| Home | Make Payment |
Wollam-Grand Valley Insurance Agency - Personal Insurance Consultants
Wollam-Grand Valley Insurance Agency - Personal Insurance Consultants

General Insurance Terms

Request a Certificate of Property Insurance  

| A - B | C - D | E - F | G - H | I - J | K - L | M - N | O - P | Q - R | S - T | U - V | W - X | Y - Z |

Medical Loss Ratio Total health benefits divided by total premium.
Member Month Total number of health plan participants who are members for each month.
Mortality and Expense Risk Fees A charge that covers such annuity contract guarantees as death benefits.
Mortgage Insurance Policy In life and health insurance, a policy covering a mortgagor with benefits intended to pay off the balance due on a mortgage upon the insured's death, or to meet the payments due on a mortgage in case of the insured's death or disability.
Mutual Insurance Companies Companies with no capital stock, and owned by policyholders. The earnings of the company--over and above the payments of the losses, operating expenses and reserves--are the property of the policyholders. There are two types of mutual insurance companies. A nonassessable mutual charges a fixed premium and the policyholders cannot be assessed further. Legal reserves and surplus are maintained to provide payment of all claims. Assessable mutuals are companies that charge an initial fixed premium and, if that isn't sufficient, might assess policyholders to meet losses in excess of the premiums that have been charged.
Named Perils Perils specifically covered on insured property.
National Association of Insurance Commissioners (NAIC) Association of state insurance commissioners whose purpose is to promote uniformity of insurance regulation, monitor insurance solvency and develop model laws for passage by state legislatures.
Net Income The total after-tax earnings generated from operations and realized capital gains as reported in the company's NAIC annual statement on page 4, line 16.
Net Investment Income This item represents investment income earned during the year less investment expenses and depreciation on real estate. Investment expenses are the expenses related to generating investment income and capital gains but exclude income taxes.
Net Leverage The sum of a company's net premium written to policyholder surplus and net liabilities to policyholder surplus. This ratio measures the combination of a company's net exposure to pricing errors in its current book of business and errors of estimation in its net liabilities after reinsurance, in relation to policyholder surplus.
Net Liabilities to Policyholder Surplus Net liabilities expressed as a ratio to policyholder surplus. Net liabilities equal total liabilities less conditional reserves, plus encumbrances on real estate, less the smaller of receivables from or payable to affiliates. This ratio measures company's exposures to errors of estimation in its loss reserves and all other liabilities. Loss-reserve leverage is generally the key component of net liability leverage. The higher the loss-reserve leverage the more critical a company's solvency depends upon maintaining reserve adequacy.
Net Premium The amount of premium minus the agent's commission. Also, the premium necessary to cover only anticipated losses, before loading to cover other expenses.
Net Premiums Earned The adjustment of net premiums written for the increase or decrease of the company's liability for unearned premiums during the year. When an insurance company's business increases from year to year, the earned premiums will usually be less than the written premiums. With the increased volume, the premiums are considered fully paid at the inception of the policy so that, at the end of a calendar period, the company must set up premiums representing the unexpired terms of the policies. On a decreasing volume, the reverse is true.
Net Premiums Written Represents gross premium written, direct and reinsurance assumed, less reinsurance ceded.
Net Premiums Written to Policyholder Surplus (IRIS) This ratio measures a company's net retained premiums written after reinsurance assumed and ceded, in relation to its surplus. This ratio measures the company's exposure to pricing errors in its current book of business.
Net Underwriting Income Net premiums earned less incurred losses, loss-adjustment expenses, underwriting expenses incurred, and dividends to policyholders.
Non-Recourse Mortgage A home loan in which the borrower can never owe more than the home's value at the time the loan is repaid.
Noncancellable Contract terms, including costs that can never be changed.
Nonstandard Auto (High Risk Auto or Substandard Auto) Insurance for motorists who have poor driving records or have been canceled or refused insurance. The premium is much higher than standard auto due to the additional risks.


Wollam-Grand Valley Insurance Agency - Personal Insurance Consultants Wollam-Grand Valley Insurance Agency - Personal Insurance Consultants