Concise Encyclopedia of Insurance Terms

Concise Encyclopedia of Insurance Terms

Concise Encyclopedia of Insurance Terms Lawrence S. Silver, Robert E. Stevens, and Kenneth E. Clow New York London

First published 2010 by Routledge 270 Madison Avenue, New York, NY 10016 Simultaneously published in the UK by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-library, 2010. To purchase your own copy of this or any of Taylor & Francis or Routledge s collection of thousands of ebooks please go to www.ebookstore.tandf.co.uk. 2010 Taylor & Francis All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Silver, Lawrence S., 1948 Concise encyclopedia of insurance terms / by Lawrence S. Silver, Robert E. Stevens, Kenneth E. Clow. p. cm. Includes bibliographical references and index. 1. Insurance Terminology Encyclopedias. I. Stevens, Robert E., 1942 II. Clow, Kenneth E. III. Title. HG8025.S55 2010 368.003 dc22 ISBN 0-203-85105-6 Master e-book ISBN ISBN10: 0-7890-3634-7 (hbk) ISBN10: 0-203-85105-6 (ebk) ISBN13: 978-0-7890-3634-6 (hbk) ISBN13: 978-0-203-85105-0 (ebk)

Contents List of Common Insurance Acronyms About the Authors Acknowledgments vii xxi xxiii A 1 B 19 C 30 D 48 E 56 F 62 G 69 H 75 I 80 J 89 K 92 L 93 M 101 N 108

vi Contents O 111 P 116 Q 126 R 127 S 137 T 149 U 155 V 158 W 161 X 165 Y 166 Z 167 529 Savings Plan 168 Index 169

Common Insurance Acronyms AAA AACI AAI AAIMC AAIS AALU AAMGA ACAS ACLI ACLU ACORD ACSC ACV ADB AD&D ADL AEIA American Association of Actuaries; American Arbitration Association;American Automobile Association American Association of Crops Insurers Accredited Adviser in Insurance; Alliance of American Insurers American Association of Insurance Management Consultants American Association of Insurance Services Association for Advanced Life Underwriting American Association of Managing General Agents Associate of the Casualty Actuarial Society American Council of Life Insurers American College of Life Underwriters Association for Cooperative Operations Research and Development Association of Casualty & Surety Companies actual cash value accidental death benefit accidental death and dismemberment activities of daily living American Excess Insurance Association

viii Common Insurance Acronyms AFIA American Foreign Insurance Association AFSB AGC A&H AHIS AIAF AIC AICPCU AIDS AIHA AIM AIMA AIMU AIPLU AIPSO AIRAC AIRB AIS AISG ALC ALCM ALIMDA ALM AMBAC Associate in Fidelity and Surety Bonding Associated General Contractors of America accident and health American Hull Insurance Syndicate Associate in Insurance Accounting and Finance Associate in Claims American Institute for Chartered Property Casualty Underwriters acquired immune deficiency syndrome American Industrial Hygiene Association Associate in Management as interest may appear American Institute of Marine Underwriters American Institute for Property and Liability Underwriters Automobile Insurance Plans Service Office All-Industry Research Advisory Council Aviation Insurance Rating Bureau Associate in Insurance Services American Insurance Services Group American Life Convention Associate in Loss Control Management Association of Life Insurance Medical Directors of America Association of Lloyds Members American Municipal Bond Assurance Corporation AMENIC Association of Mill & Elevator Mutual Insurance Companies

AMIC AMIM ANI AOP APIW ARE ARIA ARM ARM-P ASCLU ASHRM ASIM ASLI ASOP ASPA ASSE ASTD ATA AU BAP BBB BI B&M BOP BR BV Common Insurance Acronyms ix American Marine Insurance Forum Associate in Marine Insurance Management American Nuclear Insurers all other perils Association of Professional Insurance Women Associate in Reinsurance American Risk and Insurance Association Associate in Risk Management Associate in Risk Management for Public Entities American Society of Chartered Life Underwriters American Society for Healthcare Risk Management American Society of Insurance Management Associate in Surplus Lines Insurance Actuarial Statement of Practice American Society of Pension Actuaries American Society of Safety Engineers American Society of Training and Development American Trucking Association, Inc. Associate in Underwriting business auto policy bankers blanket bond bodily injury; business interruption boiler and machinery business owners policy builders risk brick veneer

x Common Insurance Acronyms CAPP Conference of Actuaries in Public Practice CAS CAT CCC CEBS CFA CFC CFMA CEP CGL CHCM CHIAA CIAB CIC CICA CIH CIP CIRB CISR CLM CLU CMP COB COBRA COP CPCU Casualty Actuary Society catastrophe care, custody, control Certified Employee Benefit Specialist Chartered Financial Analyst Chartered Financial Consultant Construction Financial Management Association Certified Financial Planner commercial general liability Certified Hazard Control Manager Crop-Hail Insurance Actuarial Association The Council of Insurance Agents and Brokers Certified Insurance Counselor Captive Insurance Companies Association Certified Industrial Hygienist consolidated insurance program Crop Insurance Research Bureau Certified Insurance Service Representative Commercial Lines Manual Chartered Life Underwriter commercial multiple peril coordination of benefits Consolidated Omnibus Budget Reconciliation Act commercial output policy Chartered Property Casualty Underwriter

CPIW CPL CPSM CRA CRIS CSL CSP CSR DEC DI DITC DMIC D&O DOB DOC DOD DRG EA EAP EBRI EC EDP EFT EPLI ERISA ESOP Common Insurance Acronyms xi Certified Professional Insurance Women comprehensive personal liability Certified Product Safety Manager Cargo Reinsurance Association Construction Risk and Insurance Specialist combined single limit Certified Safety Professional customer service representative declarations page disability income Disability Insurance Training Council Direct Marketing Insurance Council Directors & Officers (liability insurance) date of birth drive other car coverage date of death diagnostic related group Enrolled Actuary employee assistance program Employee Benefit Research Institute extended coverage electronic data processing electronic funds transfer employment practices liability insurance Employee Retirement Income Security Act Employee Stock Ownership Plan

xii Common Insurance Acronyms FAIR Fair Access to Insurance Requirements FAP F&C FCAS FCIC FDIC FEGLI FELA FIA FIC FLMI FMCSR FMV FOB FRM FSA GA GAMA GCW GHAA GIO GKLL GL GVW GWP family automobile policy (also known as personal automobile policy) fire and casualty Fellow of the Casualty Actuarial Society Federal Crop Insurance Corporation Federal Deposit Insurance Corporation Federal Employees Group Life Insurance Federal Employers Liability Act Federal Insurance Administration; Fellow of the Institute of Actuaries Fraternal Insurance Counselor Fellow of the Life Management Institute Federal Motor Carrier Safety Regulations fair market value free on board Fellow in Risk Management flexible spending account general agent General Agents and Managers Association gross combined weight Group Health Association of America guaranteed insurability option garagekeepers legal liability general liability gross vehicle weight gross written premium

HFIE HIAA HII HIPAA HMO HO HOLUA HPR HSP IAC IAHU IASA IBNR ICAC ICEDS IEA IFEBP IHOU IIA IIAA IIAC IICAE IIHS III IIMA ILCA Common Insurance Acronyms xiii Huebner Foundation for Insurance Education Health Insurance Association of America Health Insurance Institute Health Insurance Portability and Accountability Act health maintenance organization homeowners Home Office Life Underwriters Association highly protected risk Healthcare Safety Professional Industrial Accident Commission International Association of Health Underwriters Insurance Accounting and Systems Association incurred but not reported Insurance Committee for Arson Control Insurance Company Education Directors Society Insurance Educational Association International Foundation of Employee Benefit Plans Institute of Home Office Underwriters Insurance Institute of America Independent Insurance Agents of America International Insurance Advisory Council Insurance Industry Consumer Affairs Exchange Insurance Institute for Highway Safety Insurance Information Institute Insurance Industry Meetings Association Insurance Loss Control Association

xiv Common Insurance Acronyms ILOC irrevocable letter of credit IM IMCA IMUA IPAC IPFA IRA IRC IRES IRI IRIS IRM IRMC IRMI ISCEBS ISO ITCIF ITI IVANS JUA K&R LCA LHWCA LIAA LIAMA LIMRA inland marine Insurance Marketing Communications Association Inland Marine Underwriters Association Insurance Public Affairs Council Insurance Premium Finance Association Individual Retirement Account Insurance Research Council Insurance Regulatory Examiners Society Industrial Risk Insurers Insurance Regulatory Information System improved risk mutuals Institute for Risk Management Consultants International Risk Management Institute International Society of Certified Employee Benefits Specialists Insurance Services Office International Trade Credit Insurance Facility Insurance Testing Institute Insurance Value Added Network Services joint underwriting association kidnap and ransom Life Communicators Association Longshoremen and Harbor Workers Compensation Act Life Insurance Association of America Life Insurance Agency Management Association Life Insurance Marketing & Research Association

LIRB LOC LOMA LPRT LTD LTL LUTC MAAA M&C Common Insurance Acronyms xv Liability Insurance Research Bureau letter of credit Life Office Management Association Leading Producers Round Table long-term disability less than truckload Life Underwriters Training Council Member of American Academy of Actuaries manufacturers and contractors insurance MCA Motor Carrier Act of 1980 MCO MDRT MGA MGU MIB MICA MICRA MMII MOP MTC MVR NACA NACIA NAFI NAFIC NAHU managed care organization Million Dollar Round Table Managing General Agent managing general underwriter Medical Information Bureau Mortgage Insurance Companies of America Medical Insurance Compensation Reform Act Mass Marketing Insurance Institute manufacturers output policy motor truck cargo insurance motor vehicle record National Association of Catastrophe Adjusters National Association of Crop Insurance Agents National Association of Fire Investigators National Association of Fraternal Insurance Counselors National Association of Health Underwriters

xvi Common Insurance Acronyms NAIA National Association of Insurance Agents NAIC NAIFA NAII NAIIA NAIIO NAIW NALC NAMIC NAPIA NAPSLO NARAB NASBP NAUA NBFU NCCI NCIL NCPI NCSI NDI NEFE NFCA NFIP NFPA NHTSA NICB National Association of Insurance Commissioners National Association of Insurance and Financial Advisors National Association of Independent Insurers National Association of Independent Insurance Adjusters Non-Admitted Insurers Information Office National Association of Insurance Women National Association of Life Companies National Association of Mutual Insurance Companies National Association of Public Insurance Adjusters National Association of Professional Surplus Lines Offices National Association of Registered Agents and Brokers National Association of Surety Bond Producers National Auto Underwriters Associat National Board of Fire Underwriters National Council on Compensation Insurance National Conference of Insurance Legislators National Committee on Property Insurance National Council of Self-Insurers National Disaster Insurance Association National Endowment for Financial Education National Fraternal Congress of America National Flood Insurance Program National Fire Protection Association National Highway Safety Administration National Insurance Crime Bureau

NICO NIDC NIOSH NIPA NIRP NOC NPD NRRA NSC NSIPA NSLI OASDHI OCIP OCP OD OEE OSHA OTC PAP PBGC P&C PCI PD P&I PIAA PICA Common Insurance Acronyms xvii National Insurance Consumer Organization National Insurance Development Corporation National Institute for Occupational Safety and Health National Institute of Pension Administrators National Insurance Risk Profile not otherwise classified no payroll division National Risk Retention Association National Safety Council National Society of Insurance Premium Auditors National Service Life Insurance Old Age, Survivors, Disability, and Health Insurance Act owner controlled insurance program owners and contractors protective insurance occupational disease operators extra expense Occupational Safety and Health Administration other than collision personal auto policy Pension Benefits Guaranty Corporation property and casualty Property Casualty Insurers of America property damage protection and indemnity Physician Insurers Association of America Professional Insurance Communicators of America

xviii Common Insurance Acronyms PIP personal injury protection PLRB PLUS PPO PR PRIMA Property Loss Research Bureau Professional Liability Underwriting Society preferred provider organization pro-rata Public Risk Management Association Q Tip Trust Qualified Terminable Interest Property Trust RAA RBC RC RIMS RM ROC RP RPG RPLU RTW SAA SARA SBLI SCIC SCPCU SEP SGLI SIA SIIA Reinsurance Association of America risk-based capital replacement cost Risk and Insurance Management Society risk management Research and Oversight Council on Workers Compensation return premium risk purchasing group Registered Professional Liability Underwriter return to work Surety Association of America Superfund Amendments and Reauthorization Act Savings Bank Life Insurance Society of Certified Insurance Counselors Society of Chartered Property Casualty Underwriters simplified employee pension Servicemen s Group Life Insurance Society of Insurance Accountants Self-Insurance Institute of America

SIR self-insured retention Common Insurance Acronyms xix SITE SL SOA SPBA SPECS SR SRA SRMC STD TDA TDB TIAA TIRB TL TPA TRIA TSA TTD UCC UIM UL UM UMPD URMIA USGLI Society of Insurance Trainers and Educators sprinkler leakage Society of Actuaries Society of Professional Benefit Administrators specifications short rate Society for Risk Analysis Society of Risk Management Consultants short-term disability tax-deferred annuity temporary disability benefits Teachers Insurance and Annuity Association Transportation Insurance Rating Bureau truckload third-party administrator Terrorism Risk Insurance Act tax sheltered annuity temporary total disability Uniform Commercial Code underinsured motorist Underwriters Laboratories uninsured motorist uninsured motorist property damage University Risk Management & Insurance Association U.S. Government Life Insurance