Salvage -
When
a vehicle has been damaged to a point where repairs would be
uneconomical, the sum of the damaged vehicle's parts is called
"salvage."
Select Repair Shop -
Body
shops chosen by GEICO that are authorized to handle the repair
of insured vehicles without the need for an inspection by a
staff adjuster. Vehicle owners always have the right to choose
the body shop of their choice.
Self-Insured Retention -
In
umbrella insurance, self-insured retention is similar to a
deductible in other types of insurance. The self-insured
retention is the amount of damages for which the policyholder
is responsible before the umbrella coverage begins to cover a
loss.
Special Investigation Units -
GEICO helps fight fraud through its special investigation
unit, staffed with experts in fraud detection and
investigation.
Staff Adjuster -
Individual
who is employed by GEICO.
Subrogation -
If
your car is damaged because of another driver's negligence and
you ask GEICO to settle the claim for damage to your car, we
will seek payment recovery (including your deductible) from
the other party. This process of payment recovery is called
subrogation.
Sunny Day Riding Program -
Cycle-Gard's Sunny Day Riding Program gives riders who don't
normally use their cycle in the winter a credit on their
premiums, but it covers the rider and cycle year round.
Supplement/Supplemental Estimate -
Used to cover missed, overlooked, or
hidden damages not included in the original estimate.
SECONDARY MARKET - Market for previously issued
and outstanding securities.
SECURITIES
AND EXCHANGE COMMISSION / SEC - The organization
that oversees publicly-held insurance companies. Those
companies make periodic financial disclosures to the SEC,
including an annual financial statement (or 10K), and a
quarterly financial statement (or 10-Q). Companies must also
disclose any material events and other information about their
stock.
SECURITIES
OUTSTANDING - Stock held by shareholders.
SECURITIZATION OF INSURANCE
RISK - Using the capital markets to expand and
diversify the assumption of insurance risk. The issuance of
bonds or notes to third-party investors directly or indirectly
by an insurance or reinsurance company or a pooling entity as
a means of raising money to cover risks.
SELF-INSURANCE - The
concept of assuming a financial risk oneself, instead of
paying an insurance company to take it on. Every policyholder
is a self-insurer in terms of paying a deductible and
co-payments. Large firms often self-insure frequent, small
losses such as damage to their fleet of vehicles or minor
workplace injuries. However, to protect injured employees
state laws set out requirements for the assumption of workers
compensation programs. Self-insurance also refers to employers
who assume all or part of the responsibility for paying the
health insurance claims of their employees. Firms that self
insure for health claims are exempt from state insurance laws
mandating the illnesses that group health insurers must cover.
SEVERITY
- Size of a loss. One of the criteria used in
calculating premiums rates.
SEWER
BACK-UP COVERAGE - An optional part of homeowners
insurance that covers sewers.
SHARED
MARKET - See Residual market
SINGLE PREMIUM ANNUITY -
An annuity that is paid in full upon purchase.
SOFT MARKET - An
environment where insurance is plentiful and sold at a lower
cost, also known as a buyers’ market.
SCHEDULE - A list of individual items or groups
of items that are covered under one policy or a listing of
specific benefits, charges, credits, assets or other defined
items.
STATUTORY
ACCOUNTING PRINCIPLES / SAP - More conservative
standards than under GAAP accounting rules, they are imposed
by state laws that emphasize the present solvency of insurance
companies. SAP helps ensure that the company will have
sufficient funds readily available to meet all anticipated
insurance obligations by recognizing liabilities earlier or at
a higher value than GAAP and assets later or at a lower value.
For example, SAP requires that selling expenses be recorded
immediately rather than amortized over the life of the policy.
(See GAAP accounting; Admitted assets)
STOCK INSURANCE COMPANY -
An insurance company owned by its stockholders who share in
profits through earnings distributions and increases in stock
value.
STRUCTURED
SETTLEMENT - Legal agreement to pay a designated
person, usually someone who has been injured, a specified sum
of money in periodic payments, usually for his or her
lifetime, instead of in a single lump sum payment. (See
Annuity)
SUBROGATION -
The legal process by which an insurance company, after paying
a loss, seeks to recover the amount of the loss from another
party who is legally liable for it.
SUPERFUND - A federal
law enacted in 1980 to initiate cleanup of the nation’s
abandoned hazardous waste dump sites and to respond to
accidents that release hazardous substances into the
environment. The law is officially called the Comprehensive
Environmental Response, Compensation, and Liability Act.
SURETY BOND - A
contract guaranteeing the performance of a specific
obligation. Simply put, it is a three-party agreement under
which one party, the surety company, answers to a second
party, the owner, creditor or “obligee,” for a third
party’s debts, default or nonperformance. Contractors are
often required to purchase surety bonds if they are working on
public projects. The surety company becomes responsible for
carrying out the work or paying for the loss up to the bond “penalty”
if the contractor fails to perform.
Home
