“Conversion privilege” is a feature of some life insurance policies that allows the policyholder to convert the policy to a different type of policy without evidence of insurability. This can be useful if the policyholder’s health has deteriorated since the policy was originally purchased, or if the policyholder’s needs have changed and a different type … Read more
The Solvency Capital Requirement (SCR) is an insurance company’s capital requirement, calculated under Solvency II, that must be held in order to cover the risk of insolvency. The SCR is calculated using a risk-based approach, which takes into account the company’s exposure to different types of risk. The SCR must be met at all times, … Read more
Underinsurance is a term used in the insurance industry to describe a situation where an insured person or company is not adequately insured. In other words, the insured does not have enough insurance coverage to cover the full value of their assets or the full cost of their liabilities. There are two main types of … Read more
A claims reserve is an estimate of the amount of money that an insurance company will have to pay out in claims. The size of the reserve is based on the company’s experience with similar claims in the past, as well as its assessment of the current and future risk of such claims. The claims … Read more
A policy or sales illustration is a document that provides prospective customers with information about an insurance policy. It typically includes information about the policy’s benefits, premiums, and coverage. The illustration may also include information about the insurance company’s financial stability and claims-paying ability. What is an example of illustration? An insurance illustration is a … Read more
Cross-liability insurance is a type of insurance that protects the insured against claims arising from the death or injury of another person, regardless of who is at fault. This type of coverage is often included in automobile insurance policies, but can also be purchased as a standalone policy. What are examples of liability coverages? There … Read more
What Is Directors and Officers (D&O) Liability Insurance? D&O liability insurance is insurance that offers protection to a company’s directors and officers from personal financial losses in the event that they are sued for wrongful decisions or actions while in their corporate roles. D&O insurance can also offer coverage for the company itself in the … Read more
When you purchase insurance, you are essentially pooling your risk with a large group of other people who have also purchased insurance. The insurance company then uses this pool of money to pay out claims when they occur. In order to keep the insurance company solvent and able to pay claims, it must collect enough … Read more
. Compensatory damages are a type of legal damages that are intended to compensate a person for losses that they have suffered as a result of another person’s actions. What are the types of damages? There are four main types of damages that may be awarded in an insurance claim: 1. Compensatory damages: Compensatory damages … Read more
Out-of-Pocket Expenses: Definition and Examples. What is another word for out of pocket? There is no one definitive answer to this question. Some possible synonyms for “out of pocket” in the context of insurance could include “unreimbursed,” “self-pay,” or “not covered by insurance.” However, it is important to note that the term “out of pocket” … Read more
