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.
The date coverage under an insurance policy begins.
Incurred But Not Reported (IBNR) Reserves
Reserves for claims that have occurred but have not yet been reported to the insurer.
Insolvency Clause
A provision of most reinsurance contracts stating that, in the event the reinsured company becomes insolvent, the reinsurance is payable directly to the company or its Liquidator without reduction because of its insolvency or because the company or its Liquidator for has failed to pay all or portion of any claim.
Insolvent
Under Ohio insurance law, it means an entity's liabilities exceed its assets, where an insurance company is unable to pay its debts when they become due, or does not have sufficient statutory surplus.
Insurance
An arrangement in which an insured passes risk and obligations to an insurer for the payment of a premium.
Insured
A purchaser of insurance; one who enjoys protection under an insurance policy; also known as a policyholder or member, assured, obligee in connection with surety bonds, and employer in some fidelity bonds.
Insurer
A person or entity that provides insurance and promises to pay losses or render services under an insurance contract. Any person who has done, purports to do, is doing, or is licensed to do an insurance business, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by, any insurance commissioner, superintendent, or equivalent official. For purposes of sections 3903.01 to 3903.59 of the Ohio Revised Code, any other persons included under section 3903.03 of the Ohio Revised Code are deemed to be insurers.
