, and improvements made by ...
Actuarial equivalent method of calculating the premium rate through the development of the following equation: probability that the event insured against occurs x face amount of policy x ...
Have a question or comment?
We're here to help.