Glossary

An insurable interest is an interest by the insured person in the value of the subject of insurance, including any legal or financial relationship, that makes it appropriate for the insured to purchase or be protected by that insurance.

Insurance-linked securities are derivative or securities instruments linked to insurance risks.

Insurance is a contractual relationship that exists when one party (the insurer) for a consideration (the premium) agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils).

Insurance agents errors and omissions covers any act or omission of the insured (or of any other person for whose acts or omissions the insured is legally responsible) arising out of the performance of professional services for others in the insured's capacity as an insurance agent or insurance broker.

An insurance commissioner is the head of a state's insurance department or regulatory agency.

An insurance department is a governmental entity charged with the regulation and administration of insurance laws and other responsibilities associated with insurance.

An insurance educational association creates and provides professional development and continuing education products and services for the insurance industry.

An insurance examiner is a state insurance department representative assigned to officially audit and examine insurers.

An insurance exchange is an entity providing a marketplace for insurance coverage that is generally unavailable elsewhere for unusual or nonstandard risks.

The Insurance Information Institute (III) is an educational, fact-finding, and communications organization for the property and casualty (P&C) insurance industry.