Underwriting Fees.

Underwriting fees are the fees charged by insurance companies to cover the cost of underwriting insurance policies. Underwriting fees are generally based on the premiums charged for the policy, the type of policy, and the risk involved. Which type of expenditure is underwriting commission? Underwriting commission is the type of expenditure that is used to … Read more

Annual Premium Equivalent (APE).

Annual premium equivalent (APE) represents the total premium for a policy if it were to be taken out for one year. This term is typically used for life insurance policies, but can be applied to other types of insurance as well. What does API mean in insurance? API stands for “Application Programming Interface.” An API … Read more

Waiting Period.

A waiting period is a period of time that an employee must wait before they are eligible to receive benefits under an insurance plan. For example, an employee may have to wait 3 months after starting a new job before they are eligible to receive health insurance benefits. What is a 90-day probationary period? In … Read more

What Is Adjusted Net Worth?

Adjusted net worth is a calculation used by insurance companies to determine the financial strength of a company. It is a measure of a company’s assets minus its liabilities, adjusted for certain items such as intangible assets and deferred taxes. The adjusted net worth calculation is used by insurance companies to assess the financial strength … Read more

Loss Cost.

Loss cost is the amount of money an insurance company pays out in claims and expenses, divided by the number of policies it has in force. The loss cost of a policy is used to help set the premium for that policy. Loss cost can also refer to the amount of money an insurance company … Read more

Period Of Indemnity.

A period of indemnity is the time period during which an insured party is protected from financial losses by an insurance policy. The period of indemnity may be specified in the policy contract, or it may be left to the discretion of the insurer. In either case, the period of indemnity typically begins when the … Read more

Alternate Employer Endorsement.

An alternate employer endorsement is an insurance rider that provides coverage for an employee who is injured while working for a company other than their regular employer. This type of endorsement is often found on workers’ compensation and liability policies. What is US Longshore and Harbor workers Act? The Longshore and Harbor Workers’ Compensation Act … Read more

Actuarial Service.

An actuarial service is a service provided by an actuary. An actuary is a professional who uses mathematical and statistical methods to assess risk in the insurance and finance industries. Actuarial services can be used to assess a wide range of risks, including the risk of death, the risk of illness, the risk of injury, … Read more

What Is Apportionment?

Apportionment is the process of allocating risk and premium among the various insurers who provide coverage for a given policyholder. The apportionment of risk and premium is typically done on a pro rata basis, meaning that each insurer bears a proportionate share of the risk and premium based on the amount of coverage they provide. … Read more

What ATIMA Means in an Insurance Policy.

ATIMA is an acronym that stands for Actual Total Insured Value Average. It is a measure of an insurance policy’s value that considers both the actual value of the property insured and the policy’s average total value over time. The ATIMA is used to help insurance companies set premiums and to determine whether a policy … Read more