Imputed Negligence: Case in which responsibility for damage can be transferred from
the negligent party to another person, such as an employer.
Incurred Claims: Incurred claims equal the claims paid during the policy year plus
the claim reserves as of the end of the policy year, minus the corresponding reserves as
of the beginning of the policy year. The difference between the year end and beginning of
the year claim reserves is called the increase in reserves and may be added directly to
the paid claims to produce the incurred claims.
Incurred-but-not-reported (IBNR) reserves: liability account on an insurer's
balance sheet reflecting claims that are expected based upon statistical projections but
which have not yet been reported to the insurer.
Indemnification: Compensation to the victim of a loss, in whole or in part, by
payment, repair, or replacement.
Indemnity: Legal principle that specifies an insured should not collect more than
the actual cash value of a loss but should be restored to approximately the same financial
position as existed before the loss.
Independent Adjustor: Claims adjustor who offers his or her services to insurance
companies and is compensated by a fee.
Independent Agent: an independent business person who usually represents two or
more insurance companies in a sales and service capacity and who is paid on a commission
basis.
Independent Agency System: Type of property and liability insurance marketing
system, sometimes called the American agency system, in which the agent is an independent
businessperson representing several companies. The agency owns the expirations or renewal
rights to the business, and the agent is compensated by commissions that vary by line of
insurance.
Indirect Loss: See Consequential Loss.
Individual Insurance: Policies which provide protection to the policyholder and/or
his/her family. Sometimes called Personal Insurance as distinct from group and blanket
insurance.
Individual Retirement Account (IRA): An account to which an individual can make
annual contributions of 100% of earnings up to $2,000 ($2,250 for a one-income married
couple). These contributions are tax deductible for most workers.
Industrial Life Insurance: Life insurance issued in small amounts, usually less
than $1,000, with premiums payable on a weekly or monthly basis. The premiums are
generally collected at the home by an agent of the company. Sometimes referred to as
debit insurance.
Inflation-Guard Endorsement: Endorsement added at the insured's request to a homeowners
policy to increase periodically the face amount of insurance of the dwelling and other
policy coverages by a specified percentage.
Inheritance tax: A tax on the right of an heir to receive property at the death
of another.
Initial Past Service Liability: The actuarial value (single sum) of the past
service benefits as of the effective date of the establishment of the plan, or at the
date of the latest liberalization. The maximum annual past service contribution
allowable for tax deduction is the amount necessary to amortize past service liabilities
and other supplementary pension or annuity credits over 10 years. Funding of the past
service liability over a period of 30 years (40 in some cases) is required by the
Internal Revenue Service under ERISA.
Injury Independent of All Other Means: An injury resulting from an accident, provided that
the accident was not caused by an illness.
Inland Marine Insurance: A broad form of insurance, generally covering articles in
transit as well as bridges, tunnels and other means of transportation and communication.
Besides goods in transit (generally excepting trans-ocean), it includes numerous "floater"
policies, such as those covering personal effects, personal property, jewelry, furs, fine
arts, and other items.
Inland Marine Insurance: A broad type of insurance, generally covering articles
that may be transported from one place to another as well as bridges, tunnels and other
instrumentality's of transportation. It includes goods in transit (generally excepting
trans-ocean) as well as numerous "floater" polices such as personal effects, personal
property, jewelry, furs, fine art and others.
Inspection Report: A report (usually written) of an investigation of an applicant,
conducted by an independent agency that specializes in insurance investigations. The
report covers such matters as occupation, financial status, health history, and moral
problems.
Insolvent: Having insufficient financial resources (assets) to meet financial
obligations (liabilities).
Insurability: Acceptability to the company of an applicant for insurance.
Insurable Risk: The conditions that make a risk insurable are (a) the peril insured
against must produce a definite loss not under the control of the insured, (b) there must
be a large number of homogeneous exposures subject to the same perils, (c) the loss must
be calculable and the cost of insuring it must be economically feasible, (d) the peril
must be unlikely to affect all insureds simultaneously, and (e) the loss produced by a
risk must be definite and have a potential to be financially serious.
Insurance: A system under which individuals, businesses, and other organizations or
entities, in exchange for payment of a sum of money (a premium), are guaranteed
compensation for losses resulting from certain perils under specified conditions.
Insurance: Protection by written contract against the financial hazards (in whole
or in part) of the happenings of specified fortuitous events.
Insurance Company: An organization chartered to operate as an insurer.
Insurance Company: Any corporation primarily engaged in the business of
furnishing insurance protection to the public.
Insurance Commissioner: The top insurance regulatory official in a state.
Insurance Exchange: Term used to describe a facility that exists in a few states
to provide a market for reinsurance and for the insurance of large and unusual domestic
and foreign risks that are difficult ot insure in the normal markets. Examples are the
New York Insurance Exchange, the Insurance Exchange of the Americas, and the Illinois
Insurance Exchange.
Insurance Examiner: The representative of a state insurance department assigned to
participate in the official audit and examination of the affairs of an insurance company.
Insurance Guaranty Funds: State Funds that provide for the payment of unpaid claims
of insolvent insurers.
Insurance Services Offices (ISO): Major rating organization in property and
liability insurance that drafts policy forms for personal and commercial lines of
insurance and provides rate data on loss costs for property and liability insurance
lines.
Insured: A person or organization covered by an insurance policy, including the
"named insured" and any other parties for whom protection is provided under the policy
terms.
Insurer: The party to the insurance contract who promises to pay losses or
benefits. Also, any corporation engaged primarily in the business of furnishing insurance
to the public.
Insuring Agreement: That part of an insurance contract that states the promises of
the insurer.
Insuring Clause: The clause which sets forth the type of loss being covered by the
policy and the parties to the insurance contract.
Integration: A coordination of pension, disability or other benefit with the other
sources of income, such as Social Security benefit, through a specific formula designed
to ensure reasonable income replacement.. Qualified plans must integrate so that total
benefits are non-discriminatory between rank and file employees and owners, officers or
highly compensated employees.
Inter vivos Trust: A trust created while the creator of the trust is living. Also
known as a living trust.
Interest: Money paid for the use of money.
Interest Option: Life insurance settlement option in which the principal is
retained by the insurer and interest is paid periodically.
Intestate: Without a will.
Investment Income: The income generated by a company's portfolio of investments
(such as in bonds, stocks, or other financial ventures).
Investment Income: The portion of a company's income which is derived from its
investments, including interest and dividends on stocks and bonds.
Investment Only Contract: Type of funding instrument that uses only the investment
services of an insurer.
IPG Plan: See Immediate Participation Guarantee Plan.
IRA: See Individual Retirement Account.
ISO: See Insurance Services Office.
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