Glossary

Investment income is the income of a company derived from its investments as opposed to its operations. The term has special significance in the insurance industry as various factions consider whether such income should be considered in ratemaking.

Investment insurance, also known as asset protection insurance, is a major category of political risk insurance. In contrast to trade insurance, which covers risks to fulfillment of short-term transactions, investment insurance covers longer term and more open-ended exposures to major investments. For that reason, investment insurance is often written for long policy terms, up to as much as 20 years.

Investment risk is the possibility that investment income earned on unearned premium or loss reserves will be lower than expected when calculating rates.

An invitee is a person to whom an express or implied invitation has been given to come onto the premises for the business advantage of the possessor. Under common law, the possessor of the land owes an invitee the highest duty of care.

In camera proceedings constitute a private hearing with the judge outside of the presence of spectators and the jury.

An in rem endorsement is a workers compensation coverage endorsement extending coverage for suits filed against the value of the ship by an injured crew member seeking for the recovery of damages. The suit must cite the unseaworthy condition of the vessel as proximate cause of the damages. In the absence of this endorsement, an in rem suit could result in an injunction preventing the vessel from leaving port until the suit is settled. In rem coverage is now part of the maritime coverage endorsement rather than a separate endorsement.

An irrevocable beneficiary is a beneficiary to a life insurance policy that cannot be changed without their consent.

An irrevocable letter of credit (ILOC) or standby letter of credit is a contractual agreement between a financial institution (a bank) and the party to which the letter is issued. It requires the bank to pay against drafts meeting the terms of the letter of credit. ILOCs may be used to collateralize monies owed by an insured under various types of risk financing programs (e.g., deductibles and paid loss retros). They may also be used as a form of guarantee in the construction context, where they have the advantage of not being subject to the preference claim in a bankruptcy filing.

Issued business refers to life insurance contracts that have been paid for and written by the insurer but are not yet delivered to or accepted by the insured.