Exposure

Definition

  • The total amount of liability an insurance company financially exposes themselves to when agreeing to an insurance policy.

Synonyms
endangerment, insecurity, jeopardy, uncertain risk, threat

Related Terms and Acronyms

  • Aggregate Limit of Liability Definition,
    • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
  • Hazard Definition,
    • Anything that poses a potential risk of injury or damage.
  • Insurance (insur) Abbreviation,
    • An arrangement where one party provides financial protection to another party for specific damages or losses.
  • Insurance Policy Definition,
    • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • Liability Definition,
    • A situation where one party is found to be legally responsible for something.
  • Loss Control Definition,
    • The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
  • Loss Ratio Definition,
    • A method of comparing an insurer's losses to premiums earned in a specific period of time.
  • Loss Reserve Definition,
    • A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
  • Losses Incurred Definition,
    • The total net losses of an entity in a year.
  • Mortality and Expense Risk Charge Definition,
    • A charge sometimes applied to reimburse an insurer for the risks in a policy.
  • Netting Definition,
    • The offsetting with a counter-party of financial obligations or payments one is owed with those one is entitled to receive, thus reducing the costs arising out of payment settlements. Netting is also used as a risk management tool to help counter-parties reduce their exposure to credit risk.
  • Occurrence Definition,
    • An event that triggers the need for insurance coverage.
  • Peril Definition,
    • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
  • Policy Declarations Definition,
    • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
  • Reciprocal Insurance Exchange Definition,
    • A group of individuals, firms and corporations that mutually insure each other.
  • Specific Performance Definition,
    • A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
  • Total Loss (TL, Ltot) Acronym & Abbreviation,
    • When as asset is considered to be damaged beyond repair.
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