

This includes captives, which are insurers owned by one or more non-insurers to provide owners with coverage. Methods include arbitration, where disputing parties agree to be bound to the decision of an independent third party, and mediation, where a third party tries to arrange a settlement between the two sides. Property insurance that is usually bought in conjunction with fire insurance it includes wind, water damage, and vandalism coverageĪlternative to going to court to settle disputes. Insurance companies that use exclusive or captive agents are called direct writers.Īn insurance company incorporated under the laws of a foreign country, as opposed to a foreign insurance company that does business in states outside its own. Insurance is sold by two types of agents: independent agents, who are self-employed, represent several insurance companies and are paid on commission, and exclusive or captive agents, who represent only one insurance company and are either salaried or work on commission. Insurance works best when risk is shared among large numbers of policyholders.Ĭompanies that market and sell products via independent agents. (Flood insurance is provided by the federal government but sold mostly through the private market.) In the case of natural disasters, such as earthquakes, adverse selection concentrates risk instead of spreading it. Insurers react either by charging higher premiums or not insuring at all, as in the case of floods. The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Only assets that can be easily sold in the event of liquidation or borrowed against, and receivables for which payment can be reasonably anticipated, are included in admitted assets.Īn insurance company licensed and authorized to do business in a particular state. To make it easier to assess an insurance company’s financial position, state statutory accounting rules do not permit certain assets to be included on the balance sheet.

Independent adjusters are independent contractors who adjust claims for different insurance companies.Īssets recognized and accepted by state insurance laws in determining the solvency of insurers and reinsurers. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.Īn individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. Evaluates insurance firms’ reserves, determines rates and rating methods, and determines other business and financial risks.Įxtra charges covered by homeowners policies over and above the policyholder's customary living expenses.
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Benefits will pay for preventative services, medical expenses, and catastrophic care, with limits.Ī form of insurance that pays damages equal to the replacement value of damaged property minus depreciation.Īn insurance professional skilled in the analysis, evaluation, and management of statistical information. Many individuals who choose the accelerated death benefit have less than one year to live and use the money for treatments and other costs needed to stay alive.Ĭoverage for accidental injury, accidental death, and related health expenses. Contact Abacus Insurance and Financial Services, LLC today to learn more.Ī form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge.Ī benefit that can be attached to a life insurance policy that enables the policy holder to receive cash advances against the death benefit in the case of being diagnosed with a terminal illness. If available, some optional coverages and benefits might be offered at an additional charge. Home > Glossary > A Insurance Glossary Insurance terms and definitions from Abacus Insurance and Financial Services, LLC.Ĭoverages and benefits listed below may not be available in your state.
