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Standard Auto: Driver has
had one or two accidents in his life and is an average driver. Any
insurance company would be willing to give him a policy. He pays
average premiums.
State of Domicile:The
state in which the company is incorporated or chartered. The company
is also licensed (admitted) under the state's insurance statutes for
those lines of business for which it qualifies.
Stock insurance company:A
company owned and controlled by stockholders and conducted for
profit. It sets a premium charge for insurance, assuming all
liabilities on a corporate basis. The owners of the business are
paid the profits.
Subrogation:The right of
the insurance company to recover from a third party the amount paid
under the policy. For example, if damage is done to your automobile,
protected by a collision insurance policy, the insurance company may
collect, from the party whose automobile ran into your car, the
amount of damages which was paid to you by the process of
subrogation.
Surplus:A safety cushion
to protect against the unexpected and is a key denominator of many
financial ratios measuring the financial strength of an insurance
company.
Total Admitted Assets:This
item is the sum of all admitted assets. These assets are valued in
accordance with state laws and regulations, as reported by the
company in its financial statements filed with state insurance
regulatory authorities. This item is reported net as to encumbrances
on real estate (the amount of any encumbrances on real estate is
deducted from the value of the real estate) and net as to amounts
recoverable from reinsurers (which are deducted from the
corresponding liabilities for unpaid losses and unearned
premiums).
Total Loss:A loss of
sufficient size so that it can be said there is nothing left of
value. The complete destruction of the property. The term is also
used to mean a loss requiring the maximum amount a policy will
pay.
Unaffiliated Investments:
These investments represent total unaffiliated investments
as reported in the exhibit of Admitted Assets. It is cash, bonds,
stocks, mortgages, real estate and accrued interest, excluding
investment in affiliates and real estate properties occupied by the
company.
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Afiliados
