Coverage for expenses incurred as the result of an identity theft. Can include costs for notarizing fraud affidavits and
certified mail, lost income from time taken off from work to meet with law-enforcement personnel or credit
agencies, fees for reapplying for loans and attorney's fees to defend against lawsuits and remove criminal or civil
A product purchased with a lump sum, usually at the time retirement begins or afterwards. Payments begin within
about a year. Immediate annuities can be either fixed or variable.
INCURRED BUT NOT REPORTED LOSSES / IBNR
Losses that are not filed with the insurer or reinsurer until years after the policy is sold. Some liability claims may be
filed long after the event that caused the injury to occur. Asbestos-related diseases, for example, do not show up
until decades after the exposure. IBNR also refers to estimates made about claims already reported but where the full
extent of the injury is not yet known, such as a workers compensation claim where the degree to which work-related
injuries prevents a worker from earning what he or she earned before the injury unfolds over time. Insurance
companies regularly adjust reserves for such losses as new information becomes available.
Provide financial compensation for losses.
Agent who is self-employed, is paid on commission, and represents several insurance companies.
INDIVIDUAL RETIREMENT ACCOUNT/IRA
A tax-deductible savings plan for those who are self-employed, or those whose earnings are below a certain level or
whose employers do not offer retirement plans. Others may make limited contributions on a tax-deferred basis. The
Roth IRA, a special kind of retirement account created in 1997, may offer greater tax benefits to certain individuals.
INFLATION GUARD CLAUSE
A provision added to a homeowners insurance policy that automatically adjusts the coverage limit on the dwelling
each time the policy is renewed to reflect current construction costs.
INLAND MARINE INSURANCE
This broad type of coverage was developed for shipments that do not involve ocean transport. Covers articles in
transit by all forms of land and air transportation as well as bridges, tunnels and other means of transportation and
communication. Floaters that cover expensive personal items such as fine art and jewelry are included in this
Insurer’s inability to pay debts. Insurance insolvency standards and the regulatory actions taken vary from state to
state. When regulators deem an insurance company is in danger of becoming insolvent, they can take one of three
actions: place a company in conservatorship or rehabilitation if the company can be saved or liquidation if salvage is
deemed impossible. The difference between the first two options is one of degree – regulators guide companies in
conservatorship but direct those in rehabilitation. Typically the first sign of problems is inability to pass the financial
tests regulators administer as a routine procedure.
An organization such as a bank or insurance company that buys and sells large quantities of securities
Risks for which it is relatively easy to get insurance and that meet certain criteria. These include being definable,
accidental in nature, and part of a group of similar risks large enough to make losses predictable. The insurance
company also must be able to come up with a reasonable price for the insurance.
A system to make large financial losses more affordable by pooling the risks of many individuals and business
entities and transferring them to an insurance company or other large group in return for a premium.
A group of insurance companies that pool assets, enabling them to provide an amount of insurance substantially
more than can be provided by individual companies to ensure large risks such as nuclear power stations. Pools may
be formed voluntarily or mandated by the state to cover risks that can’t obtain coverage in the voluntary market such
as coastal properties subject to hurricanes.
INSURANCE REGULATORY INFORMATION SYSTEM / IRIS
Uses financial ratios to measure insurers’ financial strength. Developed by the National Association of Insurance
Commissioners. Each individual state insurance department chooses how to use IRIS.
Insurance scores are confidential rankings based on credit information. This includes whether the consumer has
made timely payments on loans, the number of open credit card accounts and whether a bankruptcy filing has been
made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial
assets. It does not include information about income or race.
Studies (1) have shown that people who manage their money well tend also to manage their most important asset,
their home, well. And people who manage their money responsibly also tend to handle driving a car responsibly.
Some insurance companies use insurance scores as an insurance underwriting and rating tool.
Related Study - The Relationship of Credit-Based Insurance Scores to Private Passenger Automobile Insurance Loss
Propensity, by EPIC Actuaries, LLC, June 2003
Insurance written in an amount approximating the value of the insured property.
Coverage where the distinction between job-related and non-occupational illnesses or injuries is eliminated and
workers compensation and general health coverage are combined. Legal obstacles exist, however, because the two
coverages are administered separately. Previously called twenty-four hour coverage.
The process of bringing savers, investors and borrowers together so that savers and investors can obtain a return on
their money and borrowers can use the money to finance their purchases or projects through loans.
An insurer that sells exclusively via the Internet.
INTERNET LIABILITY INSURANCE
Coverage designed to protect businesses from liabilities that arise from the conducting of business over the Internet,
including copyright infringement, defamation, and violation of privacy.
Income generated by the investment of assets. Insurers have two sources of income, underwriting (premiums less
claims and expenses) and investment income. The latter can offset underwriting operations, which are frequently