1.The year to which a risk is allocated and to which all premiums and claims in respect of that risk are attributed. The year of account of a risk is determined by the calendar year in which it is first signed. A year of account is normally closed by reinsurance to close at the end of 36 months. The system will come to an end when GAAP accounting takes over. 2. In reinsurance it is a method of accounting to a proportional treaty whereby all premiums and losses accounted during the year in question are accounted to that year regardless of the year of origin of the cession or of the date of loss. Contracts accounted on this basis are usually closed at the end of each year by a port folio transfer into the following year.
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The year in which an insurance or reinsurance contract that is underwritten by a syndicate is allocated for accounting purposes and into which all premiums and claims arising in respect of that contract are payable. Insurance or reinsurance contracts are generally allocated to years of account according to the calendar year of their inception date so that a contract that commences in 2005 will normally be allocated to the 2005 year of account. Historically syndicates have operated a three year accounting system which means that each calendar is normally left open for two further years before a profit or loss is determined. A year of account is normally closed by reinsurance to close at the end of 36 months. Compare open year of account and run-off account.
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The calendar year in which the original risk attaches.

Accounting system under which the insurer allocates all premiums to the relevant treaty year according to the dates they are due, while all losses are entered according to the date of the occurrence.

Revised in 1974, a set of rules, incorporated in contracts affreightment and adopted by leading maritime nations, to govern the methods of applying general average. The 1994 amendment provides that in certain circumstances measures taken to prevent or minimise damage to the environment by pollutants (e.g. oil spills) will be allowed in general average.

A standard excess which imposes an ‘own damage’ excess in respect of certain drivers of cars, commercial vehicles, and motor cycles. An inexperienced driver is a person over 25 year of age, with a provisional licence. A young driver is under 25 years of age.

Asset An investment that does not correlate with an index or market results.

A bond under which no coupon payments are made. A single redemption payment is made at the end of the term.

A process whereby an adjustment is made in the actuarial valuation of long-term business to take credit for the future recovery of the costs of acquiring new business.

System developed by the National Association for Insurance Commissioners in the US for the triennial examination of insurers. Teams of examiners are formed from the staffs of several states in each of the geographical zones. The results of their examinations are then accepted by all states in which an insurer is licensed, without the necessity of each state having to conduct its own examinations.
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Developed by the NAIC for the triennial examination of insurers. Under the system, teams of examiners are formed from the staffs of several states in each of the geographical zones. The results of their examinations are then accepted by all states in which an insurer is licensed without the necessity of each state having to conduct its own examinations.
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US MEDICAL: Method developed by the National Association of Insurance Commissioners (NAIC) to examine the solvency of insurers. The examination is conducted every 3 years by teams of examiners. These teams are formed by four geographical areas. Results of NAIC examinations are usually accepted by states where insurers are licensed so that each state does not have to conduct its own examinations.