Rider: Definition How Riders Work Types Cost and Example

Rider: Definition and How Riders Work A rider is an additional provision or attachment to an insurance policy that modifies the terms and conditions of the policy. It provides extra coverage or benefits beyond what is typically offered in the base policy. Riders are optional and can be added to …

Reinsurance: Definition, Types, and How It Works

What is Reinsurance? When an insurance company sells a policy to a policyholder, it assumes the risk associated with that policy. However, sometimes the risk can be too large for the insurance company to handle on its own. This is where reinsurance comes in. By transferring a portion of the …

Reinsurance Ceded: Definition, Types, Vs Reinsurance Assumed

Reinsurance Ceded: Definition, Types, Vs Reinsurance Assumed Reinsurance ceded is a term used in the insurance industry to refer to the practice of an insurance company transferring a portion of its risks and liabilities to another insurance company. This transfer of risk is done through a reinsurance agreement, where the …

Quota Share Treaty: Understanding, Mechanism, And Illustrations

What is a Quota Share Treaty? A quota share treaty is a type of reinsurance agreement in the insurance industry. It is a proportional reinsurance arrangement where the insurer cedes a portion of its risks and premiums to a reinsurer. In simple terms, it is a sharing of both risks …

Premium Definition Meanings in Finance and Types

Premium Definition Meanings in Finance and Types [INSURANCE catname] In the world of finance, the term “premium” refers to the amount of money that is paid for a particular financial product or service. In the context of insurance, a premium is the amount that an individual or business pays to …

Personal Lines Insurance Definition How It Works and Coverage

What is Personal Lines Insurance? Personal lines insurance refers to insurance policies that are designed to protect individuals and their personal belongings. It is a type of insurance coverage that provides financial protection against losses or damages to personal property, as well as liability coverage for personal injuries or property …

Overview of United States Aircraft Insurance Group (USAIG)

About United States Aircraft Insurance Group (USAIG) United States Aircraft Insurance Group (USAIG) is a leading provider of aircraft insurance solutions in the United States. With over 90 years of experience in the industry, USAIG has established itself as a trusted partner for aircraft owners and operators. At USAIG, we …

Out-of-Pocket Expenses: Definition, How They Work, and Examples

What Are Out-of-Pocket Expenses in Insurance? Out-of-pocket expenses in insurance refer to the costs that individuals have to pay for medical services or treatments that are not covered by their insurance plans. These expenses are paid directly by the policyholders and are not reimbursed by the insurance company. When individuals …

Lost Policy Release (LPR) – The Process And Benefits

What is Lost Policy Release? Lost Policy Release (LPR) is a process that allows individuals or organizations to obtain a release from an insurance company for a lost or misplaced insurance policy. When an insurance policy is lost, it can create a lot of stress and uncertainty for the policyholder. …

Loss Payee Definition How It Works in Insurance and Benefits

What Is a Loss Payee? A loss payee is a term commonly used in insurance to refer to a party or entity that has a financial interest in a property or asset that is insured. In the event of a loss or damage to the insured property, the loss payee …

Insurance: Definition, How It Works, and Main Types of Policies

Insurance: Definition and Importance Insurance is a financial product that provides protection against potential financial losses. It is a contract between the insured and the insurance company, where the insured pays a premium in exchange for the promise of compensation in the event of a covered loss. Definition of Insurance …

Insurance Underwriter: Definition and Responsibilities

What is an Insurance Underwriter? An insurance underwriter is a professional who assesses and evaluates the risks associated with insuring individuals or businesses. They play a crucial role in the insurance industry by determining the terms and conditions of insurance policies and deciding whether to accept or reject applications for …

Insurance Premium Defined How It’s Calculated and Types

What is an Insurance Premium? An insurance premium is the amount of money that an individual or business pays to an insurance company in exchange for insurance coverage. It is a regular payment made by the policyholder to maintain their insurance policy and ensure that they are protected against potential …

Insurance Coverage Major Types and How They Work

Auto Insurance: Protecting Your Vehicle and Yourself Auto insurance is a crucial form of coverage that provides financial protection in case of accidents, theft, or damage to your vehicle. It is a legal requirement in most countries and can help you avoid significant financial losses. Liability Coverage: This type of …

Insurance Claim Process: How to File and Get Your Claim Approved

What is an insurance claim? An insurance claim is a formal request made by an insured individual or policyholder to an insurance company to compensate for a loss or damage covered by the insurance policy. It is a process through which policyholders seek financial reimbursement or assistance from their insurance …

HIPAA Waiver of Authorization: What You Need to Know

What is HIPAA? HIPAA, which stands for the Health Insurance Portability and Accountability Act, is a federal law enacted in 1996 that aims to protect the privacy and security of individuals’ health information. It establishes national standards for the electronic exchange of health information and sets rules for healthcare providers, …

Guaranteed Renewable Policy: An Overview and Examples

What is a Guaranteed Renewable Policy? A guaranteed renewable policy is a type of insurance policy that provides the policyholder with the option to renew the policy at the end of each term, regardless of their health condition or any other factors that may have changed since the policy was …

First Notice of Loss FNOL Definition Requirements and Example

First Notice of Loss (FNOL) Definition When filing a First Notice of Loss, there are certain requirements that the policyholder must fulfill. These requirements may vary depending on the insurance company and the specific policy, but generally include the following: Prompt Notification: The policyholder must notify the insurance company as …

Facultative Reinsurance Definition and Comparison with Treaty Reinsurance

What is Facultative Reinsurance? Facultative reinsurance is a type of reinsurance where the insurer transfers a specific risk or a part of it to another insurer or reinsurer. Unlike treaty reinsurance, which covers a portfolio of risks, facultative reinsurance deals with individual risks on a case-by-case basis. Facultative reinsurance is …

Excess of Loss Reinsurance: Definition and Working Mechanism

What is Excess of Loss Reinsurance? Excess of Loss Reinsurance is a type of reinsurance that provides coverage for insurance companies against losses that exceed a certain threshold. It is designed to protect insurers from catastrophic events or large claims that could potentially bankrupt them. When an insurance company sells …

Ex Gratia Payment: What You Need to Know

What is Ex Gratia Payment? An ex gratia payment is a voluntary payment made by an individual or organization to another party, without any legal obligation to do so. It is a gesture of goodwill or generosity, often made in situations where there is no legal requirement to provide compensation. …

Combined Ratio Definition What It Measures Formula Examples

What is Combined Ratio? Combined ratio is a key financial metric used in the insurance industry to assess the profitability and underwriting performance of an insurance company. It is a ratio that measures the relationship between the company’s incurred losses and expenses to its earned premiums. The combined ratio is …

Bancassurance: Definition, Working Mechanism, Advantages and Disadvantages

Bancassurance: Definition Bancassurance is a financial concept that combines the services of banking and insurance, offering customers a wide range of financial products and services under one roof. It is a strategic partnership between a bank and an insurance company, where the bank acts as a distribution channel for insurance …

All Risk Insurance: Coverage and Exclusions Explained

All Risk Insurance: Coverage and Exclusions Explained All risk insurance is a type of insurance policy that provides coverage for a wide range of risks and perils. Unlike other types of insurance policies that only cover specific named perils, all risk insurance offers broader coverage by including all risks except …