: A receipt for a premium payment that makes the policy effective from that date, provided the application is later approved.
: The total amount of capital an insurance company has available to underwrite general coverage or specific risks.
: The right of an insurer to pursue a third party that caused an insurance loss to the insured. Essential Policy Components Dictionary of Insurance Terms
This " Dictionary of Insurance Terms " paper provides a foundational guide to the specialized terminology used in the insurance industry, designed to assist consumers, agents, and professionals in navigating complex policy language. Core Insurance Principles
: A measure of profitability for an insurer, calculated by dividing the sum of incurred losses and expenses by earned premiums. : A receipt for a premium payment that
: A requirement that the person buying insurance must suffer a financial loss if the insured event occurs.
Foundational concepts that govern the legal and ethical framework of insurance contracts: Essential Policy Components This " Dictionary of Insurance
: The legal principle that insurance should restore the insured to the same financial position they were in prior to a loss, without providing a profit.