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Insurance
Glosssary of Terms
Annual statement
The annual report made by the insurance company to the Insurance Division. This report details a company's assets, liabilities, receipts and payments, and other information required by the division.
Annuity
An insurance policy that provides a fixed income to the policyholder or other beneficiary for a lifetime or over a limited number of years.
Assets
What is available to pay an insurance company's debts. Assets include real estate, bonds, mortgages, stocks, and cash.
Capital
What an insurance company sets aside for investment.
Examination
An on-site look at an insurance company's records and financial condition. Examination staff also audits insurance company conduct to assure that claims are handled appropriately.
Exclusion
A condition under which an insurance policy will not pay. Typical exclusions include suicide, and health care received outside the United States.
Guaranty association
An organization created by Oregon law to protect consumers when an insurance company becomes insolvent.
Health care service contractor
A corporation typically connected with a group of hospitals or doctors that provides subscribers with basic health services. Health maintenance organizations are health care service contractors.
Hold-harmless agreement
In Oregon, subscribers of health care service contractors (HCSCs) are not responsible for charges if an HCSC becomes insolvent.
IRIS
Insurance Regulatory Information Systems.
Junk bonds
High-yield bond investments that also may be high risk.
Liabilities
The financial obligations of an insurance company. The liabilities include reserves (see below) set aside to pay future claims.
Lines of insurance
The types of insurance policies offered by an insurance company such as auto, health, and life.
Rating organization
An independent organization that reviews the financial condition of insurance companies and provides a rating based on its review. These organizations may charge insurance companies to perform this review and also may charge consumers who want rating information.
Reserves
The funds set aside by an insurance company to pay future claims.
Surplus
The difference between an insurance company's assets and liabilities.
Variable Annuity
An annuity (as above) that pays according to the success of the insurance company's investments. Therefore, the amount of the payments may fluctuate.
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