Indemnity
-
Replacement, repair or payment of value for a loss. This is
meant to return the insured, or person to be indemnified, to
the condition which existed before the loss.
Indemnification -
A
principle of insurance which states that the individual should
be restored to the approximate financial position prior to the
loss.
Independent Adjuster -
An
individual that provides estimates of losses on behalf of
insurance companies, but is not an employee of the
aforementioned companies. This person is paid a fee for each
adjustment, as opposed to a company adjuster, who is directly
employed by an insurance company.
Inspection -
In
some instances, GEICO policyholders will be asked to have
their auto inspected. This inspection is not a safety
inspection but is intended to reduce insurance fraud by
verifying the condition of the auto and making sure that the
auto exists.
Insurable Interest -
Relationship of condition, such that loss or destruction of
life or property would cause a financial loss. In the case of
property insurance, such interest must exist at the time of
the loss.
Insurance -
Insurance is a system in which
groups of people who have similar chances of suffering a loss
transfer their risk of loss to an insurer who pools the risk
of many people together. In exchange for payment of premium,
the insurer promises to reimburse the person for their covered
losses.
Insurance Fraud -
A
variety of crimes that range from staging accidents, inflating
medical bills, to falsifying an application for insurance.
Insurance ID Card -
A
card issued by your insurer containing basic information about
your insurance policy. Some states require you to keep an ID
card in your vehicle.
Insurance Score
-
Used
in the underwriting process in some states. An individual's
insurance score is based, in part, on a person's credit
history.
Insured -
A
person or organization covered by an insurance policy.
Insurer -
An
organization that provides insurance.
International Insurance
Underwriters, Inc.-
A GEICO-owned subsidiary that provides
insurance through American International Underwriters.
IDENTITY THEFT INSURANCE - Coverage for
expenses incurred as the result of an identity theft. Can
include costs for notarizing fraud affidavits and certified
mail, lost income from time taken off from work to meet with
law-enforcement personnel or credit agencies, fees for
reapplying for loans and attorney's fees to defend against
lawsuits and remove criminal or civil judgments.
IMMEDIATE ANNUITY - A
product purchased with a lump sum, usually at the time
retirement begins or afterwards. Payments begin within about a
year. Immediate annuities can be either fixed or variable.
INCURRED BUT NOT REPORTED
LOSSES / IBNR - Losses that are not filed with the
insurer or reinsurer until years after the policy is sold.
Some liability claims may be filed long after the event that
caused the injury to occur. Asbestos-related diseases, for
example, do not show up until decades after the exposure. IBNR
also refers to estimates made about claims already reported
but where the full extent of the injury is not yet known, such
as a workers compensation claim where the degree to which
work-related injuries prevents a worker from earning what he
or she earned before the injury unfolds over time. Insurance
companies regularly adjust reserves for such losses as new
information becomes available.
INCURRED LOSSES - Losses
occurring within a fixed period, whether or not adjusted or
paid during the same period.
INDEMNIFY
- Provide financial compensation for losses.
INDEPENDENT AGENT - Agent
who is self-employed, is paid on commission, and represents
several insurance companies.
INDIVIDUAL
RETIREMENT ACCOUNT/IRA - A tax-deductible savings
plan for those who are self-employed, or those whose earnings
are below a certain level or whose employers do not offer
retirement plans. Others may make limited contributions on a
tax-deferred basis. The Roth IRA, a special kind of retirement
account created in 1997, may offer greater tax benefits to
certain individuals.
INFLATION
GUARD CLAUSE - A provision added to a homeowners
insurance policy that automatically adjusts the coverage limit
on the dwelling each time the policy is renewed to reflect
current construction costs.
INLAND
MARINE INSURANCE - This broad type of coverage was
developed for shipments that do not involve ocean transport.
Covers articles in transit by all forms of land and air
transportation as well as bridges, tunnels and other means of
transportation and communication. Floaters that cover
expensive personal items such as fine art and jewelry are
included in this category.
INSOLVENCY
- Insurer’s inability to pay debts. Insurance
insolvency standards and the regulatory actions taken vary
from state to state. When regulators deem an insurance company
is in danger of becoming insolvent, they can take one of three
actions: place a company in conservatorship or rehabilitation
if the company can be saved or liquidation if salvage is
deemed impossible. The difference between the first two
options is one of degree – regulators guide companies in
conservatorship but direct those in rehabilitation. Typically
the first sign of problems is inability to pass the financial
tests regulators administer as a routine procedure.
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