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.