An entity that offers insurance to groups of similar businesses with similar exposures to risk.
***
US: Authorized by the Liability Risk Retention Act of 1986, a group formed to obtain liability coverage for its members, all of which must have similar or related exposures. The Act requires a purchasing group to be domiciled in a specific state. In contrast to risk retention groups (RRGs), purchasing groups are not risk-bearing entities.
***
MEDICAL,USA,REFERENCE: See: alliance and consumer health alliances.
Insurance Encyclopedia
Pure captive
A captive insurance company that confines its underwriting to the risks of its parent company.
Pure endowment
Life insurance policy in which the face value is paid only if the insured survives to the end of the stated endowment period; those who do not survive the endowment period receive nothing. Very few of these policies are sold.
***
UK: Life policy that pays the sum insured if the life insured survives the policy term but nothing in the event of earlier death.
Pure endowment (Life Insurance)
An endowment that is only paid if the designated payee is still living at the end of the predetermined endowment period.
Pure Indemnity
In Marine insurance indemnity as provided by the Marine Insurance Act for unvalued policies e.g., in the case of total loss of hull, the actual market value of the vessel. (In practice a valued policy is always issued).
Pure Loss Cost
See: Burning Cost.
Pure Loss Cost Ratio
(i) The ratio of reinsurance losses incurred to the ceding company’s subject premium. (ii) The ratio of the reinsurance losses incurred and allocated, less expense to the ceding company’s gross earned premium.
***
See: “Reinsurance, Pure Loss Cost Ratio.”
Pure loss cost ratio (Reinsurance)
The ratio comprising the reinsurer’s losses in relation to the premiums received by the ceding company from the subject.
Pure Premium
Portion of the total premium needs to pay expected losses and loss adjustment expenses, with no allowance for the Insurer’s expenses or profit. Pure Premium = Actual Loss + Loss Adjustment Expenses
***
MEDICAL,USA,REFERENCE: See: pure premium rating method.
***
The fraction of the premium payment that is used pay the probable losses.
***
The pure risk premium is the product of claim frequency and claim severity per unit of exposure. Hence, pure premium can be calculated as follows… Pure Premium = Actual Loss + Loss Adjustment Expense
Pure Premium Present Level
The pure premium component of experience adjusted to reflect pure premium underlying current premium rates.