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Word
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Definition
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IBNR
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IBNR: See Incurred But Not Reported Reserves.
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IDS
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IDS: See Integrated Delivery System.
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Illinois Insurance Exchange
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Illinois Insurance Exchange: A marketplace established in 1982 to underwrite large or unusual insurance and reinsurance risks. Located in Chicago, Illinois. Renamed INEX Insurance Exchange in 1997
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Immediate Annuity
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Immediate Annuity: An annuity on which payment begins one period (30 days, but not more than one year) after purchase. Immediate annuities often are purchased by retirees investing funds from a savings account, investment maturity or the cash value of a life insurance policy. Immediate annuities also are purchased to fund the payment of litigation settlements and generally are referred to as structured settlements.
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Immediate Participation Guarantee Plan (IPGP)
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Immediate Participation Guarantee Plan (IPGP): A type of defined benefit plan, similar to Deposit Administration plans, except that participation in gains or losses for mortality and investments are realized as they occur, rather than spread over the life of the contract.
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Impaired Capital
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Impaired Capital: A condition that exists if the difference between an insurer's assets and liabilities is less than the minimum capital required by regulators. An insurer may be impaired without necessarily being insolvent. If an insurer's capital is impaired, its authority to transact business may be suspended by regulators.
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Imputed Negligence
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Imputed Negligence: The legal principle that one party may be held liable for the negligence of another due to the special relationship existing between the two parties.
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IMR
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IMR: See Interest Maintenance Reserve.
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In Force
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In Force: The aggregate amount of insurance in effect as of a certain date for an insurer.
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Inception Date
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Inception Date: The date coverage under an insurance policy begins.Inchmaree. An ocean marine policy clause to cover loss due to boiler explosion and other mechanical failures as well as navigation errors and faulty management of the ship.
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Incontestable Clause
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Incontestable Clause: A provision in a life insurance policy stating that the insurer cannot contest a policy once it has been in force two years during an insured's lifetime.
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Incurred But Not Reported (IBNR)
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Incurred But Not Reported (IBNR): An insurer's estimate of costs associated with claims
that have not yet been submitted for payment, based on studies of prior lags in claim
submissions. Used to set claim reserves.
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Incurred But Not Reported (IBNR) Reserves
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Incurred But Not Reported (IBNR) Reserves: Reserves for claims that have occurred but have not yet been reported to the insurer, including future development on claims that may have been reported already to the insurer.
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Incurred Losses
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Incurred Losses: The total losses sustained by an insurer, whether paid or unpaid. It includes a provision for IBNR.
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Indemnification
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Indemnification: The practice of compensating an insured for losses sustained.
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Indemnitee
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Indemnitee: The person being compensated for losses.
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Indemnitor
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Indemnitor: The person (such as an insurer) providing indemnification to one suffering a loss.
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Indemnity
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Indemnity: A principle of insurance that an insured should be fully reimbursed for a loss.
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Indemnity
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Indemnity: In workers' compensation, the benefit paid to replace lost wages; generally a
tax-free replacement of two-thirds of the pre-disability wage, up to a dollar maximum.
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Indemnity Plan (Traditional)
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Indemnity Plan (Traditional): A health insurance plan where patients may select any doctor or hospital, and providers bill the patient or the insurance company their normal fees for their services. Providers have no relationship with the health plan, although most submit claims and accept payments from the plan on behalf of the patient. Coverage is usually provided for conditions caused by illness or injury and related diagnostic tests, and usually excludes routine screening and preventive care/checkups. "Fee-for-Service" sometimes is used as a synonym.
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Independent Adjuster
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Independent Adjuster: An adjuster who is not an employee of an insurer. See Claim Adjuster.
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Independent Agency System
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Independent Agency System: The system in which insurers grant independent contractors the right to sell insurance products. See also Agent and Captive Agent.
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Independent Agent
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Independent Agent: An agent who is not an employee of an insurer, but who usually represents a number of insurers. See Agent.
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Independent Insurance Agents of America (IIAA)
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Independent Insurance Agents of America (IIAA): An Alexandria, Virginia-based trade organization representing independent insurance agents.
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Independent Medical Evaluation
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Independent Medical Evaluation: A medical examination carried out by a physician
other than the one treating a claimant; used to collect additional medical or functional
capacity information, verify diagnoses and treatment plans, determine continued benefit
eligibility, and resolve disputes relating to disability or workers' compensation claims.
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Indirect Loss
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Indirect Loss: See Consequential Loss.
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Individual (or Independent) Practice Association (IPA)
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Individual (or Independent) Practice Association (IPA): An HMO model in which the HMO contracts with a physician organization, which, in turn, contracts with individual physicians. The IPA physicians practice in their own offices and continue to see fee-for-service patients. The HMO reimburses the IPA on a capitated basis; however, the IPA usually reimburses the physicians on a fee-for-service basis. This type of system combines prepayment with the traditional means of delivering health care.
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Individual Disability Plan
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Individual Disability Plan: A type of coverage sold directly to individuals by insurance
companies and other financial institutions. A statement of health is typically required;
premiums are usually age-sensitive; and benefits are based on the selected Plan design and
level of payment.
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Individual Retirement Account (IRA)
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Individual Retirement Account (IRA): An individual retirement plan that allows an individual to make annual contributions up to $2,000 ($2,250 for one-income married couples). In certain instances, such contributions are tax-deductible.
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Industrial Life Insurance
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Industrial Life Insurance: Life insurance issued in small amounts for which premiums are collected on a weekly or monthly basis by an agent (or debit agent); also known as debit insurance.
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Inflation Guard Endorsement
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Inflation Guard Endorsement: An amendment to a homeowners insurance policy that provides for automatic increases in coverage to take into account increases in value resulting from inflation.
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Initial Public Offering (IPO)
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Initial Public Offering (IPO): The process by which a private company advertises and sells shares of stock in order to become publicly held.
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Injury
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Injury: A bodily injury that is the direct result of an accident and not related to any other
causes that occurred after the effective date of the policy.
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Inland Marine Insurance
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Inland Marine Insurance: A form of insurance that provides protection for goods shipped on land and coverage for commercial and personal property floater risks.
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Innocent Capacity
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Innocent Capacity: See Naïve Capacity.
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Inside Build-Up
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Inside Build-Up: The tax-deferred accumulation value of permanent life insurance policies and annuity contracts.
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Insolvency Fund
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Insolvency Fund: See Guaranty Fund.
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Insurability
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Insurability: The availability of coverage to an applicant for insurance.
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Insurable Interest
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Insurable Interest: The principle that an insured must suffer an actual loss in order to make a claim under an insurance policy.
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Insurance
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Insurance: An arrangement in which an insured passes risk and obligations to an insurer for the payment of a premium.
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Insurance Accounting and Systems Association (IASA)
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Insurance Accounting and Systems Association (IASA): A Durham, North Carolina-based organization that researches and disseminates information regarding insurance accounting and statistics.
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Insurance Cycle
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Insurance Cycle: See Underwriting Cycle.
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Insurance Guaranty Fund
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Insurance Guaranty Fund: See Guaranty Fund.
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Insurance Information Institute (III)
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Insurance Information Institute (III): A New York City-based educational and public relations organization representing primarily property-casualty insurers.
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Insurance Regulatory Information System (IRIS) Tests
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Insurance Regulatory Information System (IRIS) Tests: A set of eleven financial ratios developed from financial information filed annually by most insurers to serve as an early warning system to identify problems and trends in financial solvency. When a financial ratio falls within the parameters designated by each IRIS Test, it is designated a "usual value"; those falling outside such parameters are designated "unusual values." For a more detailed discussion of the IRIS Tests, see Chapter 12.
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Insurance Services Office (ISO)
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Insurance Services Office (ISO): A New York City-based rating organization that prepares forms and provides loss cost data for property-casualty insurers.
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Insured
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Insured: A purchaser of insurance; one who enjoys protection under an insurance policy; also known as a policyholder.
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Insured
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Insured: Any person covered under a plan.
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Insured Life
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Insured Life: The person on whose life a life insurance policy is issued.
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Insurer
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Insurer: A person or entity that provides insurance.
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Integrated Benefits
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Integrated Benefits: A system whereby the claims processing, payment, case
management, information management, and return to work functions of sick pay/salary
continuance, STD, LTD, and WC are integrated in order to achieve administrative savings
and optimal return-to-work outcomes. The integration is typically achieved through a central
administrative function managed by the employer but insurer and TPA based programs have
gained popularity in recent years. Increasingly, group health benefits are also being
included in integrated benefit designs.
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Integrated Delivery System (IDS)
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Integrated Delivery System (IDS): See Community Care Network.
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Integration
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Integration: The coordination of disability income insurance benefits with Social Security payments and other disability income benefits to provide income maintenance.
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Interest Maintenance Reserve (IMR)
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Interest Maintenance Reserve (IMR): A reserve established in interim form by the National Association of Insurance Commissioners in December, 1991. IMR was established as a liability on a life insurer's statutory financial statements beginning in 1992. IMR applies to all fixed-income investments and captures the net gains realized from the sale of such investments and from interest rate changes and will amortize them over the remaining life of the instrument.
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Interest-Sensitive Life Products
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Interest-Sensitive Life Products: Life insurance policies in which interest earned in excess of a stipulated amount is credited to the policy.
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Intermediary
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Intermediary: A broker, agent or other entity through which insurance arrangements are established.
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International classification of Diseases
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International classification of Diseases, ninth edition [Clinical Modification] (ICD-9-
CM): A list of diagnoses and identifying codes used by physicians and other health care
providers. The coding and terminology provide a uniform language that permits consistent
communication on claim forms.
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Invested Assets
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Invested Assets: Those assets of an insurance company that are invested in cash, bonds, common and preferred stock, mortgages and real estate.
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Investment Expense Ratio
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Investment Expense Ratio: The ratio of an insurer's investment expenses to net premiums earned.
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Investment Expenses
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Investment Expenses: The expenses incurred by an insurer in connection with the management of its investment portfolio.
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Investment Income Ratio
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Investment Income Ratio: The ratio of net investment income to earned premiums. May also include other income.
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Investment-Grade Securities
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Investment-Grade Securities: For insurers, this term refers to fixed-income securities held in an insurer's investment portfolio with a Class (2) or higher rating by the Securities Valuation Office of the National Association of Insurance Commissioners.
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IPA
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IPA: See Individual Practice Association.
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IPGP
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IPGP: See Immediate Participation Guarantee Plan.
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IPO
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IPO: See Initial Public Offering.
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IRA
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IRA: See Individual Retirement Account.
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IRIS
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IRIS: See Insurance Information Regulatory System Tests.
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Irrevocable Beneficiary
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Irrevocable Beneficiary: The beneficiary under a life insurance policy not subject to change by the owner without consent of the beneficiary.
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