IBNR See incurred but not reported.
IIA See Insurance Institute of America, Inc.
IIAA See Independent Insurance Agents of
III Insurance Information Institute.
IMSA See Insurance Marketplace Standards
IRA See Individual Retirement Account. (Also
referred to as Individual Retirement Arrangement.)
ISO See Insurance Services Office.
immediate annuity An annuity
contract which provides for the first annuitized payment immediately
impaired risk One which presents
an unduly high probability of loss.
improvements and betterments insurance
Additions or changes, made by a lessee at his/her own cost to a building
which he/she is occupying, which enhances its value. These become part
of the realty and require special insurance consideration. incidents
of ownership The rights to exercise any of the privileges in the policy:
to change the beneficiary, withdraw cash values, make loans on the policy,
assign it, etc.
A clause in an insurance contract that provides the company may not void the
policy after it has been in force more than the specified period, usually
two years after issue. The policy may be voided only under certain conditions
(for example, a misstatement in the application). incurred but not reported
IBNR reserve The liability
for future payments on losses which have already occurred but have yet been
reported in the insurer's records.
incurred loss ratio This is
calculated by applying incurred losses to the earned premium to determine
the percentage of losses.
indemnify To restore an individual
to the approximate financial position occupied before the loss.
indemnity A type of contract,
such as insurance, that serves to restore the individual to the approximate
financial position occupied prior to the loss.
One who agrees to perform services or supply commodities under a contract.
In carrying out his/her contract, he/she is not under the control of,
or an employee, of the party with whom he/she contracts.
Independent Insurance Agents of America
(IIAA) An association of independent insurance agents. Members in this
association are also members of their state associations. indirect loss
See consequential loss.
Individual Retirement Account
(IRA) A qualified retirement plan established under ERISA for individuals
with earned income. An IRA plan enjoys favorable income tax advantages.
(Also referred to as Individual Retirement Arrangement.)
inherent explosion An explosion
caused by some condition existing in, and natural to, the premises or
property (for example, a dust explosion in a grain elevator).
inherent vice A condition which
is in the very nature of the property and results in damage. For example,
if you fill an ordinary glass vessel with very hot water, it will crack.
This is an inherent vice. It is in the very nature of ordinary glasses
to crack under such conditions.
inland marine insurance
Coverage for goods shipped on land, including insurance on imports and
exports, domestic shipments, and means of transportation, such as bridges
and tunnels. It is also used to insure fine art, jewelry, furs, and
other similar property.
inspection of risk
Examination of property to decide as to its desirability.
A relationship or condition such that loss or destruction of life or property
would cause a financial loss. For property insurance, such interest must exist
at the time of loss.
insurance Transferring the
risk of a loss to an insurer under the terms and conditions of an insurance
contract. The insurer will indemnify said person against loss, damage, or
liability arising from a contingent or unknown event.
The insurer, incorporated or otherwise.
(known in some states as the superintendent of insurance) The official who
presides over the regulation of the business of insurance within the state.
Insurance Institute of America
(IIA) Offers a number of study programs for which special diplomas or
designations can be earned in property and liability insurance, risk
management, insurance adjusting and management.
Insurance Marketplace Standards Association
(IMSA) An industry organization aimed at promoting ethical life sales practices.
insurance policy The
document which is the contract between the insured and the insurer; it defines
the rights and duties of the contracting parties.
Insurance Services Office,
Inc. (ISO) A leading supplier of statistical, actuarial, and underwriting
information for and about the property/casualty insurance industry.
ISO provides advisory services to participating insurers and their agents.
insured The person to be indemnified in
case of loss or liability. In life insurance, the person whose life
is covered by the policy.
insurer The person guaranteeing
to provide indemnity in case of loss or liability.
This section of the insurance policy sets forth the specific obligations assumed
by the insurance company. Here is where the coverages of the policy are defined.
See reciprocal insurance exchange.
A designation allowing no change to be made in the beneficiary of a policy
without the beneficiary's consent.