Glossary Terms

minimum of care owed by one party for the physical safety of another.

The property loss in which the insured peril is the proximate cause of damage or destruction.

The total premiums received by a property and liability insurance company without any adjustments for the ceding of any portion of these premiums to the reinsures.

A natural or man-made event that negatively affects life, property, livelihood or industry often resulting in permanent changes to human societies, ecosystems and the environment.

A drought is a long lasting weather pattern consisting of dry conditions with very little or no precipitation. During this period, food and water supplies can run low, and other conditions, such as famine, can result. Droughts can last for several years and particularly damaging in areas where residents depend on agriculture for survival.

The portion of the total amount of exposure (risk) corresponding to the coverage provided during a given time period.

The portion of the total premium amount corresponding to the coverage provided during a given time period.

A sudden shift or movement in the tectonic plate in the Earth’s crust. On the surface, this is manifested by a moving and shaking of the ground, and can be massively damaging to poorly built structures.

Proof that a person is an insurable risk.

Part of an insurance contract that excludes coverage of certain perils, persons, property or locations.