FROOGLE GLOSSARY
Common Terms that are Relevant to Finance & Insurance
| Term | Short Definition |
|---|---|
| A Fortiori | with stronger reason (a second fact is supported by a conclusory fact) |
| Ab Initio | from the beginning (usually in the context of clerk default) |
| Abatement | a pause (or a reduction) in a proceeding |
| Abeyance | an incomplete state of affairs (compare with abatement) |
| Abjure | to retract/recant/nullify (see nugatory; vitiate) |
| Abridge | to obstruct/interfere-with (eg, abridge a constitutional right) |
| Abrogate | to cancel/repeal (usually in the context of legislation) |
| Abuse of Discretion | to make arbitrary/unreasonable rulings; reversible on appeal |
| Abuse of Process | committing a legal act with an ulterior motive (see frivolous) |
| Acceleration | the hastening of time to conclude a matter |
| Acceleration Clause | provision that vests something earlier than originally slated |
| Account | a detailed statement of debits and credits |
| Accounting Date | the cutoff date for a financial statement/etc |
| Accounting Method | way of calculating a business' finances |
| Accounting Period | time window in which financial statements must be filed |
| Accounts Payable | money that you currently owe |
| Accounts Receivable | money that people currently owe you |
| Accredited Investor | people who can buy securities outside of generic regulations |
| Accretion | adding something by virtue of someone else's abstinence/subtraction |
| Accrue | to increase in value |
| Acquire | to obtain |
| Action | a judicial proceeding |
| Actual Experience | historical results for a given insurer |
| Actual-to-Expected Analysis | calculating/reviewing the difference between actual experience and expected outcomes |
| Actual-to-Expected Ratio | actual experience divided by expected experience |
| Actual Net Debt | lump-sum amount that will liquidate the remaining debt |
| Actuarial Accrued Liability | the portion of projected benefits/expenses that is not provided for by future normal costs |
| Actuarial Appraisal | an actuarial evaluation of an insurance business/product/etc. |
| Actuarial Appraisal Value | the actuarial present value of an insurance business’ projected earnings |
| Actuarial Assumption | a parameter/input (which impacts an actuarial calculation) |
| Actuarial Balance Sheet | a ledger on the assets and liabilities for a block of business |
| Actuarial Central Estimate | the average value from a range of possible actuarial outcomes |
| Actuarial Communication | a written/oral message that an actuary submits |
| Actuarial Contribution | the amount that a particular policy adds to the business' surplus/reserves |
| Actuarial Cost Method | allocating actuarial present values to different time periods |
| Actuarial Document | an actuarial communication that exists in any form |
| Actuarial Finding | the final result from an actuarial service (eg, an actuarial opinion) |
| Actuarial Memorandum | a written actuarial report that provides pertinent information |
| Actuarial Method | a procedure for evaluating actuarial data/assumptions |
| Actuarial Opinion | an appointed actuary's conclusion regarding the adequacy of company reserves |
| Actuarial Present Value | the discounted value of amounts payable/receivable |
| Actuarial Present Value of Projected Benefits | the actuarial present value of benefits that are expected to be paid in the future |
| Actuarial Report | a set of pertinent actuarial documents |
| Actuarial Service | professional services that an actuary renders |
| Actuarial Soundness | financial adequacy |
| Actuarial Status | relative value of program income/assets to program costs |
| Actuarial Valuation | calculation of the actuarial present value of future policy benefits |
| Actuarial Value | proportion of total allowed costs that the insurer is obligated to pay |
| Actuarial Value of Assets | the value of investments/properties that were in an actuarial valuation |
| Actuarially Determined Contribution | the premium that is used to prefund the retiree group benefits program |
| Actuarially Equivalent | a numerical result that [precisely] replicates a sound APV calculation |
| Actuary | a professional who calculates risks/finances |
| Ad Hoc | Lat.: for this special purpose (connotes immediacy) |
| Ad Valorem | according to value (in the context of property taxes) |
| Additional Fee | contractually-based fees for ancillary services |
| Adequate Reserve | reserves that made use of reasonable margins |
| Adjudication | the legal determination of a claim/case/controversy |
| Adjusted Gross Income | revenues minus expenses |
| Adjuster | an employee who determines an insurance claim payout |
| Administrative Agency | a governmental/regulatory body that oversees a set of laws |
| Administrative Law Judge | the hearing officer who makes findings of fact regarding executive action |
| Admissible Evidence | information that a Court can use in its adjudication |
| Advance Fee | contractually-based fees for starting primary services |
| Adverse Capital Event | an event that reduces capital below a target/threshold |
| Adverse Inference | whatever you're hiding must be good/incriminating |
| Adverse Selection | lying about your risk factors in order to quality for the insurance/benefit |
| Advice | an actuarial communication that sets forth suggestions/recommendations |
| Advocate | someone who provides legal assistance to a party |
| Affiant | the author of an affidavit |
| Affidavit | a sworn written statement under oath |
| Affiliate | a company that experiences a control-based relationship with another company |
| Affirmation | a sworn acknowledgment of truth (subject to penalties of perjury) |
| Age of Majority | age that the authorities will recognize your specific legal rights |
| Agent | someone who represents another entity (consider with master-servant) |
| Age-or-Service-Dependent Benefit | benefits that depend on an insured's age/tenure |
| Agreement | assent between multiple parties |
| Alienation | voluntary transfer of title/possession to another person |
| Allegation | an assertion of fact that the issuing party intends to prove |
| Allocation Date | the date through which the retirement plan benefits are attributable |
| Allocation Method | a method used to determine the portion of retirement plan benefits – that are included in marital property |
| Allocation of Retirement Plan Benefits | The division of retirement plan benefits into two or more portions |
| Allocation Period | the period over which the retirement plan benefits are determined |
| Alt. Dispute Resolution | various ways to conclude a suit without trial (eg arbitration; mediation; etc.) |
| Alter Ego | erecting a corporation to conceal your personal actions |
| Amend | alter/update (eg amend a pleading) |
| Amicus | a friend of the court (sort of like an interpleader) |
| Amortization Method | a method for determining the elements of the unfunded actuarial accrued liability |
| Ancillary Jurisdiction | authority over an auxiliary claim even if that claim wasn't explicitly stated |
| Annual Claim Cost | the cost of insurance (typically within the context of disability insurance) |
| Annual Report | financial statement that dislcoses a companies activities |
| Annuitant | the person who receives an annuity (ie, regular financial payments from an investment) |
| Annuity | regular financial payments – from an investment |
| Answer | the defendant's response to the plaintiff's complaint |
| Anticipated Experience Assumption | an expectation of future experience [for a risk factor] |
| AntiLapse Statute | laws that allow an heir's heir to receive his/her inheritance upon the heir's premature death |
| AntiTrust Laws | laws that promote free competition/trade by combatting monopolies/collusion/etc. |
| Apparent Authority | presumed authority (consider with principal) |
| Appeal | a request to a higher court to review the decision of a lower court |
| Appearance | showing up in court to prosecute/defend an action |
| Appellant | the person who filed the appeal |
| Appellate | a court that handles appeals |
| Appellee | the appellant's opponent |
| Applicable Actuarial Guideline | an actuarial guideline that provides guidance on a model’s application |
| Applicable Law | laws/regulations that govern an insurer's affairs |
| Appointed Actuary | a qualified actuary who is responsible for preparing the SAO |
| Appointment of Receiver | judicial act that names a person/entity to finalize an insolvency |
| Apportion | to divide funds fairly/proportionately |
| Appraisal | an assessment of the value of an insurer’s block of business |
| Appraisal Date | the “as of date” for an appraisal’s assessment. |
| Appraisal Rights | laws that give minority stockholders recourse upon extraordinary acts [of the corporation] |
| Appraise | to asses/estimate |
| Appreciate | to increase in value |
| Appropriate | to allocate funds (typically in a corporate/government context) |
| Appropriate Data | data/information that is suitable and relevant [to a calculation] |
| Appropriation | the allocation of funds (for public/private use) |
| Appurtenant | an attachment to some other property |
| Arbiter | the person who conducts the arbitration hearing; needs court's confirmation |
| Arbitrage | risk-free profit derived from investing |
| Arbitration | a method of alternative dispute resolution which does not require trial |
| Arbitrator | the person who conducts the arbitration hearing; decision is final |
| Argument | persuasive legal presentation |
| Arm's Length | state of affairs between unrelated parties |
| Arrangement | contractual risk pooling |
| Arrears | overdue payment |
| Articles of Incorporation | paperwork that certifies the existence of a company |
| Artificial Person | a corporation (also see alter ego) |
| ASE | the american stock exchange (where securities get traded) |
| Ask Price | a request (by a seller) to sell goods/services at a stated price |
| Assess | evaluate |
| Assessment of Deficiency | the tax that the government has determined that you have failed to pay |
| Asset | an item that is a monetary value |
| Asset Adequacy Analysis | an evaluation of the adequacy of reserves – in light of the assets supporting such reserves |
| Asset Risk | risk that asset cash flows will differ from expectation |
| Asset Valuation Method | a way for an actuary to determine the actuarial value of assets |
| Assign | owned items that have a positive monetary value |
| Assigned Risk | perilous drivers whom the government has assigned to certain insurers |
| Assignment | transfering someone's rights/properties to another person |
| Assignment of Income | a taxpayer directing that his/her income be paid to another person |
| Assigns | the people who will receive the inheritance (also see issues; beneficiaries) |
| Assisted Living Facility | a venue that assists residents with their activities of daily living. |
| Assuming Entity | the organization that accepts insurance risk in a reinsurance agreement (eg, reinsurer; retrocessionaire) |
| Assumption | a numeric paramater used in actuarial/financial calculations |
| Assumption of Risk | an employee's informed consent to the perils of his/her job |
| At-Home Program | health care service providers that go to patients' homes |
| Attorney General | the top cop |
| Attorney-Client Privilege | confidentiality applied when someone consults with a lawyer (see privilege) |
| Audit | to double-check/review a company's finances |
| Audit Committee | a cohort that oversees an insurer's accounting/auditing functions |
| Audit of Return | an IRS Agent's review of a taxpayer's tax return |
| Auditor | the person who reviews a company's finances |
| Authority | the power to govern over someone/something |
| AV Calculator | government-prescribed data/methodologies for determining the actuarial value of an insurance plan/policy |
| Available Capital | assets minus liabilities that can be used to cover required capital constraints |
| AVC-AV | the actuarial value that is calculated by the AV Calculator |
| Avoidance of Tax | a legal method of reducing tax liability |
| Award | the relief/remedy granted by an arbiter |
| Term | Short Definition |
|---|---|
| Bad Check | a check that is founded on insufficient funds |
| Bad Debt | a debt that cannot be collected |
| Bad Debt Reserve | a savings vehicle that mimics the amount of unfulfilled debts that a company accrues |
| Bad Faith | underhanded/dishonest/defiant conduct (see misconduct, perjury, sanction) |
| Bad Title | a title that is legally insufficient to convey property |
| Badges of Fraud | signs that financial deception is at play |
| Bailiff | the courtroom assistant (the one who typically dresses like a cop) |
| Bailment | delivering personal property to be held in trust |
| Balloon Note | financial instrument that experiences a sudden increase (in payment) |
| Bank | financial institution that stores people's money |
| Banker's Lien | a bank's prerogative to appropriate a customer's deposits towards a customer's debts |
| Bankrupt | inability to satisfy one's debt obligations |
| Bankruptcy | insolvency |
| Bankruptcy Court | a federal trial court that is devoted to adjudicate bankruptcy proceedings |
| Bar | prohibit; preclude |
| Bargain | a voluntary agreement to transact in goods |
| Bargain and Sale | a non-guaranteed contract that conveys property (and transfers title) |
| Bargaining Unit | a group that represents employees/contractors in collective bargaining efforts |
| Barter | to trade items without using money |
| Base Data | historical data set that is used in developing capitation rates |
| Basic Reserve | reserves in accordance with NAIC SVL Section 5 |
| Basis | the taxpayer's cost in acquiring an asset |
| Bear Market | a booming market; a market that is experiencing growth (ie, increase in prices) |
| Bearer | the person who possesses the instrument/document that is being paid upon |
| Bearer Paper | financial items that can be deposited by anybody [who possesses them] (eg, a T-Bill) |
| Bench | synonym for Judge (cf. the physical location where the judge sits [in a courtroom])] |
| Benefactor | the person who gives out the benefits |
| Beneficial Interest | a beneficiary's equitable stake in a trust |
| Beneficiary | the person who receives the benefit |
| Benefit | anything that a taxpayer receives that provides him/her an economic gain |
| Benefit Options | choices that a benefit plan member can make |
| Benefit Plan | a smorgasbord of benefits (eg, dental; vision; medical; death; etc.) |
| Benefit Plan Member | someone who is covered by a benefit plan |
| Bequeath | bestow a benefit onto another person/entity |
| Bequest | a gift/grant/payment/reward |
| Best-Estimate Assumption | an assumption that reflects anticipated experience – with PADs |
| Bid | an offer to buy/sell goods |
| Bill | an invoice |
| Binding | obligatory (usually set by an appellate court opinion) |
| Block of Business | policies of a common type/grouping |
| Blue Chip Stock | common stock of a popular company |
| Blue Sky Laws | state laws aimed at preventing stock trading of fraudulent companies |
| Board of Directors | group of individuals who oversee the affairs of a company |
| Boardroom | physical location where the board of directors meet |
| Boiler Room | a high-pressured sales environment |
| BOLI | business-owned life insurance |
| Bona Fide | genuine |
| Bona Fide Occupational Qualification | (BFOQ); characteristic of a job that requires discrimination |
| Bona Fide Purchaser | a person who innocently buys something |
| Bond | a loan to corporation/entity |
| Bondsman | a person who buys performance/surety bonds for another person/entity |
| Book Value | the price of an item – as listed on a financial ledger |
| Borough English | an english custom of inheritance that bestowed inheritances on the son |
| Breach | failure to uphold a contractual duty |
| Bribery | giving a public official money/gifts in order to influence an official act |
| Brief | a legal pleading (usually in an appellate case) |
| Bulk Transfer | when a business owner sells part of his business but skips out on his creditors |
| Bull Market | a falling market; a market that is experiencing collapse (ie, decrease in prices) |
| Bunching | concentrating ross income in multiple years (thereby evading tax) |
| Burden of Proof | an aspect of adjudication that requires a party to produce evidence |
| Business Cycle | a fiscal period (by which finances are evaluated) |
| Buy-Sell Agreement | a contract between co-owners to dissolve their shares |
| Bylaws | rules & regulations that govern an organization |
| Term | Short Definition |
|---|---|
| Call | exercise a right/privilege |
| Call Attention | layouts that are easy-to-read |
| Call Option | a derivative that allows a future stock purchase at a specified price |
| Callable Bond | a loan that the seller/issuer can immediately request re-payment on |
| Calumny | vilification/slander (usually found inside settlement agreements) |
| Capacity | the mental faculties to handle your own affairs |
| Capital | funds that are used for sustaining/growing a corporation/venture |
| Capital Account | the accounting records of the business' own equity/ownership |
| Capital Adequacy Assessment | examination of an insurer's capital (relative to targets/thresholds) |
| Capital Gains or Losses | realized gains/losses from the sale/exchange of capital assets |
| Capital Intensive | an industry sector that requires large amounts of physical machinery compared to labor |
| Capital Market | a place to buy/sell long-term fixed income securities (eg, bonds) |
| Capitalization | the process of converting expected earnings into an asset |
| Capitalized Value | present value of future earnings |
| Capitation | the amount of money that is paid to an MCO – regardless of number of services rendered |
| Capitation Rate | the monthly fee under an MCO reimbursement system |
| Captive Insurer | an insurance company that is wholly-owned by its parent company |
| Carrier | any entity that sells health benefit plan coverage |
| Carryback | a tax function that allows a person/entity to apply tax deductions to prior years |
| Carryover | a tax function that allows a person/entity to apply tax deductions to future years |
| Carve Out | separating the income stream from the property (which produces it) |
| Case | an action/cause/lawsuit |
| Cash and Investment Balance | cash + cash equivalents + marketable securities |
| Cash Flow | an influx of money |
| Cash Flow Analysis | assessment of the risks associated with the timing/amount of cash flows |
| Cash Flow Model | a program designed to simulate asset/liability cash flows |
| Cash Flow Risk | the perils regarding whether the amount/timing of cash flows will differ from expectations |
| Cash Flow Testing | projection/comparison of the amount/timing of cash flows – resulting from various actuarial assumptions |
| Cash Sale | stipulation that undisclosed manners of payment are assumed to have been paid in cash |
| Cash Surrender Value | the amount of the insured's money that is stored inside of a life insurance policy |
| Casualty Loss | financial/property losses due to uncontrollable events |
| Catastrophe | a relatively infrequent event/phenomenon that produces unusually large aggregate losses |
| Catastrophe Model | calculation tool/program that involves low-frequency, high-severity events |
| Catastrophe Ratemaking Procedure | a calculation process that adjusts for low-frequency, high-severity events |
| Causa Mortis | an anticipation of an approaching death |
| Cause of Action | a legal claim stemming from a specific event |
| Cause Proxima | the most-closely related cause |
| Caveat Emptor | buyer beware |
| Ceding Entity | the organization that transfers insurance risk in a reinsurance agreement (eg, employer; insurer; etc) |
| Certificate of Deposit | a simple investment device that only allows withdrawal after a certain period of time |
| Certificate of Incorporation | the document permits the corporations existence (this certificate succeeds the articles of incorporation) |
| Certificate of Title | document that verifies the existence of a property title |
| Certiorari (Writ) | a writ that a higher court uses to retrieve info from a lower one |
| Cf | compare (latin) (often used in appellate opinions) |
| Chain of Title | sequence of successive title holders |
| Challenge | to question/object |
| Chancery | equity (old english term) |
| Charitable Contribution | a gift to a foundation/non-profit |
| Charity | a nonprofit institution organized and operated exclusively for beneficial purposes |
| Charter | the initial governing documents |
| Chattel | a tangible/movable thing/object |
| Chattel Mortgage | a lien on personal property to secure payment of money owed |
| Check | a draft on a bank account that is payable on demand |
| Check Kiting | an illegal scheme that involves forwarding bad checks |
| Child & Dependent Care Credit | a tax credit to offset the expenses related to having dependents |
| Circuit Court | a judicial court that is comprised of many smaller courts |
| Circumstantial Evidence | indirect information that can be used to infer the material facts |
| Citation | legal reference (eg, citation to a statute/opinion/etc). |
| Claim | facts that give rise to a court's adjudication |
| Claimant | the person who has made the insurance claim |
| Claim Adjustment Expense | the incurred costs for managing incoming claims |
| Claim Estimate | an undiscounted of the obligation for future loss – resulting from past events |
| Claim of Refund | a written request for a return of all/part of overpaid taxes |
| Claims Accrued | reported insurance claims that have already resulted in rendered healthcare/etc |
| Claims Reported | a claim that: (a) occurred; and (b) got reported [before the valuation date] |
| Claims Unaccrued | claims that have yet-to result in the rendering of healthcare/etc. |
| Claims Unreported | a claim that: (a) occurred; but (b) did not get reported [before the valuation date] |
| Class Action | a lawsuit that consolidates many similarly-situated plaintiffs as one plaintiff |
| Class Gift | a gift to an unknown number of people; to be divied up proportionally |
| Classified Stock | dividing common stock into different classes |
| Clause | a provision within a contract/agreement |
| Clayton Act | a set of federal statutes to combat antitrust problems |
| Clear & Conspicuous | attention-grabbing communication |
| Clear & Convincing | obvious (in the context of a [heightened] standard of proof). |
| Clear Title | unfettered ownership |
| Clerk | the person who handles many of the court's clerical duties |
| Closed Block | a group of policies that gets autonomous management [by the insurer] |
| Codicil | a supplement to a will |
| Coding | recording/submitting information on claim forms |
| Coercion | forcing someone to do something against their free will |
| Cogent | compelling (usually in the context of a legal argument) |
| Cognizable | within a court's jurisdiction |
| Coheir | a person who will share inheritance with another person/entity |
| Cohort | a grouping of insurance policies in order to measure certain liabilities |
| Cohort of New Contractual Residents | a hypothetical group of new [demographically-similar] members who are assumed to enter a CCRC |
| COI | the expected value of an insurance policy (within a given timeframe) |
| COLI | corporate-owned life insurance |
| Collateral | properties/items that have been put up in order to secure financing |
| Collateral Attack | a legal action that assails the final judgment of a prior case (eg, habeas corpus) |
| Collateral Estoppel | issue preclusion; previously litigated matters cannot be re-litigated |
| Collectability | the likelihood of receiving the money owed (or the asset accrued). |
| Collectability of Reinsurance Proceeds | the ability to obtain owed reinsurance money |
| Collective Bargaining | the process of settling labor disputes (typically via negotiation) |
| Collusion | deceitful agreement to exploit a person/opportunity |
| Color of Law | official capacity or even proxy-official capacity |
| Color of Title | an invalid instrument that appears to pass title |
| Comity | deferring to another jurisdiction |
| Commerce Clause | clause in Art I. §8 US granting Congress power to regulate interstate commerce |
| Commercial Paper | a negotiable instrument that involves a future payment on debt |
| Commercial Unit | an indivisible product/good |
| Commingling of Funds | mixing personal money with the client's money |
| Commission | a fee that is paid to an agent for services performed (eg, a commission on insurance sales) |
| Commission and Brokerage Fee | compensation associated with the acquisition/service of business |
| Commodity | a tangible good |
| Common Law | adjudication based on precedent |
| Common Stock | small ownership in a corporation; but it has less rights/priorities than preferred stock |
| Compact Clause | constitutional provision forbidding the states from contracting with one another |
| Company | an organization that performs an activity/business/enterprise. |
| Compensation | payment for goods/services |
| Competent Substantial Evidence | evidence that is fact-based; open for cross examination; and satisfactory to a reasonable mind |
| Complainant | the person who initiated legal action (context ≈ administrative agency) |
| Complaint | the written allegations/charges/counts [in a lawsuit] |
| Composite Mortality Tables | mortality tables that do not separate smokers from nonsmokers |
| Compound Interest | interest that grows upon itself |
| Concealment | hiding/destroying material evidence (see spoilation) |
| Conciliation | a method of alternative dispute resolution that doesn't require trial |
| Condition | a prerequisite needed to spark a subsequent legal action |
| Condition Category | a grouping of similar medical conditions – according to resource usage (or clinical characteristics) |
| Conditional Fee | a commission-based payment that is contingent upon something |
| Confiscate | to take away |
| Confrontation Clause | a right for the accused to confront his/her accuser (see 6th Amendment) |
| Consanguinity | blood-relation |
| Consent | agreement; often a key element in legal cases |
| Consent Judgment | an agreement between two parties on final judgment (compare settlement) |
| Conservator | a person who has dominion over another person's affairs (eg, a receiver) |
| Consideration | payment for goods/services |
| Consignee | the recipient of shipped goods |
| Consignment | the delivery of goods – without sale – to a dealer |
| Consignor | the person who ships the goods |
| Consolidated Appeal | joining/litigating multiple related cases together (in one case) |
| Conspiracy | multiple people who've worked together to injure another |
| Conspirator | someone who is engaged in a multiperson scheme [to injure another] |
| Constitution | fundamental principles of law created by a government |
| Construction | the way to interpret ambigious statutes |
| Constructive Discharge | getting harassed into quitting |
| Constructive Knowledge | a substitute for actual knowledge |
| Construe | to interpret language/text |
| Consumer | the person who will ultimately use the good/service (while having minimal re-sale interests) |
| Consumer Goods | items that will be used for their ultimate purpose |
| Consumer Protection | guardrails to prevent merchants from abusing consumers |
| Contagion | a lack of independence [regarding the occurrence of losses] among different entities |
| Contempt | disrepecting or disobeying court orders |
| Contingencies | possible future events that are uncertain, yet manageable |
| Contingency Provision | a rule prohibiting the expected differences from being changed by other components |
| Contingent Beneficiary | a person who will receive a benefit if some unintended event occurs |
| Contingent Estate | an interest in land that depends on the occurrence of some future event |
| Contingent Fee | a commission-based payment that is contingent upon something |
| Contingent Liability | a liability that only accrues if uncertain facts/circumstances occur [in the future time] |
| Continuing Care Retirement Community | an organization that provides contractual residential housing |
| Continuous Coverage | new/extended insurance contracts that persist prior benefits/provisions |
| Contract | a legal agreement |
| Contract Performance | the fulfillment of an entity’s [agreed-upon] obligations |
| Contract Period | the timeframe for which a contract is effective. |
| Contract Reserve | an amount established when [due] premiums can cover future liabilities |
| Contract Segmentation Method | actuarial method of separating a contract's duration into successive segments |
| Contractor | a party to an agreement (compare independent contractor with servant) |
| Contractual Resident | a person who has signed a residency agreement |
| Contribution | payment for goods/services |
| Contribution Allocation Procedure | a procedure that determines one or more actuarially determined contributions for a plan |
| Contribution Principle | concept that divisible surplus should be proportionally allocated |
| Contribution Risk | the peril of actual future contributions deviating from expected future contributions. |
| Contumacy | contemptuous; disrepecting or disobeying court orders |
| Convertible Securities | bonds and preferred stock that can be traded for common stock |
| Convey | to transfer property to another person |
| Coparcenary | multiple females inheriting an estate due to the default of male heirs |
| Coparceners | multiple people who've inherited co-ownership of a property (by virtue of descent) |
| Coparceny | the English custom that equally divided an inheritance to all daughters |
| Corporate Opportunity | precluding corporate officers from appropriating corporate business/ventures for their personal benefit |
| Corporation | a legal entity that allows multiple shareholders to experience the benefits of business operations |
| Corpus | the body/main substance |
| Corridor Factor | values multipled onto death benefits to ensure insurance qualifications |
| Cosign | adding a non-party/third-party signature to a document |
| Cost | all benefit payments/expenses associated with issuing/settling/maintaining an insurer's contracts |
| Cost Allocation Procedure | a procedure for determining the periodic cost for a plan |
| Cost of Capital | the rate of return that capital could earn in an alternative investment that has equivalent risk |
| Cost of Living Clause | contract provision that indexes the prices according to a cost-of-living element |
| Cotenancy | simultaneous possession of a property right |
| Counsel | attorney/lawyer; or - in a different context - to advocate |
| Count | a distinct allegation (which features legal ramifications) |
| Counterclaim | a defendant's charges against a plaintiff |
| Counterparty | the other entity that is involved in a financial transaction |
| Counterparty Risk | the peril that a counterparty does not fulfill his/her/its contractual obligations |
| Coupons | periodic payments from bonds |
| Court | practical expression of the judicial branch of government |
| Court of Claims | a federal trial court that adjudicates government contracts/regulations/laws/etc. |
| Court of Equity | a court that deals with fairness |
| Court of Law | a court that deals with law |
| Court Reporter | the person who transcribes testimony |
| Covariance | how a binomial dataset fluctuates |
| Covenant | a widespread agreement |
| Covenant not to Compete | contract provision that precludes a party from engaging in similar business ventures |
| Coverage | contractual/legal provisions that obligate the payment of an insured's claims/expenses |
| Covered Party | the person – in a domestic relations action – who is covered by the retirement plan |
| Covered Population | people who are eligible for benefit coverage – under a retiree group benefits program |
| Credible Experience | having enough insurance activity to satisfy statistical/regulatory tests |
| Credibility | a measure of a prediction’s statistical accuracy |
| Credibility Procedure | process for examining subject experience |
| Credit | loaned money |
| Credit Card | a small plastic object that's used to make purchases (via credit) |
| Credit Life Insurance | life insurance that indemnifies the creditor if/when the debtor dies |
| Creditor | the person/entity that lends money |
| Cross Examination | asking a witness questions [on the stand] after he/she testified |
| Cross-Claim | a defendant's charges against another defendant |
| Current Liabilities | accounts payable that are due within a year |
| Currently Payable Scale | a scale of nonguaranteed elements that are in effect for a policy form |
| Curtesy | a husband's right to a life estate (upon his wife's death) |
| Curtilage | the immediate area surrounding a building |
| Custodian | a financial institution that meets regulated criteria for possessing securities |
| Custodied Securities | investments that are held by a responsible agent/entity |
| Custody | keeping something |
| Customer | a consumer who has a customer relationship with a producer/licensee/etc. |
| Customer Information Systems | methods/mechanisms used for accessing/storing/transmitting/etc customer info |
| Customer Relationship | an ongoing connection between: (i) a consumer; and (ii) a producer/licensee |
| Term | Short Definition |
|---|---|
| Damages | the relief sought as a remedy to the alleged wrongdoing |
| Data | facts/info that get used in actuarial/financial modeling |
| Data Element | an item of factual information |
| Date of Disablement | the date in which an insured is considered disabled |
| De Facto | based on fact/practice/tradition (compare with de jure) |
| De Jure | based on law/rule (compare with de facto) |
| De Minimis | trifling/small; not worthy of legal attention |
| De Novo | anew (start a subsequent proceeding as if the first one never happened) |
| Debenture | written acknowledgement of a secured debt |
| Debit | outbound money (that's already been charged to your account) |
| Debits & Credits | the components that are used to determine a set of applicable mortality multiples |
| Debt | an obligation to pay money to another person/entity |
| Debtor | the person/entity that borrows money |
| Deceased | dead |
| Decedent | a dead person |
| Declaratory Judgment | a court order stating the rights a person has in a particular situation |
| Decree | a judgment/determination in a court of equity (eg, divorce decree) |
| Decrements | time-based decreases in quantities |
| Dedicated Assets | assets that are [exclusively] designated to satisfy the obligations of the retiree group benefits program |
| Dedication | giving land/property to the public |
| Deductions | offsets against gross income (to reduce one's taxable income) |
| Deed | a written instrument that transfers land |
| Deed of Trust | transfering legal title to a trustee |
| Deep Rock Doctrine | a methodology that combats prioritization of improper shareholder loans |
| Defalcation | a fiduciary's failure to pay money that is due |
| Default | failure to perform a duty |
| Default Judgment | judgment against a Defendant for that Defendant's failure to answer the complaint |
| Defeasance | an instrument that defeats a deed/will |
| Defective Title | a tainted (and probably inoperate) ownership right |
| Defense | denial/answer/plea disputing the validity of the plaintiff's case |
| Deferment | postponment |
| Deferred Policy Acquisition Cost | an asset representing the unamortized portion of capitalized policy acquisition expenses |
| Deferred Sales Inducement | an asset representing the unamortized portion of capitalized sales inducements [to policyholders] |
| Deficiency | discrepancy between correct tax liability and actual tax liability |
| Deficiency Reserve | the excess of: (a) minimum reserves; over (b) basic reserves |
| Deficit | insufficiency in an account |
| Defined Benefit | a type of retirement plan in which the payouts/benefits are set |
| Defined Contribution | a type of retirement plan in which the payments/premiums are set |
| Defraud | deceive another person in order to receive financial gain |
| Delinquent | outstanding debts |
| Delisting | removing a stock from an exchange |
| Delivery | voluntary transfer of title/possession to another person |
| Demand Note | request for payment |
| Demand Surge | a sudden increase in the cost of materials/services/labor – due to a catastrophe |
| Demise | transfering an estate in real property (or leasing it out) |
| Demur | rebut a complaint by saying that it is legally insufficient |
| Demurrer | formal demur |
| Demutualization | the conversion of a mutual company into a stock company |
| Dependent | a person who resides with a taxpayer; yet does not proliferate his/her own taxable income |
| Deposition | a judicial interrogation of a witness (taken under oath) |
| Depositor | a person who puts money into a financial institution (eg a bank) |
| Depreciation | a decrease in value |
| Depreciation Reserve | the total amount of depreciation that has been charged against productive assets |
| Derivative | a financial bet |
| Derivative Contract | any [legally-binding] security that derives its value from an underlying financial instrument |
| Descent | acquiring property without a will |
| Descent and Distribution | transferring a predecessor's property to his/her heirs |
| Determination Policy | the insurer’s principles/objectives for determining non-guaranteed elements |
| Deterministic Reserve | a reserve that is calculated by using a single set of assumptions |
| Development Method | an estimation technique under which historical claim data gets grouped into prescribed time periods |
| Deviation | the act of departing from an expectation/assumption/guideline |
| Devise | a gift of real property that is made by a will |
| Diagnostic Service | services that are undertaken in order to determine whether a medical condition exists |
| Dictum | additional, non-binding reasoning in an opinion |
| Diligence | specific attentiveness (which satisfies a legal requirement) |
| Diminution in Value | damages suffered due to a contract breach |
| Direct Evidence | information that is not open to interpretation of the material facts |
| Direct Response Insurance | insurance that resulted in a direct-to-consumer solicitation campaign |
| Direct User | a present/prospective client/employer who can select (and interview) an actuary |
| Direct Written Premium | money that is paid [unfettered] to the insurer - in exchange for insurance |
| Disciplined Current Scale | a scale of nonguaranteed elements [for a policy form] that constitutes a limit on illustrations |
| Discount | a reduction from a specified sum to reflect that payment isn't due until a future date |
| Discount Rate | the rate used to discount projected cash flow – in order to determine their present value |
| Discounted Cash Flow | calculation of the present value of future money |
| Discounted Claim Estimate | the actuary’s calculation of the present value of the claim estimate |
| Discovery | the process of recovering evidence pertinent to a case |
| Discretion | freedom to choose |
| Discrimination | unequal treatment |
| Dishonor | disregard; rebuke any prior responsibilities/obligations |
| Disinheritance | to cancel a donee's/heir's inheritance |
| Disintermediation | transfering savings into money-market investments |
| Dismissal | terminating a case; usually without adjudicating the merits of it |
| Disposition | closing a case |
| Disproportionate Share Hospital Payments | additional money that gets paid to hospitals that serve a disproportionally large number of Medicaid/uninsured patients |
| Disqualification | removal from a case due to impropriety (also see recusal) |
| Disseisin | dispossessing someone of his/her land (by using claim – or color of title) |
| Dissolution | the termination of a corporation's legal existence |
| Distributable Earnings | money that an insurer can distribute while retaining its level of requried capital |
| Distribution | paying someone (or multiple people/entities) |
| District Court | a federal court that has territorial jurisdiction |
| Diversity (Citizenship) | the rule that says people of different states can litigate in federal court |
| Divestiture | surrendering a right/title/interest/property/etc. |
| Dividend | periodic payments from stocks |
| Dividend Determination | the process by which the divisible surplus is allocated to policies |
| Dividend Factor | values that are used in determining the dividend on a particular policy |
| Dividend Factor Class | a group of policies for which dividends are determined |
| Dividend Framework | the structure that the insurer uses in order to allocate divisible surplus |
| Divisible Surplus | the aggregate amount of money that is available for distribution [to policyholders] |
| Docket | the record of documents that are before the court |
| Document | information submitted to the court (writings/recordings/etc.) |
| Document of Title | a receipt that indicates entitlement to specified goods/etc. |
| Domain | the lands & buildings within someone's dominion |
| Domestic Relations Action | legal proceedings that deal with marriage |
| Domestic Relations Law | laws/regulations that govern a domestic relations action |
| Domestic Relations Order | a court-order that divides retirement plan benefits |
| Domicile | the place of residence |
| Domiciliary | a resident of a state/nation |
| Dominant Estate | retained land that succeeds conveyance; and trumps the servient estate |
| Dominion | title and control over a location |
| Donative Intent | a donor's voluntary intent to make a gift |
| Donee | the person who receives the gift |
| Donor | the person who gives a gift |
| Double Jeopardy | prosecution/punishment twice for the same offense (also see res judicata) |
| Dowager | a widow who is supported by her dead husband's property |
| Dower | an estate that a wife is entitled to [upon her husband's death] |
| Dowry | a payment that a wife gives to her husband [upon marriage] |
| Draw | to take out |
| Drawee | the person who takes the money out |
| Due Process | legal fairness (characterized by notice and an opportunity to be heard) |
| Duration | how long a policy has been in-force |
| Duress | distress |
| Term | Short Definition |
|---|---|
| Earnings and Profits | corporate income that could be distributed as a dividend |
| Earnings Report | a financial statement that gives operating results |
| Easement | to convert someone else's land into something that is publicly beneficial |
| Effective Date | the date in which the policy’s benefits become active (compare with 'issue date') |
| Ejectment | a type of eviction |
| Election Under the Will | a principle that states that accepting a will means submitting to all of its provisions |
| Eligibility Date | the as-of date (or dates) in which a policy must be deemed in force |
| Eligible Policyholder | the owner of policies that are eligible to receive consideration |
| Elimination Period | a time window in which no insurance benefits are payable |
| Embezzlement | unlawful mismanagement of money |
| Emblements | signs that embezzlement is happening |
| Emerging Risk | new/evolving risk that suffers from scarce experience |
| Emolument | profit derived from office/rank/employment/labor |
| Employee Leasing | letting another company control/direct your employees [on their own behalf] |
| Employee Organization | coverage for a wide variety of calamities (eg, death benefits; surgery coverage; etc.) |
| En Banc | all of the judges (ie, entire bank of judges) - primarily for appellate decisions |
| Enclosure | land enclosed by something other than an imaginary boundary line |
| Encounter Data | information pertinent to an interaction between a member and a healthcare provider |
| Encroach | to gradually intrude upon the rights/property of another person/entity |
| Encumbrance | rights/interests that diminish a land's value (eg, pending litigation) |
| Endowment | a permanent devotion of property/money bestowed upon a person/institution |
| Endowment Insurance | an agreement by which the insurer pays [the beneficiary] a specified amount |
| Enfeoff | the methods of conveying freehold estates |
| Enhanced Benefits | MCO benefits that are better than state Medicaid benefits |
| Enjoin | stop/prevent (see injunction) |
| Entail | to create an estate (aka a "fee simple absolute") |
| Enterprise Risk Management Framework | the collection of processes surrounding an organization’s risk exposures |
| Entity | a being that exists – for tax/accounting purposes |
| Equal Protection | Fourteenth Amendment clause prohibiting discrimination in the legal system |
| Equitable | fairness |
| Equitable Distribution | a fair parsing out of money |
| Equitable Estoppel | preventing the harm caused when an authority misleads an individual |
| Equitable Recoupment | a fair parsing out of divorce money |
| Equity | ownership stake |
| Equity | ownership stake |
| Equity of Redemption | the mortgagor's right to redeem property after default |
| Equity Security | any investment vehicle that a director deems sufficiently similar [in nature] to equity |
| ERISA | employee retirement income security act - to protect the retirement funds of employees |
| Erroneous | mistakes/misgivings that were committed within one's authority |
| Escalator Clause | provisions of a lease/contract that increase the price due to some external event |
| Escape Clause | a provision in a contract permitting a party to renege on its obligations |
| Escheat | assignment of property to the state |
| Escrow | a written instrument (eg, a deed) that is temporarily deposited with a neutral third party |
| ESOP | employee stock ownership plan - methods for employees to own corporate stock |
| Essential Health Benefit | the specific items/ services that the ACA requires issuers to cover |
| Establishment Clause | First Amendment language prohibiting religious legislation |
| Estate | the nature/extent of a person’s interest-in/ownership-of land |
| Estate of Inheritance | a species of land-ownership that can descend to heirs |
| Estimation Period | the period for which morbidity differences get quantified |
| Estoppel | stopping/preventing |
| Estovers | the right of the tenant to use timber on the leased premises |
| Et Al. | and others (often used to indicate co-defendants/co-plaintiffs) |
| Et Seq. | so-on & so-forth (often used when citing a statute) |
| Et Ux | and the wife (latin) |
| Eurodollar | a US-based currency that was issued out aftre WWII |
| Evasion of Tax | various fraudulent methods by which a taxpayer may pay less than his/her proper tax liability |
| Event | an incident/activity that can trigger a claim |
| Eviction | to legally/permanently remove a tenant from a property |
| Evidence | information pertinent to a case |
| Ex Officio | automatic appointment to a committee/board due to the person's public office |
| Ex Parte | one-sided communication with the Court/Judge |
| Ex Rel. | lawsuit initiated by a private individual, but between the government and another individual |
| Examiner | someone who performs a financial examination – on behalf of government agency |
| Exception | legal objection to a ruling |
| Exceptional Increase | enlarged insurance rates due to various factors (eg, natural disaster); |
| Exchange | trade; a marketplace for trade |
| Excise Tax | any kind of tax that is not applied to property/rent/income |
| Exculpatory Clause | a provision in a legal document that precludes legal liability for self-committed acts |
| Excusable Neglect | a forgivable mishap/shortcoming (see equitable; or tolling) |
| Ex-Dividend | without a right to a declared dividend |
| Execution | the process of carrying into effect a court’s judgment/decree/order |
| Executive Branch | the branch of government that executes/enforces the law |
| Executor | a person who has been appointed to carry out the provisions of a will |
| Executory | yet-to-be accomplished |
| Exemption | a deduction allowed to a taxpayer because of his/her status/circumstances |
| Exhibits | information submitted as evidence |
| Exigent Circumstances | severe calamity that makes standard procedures more malleable |
| Expectancy | future interest of possession/enjoyment) |
| Expected Deaths | the number of deaths that are [statistically] expected to occur |
| Expected Value | the average (statisically) |
| Expense | any business cost incurred via operations/maintenance |
| Expense Provisions | future cost estimates that are related to risk transfers/retentions |
| Experience Factor | a numerical value that represents recent experience |
| Experience Factor Class | a group of policies for which nonguaranteed elements are determined – by using common experience factors |
| Experience Period | the timeframe in which historical data pertains |
| Expert | someone who is qualified – by knowledge/skill/etc – to render an opinion on a subject matter |
| Expert Witness | someone who testifies about a matter he/she has skill/knowledge of |
| Explicit Risk Margin | a declared provision that signifies the uncertainty in a reserve |
| Exposure Base | a unit that is used for measuring the future cost of a risk transfer/retention |
| Exposure Unit | a unit by which the cost for a health benefit plan is measured |
| Express | formally disclosed in written/oral format |
| Expressio Unius Est Exclusio Alterius | Lat.: if it's not expressly written in the statute then it was meant to be excluded |
| Expropriation | the taking of private property for public purpose |
| Ex-Rights | condition in which sold stock cannot be subsequently purchased again |
| Extension | increase in the time given to complete a task (ie, pushing a deadline back) |
| Extrajudicial | non-judicial (ie, beyond a court's jurisdiction) |
| Extrinsic Fraud | fake junk that will infringe upon due process rights to a fair trial |
| Term | Short Definition |
|---|---|
| Face Amount | the payout (ie, the death benefit) on a life insurance policy |
| Face Value | the value that has been emblazoned on the financial instrument |
| Fact Finder | the person who makes determinations of fact |
| Factum | a fact |
| Failure of Issue | the state in which a person has not had any children (in the context of inheritance) |
| Fair Market Value | the price of an item – as determined by the market |
| Fair Trade Laws | state statutes that permit a manufacturer to establish minimum resale prices |
| Fair Use | provisions that allow people to copy/distribute copyrights under certain conditions |
| Fannie Mae | Federal National Mortgage Association – promotes the secondary mortgage market |
| FCIC | federal crop insurance corporation - to protect the economy from fluctuations in crop yields/etc |
| FDIC | federal deposit insurance corporation - to protect people from bank failures |
| Fed. Quest. Jurisdiction | whether the legal controversy is based on a federal law |
| Fed. Tort. Claims Act | a legislated waiver of sovereign immunity (see 28 USC §1346) |
| Federal Court | the court system that handles federal matters of law |
| Federal Reserve System | a central bank with twelve member banks – creating the money supply |
| Federalism | tiered government; with lower tiers being more protective (cf. Supremacy Clause) |
| Federally Qualified Health Center | an organization that meets certain statutory requirements (regarding public healthcare) |
| Fee | an estate |
| Fee Simple | a freehold estate of virtually infinite duration |
| Fee Structure | advance fees; periodic fees; and additional fees |
| Fee Tail | the estate created by a conveyance to a person |
| Fellow Servants | co-workers |
| Fence | thin walls that denote an enclosure |
| Feoffment | this is the method of conveying title to freehold estates |
| Fertile Octogenarian | legal fiction that says every living person can produce a child |
| FICA | federal insurance contribution act - a tax levied on income |
| Fictitious Person | a supposed – yet nonexistent – individual that gets referenced in a legal document/proceeding |
| Fiduciary | a person who is entrusted with not taking advantage of investors |
| FIFO | accounting method – First-in First-Out |
| Filing | submitting documents to the court |
| Filing Actuary | an actuary who prepares/reviews health filings |
| FILO | accounting method – First-in Last-Out |
| Finance Charge | any charge for an extension of credit |
| Financial Adequacy | condition in which income + assets will meet-or-exceed costs |
| Financial Audit | an examination of financial statements – against prescribed standards/frameworks |
| Financial Examination | an evaluation of an entity’s financial condition |
| Financial Institution | any organization that engages in activities that are financial in nature |
| Financial Intermediary | an organization that brings lenders and borrowers together |
| Financial Product | any financial contract/item that a company provides [to consumers] |
| Financial Projection | a projection of covered lives/premiums/claims/expenses/capital/surplus/etc |
| Financial Report | a report that conveys the monetary/economic performance/experience of some entity |
| Financial Review | an [auditor’s] evaluation of financial statements/controls |
| Financial Security System | an entity/program that is intended to mitigate the impact of unfavorable outcomes of contingent events. |
| Financial Service | any financial contract/service that a company provides [to consumers] |
| Financial Statement | a document that gives operating results for a specific period |
| Finder's Fee | a fee/commission paid for finding what a client/customer wants |
| Finding | a determination (usually part of a jury verdict) |
| Fine | money taken from a party – due to that party's transgression |
| Firm Offer | a proposal that states that it is to be irrevocable for a set time |
| First Impression | a case/controversy that no court has encountered until now |
| Fisc | fiscal |
| Fiscal | a consistent, self-defined 12-month period (used by legal entities for accounting) |
| Fixed Capital | the amount of capital that is permanently invested in a corporation |
| Fixed Income | income that does not change |
| Fixed Premium | UL policies that prohibit the policyowner from varying his/her premiums/benefits |
| Fixed Salary | a salary that is set at a dollar amount and does not increase/decrease |
| Flexible Premium | UL policies that allow the policyholder to vary his/her premiums/benefits |
| Float | sending deposits/loans from one bank to another |
| Floating Debt | any short-term financial obligation |
| Forbearance | postponing a debt payment |
| Forced Heir | persons who cannot be disinherited |
| Forecast Period | the future timeframe in which historical data gets projected |
| Foreclosure | defaulting on mortgage payments |
| Foreseeability | a concept to limit a party’s liability for the consequences of his/her acts |
| Forfeiture | permanent loss [of property] for failure to comply with the law |
| Forgery | fraudulent written submissions – with the intent to prejudice the rights of another |
| Forma Pauperis | poor person status; access to Court without prepayment of costs/fees |
| Forum | the area for which conduct occurs |
| Forum Non Conveniens | a court that is not convenient for the witnesses and/or parties |
| Forward Contract | an agreement in which a buyer promises to purchase a specific item in the future |
| Foundation | an organization that has been formed for the greater good |
| Founder | a person who forms an organization |
| Franchise | the right to market another person’s product within a certain area |
| Fraud | fake/underhanded junk that is harmful |
| Free Exercise Clause | First Amendment language prohibiting government infringment on the right to worship |
| Free Look Provision | insurance provision that allows the insured to cancel his/her policy for a full refund |
| Freehold | an estate/interest in real property |
| Frivolous | a weak claim that cannot be litigated |
| Front-End Load Plan | a contractual agreement to buy instruments through periodic payments |
| FTC | federal trade commission – agency protecting consumers |
| Full Credibility | the level at which experience gets assigned complete predictive value. |
| Full Faith and Credit | federal courts must honor legitimate state court judgments (see 28 USC §1738) |
| Fund | an amount of money that may be available |
| Fundamental Right | core tenet needed to secure liberty & justice |
| Funded Status | a comparison between plan assets and plan liabilities (pension context) |
| Funding Valuation | an actuarially-performed projection of cash flows that is intended to be used by the principal |
| Fungible | easily-transferable monies |
| Futures | investments that will be executed in the future – and at a specified price |
| Term | Short Definition |
|---|---|
| GAAP Net Premium | the portion of gross premiums that provides for certain costs |
| Gain and Loss Analysis | assessment of how funded status is impacted by deviating experience |
| Gainful Employment | employment suited to the ability of the person who is employed |
| Garnish | to attach wages/property to repay a debt |
| Garnishee | the person who retains someone else's money in order to pay a different person/entity |
| Garnishment | the process in which money/goods are attached by a different person |
| Gavelkind | a form of feudal land ownership that required land to descend to all sons equally |
| GDP | gross domestic product – aggregate amount of goods/services that a nation produces [in-house] |
| General Administrative Expense | operational/administrative expenses that are not specifically defined/itemized |
| Generally Accepted Auditing Standards | provisions that have been promulgated [by various bodies] to guide financial audits/reviews |
| Generation Skipping Transfer | a conveyance that skips a familial generation |
| Gift | a voluntary transfer of property that is made without consideration |
| Gift Causa Mortis | a gift that is made in contemplation of an impending death |
| Gift Over | an estate that is set to succeed the expiration of a preceding estate |
| Gift Tax | a federal tax that is imposed on gifted transfers |
| Ginnie Mae | Government National Mortgage Association – promotes the secondary mortgage market |
| GNP | gross national product – aggregate amount of goods/services that a nation produces |
| Going Concern Value | an additional business value that attaches to property – due to the ongoing business thereon |
| Good Cause | rational |
| Good Faith | virtuous, pure, (devoid of frivolity) |
| Good Tenantable Repair | the obligation of a tenant to maintain the condition of rented property |
| Good Title | unfettered ownership that is also free of any defects/litigation/etc |
| Good Will | an intangible business asset that is the result of certain features of an ongoing enterprise |
| Goods | any species of property that is not real estate |
| Governance | personnel and procedures pertinent to decision-making/etc |
| Governance and Controls | procedures and structures to reduce unreliable/misused models |
| Grace Period | a span of time in which an insurance policy will remain active despite a late [premium] payment |
| Graduation | the process of adjusting experience results in order to have a smooth progression in the mortality rates |
| Graft | fraudulent receipt of public money via the corruption of public officials |
| GrandFather Clause | provision that allows a prior custom to continue – despite it no longer being legal |
| Grant | approve/allow (typically - in this civil rights context - an Order Granting a Motion) |
| Granularity | the level of detail that is built into a model |
| Gratis | free |
| Gratuity | a tip |
| Gravamen | the main point |
| Gross | total (before deductions/taxes/etc.) |
| Gross Amount Available | a cancelled policy's unearned premiums (plus unearned commissions) |
| Gross Premium | payments that a policyholder is contractually required to make |
| Gross Premium Reserve | APV of assets + expenses minus APV of premiums |
| Gross Premium Reserve Test | gross premium reserve versus other reserves/liabilities |
| Gross Premium Valuation | PV of benefits plus PV of expenses plus PV of taxes minus PV gross premiums |
| Ground Rent | an estate of inheritance in the rent of lands |
| Group | an affiliated set of individual entities – with [at least] one being an insurer |
| Group Insurance | insurance that is controlled/limited by a larger entity (eg, an employer) |
| Group Long-Term Disability Income | disability insurance featuring benefit durations that exceed 2-years [in length] |
| Group Short-Term Disability Income | disability insurance that has benefit durations that last less than 2-years. |
| Growth Stock | successful corporate stock |
| Guarantee | a legally-backed promise |
| Guaranteed Element | a contractual element that limits an NGE |
| Guaranteed Gross Premium | optimized premiums that have been determined at the issue date |
| Guaranteed Security | an investment security that is guaranteed – by someone other than the issuer |
| Guaranty | a promise to be responsible for a debt/default/etc |
| Guardian | someone who legally has care & management of an incompetent person |
| Guardianship | legal responsibility to care/protect someone who is unable to manage his/her own affairs |
| Term | Short Definition |
|---|---|
| Habendum | a clause in a deed that sets the parameters |
| Habitability | capable of reasonable living |
| Hands-On Assistance | physical help that the recipient needs in order to perform his/her ADLs |
| Harassment | abusive/belittling/coercive/demeaning behavior aimed at impeding another person's livelihood/progress (also see Hostile Workplace) |
| Harm | injury/loss that must be remedied |
| Harmless Error | an error that [probably] didn't impact the outcome of the case |
| Head of Household | a taxpayer who has dependents, but no spouse |
| Health Benefit Plan | a contract/arrangement that provides a variety of health benefits/services |
| Health Care | medical attention that relates to a physical/mental/behavioral condition |
| Health Care Guarantee | a contractual clause that guarantees access to health care |
| Health Center | a facility that provides [non-exclusive] healthcare/amenities to contractual residents/members |
| Health Filing | a required regulatory filing that requires a projection of various contingencies/rates/etc. |
| Health Information | past/present/future data relating to a physical/mental/behavioral condition |
| Health Insurance Asset | an asset – borne out of the statement of actuarial opinion – that is related to health benefit plans |
| Health Insurance Liability | a liability – borne out of the statement of actuarial opinion – that is related to health benefit plans |
| Health Insurance Plan | a contract/arrangement that provides a variety of health benefits/services |
| Health Plan Entity | an organization that is required to provide health filings |
| Health Status Based | using sources/data that are grounded on conditions/treatments (and demographics) |
| Hearing | a less formal trial |
| Hearsay | third-party utterances; admissible in DOAH but not in Court |
| Hedge Fund | a financial venture that manages its investment risks |
| Hedging | the act of minimizing your exposure to harmful investment outcomes |
| Heir Apparent | a person who has the rights to inheritance |
| Heirs | people who will receive the inheritance |
| Held of Record | procedure for determining how many unique investors possess an equity security |
| Hereditaments | anything that can be inherited |
| Hereditary Succession | the passing of title – according to the laws of descent |
| Hidden Asset | a valuable item that is absent from a financial statement |
| Hidden Inflation | a price increase that is implemented by offering an impaired quality/quantity |
| Hidden Tax | a tax that is implicitly imposed/transferred |
| HIPAA | the federal law that protects medical information from disclosure |
| Historical A/E Mortality Basis | mortality assumptions that are developed from customary tables as well as additional factors |
| Historical Contribution | the contribution that a particular policy has made to the company’s surplus/reserve |
| Hoarding | amassing exhorbitantly large quantities of something |
| Hobby Loss | a taxable deduction for losses sustained from doing a hobby |
| Holder | a person who possesses the title/instrument/goods |
| Holder in Due Course | a good faith possessor who has taken a negotiable instrument for value |
| Holding | binding, authoritative part of a decision/opinion |
| Holding Company | a parent organization that primarily focuses on the finances of its subsidiaries |
| Holding Period | the timeframe for which property must before that property produces realized gains |
| Hold-out Data | a subset of data that is intentionally withheld so that the predictive model can be subsequently validated |
| Holographic Will | a will & testament that has been entirely written by the testator |
| Homage | bend your knee to the king/landlord |
| Home Care | care that is received at the patient’s residence |
| Home Health Service | care/needs that are provided to a person at his/her [own] home |
| Homestead | residence (including the surrounding lands) |
| Homogeneity | the degree to which the expected outcomes [within a risk class] have comparable value |
| Hostile Workplace | an employment setting that is riddled with demographics-based harassment/humiliation/intimidation/etc. |
| Term | Short Definition |
|---|---|
| Id | a continuation of the cited text (abbreviation for latin word "idem") |
| Illusory Promise | a promise that is too indefinite to be enforced |
| Illustrated Scale | a currently illustrated scale of nonguaranteed elements that is less favorable than the disciplined scale and the payable scale |
| Illustration Actuary | an actuary who is appointed in accordance with the NAIC Model |
| Immaterial | irrelevant |
| Immediate Gain Actuarial Cost Method | An actuarial cost method under which actuarial gains & losses are included as part of the unfunded actuarial accrued liability |
| Immoral Conduct | behavior that is at-war with norms |
| Immunity | a preclusion on liability |
| Impaired Mortality | a mortality assumption that has been adjusted for impairments |
| Impairment | a health factor/condition that increases someone's probability of death |
| Implied | inferred from facts/circumstances (compare express) |
| Implied Consent | assent/agreement to continue – as inferred by circumstances |
| Impost | a tax |
| Impute | vicarious assignment (compare vicarious liability) |
| In Escrow | held by someone – who is not a party to a transaction – for future delivery to a party |
| In Fee | absolute ownership of an estate in land |
| In Haec Verba | in these verbs (construction) |
| In Kind | of the same type/quality |
| In Limine | at the threshold/beginning (see motion in limine) |
| In Pari Materia | similar stuff should be read together (latin for "on like subject matter") |
| In Perpetuity | forever |
| In Re | a legal action with only one party (latin for "in the matter of") |
| In Terrorem | coercive contract provisions |
| Incapacity | the lack of legal/physical/intellectual power |
| Income | earnings; revenue |
| Income Averaging | a method of calculating tax liability to minimize adverse consequences to a taxpayer with substantial fluctuations in income |
| Income Splitting | a tax method that allow a married couple to file jointly while splitting total earnings in half |
| Income Statement | a financial document that gives operating results |
| Income Tax Return | the filing of taxes with federal/state/local governments |
| Incroach | to use unlawfully |
| Incurral Date | the date that a claim becomes a liability [of the risk-bearing entity] |
| Incurred but not Reported Deaths | an adjustment to observed deaths – to account for deaths that have occurred but have not yet been reported |
| Incurred Claims | the value of all amounts paid (or payable) under a health benefit plan |
| Incurred Death | a death that has occurred during the analyzed exposure period |
| Indebitatus Assumpsit | to be indebted to |
| Indefeasible | unconquerable; undefeated |
| Indemnify | to insure |
| Indemnity | an insurance agreement |
| Indenture | a deed conveying real estate by which both parties assume obligations |
| Independent Consultant | a professional who performs specific jobs for his/her [unattached] principal |
| Independent Living Unit | living quarters that are designed for contractual residents who are capable of living on their own |
| Index Fund | a portfolio of stocks that have been selected to mimic a stock market index |
| Indicia | signs |
| Indigent | poor person status; access to Court without prepayment of costs/fees |
| Individual Policy | any policy/contract that is defined as an individual policy – under state insurance law |
| Indorsee | a person to whom a negotiable instrument has been assigned |
| Indorsement | the signature on the back of an instrument |
| Indorser | the person who indorses the negotiable instrument |
| Inducement | an incentive to purchase insurance |
| Inference | a preliminary conclusion based on facts/allegations (also see presumption) |
| Inferior Court | the court whose decisions can be reviewed by an appellate court |
| Infeudation | the act of granting a freehold estate |
| Inflation | g price changes that have been experienced over an entire economy |
| In-Force | active |
| Informed Consent | educated assent/agreement to continue |
| Infra | latin word for below; (antonym to supra) |
| Infringement | breach; obstruction; impairment; hampering (typically used when referring to violations of fundamental rights) |
| Inherent Power | obvious authority that a government body has |
| Inherit | to receive from a predecessor |
| Inheritance | the considerations that have been doled out by a will & testament |
| Initial Asset | the assets allocated to a closed block – at its inception |
| Initial Liability | the obligations ascribed to the closed block – at its inception |
| Initiative | regular people pushing/creating a new law (compare with referendum) |
| Injunction | preventative remedy |
| Injury | harm/loss that must be remedied |
| Input | data/assumptions that are used in a model – in order to output. |
| Insider | someone who is privy to market-moving information |
| Insider Trading | investing in securities while having unfairly obtained knowledge (eg, point-shaving) |
| Insolvency | bankruptcy of an insurer/corporation |
| Installment | periodic debt payments |
| Installment Contract | an agreement to satisfy debts through multiple small payments |
| Institutionalization | physical confinement to a hospital/etc. |
| Instrument | a written contract |
| Insurable Interest | condition that ensures that the insured has a moral justification for the policy |
| Insurance | financial protections against undesirable events (eg, death; etc.) |
| Insurance Business | an enterprise that is involved in assuming insurance risk |
| Insurance Cash Flow | money that originates from insurance operations |
| Insurance Producer | an insurance salesperson |
| Insurance Product | any contract/item that a producer/licensee provides to a consumer |
| Insurance Risk | the degree to which actual insurance cash flows are likely to differ from expected insurance cash flows |
| Insurance Service | any contract/service that a producer/licensee provides to a consumer |
| Insured | the person/thing whose acts/calamities are being insured |
| Insurer | an entity that accepts the risk of financial losses – in exchange for premium payments |
| Insurer Group | 2-or-more affiliated insurers that are under common control/ownership |
| Intangible Asset | a valuable item that cannot be directly calculated (eg, brand name) |
| Intangible Property | possessions that only represent real value |
| Intended Audience | the persons to whom the appraisal/actuarial report is directed to |
| Intended Purpose | the goal/question that is addressed by the model |
| Intended User | any person who the actuary identifies as being able to rely on his/her work |
| Inter Alia | among other things (latin) |
| Inter Se | between themselves (eg, trustees provisioning trustees) |
| Inter Vivos | between the living (ie, contracts that were made while people were still alive) |
| Interest | consideration for the use of [someone else's] money |
| Intergovernmental Transfer | a transfer of public funds between governmental entities |
| Interim Financing | debt that is incurred on a short-term basis |
| Interlocking Directorate | multiple boards of directors [of corporations] that have common members |
| Interlocutory | non-final |
| Internal Audit Function | an evaluation of an organization's risk management/controls/governance |
| Internal Capital Assessment | an insurer's methodology for calculating the assets that are needed to withstand shocks |
| Internal Control over Financial Reporting | a process for ensuring the reliability of an entity's financial statements |
| Internal Revenue Code | large body of federal statutes that govern taxes |
| Internal Revenue Service | government agency that collects taxes |
| International Agreements | treaties |
| Interrogatory | discovery tool that asks an entity questions under oath (usually in writing) |
| Interstate Commerce | business activity among inhabitants of different states |
| Intervention | allowing an affected person/organization to enter a lawsuit |
| Intestate | dying without a will |
| In-the-Money | phase in a stock option's life in which it is profitable |
| Intrinsic Fraud | fake/underhanded junk that was used in an important ruling |
| Inventory | compendium of stored/owned goods |
| Invest | sending money for the purpose of receiving more money in return |
| Investigation | an insurer's careful review of a fortuitous event (see adjuster) |
| Investiture | a ceremony demonstrating the transfer of possession of land |
| Investment | an outlay of money with the expectation of a larger return of money |
| Investment Banker | stockbrokers; bond sellers; |
| Investment Company | organizations that focus on trading various securities |
| Investment Income | proceeds from asset investment minus investment expenses |
| Investment Income from Insurance Operations | income associated with the investment of insurance cash flows |
| Investment Rate-of-Return Risk | the risk that investment rates-of-return will differ from expectation |
| Investment Risk | the degree to which actual insurance cash flows are likely to differ from expected insurance cash flows |
| Investor | a person who supplies capital to others |
| Invidious | nasty/vile strain of discrimination |
| Ipso Facto | facially factual (latin) |
| IRA | individual retirement account – financial tool for securing retirement |
| Irreparable Harm | imminent injury that cannot be remedied with money (eg, wife will kill me) |
| Issue | descendants who might receive an inheritance |
| Issue Date | the date in which the policy goes in force (compare with 'effective date') |
| Term | Short Definition |
|---|---|
| Jobber | the middleman in a buy-&-sell arrangement |
| Joinder | uniting several causes of action or parties |
| Joint Account | bank account controlled by multiple people/entities |
| Joint Lives | actuarial event that is contingent on the death of the last survivor |
| Joint Venture | business proposition launched by multiple people/entities |
| Jointure | a middleman (in the sale of goods); |
| Judge | the person who presides over a legal action |
| Judgment | final decision on the facts and law of a case |
| Judgment Creditor | the [financial] party whom the court renders judgment in favor of |
| Judgment Debtor | the [financial] party whom the court renders judgment against |
| Judicial | pertaining to the application of law |
| Judicial Economy | conservation of judicial resources/effort |
| Judicial Estoppel | prevention of self-induced contradictions |
| Judicial Immunity | protection against liability for discretionary/jurisdictional acts performed on duty |
| Judicial Notice | the court's recognition of indisputable fact derived from irrefutable sources |
| Judicial Review | appellate proceeding |
| Jurisdiction | power to adjudicate |
| Jurisdictional Amount | the monetary threshold to invoke jurisdiction |
| Jurisprudence | the science of law |
| Juror | a member of the jury (ie, a person (alongside his/her peers) who determines the verdict) |
| Jus Tertii | the legal right of a third-party |
| Just Compensation | fair consideration for eminent domain |
| Justiciable | an issue that a court can remedy, because it meets certain criteria |
| Term | Short Definition |
|---|---|
| Kangaroo Court | a tribunal that is biased and flimsy with the law |
| Keogh Plan | retirement plan for self-employed person |
| Kickback | underhanded consideration in exchange for favors (eg, a bequest) |
| Kinds of Insurance | life/health/property/casualty/surety/marine/title insurance |
| Known | the actuary had actual knowledge of the item-in-question – at the time the actuary rendered actuarial services |
| Term | Short Definition |
|---|---|
| Labor Union | a group formed for the betterment of a employment corps |
| Laches | a defense against stale claims (see tolling and statutes of limitation) |
| Land | any tract that can be conveyed by deed |
| Land Trust | a device that vests title to real property (in the name of a trustee) |
| Landlord | the person who controls a tenant's residence |
| Lapse | to expire without benefit |
| Latent Defect | an infirmity that can only be found after ordinary usage |
| Lateral Support | objects on a neighbor's property that support the structure of owned property |
| Law of the Case | the doctrine which holds that previously decided issues cannot be reopened |
| Lay Witness | someone who testifies about stuff he/she has observed |
| Lead Generating Device | direct-to-consumer mass communications campaigns |
| Lease | to rent |
| Leasehold | the estate [in real property] of a lessee – created by a lease; |
| Leave | permission |
| Legacy | a disposition – by will – of personal property |
| Legal Age | the age in which the authorities recognize for legal rights/privileges |
| Legal Fiction | a material falsehood (see fraud upon the court) |
| Legal Tender | the type of consideration that the authorities deem as legitimate currency (eg, a US Dollar) |
| Legatee | recipient of personal property – by virtue of a will |
| Legislation | pertaining to the creation of law |
| Lend | the give someone for a period of time; while expecting a return |
| Lessee | the tenant of a landlord |
| Lessor | a person who grants a lease to another person/entity |
| Let | to rent out |
| Letter of Credit | a promise by a bank/issuer that it will honor – on behalf a customer – demands for payment |
| Letter Stock | stocks that are sold via nonpublic transfers |
| Level Premium | a premium amount that has been actuarially calculated to remain unchanged |
| Levels of Care | degrees of healthcare that are based on health status |
| Leverage | to increase your debt in order to improve your return on equity |
| Levy | to assess |
| Liability | money/considerations that you must pay out (or that are at risk) |
| Liability for Future Policy Benefit | PV[Benefits] – PV[GAAP Net Premiums] |
| License | legal permission to engage in some activity |
| License Tax | a fee/tax that is charged for engaging in some regulated activity |
| Licensee | the person who earns/receives a license |
| Licensor | a person/entity that grants a license. |
| Lien | a claim on another person's property to use as security for that person's indebtedness |
| Life Estate | an estate with a limited duration (which is limited by someone's life/death) |
| Life Expectancy | the calculated future lifetime of an insured |
| Life Expectancy Provider | an entity that applies medical underwriting analysis to determine mortality |
| Life Insurance | a financial product that pays a benefit to a beneficiary when the insured person dies |
| Life Insurer | an insurance company that sells life insurance (and/or annuities) |
| Life Settlement | a life insurance policy that has been sold to an opportunistic investor |
| LIFO | last-in first-out (a common accounting method) |
| LILO | last-in last-out (a rare accounting method) |
| Limitation | a restriction/restraint |
| Lineage | direct blood relatives (eg, grandparent, parent, child, grandchild, etc.) |
| Lineal | pertaining to a direct bloodline |
| Liquidate | to sell [assets] in order to satisfy a liability |
| Liquidated Amount | the amount that an asset can be [prematurely] sold for |
| Liquidated Damages | damages that can be determined with certainty (synonym for sum certain) |
| Liquidity | the ease in which an asset can be sold for cash |
| Listed Stock | financial securities that are sold on a credited stock exchange |
| Listing | the practice of placing securities/instruments/properties on a market |
| Litigation | the practice of suing |
| Livery of Seisin | an ancient ceremony signifying an alienation of land by feoffment |
| Living Unit | the various living quarters of a CCRC |
| Loan | money that is borrowed |
| Loansharking | predatoring money lending |
| Lock-In | a requirement to continue using the [original] basis assumptions |
| Long-Range Period | a period that is long enough to discern the general pattern/level of future costs |
| Long-Term Care | a wide range of health/social services |
| Long-Term Care Benefit Plan | a policy/contract/arrangement that provides LTC benefits |
| Long-Term Financing | debt that lasts longer than 12 months |
| Long-Term Product | a health benefit plan that provides medical/disability benefits for an extended time period |
| Loss | a state of affairs that includes damage/death/injury/etc. |
| Loss Adjustment Expense | the costs associated with managing insurance claims |
| Lost Property | property that is involuntarily lost – through neglect/etc |
| Lottery | a regulated gamble that pays a large benefit to people who purchase tickets |
| Lower of Cost or Market | taking the minimum between the purchase price and the current market price |
| Lump-Sum Payment | a large financial consideration |
| Term | Short Definition |
|---|---|
| Magistrate | a judge who supports another judge during the proceeding |
| Magnuson-Moss Warranty Act | federal law requiring warranties to be written in plainspeak |
| Mail Box Rule | a rule establishing that a [responsive] acceptance [to an offer] is valid |
| Maker | the person/entity who executes a note |
| Malfeasance | misconduct that breaches the public trust |
| Malice | harmful/tortious intent |
| Malpractice | misconduct/errors/omissions that harmfully belie one's fiduciary duties |
| Managed Care Organization | an entity contracting with the state Medicaid agency – to provide healthcare services to a designated population |
| Mandamus | writ directing a public official to complete his/her ministerial duty |
| Mandate | a command |
| Manifest Injustice | plain error that infringes someone's rights and impairs a fair proceeding |
| Manor | a large estate (often associated with feudal systems) |
| Margin | the difference between the revenue received and the expense paid |
| Margin Account | a ledger signifying the amount of money a stockbroker has lent to an investor. |
| Margin Call | a stockbroker's request that an investor add funds to the investor's margin account |
| Marital Deduction | a tax reduction for widows/widowers |
| Marital Estate | property that a husband & wife acquire throughout their marriage |
| Marital Property | assets of the marital estate |
| Market Price | the price of an item – as determined by the market |
| Market Risk Benefit | a contract – issued by an insurance entity – that indemnifies customers from meaningful capital market risks |
| Market Share | the percentage [of an entire block of business] that is attributed to a certain company |
| Market Value | the value of an item – as determined by the market |
| Marketable Title | a title that a reasonably well-informed purchaser would be willing to accept |
| Market-Consistent Present Value | an actuarial present value that is estimated to be consistent with the price at which benefits would trade in an open market |
| Market-Estimate Assumption | an assumption that represents what a typical market-participant would use in his/her assessment |
| Mark-to-Market | an accounting method that sets the values of assets/liability to their current market price |
| Marshal | public officer who performs federal court duties (similar to a state Sheriff) |
| Massachusetts Trust | a business trust that confers limited liability on the holders of trust certificates |
| Master-and-Servant | the relationship type between an employer and an employee (compare with agent) |
| Material | necessary, meaningful, pertinent to the adjudication of a matter |
| Material Adverse Deviation | fortuitous events that [could] result in corporate insolvency |
| Materiality | an item whose omission/misstatement could influence an intended user’s decision |
| Maximum Valuation Interest Rate | a statutory rate that takes a weighted average of a reference rate |
| Mean Life Expectancy | the average length of human life – based on the assumed survival curve |
| Measurement Date | the "as of" date for determining obligations/assets |
| Measurement Period | the timeframe that immediately follows the measurement date |
| Median Life Expectancy | age at which there is a 50% chance that the person will still be alive |
| Mediation | a method of alternative dispute resolution which does not result in a decision |
| Medical Education Payment | payments for graduate medical education – as part of the rate structure for healthcare payments |
| Medicare Integration | the approach to determining the portion of a Medicare-eligible claim that is paid – after adjusting for Medicare reimbursements |
| Member | someone who has signed an agreement with an At-Home Program |
| Member Bank | a bank that is part of the Federal Reserve System |
| Member Corporation | a corporation that has at least one director who is a member of the NYSE |
| Member Firm | a firm that has at least one partner who is a member of the NYSE |
| Membership Agreement | the contract between the at-home program and the [prospective] member(s) |
| Membership Rights | any corporation-based rights that a member of a mutual company has |
| Memorandum | less formal brief |
| Merchant | a knowledgeable seller-of-goods |
| Merchantable | reasonably fit for commerce |
| Merger | one corporation ceases to exist by becoming part of another [ongoing] corporation |
| Merit | the facts & elements for a cause |
| Mesne | middle; as in mesne process (see Rule 1.160 Fla. R. Civ. P.) |
| Method | a systematic procedure for estimating future elements |
| Military Will | an orated will & testament (which receives less stringent regulations) |
| Minimum Medical Loss Ratio | a provision that requires the MCO to use a minimum portion of its earned premium for healthcare based expenditures |
| Minimum Reserve | the reserve described in section 2 of VM-20 |
| Minimum Value Requirement | the minimum required actuarial value [for certain employer-sponsored health insurance plans] |
| Ministerial Act | mandatory act that a public official must complete |
| Minutes | a written/recorded summary of a meeting (see 28-102.002 FAC) |
| Misapplication of Property | the conscious illegal use of funds/property for a wrongful purpose |
| Miscarriage of Justice | a court's error that impugns a fair proceeding |
| Misconduct | corrupt behavior by a public officer |
| Mistrial | crucial error that requires a new trial |
| Modal Premium | the periodic dollar amount that the policyholder pays |
| Model | a simulation/replication of real life |
| Model Risk | the peril that the model/method is inappropriate |
| Model Run | the process of transforming inputs into outputs |
| Model Segment | a group of policies that are modeled together – to determine the path of net asset earned rates |
| Modeling Cell | a group of policies/assets that are treated as being completely alike |
| Moderately Adverse Condition | conditions that include unfavorable events that have a reasonable probability of occurring |
| Modification Factor | a factor that is used to adjust standard mortality – in order to reflect rating classifications |
| Modified A/E Mortality Basis | mortality assumptions other than the historical A/E mortality basis |
| Money Demand | any demand/action arising out of contract/tort/statute |
| Money Had and Received | phrase used in civil suits regarding lending |
| Money Judgment | a legal judgment that orders one party to pay another party |
| Money Order | a credit instrument that calls for the payment of money to a named payee |
| Money Supply | the way the Federal Reserve System creates/circulates money |
| Monopoly | a dominant position in a market/industry |
| Moot | an issue/claim that is no longer active |
| Moral Hazard | an insurance danger stemming from a [prospective] policyholder’s bad faith pursuit of coverage |
| Morbidity | contracting an illness/disability |
| Mortality Assumption | a set of values representing the probability of death (at different ages) |
| Mortality Multiple | a modification factor typically determined from a debit/credit underwriting methodology |
| Mortgage | Legal/financial agreement stating that ‘you can have my house if I don’t pay you back’ |
| Mortgagee | the party that lends money to the mortgagor |
| Mortgagor | the party that borrows money from a bank |
| Mortmain | dead hand |
| Motion | request to the court |
| Motion in Limine | request to exclude prejudicial evidence |
| Movant | the person who filed the motion (ie, the person asking the court for relief) |
| Municipal Bond | a bond/loan that is issued by a government body (eg, a state; a county; etc.) |
| Municipal Corporation | incorporated cities/towns/villages that have subordinate/local powers of legislation |
| Mutual Company | a corporation that shares its profits with its policyholders |
| Mutual Fund | a firm/investment that pools money for the purpose of buying certain stocks/bonds |
| Mutual Fund Share | an investment into a mutual fund firm [itself] – as opposed to the fund's investments |
| MV Calculator | data/methodology that is used to determine whether the minimum value requirement has been met |
| MVC-AV | the actuarial value that has been calculated using the MVC |
| Term | Short Definition |
|---|---|
| Named Insured | the person whom the insurance covers |
| NASD | national association of securities dealers |
| NASDAQ | national association of securities dealers automated quotation service |
| Natural Person | a biological human being (as opposed to a corporation/fictitious-person/etc.) |
| NE Exeat | do not leave (latin) |
| Necessary & Proper Clause | constitutional provision empowering Congress to make laws |
| Negative Pregnant | slick talk that doesn't address the overarching fact |
| Negative Reserve | a terminal reserve that has a negative value |
| Negotiable Instrument | a promise-to-pay that is in writing |
| Negotiation | an alternative dispute resolution whereby parties settle their differences without any outside intervention |
| Net Asset Value | assets minus liabilities/expenses/etc. |
| Net Cash Surrender Value | the maximum amount of money that the policyowner can receive [upon surrender] |
| Net Estate | the value of a property after subtracting its debts/expenses/etc from its asset value |
| Net GAAP Liability | GAAP policy liabilities minus intangible assets (eg, DPAC; VOBA; DSI) |
| Net Income | revenue minus expense/deductions/taxes/etc. |
| Net Liabilities | for a reinsured block of business, net liabilities equal the |
| Net Operating Loss | allowable deductions minus gross income |
| Net Premium Reserve | the amount determined in section 3 of VM-20 |
| Net Retained Business | the portion of the business written/assumed by the ceding entity that is not subject to the reinsurance program |
| Net Worth | assets minus liabilities/expenses/etc. |
| NGE Framework | an insurer’s tools/resources for determining NGE scales. |
| NGE Scale | a series of rates/values that are determined by the insurer – at a point-in-time |
| NLRB | national labor relations board (an organization that helps comply with OSHA/etc.) |
| No Fault | p&c insurance provision that pays benefits regardless of who caused the accident |
| Nonassessable Stock | stock that was purchased at full par value |
| Non-Contractual Resident | a person living in the CCRC who has neither: (1) a health care guarantee; nor (2) a refund guarantee |
| Nondiscretionary Trust | a trust that restricts its investments to a set of predefined securities |
| Nonfeasance | refusal/neglect to do what you've contracted to do |
| Non-Forfeiture Benefits | benefits that are available if premiums are discontinued |
| Non-Guaranteed Element | any element – that the insurer can change – that affects costs/values |
| Non-Guaranteed Element Framework | the structure by which the insurer determines nonguaranteed elements |
| Non-Guaranteed Reinsurance Element | any [discretionary] reinsurance-based premium/charge/benefit that affects reinsurance costs/values |
| Nonmember Bank | a bank that is not part of the Federal Reserve System |
| Nonpar Stock | a stock that doesn't have its price tag disclosed |
| Non-Proportional Feature | a feature that makes the assuming entity’s loss experience disproportionate to that of the ceding entity’s. |
| NonQualified Pension | retirement plan that struggles with tax deductibility |
| NonRecourse | without personal/taxable liability |
| Non-Standard Plan Design | plan designs that include benefits that are not reflected in the AVC/MVC |
| Nonstock Corporation | a corporation that is formed on a charter instead of via the issuance of shares |
| No-Par Stock | stock that has been issued without a price label |
| Normal Cost | the portion of the APV[projected benefits] that is allocated to a period |
| Normative Database | data compiled from sources that are expected to be typical of the retiree group benefits program |
| Notary Public | a person who verifies a person's oath/attestation |
| Note | a promise-to-pay that is in detailed writing |
| Notice | legal affirmation of knowledge of an important legal matter |
| Notice to Quit | a formal notification terminating a tenancy |
| Notional Asset Portfolio | a portfolio of assets that change the risk characteristics of the insurer’s assets/liabilities |
| Notorious Possession | obvious indications as to title |
| Novation | substitution of a party – for one of the original parties – to a contract |
| NOW Account | savings accounts that permit withdrawals |
| NSF Check | a bounced check |
| Nudum Pactum | a promise that is devoid of any obligation on one side |
| Nugatory | null; void |
| Nuisance | an annoyance that has legal remedies |
| Nunc Pro Tunc | "now for then" (revising history in order to satisfy a prior decision) |
| Nuncupative Will | oral declarations of a terminally ill person |
| Nursing Home | a residential facility that provides long-term nursing care to those who are unable to handle their own activities of daily living |
| NYSE | new york stock exchange (the largest securities exchange in the world) |
| Term | Short Definition |
|---|---|
| Oath | a sworn statement taken under the penalty of perjury |
| Obiter Dicta | additional, non-binding statements in a court opinion |
| Objection | the primary form of legal opposition |
| Obligation of a Contract | structural pillars of a contract (not the actual terms & conditions) |
| Obligee | a person who is entitled to receive money/service |
| Obligor | a person who is obligated to pay another person [money/etc.] |
| Obsolescence | uselessness (due to technological/etc advances) |
| Obstruction | interference of a legal action (see perjury; spoilation of evidence) |
| Obvious Risk | a peril that is so apparent that it almost renders an implied consent upon participants |
| Occupancy | the act of existing within a property |
| Occupancy Rate | the number of occupied units – relative to available units |
| Occupant | a person/entity who has the actual use/possession of property |
| Occupational Disease | a health condition that is associated with a job/task |
| Occupational Hazard | a danger that is associated with a job/task |
| Odd lot | a small investment portfolio (eg, fewer than 100 stocks) |
| Offer | a displayed willingness to enter into a bargain |
| Officer | a person who has authority in a public domain |
| Officious Intermeddler | a phony who's purporting to do-good for others yet on the condition of personal gain |
| Oligopoly | a small group of companies/entities that dominate a market/industry |
| Omission | to fail to do something (for which you have a duty to complete) |
| Omnibus Clause | an insurance provision that provides coverage for multiple people |
| On-Margin | buying securities while borrowing funds |
| Operating Profit | underwriting profits + miscellaneous income + investment income (from insurance operations) |
| Operating Rule | all portions of the plan-of-conversion that specify the methods/procedures for installing/maintaining/monitoring a closed block’s operations |
| Opinion | the Court's explanation of its final decision |
| Option | an add-on that grants a conditional right/privilege to a party |
| Option Contract | a promise in which the owner of an item grants another person the privilege to buy/sell the item in the future |
| Option Writer | the person/entity that sells the stock option |
| Oral Argument | vocalized legal presentation |
| Oral Communication | an orated actuarial communication that has not been recorded/transcribed verbatim |
| Order | a court ruling |
| Order Paper | an negotiable instrument that is payable to a specified person (instead of to cash/bearer/etc.) |
| Ordinary Course of Business | typical/reasonable business activities |
| Ordinary Income | taxable income from the ordinary course of business/work |
| Organization | the entity (or entities) to which the ERM framework applies |
| Original Issue | the initial stock price |
| Original Jurisdiction | authority to consider and decide a case in the first instance |
| ORSA | an internal assessment of the adequacy of an organization’s solvency/risk-management position |
| ORSA Report | an ORSA's summary – that is addressed to senior management |
| OSHA | occupational safety and health act |
| OTCMarket | a place where people buy & sell unlisted securities |
| Other Acquisition Expense | costs associated with the acquisition of business (excluding commission-esque costs) |
| Other Liability Cash Flow | cash flows that are not specifically associated with asset/policy cash flows |
| Other User | any user – of an appraisal comunication/report – who is neither a principal nor the intended audience |
| Ouster | the wrongful dispossession/exclusion of a person |
| Out-of-Pocket Expenses | costs for necessary items that are directly paid (and recoverable) |
| Out-of-the-Money | phase in a stock option's life in which it is not profitable |
| Output | the results of a model on which decisions could be based |
| Output Smoothing Method | an actuarial method that adjusts the results of a contribution allocation procedure |
| Overfitting | a problem that arises when a model fits its developmental data too closely |
| Overreaching | taking an unfair advantage (via deceit/fraud/etc.) |
| Overrule | to deny an objection; to void a previous judgment |
| Term | Short Definition |
|---|---|
| P&C Insurance | indemnity for auto/home/etc. ("P&C" = "Property & Casualty") |
| Pactum | a pact; a contract |
| Paid-in-Surplus | overpaying for a stock |
| Painting the Tape | pretending that your stock is actively trading |
| Palimony | an alimony paid to a business partner |
| Panel | a group conferring on a decision (eg, panel of commissioners, jury panel, etc.) |
| Paper Profit | book profits that have not yet been realized/liquidated |
| Par | the face value (ie, the price tag label placed on securities) |
| Parameter | a type of value that is used as an input to certain types of models |
| Parameter Risk | the risk that the parameters used in the model do not represent future outcomes |
| Paramount Title | superior ownership rights |
| Parceners | someone who has inherited an estate |
| Parens Patriae | a nation's supreme guardians (of disabled persons) |
| Participant | an individual who satisfies the requirements for participation in the plan |
| Participant Contributions | payments that a participant makes to his/her retiree group benefits program |
| Partition | legal separation of a land's joint ownership |
| Partnership | a group of business associates who assume personal liability on the venture |
| Party | individuals/organizations directly involved in a legal dispute |
| Party Wall | a physical structure that abuts/separates two properties |
| Patent | evident; obvious |
| Patent Defect | an infirmity that can be found with reasonable diligence |
| Pauper | a poor person (see indigent) |
| Pawn | to sell something in order to satisfy a debt |
| Payee | the person who receives payment |
| Payment | an amount that is remitted [to satisfy a debt] |
| Payoff | the strike price minus the spot/stock price; denoting a difference between payoff and profit |
| Payor | the person who gives payment |
| PBR Actuarial Report | the supporting information prepared in accorance with VM-31 |
| Peculation | defraud people for money |
| Pecuniary | tangible (refers to losses/damages) |
| Penalty Clause | provision for an outlay to combat defaults |
| Pendent Jurisdiction | federal court's authority to adjudicate state law claims on a federal case |
| Pension | an employer-based annuity that acts as a generic retirement plan |
| Per Autre Vie | conditioned on the survivorship of another person |
| Per Capita | proportioned to each individual |
| Per Curiam | by the court (typically connotes an automatic appellate decision) (see IOP 5.4 (1DCA)) |
| Per Diem | per day (usually for calculating witness expenses, etc.) |
| Per my et Per Tout | by half and by whole (French) – joint tenancy stuff |
| Per Stirpes | proportionate descending shares [of an inheritance] |
| Per Tout et non Per My | by the whole and not by the half (French) – joint tenancy stuff |
| Peremptory | absolute |
| Perfected | finalized |
| Performance Bond | a loan that guards against a breach of contract |
| Performance Incentive | a payment mechanism under which an MCO may receive funds in addition to the capitation rates |
| Performance Withhold | an amount included in the capitation rates that is paid if the MCO meets certain state requirements |
| Peril | risk |
| Periodic Cost | the amount that is assigned [to a time window] by using a cost allocation procedure |
| Periodic Fee | recurring, contractually-based fees for receiving primary services |
| Perjury | lying under oath |
| Permanent Transfer | moving out [for good] of one level of care; and into another level of care |
| Perpetuity | an annuity that lasts forever |
| Personal Effects | items of intimate/sentimental value (eg, jewelry; etc.) |
| Personal Holding Company | a small company that rich people used to evade taxes |
| Personal Property | movable items that are attached to property (eg, microwaves; etc.) |
| Petition | a civil complaint/request |
| Petitioner | synonymous with appellant, but signifies a different kind of action |
| Physical Property | physical assets that can be used and/or sold |
| Piercing the Corporate Veil | prosecuting individuals after stripping their fake corporation of its limited liability |
| Plain Error | an easy-to-see error that impairs a fair trial |
| Plaintiff in Error | appellant (old-fashioned word) |
| Plan of Conversion | the plan under which a mutual company converts to a stock company |
| Plan Provisions | the relevant terms/practices of the plan document |
| Plan Sponsor | an organization that establishes/maintains a retiree group benefits program |
| Plat | local map showing real estate among landmarks (eg, mountains; roads; etc.) |
| Pleadings | briefs/documents/motions that form the pillars of a legal dispute |
| Pledge | payment (either of money or of goods) |
| Plenary | full; undisturbed; unqualified (ie, fully briefed) |
| Policy | an insurance/annuity/supplementary contract (including group certificates) |
| Policy Benefit Liability | an accrued obligation [to policyholders] that relates to future costs and/or unearned revenue |
| Policy Cash Flow | money that passes between policyholders and insurers – on account of the insurance policies |
| Policy Cash Flow Risk | the risk that the amount/timing of a policy's cash flows will differ from expectations |
| Policy Class | policies that are grouped together in order to determine a non-guaranteed element |
| Policy Factor | financial components of a policy that are based on the components/guarantees underlying the policy |
| Policy Value | amounts credited/debited to separately identified elements [of an insurance product) |
| Policyholder | the person who owns the policy |
| Policyholder Dividend | Non-guaranteed returns of premium/surplus |
| Poll Tax | a flat tax that is imposed on everyone within a specified territory |
| Polygamy | having multiple wives/husbands at the same time |
| Ponzi Scheme | a fraudulent investment scam that uses money from new investors to reward old investors |
| Pooled Health Plan | a health benefit plan in which premiums are based [at least in part] on the claims experience of external groups |
| Population Projection | an estimate of the expected number of future contractual residents/members |
| Portfolio | a group of owned securities (eg, bonds, stocks, etc.) |
| Possession | dominion over a thing/property |
| Possessory Action | a lawsuit to obtain/maintain real property |
| Possessory Interest | the right to have dominion over certain land |
| Post Mortem | an autopsy |
| Posting | the bank's process of honoring a customer's payment |
| Postnuptial Agreement | contract between a married couple – that establishes how things will be split upon death/divorce |
| Pourover | a clause in a will that assigns assets to an established trust |
| Power Coupled with an Interest | authority over something that you care about |
| Power of Appointment | authority over someone else's affairs (connoting wills; trusts; etc.) |
| Power of Attorney | authority over someone else's affairs |
| Practical | realistic in approach/nature/scope – given the purpose/assignment/constraints |
| Praecipe | to command (see writ of garnishment; etc.) |
| Precatory | advisory language that does not command/obligate action |
| Precedent | previously decided case that acts as authority for disposing of future cases |
| Preceding Estate | a prior estate that has limited future interest |
| Pre-Existing Condition | a health condition that preceded the effective date on an insurance policy |
| Preference | sequence of an insolvent company's activity that allows it to prioritize creditors |
| Preferred Stock | small ownership in a corporation; yet it has priorities over common stock |
| Prejudice | bias |
| Preliminary Term Reserve Method | using a valuation premium that will create a terminal reserve for several early years |
| Premises | the land and the surrounding structures |
| Premium | money paid to keep insurance in force |
| Premium Deficiency | when the PV[Benefits + Expenses] exceeds (the Net GAAP Liability + PV[Premiums]) |
| Premium Deficiency Reserve | a liability that is equal to (revenues + reserves) minus (claims + expenses) |
| Prenuptial Agreement | contract between fiancees – that establishes how things will be split upon death/divorce |
| Prep. of Evidence | the standard for adjudication that is loosely based on a 50-50 proposition |
| Prescribed Asset Valuation Method | a specific asset valuation method that is mandated by law/regulation/binding-authority |
| Prescribed Assumption – Set by Another Party | a specific assumption/method that is selected by another party – as allowed by law/regulation |
| Prescribed Assumption – Set by Law | a specific assumption/method that is mandated by applicable law |
| Present Value | the value of a future payment – discounted to reflect the time value of money |
| Presiding Officer | a public official who is legally qualified to oversee a hearing/proceeding/etc. |
| Presumption | a preliminary conclusion based on facts/allegations (also see inference) |
| Pretrial Conference | a formal meeting to discuss the case |
| Prevailing Party | the litigant who won the lawsuit |
| Pricing | the process of determining charges for – and benefits provided by – an insurance/annuity policy/contract |
| Pricing Valuation | a projection of cash flows (or a measurement of pension obligations) performed in order to assess financial adequacy |
| Prima Facie | at face value; indicating a party's claims merit consideration |
| Prima Facie Rate | the maximum allowable rate - for credit life insurance policies |
| Primogeniture | the oldest son gets the entire inheritance |
| Principal | the source/original investment/loan amount |
| Principal | the source/original investment/loan amount |
| Principle-Based Reserve | a reserve that results from a principle-based valuation (which is defined in the NAIC’s SVL) |
| Prior Lien | a debt that has priority over other debts |
| Priority | preference – in the context of corporate dissolution |
| Private Offering | selling corporate securities to a select group of accredited investors |
| Private Ruling | declaratory statement issued to an individual taxpayer (regarding a potential transaction) |
| Privilege | a legal sanctuary that prevents disclosure of sacred information |
| Privileged Communications | the communications that are most commonly protected by legal forums |
| Privity | relationships that arise out of mutual interests |
| Privy | surrogate; proxy; (useful term in evaluating res judicata) |
| Pro Bono | free legal representation |
| Pro Forma | a template projection |
| Pro Hac Vice | temporary (ex: out-of-state attorneys appearing pro hac vice for one case) |
| Pro Per | one's own self |
| Pro Rata | proportional |
| Pro Se | self-represented litigant |
| Probate | proving that a will & testament is legit |
| Proceeding | the succession of events in a legal action |
| Process Risk | the risk that the projection of future contingencies (which are inherently variable) will go awry |
| Process Service | delivery of writs and orders to notify an entity of legal matters |
| Proctor | someone who manages another person's affairs |
| Professional Corporation | a non-government body of similarly-qualified professionals |
| Professional Judgment | decision-making that is derived from training; education; broad knowledge; experience; etc. |
| Profit | revenue minus expense/deductions/taxes/etc. |
| Profit a Prendre | the right to take something from someone else (French). |
| Profitability Analysis | an evaluation of a product’s expected financial results |
| Profitability Metric | a measurement used to assess a product’s projected level of financial results |
| Program | synonymous with a a Social Insurance Program |
| Program Asset | valuable items that will meet Program costs |
| Program Cost | the program’s expenditures for various program elements |
| Program Income | earmarked items [from the Program] such as tax income; premiums; investment income; etc. |
| Projection | a prospective, financial calculation that uses various contingencies/decrements |
| Projection Method | applying an adjusted historical claim metric to an appropriate exposure base – in order to estimate incurred claims |
| Prolixity | extraneous information in a pleading (see Rule 8 Fed. R. Civ. P.) |
| Promise | a declaration to do something (or refrain from doing something) |
| Promissory Note | a promise to pay at a specified time |
| Promoter | a founder who does what's needed to make a business profitable |
| Property | anything valuable that is subject to ownership |
| Proprietary | owned by a particular person (who has not-yet patented the item) |
| Proprietary Interest | the right to possess something |
| Proprietor | the owner/founder |
| Prosecution | the act of suing someone/something |
| Prospective | pertaining to the future |
| Prospectus | a corporation's charter document for would-be investors |
| Protective Order | a request that a party/non-party be shielded from discovery |
| Protest | notifying a payor that he/she has failed to satisfy payment |
| Provider | entities that provide healthcare services/supplies |
| Provider-Related Asset or Liability | an amount established for expected incentive payments/receipts and/or non-claim related payments/receipts |
| Provision for Adverse Deviation | an explicit amount to create some provision for uncertainty in an asset/liability |
| Proviso | a section of a document dedicated to exceptions/conditions/restraints/clarifications [of the underlying document] |
| Proxy | an agent; a representative; a generic form of a power of attorney; |
| Prudent Estimate Assumption | a risk factor assumption that is based on anticipated experience |
| Prudent-Man Rule | a doctrine compelling fiduciaries to adopt a risk-averse mindset |
| Public Domain | property (eg, land/water/writings) that belongs to the government – and thus, is not susceptible to copyright infringements |
| Public Easement | physical structures/pathways that make life easy for the general public (eg, highways; sidewalks; etc.) |
| Public Official | an elected/appointed person holding a public office |
| Public Property | lands/structures that are dedicated to the public's use |
| Public Purpose | to benefit the citizens of a society |
| Public Trust | the government's ownership of lands/waters that the citizenry ought to use/benefit-from |
| Public Use | the right of the citizens to use/benefit-from property that the government has condemned |
| Public Utility | a monopolistic company that provides crucial goods/services to the public |
| Puffing | extravagant salesmanship |
| Purchaser | someone who buys something |
| Put Option | a derivative that allows a future stock sale at a specified price |
| Pyramiding | using unrealized profits to purchase additional investments |
| Term | Short Definition |
|---|---|
| Qualified Actuary | an individual who is eligible to sign applicable statements of actuarial opinion |
| Qualified Pension | retirement plan that involves a trust (in order to satisfy tax deductibility) |
| Quash | the annullment of a discovery request |
| Quasi | Lat.: sort of; somewhat; almost (eg, quasi-judicial proceedings mimic judicial proceedings) |
| Questions of Law | legal contentions that do not require a findings of fact (see Standard of Review) |
| Qui Tam | taking legal action on behalf of - and alongside (sometimes) - the government |
| Quia Emptores | english law that abolished private infeudation; thereby permitting voluntary transfers |
| Quid Pro Quo | transactional/harassing terms & conditions (I scratch your back, you scratch mine) |
| Quiet Enjoyment | the right to have unimpaired use/enjoyment of property |
| Quiet Title | a mild lawsuit to determine/confirm the title of a specific piece of property |
| Quitclaim Deed | you can have whatever belongs to me [inside that property] – if anything |
| Quo Warranto | an extraordinary writ that asks 'with what authority?' |
| Quorum | a panel of decision-makers |
| Quotation | statement of an item's price |
| Term | Short Definition |
|---|---|
| Race | ancestry |
| Racketeering | organized crime |
| Raised Check | check that has been improperly altered |
| Ransom | money paid to rescue a captured person/thing |
| Ratable | permissibly quantified with a figure |
| Rate | a multiplier used for various purposes |
| Rate of Investment Return | investment income earned on funds held over time – expressed as a percent of those funds |
| Rate of Return | a multiplier used to earn investment income |
| Ratification | confirmation/establishment (typically of a new legal doctrine/act/law) |
| Rating Period | the timeframe for which managed care Medicaid capitation rates are being developed |
| Rational Basis | reasonable grounds for a government rule (compare with strict scrutiny) |
| Real Estate | all possible interests in land |
| Real Property | land (and the structures upon it) |
| Realization | converting an asset into money |
| Realty | real property |
| Reasonable Dividend Expectation | expectation that the current dividend scale will either maintain itself or adjust itself |
| Reasonable Margin | a calculation adjustment that is crucial to achieving a sound reserve |
| Reasonably Understandable | clear, concise, and precise communication |
| Rebuttal Evidence | information that contradicts an opponent's claim |
| Recalibration | the process of modifying the risk adjustment model |
| Recall | removal [of a public official] from public office (compare with disqualification; recusal; etc.) |
| Recapitalization | changing a corporation's capital structure |
| Recapture | a remedy for wrongful tax savings |
| Receiver | an entity that oversees the finalization of an insolvency |
| Receivership | a stage of insolvency in which the authorities direct someone to dissolve a corporations assets/etc. |
| Recognition | imposing an income tax |
| Record | the docket and all material submitted to the tribunal/court |
| Record Date | cutoff date for receiving stock privileges/dividends |
| Record Owner | the property owner – according to public records |
| Recording Acts | a ledger showing property ownership |
| Recourse | legal vehicle for recovering unpaid debts |
| Recoverable | an amount that may be collected from a counterparty |
| Recusal | the removal of a judge from a case |
| Red Herring | a distraction (one with grandstanding talking points); also see straw man |
| Redeemable Bond | a loan that the seller/issuer can immediately request re-payment on |
| Redemption | regaining possession via purchase |
| Redress | remedy/relief/solution to a legal woe |
| Reduction | a contractual provision that decreases the benefit amount/duration |
| Reentry | regaining possession via a contractual arrangement |
| Referendum | regular people demanding review of official legislation (compare with initiative) |
| Refinancing | changing a corporation's capital structure |
| Refund Guarantee | a clause in a residency/membership agreement that provides for an advance fee refund – upon termination of the agreement |
| Refunding | selling investments to satisfy outstanding financial obligations |
| Refusal | decision to not perform an act (or neglect to do so) |
| Regional Stock Exchange | a stock exchange that is based outside of NYC. |
| Register | to enter the names of a corporation's stockholders/bondholders |
| Registered Representative | stock market salesperson |
| Registration Statement | prospectus (ie, a document extolling virtues of investing in the company) |
| Registry of Deeds | list of conveyances |
| Regulation A | the SEC's "small issue" exemptions |
| Regulation D | the SEC's 'private offerings' exemptions |
| Regulation T | the SEC's governance over credit extended to stock purchasers |
| Regulation U | the SEC's governance over credit extended to bank-based stock purchasers |
| Regulation Z | the FRB's supervision of member banks' compliance with cost-of-credit disclosures |
| Regulations | widespread rules/codes issued/governed by administrative agencies (ie, 'regulatory bodies') |
| Regulatory Agency | government organizations that police specific realms/activities of public interest |
| Regulatory Benchmark | a measurement that may be used — by the regulatory authority – in evaluating a health filing |
| Rehearing | to re-try the issues |
| Reinstate | to place back into your original job/role (see Title VII) |
| Reinsurance | insurance for insurers |
| Reinsurance Agreement | an agreement whereby a ceding entity transfer one-or-more elements of risk to an assuming entity |
| Reinsurance Assumed | the reinsurance that an assuming entity imbibes |
| Reinsurance Ceded | reinsurance as it affects the ceding entity – under a reinsurance agreement |
| Reinsurance Program | a combination of the reinsurance: (i) agreement; (ii) service contracts; and (iii) implementation |
| Reinsurer | a company that provides reinsurance |
| Reinvest | to take your capitalized gains to purchase additional investments |
| Reinvestment Rate | the assumed yield rate on that assets that are to be purchased with the business' cash flows |
| REIT | a financial intermediary for the real estate debt market |
| Relation Back | a legal operation permitting a recent event to be treated like a past event |
| Relator | the private individual who initiated the ex rel proceeding |
| Release | to remove a claim/right [from a contract/lawsuit] |
| Release | to remove a claim/right [from a contract/lawsuit] |
| Relevant Experience | sets of data that are professionally judged to have predictive value |
| Relevant Market | a term used in examining antitrust violations |
| Relief | the solution to the immediate problem (also see remedy) |
| Remainder | leftovers from a property conveyance |
| Remainderman | a person who holds interest in a remainder (ie, the leftovers) |
| Remand | to send back (ie, an appellate court tells a lower court to correct something) |
| Remedy | the cure for the alleged wrongdoing |
| Remit | to send payment |
| Remitter | restoring your good title [to land] upon entering it |
| Removal | transferring a case from one court to another |
| Remove Cloud on Title | a mild lawsuit to determine/confirm which instruments convey a particular piece of property |
| Render | issuing the final decision/verdict |
| Renewal | continuation of an ongoing contract |
| Rent | periodic remittance for usage |
| Renvoi | using a foreigner's laws to adjudicate a lawsuit |
| Reorganization | rearranging a corporation's stock portfolio |
| Repeal | nullify/get-rid-of (typically within the context of a statute/law) |
| Replacement | a new insurance policy that [effectively] substitutes in for an old insurance policy |
| Replevin | legal action to recover withheld property |
| Replevin | legal action to recover withheld property |
| Reply | a response to a response/answer (usually requires leave of court) |
| Reports | grouped-decisions that are published for the public's consumption |
| Repossession | seizure of secured goods |
| Represent | stand-in for another person/entity |
| Representative | someone who acts for another person in a special capacity |
| Republication | reviving a will (usually with the use of a codicil) |
| Repudiation | an affirmative refusal to perform an obligatory act |
| Request for Admission | discovery tool that asks a party to admit information |
| Request for Production | discovery tool that asks someone to give you legally-pertinent information |
| Required Capital | The minimum level of the excess of assets over liabilities – that regulations mandate |
| Res | a thing; the topic |
| Res Judicata | claim preclusion; once a cause has been litigated it can't be re-litigated |
| Rescind | cancel/annul |
| Rescission | cancellation |
| Reservation | a large tract of land that has been devoted for a specific purpose |
| Reserve | large corporate savings intended to meet business dealings |
| Reserve Clause | contractual provision giving strong/exclusive right to a person's services |
| Reserve Evaluation | the process of evaluating a reserve’s reasonableness |
| Residency Agreement | a contract between a CCRC and its residents |
| Residual Market Expense | assessments for the entity’s share of residual market profits/losses |
| Residuary Clause | contractual provision granting undisposed of legacies to a specific beneficiary |
| Residuary Estate | the part of the estate that remains undisposed of |
| Residuary Legacy | a category for all remaining assets |
| Respondeat Superior | the parent company/agency (ie, where the buck stops) |
| Respondent | the petitioner's opponent |
| Responding Actuary | the actuary who is responsible for representing an entity during that entity's audit/review/examination |
| Restraint of Trade | illegal impediments on a free market system |
| Restraint on Alienation | unlawful impediments on a the free transfer of property |
| Restricted Securities | stocks that are sold via nonpublic transfers |
| Restrictive Covenant | contractual prohibition against specified usage [of transferred property] |
| Retail Installment Contract | retaining title/interest-in sold goods |
| Retiree Group Benefits | healthcare services/benefits that are provided to a group of individuals during their retirement |
| Retiree Group Benefits Program | a program that specifies retiree group benefits |
| Retirement Plan | an investment vehicle that saves an employee's money [for a future date] |
| Retrocessionaire | a reinsurer for reinsurers |
| Return | report of a taxpayer's earnings |
| Revenue | income that has been derived from any source |
| Revenue Bills | legislation that levies taxes |
| Revenue Ruling | declaratory judgment issued to the public (regarding certain tax-based circumstances) |
| Reversal | undoing a lower court's decision (eg, reversing an order of dismissal) |
| Reversion | retaining interest in conveyed land |
| Revest | returning to the original owner's possession |
| Review | to reexamine a case/action (usually by an appellate court) |
| Review Date | the date through which material information is included in the statement of actuarial opinion's development |
| Reviewing Actuary | an actuary who is has to review a health filing |
| Revocation of Will | a deliberate act to nullify parts/all of a will |
| Rider | an additional feature to an insurance policy |
| Right of Election | a spouse's legal right to choose how to receive her inheritance |
| Right of Way | permission to proceed on a shared pathway |
| Right to Convey | agreement that the grantor can convey an estate that has proper quality |
| Riparian Rights | usage/ownership rights of water embanked lands |
| Ripeness | maturation of facts that will permit adjudication |
| Risk | exposure to loss |
| Risk Adjustment | the process by which relative risk factors are assigned to individuals/groups |
| Risk Adjustment Data Validation | the process of verifying the accuracy of information that has been submitted into a risk adjustment model |
| Risk Appetite | the level of risk that an organization is willing to take – in pursuit of its objectives |
| Risk Appetite Framework | a framework that is used to identify/measure/limit the risks that an organization is willing to accept |
| Risk Appetite Limit | the level that a risk measure should not exceed – in order for the organization to remain within its risk appetite |
| Risk Appetite Statement | management’s statement regarding the entity’s risk appetite |
| Risk Capital | invested funds that are exposed to the losses that a business may suffer |
| Risk Capital Target | an insurer’s preferred level of capital – based on specified criteria |
| Risk Capital Threshold | the minimum level of capital necessary for an entity to operate effectively |
| Risk Characteristic | measurable factors that are used to assign each risk to a prescribed risk class |
| Risk Class | a set of risks that are grouped together (under a risk classification system) |
| Risk Classification | the process of establishing a system for evaluating/prioritizing/cataloging risks |
| Risk Classification System | a system used to assign risks to groups – based upon the coverage's/service's expected cost/benefit |
| Risk Factor | an aspect of future experience that is not fully predictable |
| Risk Inventory | a regularly updated list of the risks that an organization is exposed to |
| Risk Margin | a provision for uncertainty in a claim estimate |
| Risk of Adverse Deviation | the risk that actual experience may differ from best-estimate assumptions |
| Risk of Loss | exposure to financial damage |
| Risk Profile | the risks that an organization is exposed to |
| Risk Retention | a risk-management strategy for the assessment/management/financing of retained risk that is associated with the specific coverage |
| Risk Taxonomy | a tiered structure consisting of broad and narrow risk classifications |
| Risk Tolerance | the aggregate risk-taking capacity of an organization |
| Risk Transfer | a risk-management strategy that shifts responsibility from one party to another party |
| Risk Weight | the value assigned to each condition category |
| Risk-Bearing Entity | the entity with respect to which the actuary is estimating assets/liabilities associated with health benefit plans (or risk-sharing arrangements) |
| Risk-Free Interest Rate | the theoretical rate-of-return of an investment that has zero risk (with respect to the timing/amount of payments) |
| Risk-Sharing Arrangement | an arrangement calling for payments that are contingent upon certain financial/etc metrics |
| Round Lot Shareholders | shareholders holding portfolios with 100 shares/block |
| Rule | guidance on conduct |
| Rule Against Perpetuities | policy prohibiting property interests from taking more than 21 years to vest |
| Run with the Land | doctrine establishing permance of a contractual provision (down to all descendants) |
| Rural Health Clinic | a clinic that meets certain requirements for providing primary care services in specific areas |
| Term | Short Definition |
|---|---|
| Sailor's Will | an orated will & testament (which receives less stringent regulations) |
| Salable | legal, quality goods at proper prices |
| Sale | exchanging goods/services for money |
| Sale and Leaseback | arranging to sell property that will immediately be leased back to you |
| Sale or Exchange | value-for-value disposition of property |
| Salvage | value of a distressed/rescued asset |
| Sample | subset models the whole |
| Sanction | punish (in other contexts: reward) |
| Satisfaction | completion/perfection of an obligation |
| Save Harmless | indemnify; preclude from liability |
| Scenario | a sequence of events that will be used in a financial model |
| Scenario Analysis | a process for assessing how much impact a possible event could have on an entity’s financial outlook |
| Scenario Test | assessing how much impact a possible event could have on an entity’s financial outlook |
| Scheduled Gross Premium | the smallest payment that will keep the policy in force (eg, the specified premium) |
| Scienter | guilty conscience |
| Scope of Employment | job-related duties |
| Scutage | property tax that was used for the king's army |
| Seal | a stamp that authenticates a legal document |
| Sealed Instrument | a contract that features a seal next to the signature(s) |
| Sealing Records | removing court records from the public's eye |
| Seasonal | temporary, and based on specific times of year |
| SEC | securities & exchange commission (a federal agency that regulates stocks/bonds/sellers/dealers/etc.) |
| Second Mortgage | a refinancing of secured property – while not requiring additional liens |
| Secondary Distribution | stock offering that succeeds the initial offering |
| Secondary Guarantee | a promise to keep the policy in force - under certain [suboptimal] conditions |
| Secondary Market | place where policyholders can sell/transfer their life insurance policies |
| Secondary Party | a backup debt-satisfier |
| Secured Creditor | a lender who obtained collateral |
| Securities | financial instruments that are tied to a corporation's earnings |
| Securities Acts | two federal laws aimed at policing stock market trading |
| Security | an investment that gives capital to a money-generating entity |
| Security Deposit | a down payment |
| Security Interest | caring about something by proxy of an investment |
| Segmented Reserve | PV of guaranteed benefits minus PV net premiums |
| Seised | condition of legally owning realty |
| Seisin | interest in a freehold estate (ie, ownership) |
| Select-Period Mortality Rates | the early part of an insurer's mortality table that captures the real-life phenomenon of lower-than-expected mortality rates |
| Self-Dealing | insider trading |
| Self-Help | solving your problems on your own (without breaching the peace) |
| Self-Insurance | contingent indemnification for a very small number of insureds (eg, one person; nine people; etc.) |
| Sell Short | to sell a stock/asset with the hopes of buying it back – at a lower price |
| Seller | a person who consummates an exhange of goods |
| Sensitivity Analysis | evaluation how much impact a changed assumption could have on results |
| Sensitivity Test | assessing the impact that an altered actuarial assumption has on an actuarial measurement |
| Separate but Equal | longheld legal tradition commanding racial segregation |
| Separation Agreement | a divorce-like contract between spouses |
| Separation of Powers | core constitutional mandate that each branch of government must mind its own business |
| Sequestration | quarantine/separate case participants (eg, witnesses, jurors) to prevent tampering |
| Seriatim | one-by-one (ie, granular records) |
| Servant | the person who takes the employee role (see independent contractor) |
| Service Provider | an entity that provides contractual services that are related to a reinsurance agreement |
| Servient Estate | a property that is subject to being used by the dominant estate |
| Set Aside | to nullify (to render void) |
| Setoff | amount that can be used to offset a tax deficienty |
| Settlement | amicable resolution of matters |
| Settlor | a person who creates a trust – for a beneficiary – by giving property to someone else |
| Severable Contract | an agreement that can be broken into multiple parts (for multiple parties) |
| Severance | money that a company pays to a departing employee |
| Shall | mandatory; must. The term denotes a ministerial duty |
| Sham Pleading | an answer/complaint that is wholly false |
| Share | a unit of stock |
| Share and Share Alike | divide equally |
| Shareholder | an investor who owns stock [in a company] |
| Sheriff's Sale | a forced sale of defaulted property |
| Short Rate | a quick re-do of an insurance policy |
| Short-Range Period | a period that's long enough to encompass a complete cycle |
| Show Cause | demonstrate (typically in response to a Court Order) |
| Sick Pay | wages for missed work (due to illness/injury) |
| Side Fund | a separate, reservoir of money that is attached to a life insurance policy |
| Sight Draft | demand for immediate payment |
| Signature | a writing/mark that authenticates a document/instrument |
| Significant | an event may be described as significant if the likelihood of its occurrence is more than remote |
| Silent Partner | an investor/principal who is either abstinent or anonymous |
| Sinking Fund | money amassed to repay a debt |
| SIPC | nonprofit private corporation that protect stock market participants |
| Small Employer | any entity that has enough eligible employees (as statutorily-defined) |
| Socage | a type of tenure that a vassal performed for his lord |
| Social Influence | the impact that societal changes [could potentially] have on insurance costs |
| Social Insurance Program | a program that has features that [equally] benefit virtually every member of a population |
| Soldier's Will | an orated will & testament (which receives less stringent regulations) |
| Sole Proprietorship | a one-man operation |
| Solvency | a stage/status that denotes a companies good financial health |
| Sound | healthy mind/capacity |
| Sound Values | claim liabilities have sound values if future premiums exceed future benefit payments |
| Sovereign | the governing body that has dominion over a case |
| Sovereign Immunity | the government's protection against lawsuits (see 11th Amendment (US)) |
| Specialty | contracts that were valid despite the absence of consideration |
| Specified Premium | the dollar amount that satisfies the secondary guarantee |
| Speculation | swiftly trading securities/goods for the sake of profiteering |
| SpendThrift Trust | a restricted trust that minimizes a beneficiary's extravagant spending |
| Spoilation | hiding/destruction of material evidence (see concealment) |
| Spot Price | the current price/value of the stock |
| Spouse | a party to the domestic relations action who is not the covered party |
| Spread | a difference between a revenue and its expense counterpary (many different contexts) |
| Spread Gain Actuarial Cost Method | an actuarial cost method under which actuarial gains & losses are included as part of the normal costs |
| Squeeze Out | acts to eliminate/minimize minority shareholders |
| Standard Deductions | a prescribed reduction in taxable income |
| Standard Valuation Law | a government-prescribed methodology for evaluating insurance reserves |
| Standing | a legal/legitimate right to sue/complaint |
| Stare Decisis | precedent |
| Starting Assets | a portfolio of assets that will be used to fund the projected policy cash flows that arise from those assets |
| State Bond | a loan that is issued/sold by a state government |
| State Plan Service | the benefits provided to qualified Medicaid beneficiaries within a state/territory |
| Statement | an assertion (typically, one which the party intends to prove) |
| Statistical Agent | an entity that can safely maintain/distribute insurance-related data/information |
| Statute | a law |
| Statute of Frauds | requirement that contracts must be signed – in order to be enforceable |
| Statute of Limitations | the time period in which claims must be made (or be forever barred) |
| Statute of Uses | old English law preventing separate of legal estates from equitable estates |
| Statute of Wills | old English law prescribing conditions for a valid will |
| Statutory Assessment Expense | a legally-mandated assessment that is permitted to be included in the expense provisions |
| Statutory Law | the statutes created by the legislature |
| Statutory Net Worth | a company's net worth (calculated pursuant to applicable law) |
| Stay | to halt proceedings until further notice |
| Stochastic Analysis | evaluation performed by using a model that estimates distributions of potential outcomes by allowing random variation in one-or-more inputs |
| Stochastic Modeling | a process for generating numerous potential outcomes – for the purpose of assessing the distribution of those outcomes |
| Stochastic Reserve | the amount determined by using stochastic modeling on scenario reserves |
| Stock Certificate | a receipt for a corporate share |
| Stock Clearing | a clerical task surrounding the physical delivery of traded stocks |
| Stock Exchange | a place where people/entities buy & sell securities |
| Stock Issue | public offering of corporate shares |
| Stock Market | a place where people/entities buy & sell securities |
| Stock Option | a financial add-on that gives the option owner some privilege/right |
| Stock Split | dividing the outstanding shares into larger numbers |
| Stockholders' Derivative Action | a lawsuit that shareholders take [against corporate assailants] on behalf of its corporation |
| Stop-Loss Coverage | insurance protection that provides reimbursement of all/some claims – that are in excess of a stated amount |
| Straddle | financial derivatives position that only cares about stock volatility |
| Straw Man | a fictitious person/scenario erected for the purpose of arguing against it (ie, grandstanding) |
| Street Name | securities held in the broker's name |
| Stress Test | a scenario analysis that measures how much impact adverse changes [in certain assumptions] have on an organization’s financial position |
| Strict Construction | using the literal meanings of statutes and laws |
| Strict Liability | liability without fault (compare vicarious liability) |
| Strict Scrutiny | taking a close look at a rule/statute that will impact fundamental rights |
| Strike Price | the ultimate purchase price for share of corporate stock |
| Sua Sponte | on the court's own volition (a spontaneous act by the court) |
| Subject Experience | a specific set of data that is drawn experience – for the purpose of predicting a parameter |
| Subject Matter | the topic for which the claims arise |
| Subject to Open | a flexible inheritance that permits an increase/decrease in heirs |
| Sublease | rent your rental to someone else |
| Subpoena | writ commanding someone to appear in court, produce information; or do both. |
| Subrogation | substituting one creditor for another |
| Subrogee | the entity that succeeds the legal rights/claims of another |
| Subrogor | the entity whose legal rights/claims are acquired by another entity |
| Subsequent Event | known, material events that occurred after the certification period (yet before certification) |
| Subsidiary | a company that is largely owned by a larger company |
| Substitution | replacing one legatee with another |
| Subtenant | the person who rents from another renter |
| Succession | inheriting property from a preceding heir |
| Successive Terms | a continuous series of periods |
| Successor | the person who follows (and assumes) the rights/roles/etc of a prior person |
| Sufficient | ontaining enough data elements/records for the analysis |
| Sui Juris | reaching emancipation/independence |
| Sum Certain | a precise/calculable quantity |
| Sum Certain | a precise/calculable quantity |
| Summary Judgment | final decision on the case that precludes the need for a trial/hearing |
| Summons | a writ commanding a defendant to answer to a complaint |
| Sunday Closing Laws | laws forbidding commercial activity on Sundays |
| Suppression of Evidence | blocking information from being used in a litigation |
| Supra | latin word for above; (antonym of infra) |
| Supremacy Clause | Art. VI §2 US Constitution (the federal government rules over states) |
| Supreme Court | the highest court of the land; the court of final review |
| Surcharge | an additional fee/penalty |
| Surety | a person/entity that will guarantee payment/action that has been conferred upon another person/entity (ie, its principal) |
| Surplus | assets minus liabilities/debts/etc. |
| Surplus Lines Insurance | unconventional coverage for various events/risks/aspects |
| Surrender | to deliberately cancel a policy (while retrieving accumulated cash value) |
| Survival Curve | the statistical data set that represents an insured's assumed probability-of-survival |
| Surviving Dependent | someone who qualifies as a participant following the death of his/her associated/originating participant |
| Suspension | a temporary break featuring negative connotations (compare with abeyance) |
| Sustain | to approve the request (ie, to approve an objection) |
| Sustainability | the capacity of a Social Insurance Program to continuously support its legally-prescribed benefits |
| Swap | a financial derivative in which counterparties trade cash flows of different instruments |
| Term | Short Definition |
|---|---|
| Tabular Cost of Insurance | net single premium that replicates a 1-year term insurance policy |
| Tabular Method | the seriatim application of factors to a volume measure – to estimate unpaid claims liabilities |
| Tacking | adding/joining things together |
| Tangible Net Worth | shareholder equity minus intangible assets (see SEC Form 10-k) |
| Tangible Property | possessable items that can be observed by the senses (ie, sight, touch, smell, etc.) |
| Tax | money that the government takes from its citizenry |
| Tax Benefit Doctrine | concept that allows a taxpayer to balance out his/her varying tax liabilities |
| Tax Court | administrative agency that hears adverse IRS rulings |
| Tax Credit | a reduction in the amount of tax owed |
| Tax Deduction | a reduction in the amount that can be taxed |
| Tax Exempt | not subject to tax |
| Tax Expenditure | losses that the government experiences due to certain tax benefits/releases/reliefs |
| Tax Liability | a taxpayer's total tax bill |
| Tax Preference Items | items that – due to receiving preferential IRS treatment – fall victim to aggregate taxation |
| Tax Rate | the percentage rate of tax imposed |
| Tax Sale | a sale of land – for the nonpayment of taxes |
| Tax Shelter | financial vehicles/structures that can be used reduce tax liability |
| Taxable Estate | net amount that is used for calculating estate tax liability |
| Taxable Gift | net amount that is used for calculating gift tax liability |
| Taxable Income | the net amount of personal revenue that is subject to a tax rate |
| Taxable Year | the calendar year in which taxes accrue |
| Taxes, Licenses, and Fees | taxes; license costs; and miscellaneous fees |
| Taxing Power | congress's authority to levy/collect taxes |
| Taxpayer | a person/entity that pays taxes |
| Temporary Transfer | [momentarily] moving out of one level of care; and into another level of care |
| Tenancy | a tenant’s right to possess an estate |
| Tenant | a person who rents property from someone else |
| Tenant in Fee | a person who can reside on an estate forever |
| Tender | an offer to pay/perform coupled with tangible payment |
| Tender of Delivery | placement of goods at the buyer's location |
| Tender Offer | a publicly announced purchase-of-stock that will give the buyer control of the corporation |
| Tenement | permanent property |
| Tenure | the right to hold |
| Ten-Year Select Factor | mortality-related factors that come from the NAIC's SVL |
| Term Insurance | a type of insurance that ends at a specified date/time |
| Terminable Interest | an interest in property that will end (based on time/conditions) |
| Terminal Reserve | the reserve that exists at the end of the contract year |
| Testacy | the condition of leaving a will |
| Testament | statement outlining the disposal of personal property – upon death |
| Testamentary Capacity | having a mind that is sound enough to create a will |
| Testamentary Disposition | a gift that only transfer upon the giver's death |
| Testamentary Intent | a legal determination that a purported will is [indeed] a will |
| Testator | the person whom the will covers (ie, the upcoming dead person) |
| Testimony | oral information submitted under oath |
| Three Lines | a common model for the governance of an organization’s ERM framework |
| Time Sharing | an agreement – among multiple people – to share ownership of a property |
| Time Value of Money | financial doctrine stating that today's money has different value/usefulness than tomorrow's money |
| Title | ownership |
| Toll | extend the time to perform an act (see Statute of Limitations) |
| Tombstone Ad | a newspaper advertisement that announces the sale/purchase of corporate stock |
| Tontine | situation in which last-surviving policyholders receive dividends that are in accordance with preceding policyholders |
| Tort | a wrong - in the eyes of society (eg. a judge committing perjury) |
| Tortfeasor | one who wrongs another (within the confines of society's expectations) |
| Total Disability | inability to perform the core job duties |
| Total Loss | full destruction of an item/property |
| Total Return | the sum of operating profits and investment income [on capital] |
| Trade Fixture | a commercial item (eg, a sign) that is erected upon rented property |
| Trade Name | a name that identifies a particular merchant's business |
| Trade Secrets | any [unpublished] formula/process/tool that gives its owner a commercial advantage |
| Trade Usage | a practice that is widely accepted/relied-upon within an industry |
| Trademark | an insignia that identifies a particular merchant's goods |
| Transaction | an event that has tax consequences |
| Transcript | written record (verbatim) of an official proceeding |
| Transfer | to give to another person/entity |
| Transfer Agent | the recordkeeper of a corporation's shareholders |
| Transferee | the person/entity that receives the property |
| Transferee Liability | a tax liability that is imposed on the person who has received the transfer |
| Transferor | the person/entity that provides the transfer |
| Traverse | a pleading that denies the allegations (eg, an answer/response) |
| Treasure Trove | a valuable thing that has been hidden |
| Treasury | the division of a government/entity that handles financial affairs |
| Treasury Bill | a loan to the government that matures in 1-year-or-less |
| Treasury Bond | a loan to the government that matures after 5-years have passed |
| Treasury Note | a loan to the government that matures between 1-year and 5-years |
| Treasury Stock | stock that a company re-purchased after previously issuing it out |
| Trend | a measure of the rates of change – throughout time – that affect financial elements/metrics (eg, revenues; actuarial assumptions; etc.) |
| Trending Period | the time for which trend is applied in projecting experience periods into forecast periods |
| Trending Procedure | a process by which the actuary evaluates how changes over time affect various items |
| Trial Court | the court that adjudicates the facts and laws of a case |
| Tribunal | the governing body that has original jurisdiction |
| Trover | old law that recovered personal property that was wrongly converted |
| Trust | an entity that holds assets for the benefit of another person/group |
| Trust Certificate | an item that is used to finance the purchase of railroad equipment |
| Trust Company | a financial organization that acts as a trustee/fiduciary/agent for its customers |
| Trust Fund | property that is held in trust – for the benefit of another person |
| Trust Indenture | the terms & conditions of a trust |
| Trustee | the person who controls the trust |
| Trustor | the person who creates a trust |
| Truth in Lending Act | federal law that requires lenders to fully-inform their borrowers |
| Tying Arrangement | salesman's requirement that a customer must buy the second product from that same salesman |
| Term | Short Definition |
|---|---|
| U3C | congressional permission to allow states/territories to adopt uniform laws/statutes |
| UCC | a widespread code of laws governing various commercial transactions |
| Ultra Vires | excess of authority |
| Ultrahazardous Activity | an uncommon, risky, and harmful activity that gives rise to liability |
| Unclean Hands | actively causing the problem that you took legal action on |
| Unconscionability | so unreasonably detrimental that it renders itself to be unenforceable |
| Unconstitutional | an act that does not conform with the constitution |
| Underwrite | to evaluate the insurability of a prospective customer |
| Underwriting | the process of evaluating a [prospective] insured’s medical/etc. information – to determine eligibility/classification |
| Underwriting Change | deliberate adjustment to the process of accepting/rejecting insurance applications |
| Underwriting Expense | all expenses related to the process of evaluating a prospective insured’s eligibility/classification |
| Underwriting Profit | premiums minus (losses + loss-adjustment expenses + underwriting expenses + policyholder dividends) |
| Underwriting Profit Provision | the provision for underwriting profit in the actuarially-developed rate |
| Undivided Interest | each property owner has the right to use/enjoy the entire property |
| Undue Influence | impact on another person that is so strong that it [itself] is rendered invalid |
| Unearned Premium Reserve | an amount to reflect that some premiums have been paid prematurely |
| Unearned Surplus | paid-in-surplus; revaluation surplus; donated surplus; etc. |
| Unfair Competition | mimicking a competitor for unjust enrichment |
| Unfair Labor Practice | coercive/discriminatory/overreaching activities conducted by unions/employers |
| Unfit | unsuitable for a particular use/service |
| Uniform Gifts to Minors Act | a uniform set of laws that creates a statutory method for making a gift [in trust] to minors. |
| Unit Investment Trust | an unmanaged portfolio of bonds that are sold in $1,000 denominations |
| Unitary Reserve | PV of guaranteed benefits minus PV of modified net premiums |
| Unities | legal requirements necessary to create certain kinds of tenancies |
| Universal Agent | an agent authorized to transact all the business of his/her principal |
| Universal Life Insurance | a [long-term] form of life insurance that has several features (eg, a cash value) |
| Unjust Enrichment | wrongfully benefiting at the expense of another person |
| Unlawful Detainer | holding possession without having the right to do so |
| Unlisted Security | a stock/bond that is not regulated by the SEC |
| Unpaid Claim Estimate | the actuary’s estimate of the obligation for future benefits payments that result from claims that occurred in the past |
| Unpaid Claim Estimate Analysis | the process of developing an unpaid claim estimate |
| Unpaid Claims Liability | he value of the unpaid portion of incurred claims |
| Uptick | indicia that the latest trade [in a stock] is at a higher price than the previous trade |
| Use | the right to enjoy the benefits that flow from property |
| Usufruct | the right to enjoy/profit-from the vested property [of someone else] |
| Usurious Contract | a predatory lending contract |
| Usury | a predatory interest charge (typically found in distressed loans) |
| Term | Short Definition |
|---|---|
| Vacate | to nullify [a prior order] |
| Valuation | the determination of how much reserve an insurer should hold |
| Valuation Basis | an accounting/economic framework for the recognition/measurement of assets & liabilities |
| Valuation Date | the date when the reserve is to be valued |
| Valuation Mortality Table | a table prescribed for determining mortality rates |
| Valuation Net Modal Premium | modal fraction of the valuation net annual premium (for contract reserves only) |
| Valuation Premium | reserve-related premium that uses prescribed assumptions (eg, interest; mortality) |
| Value | the monetary worth of a thing |
| Value of Business Acquired | in GAAP purchase accounting, VOBA is the difference between the reported value and the fair value [of contract liabilities] |
| Variance | proofs at trial that are different from charges at indictment |
| Vassal | a land-based servant |
| Venal | readibly bribed/corrupted |
| Vend | to sell |
| Vendee | a buyer |
| Vendor | a seller |
| Vendor's Lien | securing a vendee's payment by collateralizing his/her property/estate |
| Venire | the manner in which a jury is summoned |
| Venue | the place where the issues can be adjudicated |
| Verdict | the final decision handed down by the finder of fact |
| Verification | the certification of the authenticity/veracity of something (typically, a legal statement) |
| Verified | the officially certified authenticity/veracity of something (typically, an oath) |
| Vested | matured |
| Vexatious Litigation | excessive/frivolous litigation |
| Viatical | a life settlement in which the insured is expected to die soon |
| Vicarious Liability | being held accountable for a subordinate's actions (see master-&-servant) |
| Villenage | a form of tenure that required the tenant to perform all services [for his/her lord] |
| Vitiate | to nullify/void |
| Void | invalid; worthless |
| Voir Dire | process of evaluating prospective jurors |
| Voting Rights | participating-members' rights to elect board members; and vote on corporate reorganizations |
| Voting Trust | accumulating corporate shares for the purpose of controlling the corporation |
| Term | Short Definition |
|---|---|
| Waiting Period | the time window in which insurance coverage has yet to commence. |
| Waiver | surrendering a right/requirement |
| Wanton | reckless disregard |
| Ward | a person whom the law regards as incapable of managing his/her own affairs |
| Wardship | a form of [common law] guardianship |
| Warehouse Receipt | a receipt that is issued by a person (bailee) engaged in the business of storing goods for hire |
| Warrant | an order from a judge that permits search/seizure (see 4th Amendment) |
| Warranty | insurance on a product/property |
| Warranty Deed | a document that warrants that the grantor has the title he/she claims to have |
| Waste | an act that decreases the value of property |
| Wasting Asset | an asset that will be consumed through its use; |
| Watered Stock | corporate shares that are being offered at an inflated price |
| Weight of the Evidence | how important the information is |
| Welfare Benefit Plan | an entity that aims to procure employee benefit plans |
| When Issued Securities | a conditional trading basis for authorized stock that is yet-to exist |
| Whiplash Injury | a neck injury commonly associated with rear-end car crashes |
| White-Collar Crime | nonviolent offenses that are committed by executives/officials |
| Whole Life Insurance | an agreement by which a beneficiary receives a fixed death benefit |
| Widow | a woman whose husband has died |
| Widower | a man whose wife has died |
| Will | a contract that distributes inheritance |
| Willful | intentional; connoted with desire to inflict damage (also see wanton) |
| Winding Up | the process of liquidating a corporation |
| Withdrawal | the removal of money/etc from the place where it is kept |
| Withholding | portions of earned wages that an employer removes from each salary payment |
| Without Recourse | without further rights regarding some matter |
| Witness | someone who supplies testimonies and/or affidavits |
| Words of Limitation | words used that actually indicate the type of estate that is being taken by the grantee |
| Words of Purchase | words in a property transfer that indicate who takes the estate |
| Work Product | legal notes/materials that are sacred/privileged |
| Workers Compensation | insurance coverage that an employer must provide to its employees |
| Workers Compensation Acts | laws holding employer's liable for on-the-job injuries/illnesses |
| Worthier Title | concept that confers supremacy of a living-man's gift over a deadman's gift |
| Wraparound Mortgage | an advantageous second mortgage featuring lower cash flow demands |
| Writ | a legal order compelling someone to act |
| Writ of Error | a higher-court command [to a lower court] to send up the record (ie, Certiorari) |
| Writ of Prohibition | a legal order directing an officer/governing body to refrain from acting |
| Wrongful Death Statute | a law that lets people sue each other for lethal misconduct |
| Term | Short Definition |
|---|---|
| X | [substitute] signature (typically used by people with an impairment that affects a full handwritten signature) |
| X Factor | the percentages that may be applied to select period mortality rates – for deficiency reserve purposes |
| X Factor Class | a group of policies to which a single set of X factors applies |
| Term | Short Definition |
|---|---|
| Yellow Dog Contract | a contractual provision that prohibits labor union membership |
| Yield | the current rate of return |
| Yield-to-Maturity | a calculation of yield on a bond that accounts for capital gains/losses |
| Term | Short Definition |
|---|---|
| Zone of Employment | the physical area that an employer is legally liable for |
Feel free to use it throughout your financial/insurance life.
Sincerely,
www.FroogleMe.com
