Type of insurance rating structure in which premiums may be increased at predetermined times (e.g., at renewal, policy years, or insured’s age).

Analysis involving a random variable. For example, a stochastic model may include a frequency distribution for one assumption. From the frequency distribution, possible outcomes for the assumption are selected randomly for use in an illustration.

Employee-benefit plan in which a portion of the employees’ salary is in the form of the employer’s stock.

In insurance, this is a business owned and operated by a group of stockholders whose investments provide the safety margin necessary for the issuance of guaranteed, fixed premium, nonparticipating insurance policies. The stockholders share in the profits and losses of the company. Also referred to as stock insurance company, stock insurer , or stock life insurance company .

Type of motivation plan in which an employer offers to sell the company’s stock to a company executive at a specific price on a specific date. If the stock’s value increases, the executive may exercise the stock option and buy the company’s stock at a price below the stock market’s value.

Type of life insurance for financing the purchase of stock from the estate of a deceased stockholder by other stockholders in the same company.

Individual who owns shares of stock in a corporation. Also called shareholder .

Shares of capital bought and held as certificates by an individual investor.

Place where the stop-loss insurance company assumes liability.