The NAIC’s Solvency Modernization Initiative, which began in 2008, is “a critical self-examination of the United States’ insurance solvency regulation framework and includes a review of international developments regarding insurance supervision, banking supervision, and international accounting standards and their potential use in U.S. insurance regulation.” The SMI is focused on five key solvency areas: capital requirements, international accounting, insurance valuation, reinsurance, and group regulatory issues.
Insurance Encyclopedia
Smishing
The fraudulent practice of sending text messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords or credit card numbers.
Smoke Damage
Damage caused by the smoke from a fire in contrast to damaged caused by the actual combustion.
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An extended coverage peril. See Extended coverage peril.
Smoke damage (Property Insurance)
Damages caused by the smoke produced by a fire, but not the actual fire.
Smoke Damage Insurance
Insurance against damage done by smoke from the sudden, unusual, and faculty operation of a heating or cooking unit but only when such unit is connected to a chimney by a smoke pipe and while on the premises described in the Policy. Smoke damage from Fire places and industrial apparatus is excluded. Damage covered by smoke from a hostile Fire is covered by a Fire Insurance Policy rather than the smoke damage Insurance Policy.
Smoke Staining
The process of soot developed from a fire adhering to the contents, walls and windows.
Smoothing
process by which an insurer may protect holders of with-profits policies against market swings by adding to and drawing from a smoothing account created as part of the “investment reserve”.
SMP
See: “Special multi-peril Policy.”
SN
HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating third surgical opinion.
Snowfall cover
Weather derivative based on expected level of snowfall in a given location over a specific time. Snowfall above the reference level may impose additional costs on snow-clearing local authorities, who hedge the risk with a call option. Levels below the reference point reduce revenues at the ski resort, which hedges with a put option. The former receives a payout at high levels of snow, the latter at low levels. See PRECIPITATION COVER; SUNSHINE COVER.