This glossary is for non-commercial educational purposes only. The
definition of the
terminology below is only a brief description and should not be considered factual or
the only definition possible. This information is only to help better inform you
of information related to liquidations.
A monthly report by an agent to the insurance company including policy numbers, premiums, and applicable commissions on business produced by that agent.
Administrative Expense
The costs incurred by a liquidator in the management of liquidating an insurance company.
Admitted Assets
Assets that will be allowed on an insurance company's financials by the superintendent of insurance pursuant to statutory accounting principles and the law of this state.
Affiliate
A company related to another through common ownership of their securities or interlocking directorates.
Agent
An insurance company representative licensed by the state, who solicits, markets, negotiates, binds, and administers contracts of insurance and surety.
Agents' Balances
An insurer's written premiums minus commissions due and payable to the agent; also known as uncollected premiums.
Agent's Commission
In insurance, an amount paid to an agent, for insurance placement services.
Ancillary Receivership
An insurance receivership proceeding in a state other than the state in which the insurer is legally domiciled.
Ancillary State
Any state other than a domiciliary state.
Assessment
This term refers to (1) an additional payment that may be required of policyholders of an assessable mutual insurer in the event losses exceed expectations and (2) a charge levied upon insurers by state guaranty funds or other regulatory authorities.
Assets
All property, real and personal, of every nature and kind whatsoever owned by a company.
Assumption Reinsurance
A transaction in which one insurer transfers its liabilities under existing or in-force contracts to an assuming insurer. The transfer is intended to extinguish the assignor's liabilities under the contracts being assigned.
Audit Premiums
Premiums developed from an audit of an insured's records. Audit premiums are generated in workers' compensation and other lines of insurance where premiums are based on payroll and other data relating to actual exposures.
