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14 terms

Ch3 Property and Liability Insurance Principles

Familiar Terms
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Paid Loss
A claim payment that an insurer has made
Incurred losses
The sum of paid losses and changes in loss reserves for a particular period
Loss Reserves
Amounts designated by insurers to pay claims for losses that have already occurred but are not yet settled
Net investment gain or loss
An isnurer's gains or losses from the sale of invested assets plus net investment income.
Net underwriting gain or loss
An insurer's earned premiums minus its losses and underwriting expenses for a specific period
Overall gain or loss from operations
net investment gain or loss plus net underwriting gain or loss
Assets
Types of property, both tangilble and intangible, owned by an entity
Admitted assets
Types of property, such as cash and stocks, that regulators allow insurers to show as assets on their financial statements.
Nonadmitted assets
Types of property, such as office furniture and equipment, that regulators do not allow insurers to show as assets on financial statements because these assets cannot readily be converted to cash at or near their market value
Liabilities
Finanical obligations, or debts, owed by a company to another entity, usually the policyholder the case of an insurer.
Loss Reserve
The amount estimated and set aside by insurers to pay claims for losses that have already occurred but are not yet settled.
Unearned premium reserve
The total of an insurer's unearned premiums on all policies at a particular time
Policyholders' surplus
An insurer's total admitted assets minus it's total liabilities
Balance sheet
A finanical statemetn that shows a company's financial