Glossary Terms

A flooding condition which has a one percent chance of occurring each year. The 100-year flood level is used as the base planning level for floodplain management in the National Flood Insurance Program.

An unpreventable accident or event that is the result of natural causes; for example, floods, earthquakes, or lightning.

contract sold by insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (annuitant), for the lives of two or more persons, or for a specified period of time.

The tendency of individuals who believe they have a greater than average likelihood of loss to seek insurance protection to a greater extent than do those who believe they have an average or a less than average likelihood of loss.

A survey by a claims representative or claims appraiser estimating the amount of damage to property and the cost to repair or the determination of a complete loss.

The monetary worth of real or personal property as a basis for its taxation. This value, established by a governmental agency, is rarely used by insurers as a means to determine indemnification.

a measure of an asset's default of principal or interest or fluctuation in market value as a result of changes in the market

insurance company’s theoretical capital amount and surplus that is should maintain.

A slippage of built-up snow down an incline possibly mixed with ice, rock, and soil or plant life in what is called a debris avalanche. Avalanches are a major danger in the mountains during the winter as a large one can run for miles, and can create massive destruction of the lowered forest and anything [...]

Building Code Effectiveness Grading Schedule. A classification of communities by the Insurance Services Office based on how well they have implemented and enforced building codes in their community.