Glossary
Insurance Terms Glossary
This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.
The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.
Terms beginning with I
- Incontestability Provision
- – a life insurance and annuity provision limiting the time within which the insurer has the legal right to void the contract on grounds of material misrepresentation in the policy application.
- Incurred But Not Reported (IBNR)
- – claims that have occurred but the insurer has not been notified of them at the reporting date. Estimates are established to book these claims.
- Incurred Claims
- – paid claims plus amounts held in reserve for those that have been incurred but not yet paid.
- Incurred Losses
- – sustained losses, paid or not, during a specified time period.
- Indemnity, Principle of
- – a general legal principle related to insurance that holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss.
- Independent Adjuster
- – freelance contractor paid a fee for adjusting losses on behalf of companies.
- Independent Agent
- – a representative of multiple insurance companies who sells and services policies for records which they own and operate under the American Agency System.
- Independent Contractor
- – an individual who is not employed for a company but instead works for themselves providing goods or services to clients for a fee.
- Index Annuity
- – an interest bearing fixed annuity tied to an equity index, such as the Dow Jones Industrial Average or S & P 500.
- Inland Marine
- – coverage for property that may be in transit, held by a bailee, at a fixed location, a movable good that is often at different locations, or scheduled property.
- Insurable Interest
- – A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it.
- Insurance
- – an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.
- Insurance Holding Company System
- – consists of two or more affiliated persons, one or more of which is an insurer.
- Insurance Regulatory Information System (IRIS)
- – a baseline solvency screening system for the National Association of Insurance Commissioners (NAIC) and state insurance regulators established in the mid-1970s.
- Insurance To Value
- – Amount of insurance purchased vs. the actual replacement cost of the insured property expressed as a ratio.
- Insured
- – party(ies) covered by an insurance policy.
- Insurer
- – an insurer or reinsurer authorized to write property and/or casualty insurance under the laws of any state.
- Internet Liability Insurance/Cyber Insurance
- – coverage for cyber commerce including copyright infringement, libel, and violation of privacy.
- Investment Grade
- – the obligation has been determined to be in one of the top four generic lettered rating classifications by a securities rating agency.
- Irrevocable Beneficiary
- – a life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured's lifetime.
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