Glossary

Avoidance is a risk management tactic whereby risk of loss is prevented in its entirety by not engaging in activities that present the risk.

"A" rates refer to premiums charged for insurance that do not have loss experience statistics as a foundation for their development. The underwriter develops these rates subjectively, on an individual risk basis, according to what the underwriter believes is an equitable rate commensurate with risk involved.

Alternative litigation financing (ALF) refers to any method of funding legal disputes outside of traditional means, such as self-funding or contingency fee arrangements with attorneys. It includes third-party litigation financing but also encompasses other financial structures.