Glossary

A hedge instrument is a derivative contract used to reduce (offset) volatility in asset values.

A hedging transaction is a derivative transaction that is entered into and at all times maintained to reduce (1) the risk of economic loss due to a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring, or (2) the risk of economic loss due to changes in the currency exchange rate or the degree of exposure as to assets or liabilities denominated in a foreign currency that an insurer has acquired or incurred or anticipates acquiring or incurring.

Hemp is a strain of the Cannabis sativa plant cultivated for industrial use.

A high-risk community is one located within the vicinity of numerous sites of facilities or other potential sources of environmental exposure/health hazards that may result in high levels of exposure to contaminants or pollutants.

Highly protected risk property is property that is judged to be subject to a much lower than normal probability of loss, due to low hazard occupancy or property type, superior construction, special fire protection, and management commitment to loss prevention.

The Highway Loss Data Institute is a nonprofit research organization that publishes insurance loss statistics on most automobile, SUV, pickup truck, and motorcycle models on US highways.

The term "hired automobile" (or "hired autos") is used in the Insurance Services Office, Inc.(ISO), business auto, garage, and motor carrier coverage forms to denote a particular type of auto included as a covered auto under the policy.

Historical cost is the price paid to acquire an item of real or personal property.

A holding power formula indicates the maximum dollar amount of incurred losses that can be sustained under a specific retrospective rating plan without triggering additional premiums at any adjustment period.

A hold harmless agreement is a provision in a contract that requires one contracting party to respond to certain legal liabilities of the other party.