1.

ChainsMadePolicy
2. CoinsuranceProvisionCommonprovisoinpropertyinsurancecontractsthat
requirestheinsuredtomaintaininsuranceonthepropertyatastatedpercentageof
itsactualcashvalueoritsreplacementcost.Paymentforalossisdeterminedby
multiplyingtheamountofthelossbythefractionderivedfromtheamountof
insurancerequired.Ifthecoinsurancerequirementisnotmetatthetimeofloss,the
insuredwillbepenalized.Inhealthinsurance,coinsuranceisaprovisionthat
requirestheinsuredtopayaspecifiedpercentageofcoveredmedicalexpensesin
excessofthedeductible.
3. ConditionsProvisionsinsertedinaninsurancecontractthatqualifyorplace
limitationsontheinsurerspromisetoperform.
4. DeclarationsStatementsinaninsurancecontractthatprovideinfoaboutthe
propertytobeinsuredandusedforunderwritingandratingpurposeand
identificationofthepropertytobeinsured
5. DeductibleAprovisionbywhichaspecifiedamountissubtractedfromthetotalloss
paymentthatwouldotherwisebepaid
6. DifferenceInConditionsInsuranceAnopenperils(allrisk)policythatcovers
otherperilsnotinsuredbybasicpropertyinsurancecontracts\,supplementaltoand
excludingthecoverageprovidedbyunderlyingcontracts
7. CombinedRatio
8. ExpenseRatiotheproportionofthegrossrateavailableforexpensesandprofits.
Ratioofexpenseincurredtopremiumswritten
9. ExposureUnitUnitofmeasurementusedininsurancepricing
10. FortuitousLossUnforeseenandunexpectedlossthatoccursasaresultofchance
11. IndemnificationCompensationtothevictimofaloss,inwholeorinpart,by
payment,repairorreplacement
12. Insurancepoolingoffortuitouslossesbytransferofriskstoinsurerswhoagreeto
indemnifyinsuredsforsuchloses,toprovideotherpecuniarybenefitsontheir
occurrence,ortorenderservicesconnectedtotherisk.

13. InsuringAgreementthatpartofaninsurancecontractthatstatesthepromisesof
theinsurer
14. LossratioTheratioofincurredlossesandlossadjustmentexpensestoearned
premiums
15. MoralHazardDishonestyorcharterdefectsinanindividualthatincreaseschances
ofloss
16. NegligenceFailuretoexercisethestandardofcarerequiredbylawtoprotectothers
fromharm
17. OccurrenceAnaccident,includingcontinuousorrepeatedexposureto
substantiallythesamegeneral,harmfulconditions,whichresultsinbodilyinjuryor
propertydamageduringthepolicyperiod
18. Perilcauseorsourceofloss
19. SettlementOptionsWaysinwhichlifeinsurancepolicyproceedscanbepaidother
thanlumpsum,includinginterest,fixedperiod,fixedamount,andlifeincome
options
20. SocialInsuranceGovinsuranceprogramswithcertaincharacteristicsthat
distinguishthemfromothergovinsuranceprograms.Programsaregenerally
compulsory;specificearmarkedtaxesfundtheprogram;benefitsareheavily
weightedinfavoroflowincomegroups;andprogramsaredesignedtoachieve
certainsocialgoals
21. StrictLiabilityLiabfordamageseventhoughfaultornegligencecannotbeproven,
forexample,insuchsituationsasoccupationalinjuryofemployeesunderaworkers
compensationlaw.Alsoknownasabsoluteliability.
22. SelfInsuranceRetentionprograminwhichtheemployerselffundsorpayspartor
alloftheloses
23. RetentionRiskmanagementtechniqueinwhichanindividualorafir,retainspart
orallofthelossesresultingfromagivenlossexposure.Usedwhennoothermethod
isavailable,theworstpossiblelossisnotserious,andlossesarehighlypredictable
24. ReplacementCostInsurancePropertyinsurancebywhichtheinsuredis
indemnifiedonthebasisofreplacementcostwithnodeductionfordepreciation.

25. ReinsuranceAnarrangementbywhichtheprimaryinsurerthatinitiallywritesthe
insurancetransferstoanotherinsurer(calledthereinsurer)partorallofthepotential
lossesassociatedwithsuchinsurance.