Glossary

A stand-alone excess policy is one that provides excess coverage according to its own terms and conditions. It is to be differentiated from a follow form excess policy, which provides coverage according to the terms and conditions of an underlying policy.

Stand-alone terrorism coverage is a separate, specialty insurance policy that covers loss due to terrorism. The vast majority of stand-alone terrorism policies are property policies that cover loss resulting from damage to the insured's own property. Stand-alone terrorism coverage contrasts with terrorism coverage provided as part of a commercial property policy covering other risks of loss. It is purchased primarily by organizations that are viewed by insurers as being at high risk of loss due to terrorism in one of the following situations: when terrorism coverage is not available as part of the commercial property policy, when the price of terrorism coverage from the insurer providing the commercial property policy is too high, or when the terrorism coverage offered by the insurer providing the commercial property policy is too narrow.

Standard deviation is a statistical term for measuring the expected degree of dispersion or variability among numbers in a group. For example, the standard deviation in the annual incomes of employees at a specific factory is lower than the standard deviation in the annual income of all US workers.

Standard exceptions are certain classes of employees in workers compensation insurance who are common to many types of business and are separately rated unless included specifically in the wording of the governing occupational classification. Some of these exceptions include clerical employees, drivers, and salespersons.

Standard fire policy (SFP) jurisdictions have laws requiring that all property policies provide coverage that is at least equivalent to that provided by a standard fire policy. Some SFP states also impose this requirement on commercial inland marine policies, whereas other SFP states do not. Therefore, the SFP states are divided into two groups: SFP states that exempt commercial inland marine coverage from the SFP equivalency requirement and SFP states without a commercial inland marine exemption.

Standard form or policy describes an insurance policy form that is designed to be used by many different insurers and has exactly the same provisions regardless of the insurer issuing the policy. Most standard insurance policy forms are developed by insurance advisory organizations, such as Insurance Services Office, Inc. (ISO), American Association of Insurance Services (AAIS), the Surety Association of America (SAA), and National Council on Compensation Insurance, Inc. (NCCI).

The Standard Industrial Classification is an obsolete system for classifying entities by type of economic activity.

The standard market is a term often used to refer to licensed or admitted insurers. In contrast, unlicensed or nonadmitted insurers are considered part of the nonstandard market, which is commonly called the excess and surplus lines market.

Standard premium is the premium developed by multiplying the appropriate rate by the proper exposure unit. This figure is then modified by experience rating, if applicable. If the risk is not subject to experience rating, the premium at manual rate is the standard premium.

A Standard Property Policy (CP 00 99) is a restrictive Insurance Services Office, Inc. (ISO), commercial property policy intended for use when, for underwriting reasons, coverage would otherwise be unavailable. A standard property policy combines in one form many of the provisions of the common policy conditions, commercial property conditions, building and personal property coverage, and basic causes of loss forms. However, there are significant coverage restrictions in the following areas: covered causes of loss, cancellation, vacancy, coverage territory, and coverage options.