Alta Holdings

Glossary A

Actuary
A statistician who computes insurance risks and premiums.
Admitted insurer
An insurance company licensed to do business in a specified jurisdiction to underwrite insurance in that jurisdiction.
Aggregate limit of liability
An insurance contract provision limiting the maximum liability of an insurer for a series of losses in a given time period. An insurance policy may have one or more aggregate limits. For example, the standard commercial general liability policy has two: the general aggregate that applies to all claims except those that fall in the products-completed operations hazard and a separate products-completed operations aggregate. Aggregate excess of loss reinsurance -A form of reinsurance that requires participation by the reinsurer when aggregate excess losses for the primary insurer exceed a certain stated retention level.
Alien insurer
An insurer domiciled outside the US.
Alternative market
A term commonly used in risk financing to refer to one of a number of risk funding techniques (e.g., self-insurance, captive) or facilities (e.g., ACE, XL) that provide coverages or services outside the realm of those provided by most traditional property and casualty insurers. The alternative market may be utilized by large corporations, for example, to provide high limits of coverage over a large self-insured retention. It may also be utilized by groups of smaller entities, for example, participating in a risk retention group or group captive program. Note that the distinction between traditional and alternative markets tends to blur over time as many traditional insurers have expanded their offering of products to encompass alternative-type funding techniques, and vice versa. Finally, retrospective funding plans, especially paid loss plans, are sometimes identified with the alternative market.
Association captive
A captive insurance company formed and owned by a trade or professional association
Attachment point
The point at which excess insurance or reinsurance limits apply. For example, a captive's retention may be $250,000. This is the attachment point at which excess reinsurance limits would apply.