Glossary

Indemnity payments are (1) losses paid or expected to be paid directly to an insured by an insurer for first-party (e.g., property) coverages or on behalf of an insured for third-party (e.g., liability) coverages, or (2) payments made by the indemnitor under a hold harmless clause on behalf of the indemnitee.

An independently filed form is an insurance coverage form or policy that is filed for regulatory approval by an individual insurer, rather than by an insurance advisory organization.

An independent adjuster is a claims adjuster who provides services on a contract basis to insurance companies, self-insured firms, and governmental entities.

The independent agency system consists of marketing insurance through independent contractors (agents) who sell insurance on a commission or fee basis with one or more insurers.

An independent contractor is an individual or company that has signed an agreement with another party to perform some job or function on behalf of that party without the direction or oversight of the party.

Independent directors policies are directors and officers (D&O) coverage designed for individuals who serve on a number of different corporate boards and are not employees of any individual company.

An independent medical examination is a medical or psychiatric evaluation to determine the current status of an employee's medical condition or to determine whether the condition is related to employment.

An independent practice association is a type of health maintenance organization (HMO) in which individual practitioners see patients enrolled in the HMO but also treat their own patients who are not HMO participants.

Indeterminate premium life insurance refers to a nonparticipating whole or permanent life insurance policy where the premium can adjust up and down during the policy term.

Index-based contracts, such as the Chicago Board of Trade's PCS Options and the Bermuda Commodities Exchange's GCCI Options, are options contracts based on an index.