Insurance Glossary

The total premiums on all policies written by an insurer during a specified period of time, regardless of what portions have been earned. Net premiums written are premiums written after reinsurance transactions.

The sum of the face amounts, plus dividend additions, of life insurance policies outstanding at a given time.

Market for new issue securities where the proceeds go directly to the issuer.

Interest rate that banks charge to their most creditworthy customers. Banks set this rate according to their cost of funds and market forces.

States where insurance companies must file proposed rate changes with state regulators, and gain approval before they can go into effect.

Documents showing the insurance company that a loss occurred.

Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property. Property/casualty insurance, which includes auto, homeowners and commercial insurance, is one segment of the insurance industry. The other sector is life/health. Outside the United States, property/casualty insurance is referred to as nonlife or general insurance.

Industry business cycle with recurrent periods of hard and soft market conditions. In the 1950s and 1960s, cycles were regular with three year periods each of hard and soft market conditions in almost all lines of property/casualty insurance. Since then they have been less regular and less frequent.