Segregation Of Exposure Units
Risk management practice designed to control losses by physically separating assets or operations (on separating a single exposure unit into various parts) to reduce maximum potential loss. The objective of such a separation is to reduce the risk of loss to the whole exposure unit through dispersion. For example, two related chemical processing operations, both subject to loss from explosion or fire, would be built a sufficient distance apart-perhaps even on separate premises-so that the explosion of one would not damage the other.
Popular Insurance Terms
Maximum amount that an insurance company is obligated to pay all injured parties seeking recourse as the result of the occurrence of an event covered under a liability insurance pol ...
Premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
Insurance in which most of the premium (generally 80 to 90%) is invested in traditional fixed income securities. The remainder of the premium is invested in call option contracts tied to a ...
Record of losses, whether or not insured. This record is used in predicting future losses and in developing premium rates based on expectation of insured losses. ...
Written notice to an insured showing date of termination of an insurance policy. ...
Provision of the 1987 Tax Act that excludes life insurance owned by a third party or an irrevocable trust from federal estate taxes. Life insurance, as well as the deceased's personal ...
Policy designed to act as a supplement to Medicare. The supplementation is in the form of additional benefits to that provided by Medicare. The additional benefits are in the form of ...
Life insurance on the life of a child. ...
Life insurance company form to be signed by a policyholder who wishes to surrender a policy that has been lost. The signed receipt then becomes evidence that the policy is no longer in ...
Have a question or comment?
We're here to help.