Inherent

The result of a hazard which is commonly rising from the occupancy of a structure such as the water heater of a residence blowing up or exploding.

Inherent Explosion

A violent and noisy bursting caused by the normal processing such as to be found in operation of certain type of pressing operation, e.g., explosion of a hot water heater in a residence would be inherent explosion and is covered by the terms of a standard Fire Insurance Policy.
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A natural explosion like dust in a grain elevator.

Inherent explosion (Property Insurance)

An explosion that occurs as the result of a situation that exists organically at the insured’s premises. For example, an explosion at a fireworks factory is inherent.

Inherent vice

A flaw in an item of property that will, in time, reveal itself and show the property as damaged. Property insurance does not normally cover such damage.
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Characteristics of property which causes it to deteriorate naturally. For example, the rotting of damp wood or the melting of ice.
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UK: Deterioration, damage or wastage in the product itself by natural processes without the operation of any external agency. The resultant damage or reduction in value is not fortuitous and therefore outside the scope of insurance. Many property insurances, including all risks’ covers, exclude inherent vice to put the matter beyond doubt.

Inherent vice (Property Insurance)

A deficit in the property that causes it to self-destruct.

Inheritance tax (IHT)

A UK tax on capital wealth or assets transferred to other persons (except a spouse) within the seven years preceding the benefactor’s death. There are certain exemptions from IHT, e.g. gifts out of income; gifts to support certain relatives in need. Life insurance is used to both minimise and pay the tax. Liquid funds from a policy obviates the forced disposal of assets to fund the tax liability. The first £255,000 is in a ‘nil rate’ tax band (2003).

Inherited estate

any part of a life insurer’s assets which is not required for smoothing purposes or to pay terminal bonuses; sometimes referred to as ‘orphan estate’.

Initial claim determination

First adjudication made by an insurance carrier or fiscal intermediary (FI) following a request for Medicare payment or the first determination made by a peer review organization either in a prepayment or postpayment context.

Initial coverage

Under a Medicare Part D plan, this phrase means the plan covers the first $2250 of total drug costs (the amount the insured and plan pays).

Initial coverage election period

For Medicare beneficiaries, this is a time 3 months immediately before a person is entitled to Medicare Part A and enrolled in Part B. If he or she chooses to join a Medicare health plan during the initial coverage election period, the plan must accept him or her. The only time a plan can deny enrollment during this period is when it has reached its member limit. This limit is approved by the Centers for Medicare and Medicaid Services (CMS). The initial coverage election period is different from the initial enrollment period (IEP). See election period .