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reciprocal exchange

exchange : an unincorporated association in which members (as individuals, partnerships, trustees, or corporations) exchange contracts and pay premiums through an attorney-in-fact for the insurance of each other [liability of each member of the reciprocal exchange was

reserve

have already occurred policy reserve : an insurance company's reserve representing the difference in value between the net premiums and assumed claims for a given year in life insurance unearned premium reserve : a reserve of funds

tender offer

: a public offer to purchase a specified number or range of shares from shareholders usually at a premium and in an attempt to gain control of the issuing company

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Bottomry

money but if the ship arrives safe he is to receive the money lent with the interest or premium stipulated although it may and usually does exceed the legal rate of interest See Hypothecation

Del credere

An agreement by which an agent or factor in consideration of an additional premium or commission called a del credere commission engages when he sells goods on credit to insure warrant or

rate

else b : an amount of payment or charge based on another amount ;specif : the amount of premium per unit of insurance rate vt

loss ratio

loss ratio : the ratio between insurance losses incurred and premiums earned during a given period

Industrial assurance

Act gives increased protection to the poorer classes of assured persons in respect of life insurance business the premiums upon which are received by collectors at intervals of less than two months. 'Industrial assurance funds' (life funds)

Contribution plan

A plan of distributing surplus by giving to each policy the excess of premiums and interest earned thereon over the expenses of management cost of insurance and the policy value at the

suicide clause

suicide clause : a provision limiting the liability of an insurer to a return of net premiums paid if an insured commits suicide within a stipulated period

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