MALPRACTICE INSURANCE Professional liability coverage for physicians, lawyers, and other specialists against suits alleging negligence or errors and omissions that have harmed clients. MANAGED CARE Arrangement between an employer or insurer and selected providers to provide comprehensive health care at…

L-SHARE VARIABLE ANNUITIES A form of variable annuity contract usually with short surrender periods and higher mortality and expense risk charges. LADDERING A technique that consists of staggering the maturity dates and the mix of different types of bonds. LAW…

KEY PERSON INSURANCE Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss. KIDNAP/RANSOM INSURANCE Coverage…

JOINT AND SURVIVOR ANNUITY An annuity with two annuitants, usually spouses. Payments continue until the death of the longest living of the two. JOINT UNDERWRITING ASSOCIATION / JUA Insurers which join together to provide coverage for a particular type of…

IDENTITY THEFT INSURANCE 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,…

HACKER INSURANCE A coverage that protects businesses engaged in electronic commerce from losses caused by hackers. HARD MARKET A seller’s market in which insurance is expensive and in short supply. HOMEOWNERS INSURANCE POLICY The typical homeowners insurance policy covers the…

GAP INSURANCE An automobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. GENERALLY ACCEPTED ACCOUNTING…

FACULTATIVE REINSURANCE A reinsurance policy that provides an insurer with coverage for specific individual risks that are unusual or so large that they aren’t covered in the insurance company’s reinsurance treaties. This can include policies for jumbo jets or oil…

EARLY WARNING SYSTEM A system of measuring insurers’ financial stability set up by insurance industry regulators. An example is the Insurance Regulatory Information System (IRIS), which uses financial ratios to identify insurers in need of regulatory attention. EARNED PREMIUM The…

DECLARATION Part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and supplemental information. Referred to as the “dec page.” DEDUCTIBLE The amount of…