Probability of any one of two or more events. If A and B are two events, the alternative probability of either one of them is expressed as “p(A or B).”Probability, Conditional Probability : Probability of one event given that another event has already occurred. If A and B are two events, then the probability of A, given that B has occurred, is expressed as “p(A or B).”Probability, Joint Probability : Probability that two (or more) events will both (or all) occur. If A and B are two events, the joint probability of both is expressed as “p(A or B).”Probability Distribution : A listing of all the possible outcomes that might occur and the probability of each possible outcome. The sum of these probabilities must equal 1.
Insurance Encyclopedia
Alternative Risk Financing
Use of the capacity available on capital markets to cover insurance to cover insurance risks e.g. through the securitization of natural catastrophe risks. See Also: “Risk Management: Alternate Risk Transfer (ART).”
Alternative risk financing An ART (qv)
term describing techniques that provide a funding source other than conventional (re)insurance to meet defined risks. The insured may seek to smooth his earnings over a period of years and seek committed funding to deal with prospective loss and/or secure post-loss funding. The insurer taking the risk combines discounted cashflow techniques with actuarial risk analysis. Techniques include: finite reinsurance, financial reinsurance and contingent capital.
Alternative Risk Transfer
methods of transferring insurance risk, other than by conventional reinsurance.
Alternative risk transfer (ART)
Generic phrase to denote various non-traditional forms of (re)insurance and techniques where risk is transferred to the capital markets. More broadly it refers to the convergence of (re)insurance, banking and capital markets. See FINANCIAL REINSURANCE; FINITE REINSURANCE; SECURITISATION; ALTERNATIVE RISK FINANCING; WEATHER DERIVATIVES. (See Figure 1).
Alternative work assignment
In workers’ compensation case, the placement of an injured worker in another job with the same employer as a temporary or permanent accommodation to the workers’ disability.
Always open
A term used in connection with open covers to signify that the insurance will remain continuously in force until ended by cancellation.
*****
Term used in placing open covers to denote that the insurance remains continuous until ended by cancellation.
AM
HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating services performed by a physician associated with a team. Use of this modifier affects Medicare payment.
Amalgamation
A contemplate stage of things under which two companies are so joined as to form a third entity, or one Company is absorbed into and blended with another.
Amartya Shiksha Yojana Policy (Policy covering Education Expenses)
This policy is intended to pay for the insured student’s educational costs in the event that the providing parent or guardian is killed in an accident or becomes completely disabled for the rest of his life.
(a) The primary purpose of the policy is to pay for the covered student’s educational costs.
(b) The amount insured is determined by the cost of education for a certain course.
(c) The policy period (typically a long-term policy) corresponds to the duration of the course.
(d) A financial institution receives the compensation amount and releases funds in accordance with the needs of the educational institution.
(e) The insured student receives payment for the balance in the account at the end of the course.
(f) If a student stops studying, the money that is still in his account is reimbursed to him after the deadline, which is when the course would have completed if he had kept going.
One of the policy’s unique features is that it covers accidents where the parent or guardian dies as a result of surgery or within seven days of the procedure.