Level Premium Life Insurance – A kind of life insurance in which the level of premiums remains constant throughout the life of the contract. In this policy, in previous years, more than the cost of coverage has been paid to compensate for underpayment in subsequent years. Insurable interest – The principle that an insured person must suffer real harm in order to assert a legal right to his or her insurance policy. Foreign investments – an investment in a foreign jurisdiction or an investment in a person, real estate or asset established in a foreign jurisdiction. An investment is not considered foreign if the person issuing, the qualified primary source of credit or the qualified guarantor is a national jurisdiction or a person domiciled in a national jurisdiction, except: a) the person issuing is a shell entity; and (b) the investment is not supported, accepted, guaranteed or insured by a national court or by a person, i.e. a shell entity established in a national jurisdiction. American Council of Life Insurance (ACLI) – Based in Washington, DC, a commercial organization that primarily represents the largest life insurers. Direct Writer – an insurer whose products are sold directly to the public by a sales agent made up of employees or exclusive representatives of the insurer; it also refers to a reinsurer that offers reinsurance directly to primary companies without using a reinsurance broker as an intermediary. Short-term medical guidelines that provide important medical care for a short period of time, usually 30 to 180 days. These guidelines can be reconducted for several periods of time. Net Premiums Earned – Premiums for accident or health policies that should not be returned to the policyholder if the directive is repealed. Guarantors – A company, such as an insurer, that promises to pay an obligation if the debtor does not. Insurance period – the period during which insurance coverage is effective.
Body Injury Protection Coverage/PIP – Coverage of vehicles in states that have enacted a law on malfunction laws or other car repair laws for the treatment of injuries for policyholders and passengers of insureds. Reinsurance: a transaction between a direct insurer and another (re) licensed insurer, in which the reinsurer agrees to cover all or part of the losses and/or costs of adjusting the direct insurer`s losses. The assumption is in exchange for a bonus. Compensation is proportional or non-proportional. Retentionon – an internal allocation mechanism for loss risk used instead of or in addition to the risk transfer to an insurance company.