Glossary

A jump process refers to pricing motivations underlying catastrophe (cat) bonds. Instead of a gradual supply of information slowly affecting a high-yield bond's pricing (Brownian motion), cat bond pricing is subject to large, sudden jumps, such as the appearance of a pending hurricane bearing down on property covered by the bond's reinsurance.

Jurisdiction is a term used to describe which courts have the power or authority to decide a particular matter. Jurisdiction might also pertain to the geographical subdivision with respect to which an individual insurance regulatory body (such as a state insurance department) has authority.

A jury waiver provision is a contractual provision by which one or both of the parties agree to waive the right to have a jury trial, replacing it with a bench trial as the default process to resolve disputes under the contract. Jury waiver provisions are frequently included in contracts because jury trials can be time-consuming and expensive. Furthermore, juries are perceived as more likely than judges to make extremely large damages awards.

Juvenile life insurance refers to life insurance on children.

A jumbo risk refers to an insurance risk that exceeds an insurer's normal practices, such as underwriting, retention, or automatic reinsurance limits, because of the large amount of insurance in force, applied for, or otherwise exposed on a single insured or account. In life insurance, the term commonly refers to a proposed insured whose total coverage from all insurers, including pending applications, exceeds an insurer's jumbo limit. Jumbo risks usually require additional attention from the insurer's financial and medical underwriting, special approvals, and coordination with reinsurers before coverage can be issued.