Glossary

Incidence of ownership concerns the rights that might be exercised by the owner of the policy, which may or may not be the insured.

Incidental malpractice is the liability exposure created by the offering of medical services by an entity not engaged primarily in the offering of such services. A manufacturing business, for example, might have such an exposure by virtue of the fact that it employs an industrial nurse to handle first-aid-type claims. Coverage can be provided in a commercial general liability (CGL) policy.

An incident reporting provision in a liability insurance policy requires or allows the insured to report incidents, accidents, or occurrences that may lead to claims. It is also called an "awareness provision" or a "notice of potential claim provision."

An incontestable clause refers to a clause in a life or health insurance policy that stipulates a given length of time (usually 2 years) during which the insurer may contest claims. After expiration of this time, claims cannot be contested for any reason other than nonpayment of premium.

Incorporation doctrine is a legal principle that holds that the incorporation of a defective product into real property constitutes "property damage" (PD) as defined in the commercial general liability (CGL) policy. This doctrine has been argued, mostly unsuccessfully, in pursuit of liability coverage for construction defects that have not produced actual physical damage.

The increased limits table is a table of factors, expressed as percentages, that are used to increase the basic limits rates to the limits of coverage desired by the insured.

Increased limit factors are multiplicative factors that are applied to rates or premiums for "basic" limits of coverage to determine premiums for higher limits of coverage.

Incurred but not enough are loss reserves to allow for the increase to an existing reserve because there was "not enough reported"; it is also called incurred but not enough reserved (IBNER) or reserved but not enough (RBNE).

Incurred but not reported estimates the liability for claim-generating events that have taken place but have not yet been reported to the insurer or self-insurer. The sum of IBNR losses plus incurred losses provides an estimate of the total eventual liabilities for losses during a given period.

Incurred expense refers to expenses paid plus reserves for expenses to be paid.