What Is Insurance Fraud? Insurance fraud is an illegal act on the part of either the buyer or seller of an insurance contract. Insurance fraud from the issuer includes selling policies from non-existent companies, failing to submit premiums, and churning policies to create more commissions. Buyer fraud, meanwhile, can consist of exaggerated claims, falsified medical
What is an Insurance Grace Period? An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing. The insurance grace period can vary depending on the insurer and policy type. Depending on the insurance policy, the grace period can be
What Is an Insurance Industry ETF? An insurance industry ETF is an exchange-traded fund (ETF) that aims to generate returns equal to an underlying index of insurers. An insurance ETF invests in all types of insurers, including property and casualty insurers, life insurance companies, full line insurers, and insurance brokers. Depending on its mandate, such an ETF may also
What Are Insurance Proceeds? Insurance proceeds are benefit proceeds paid out by any insurance policy as a result of a claim. Insurance proceeds are paid out once a claim has been verified, and they financially indemnify the insured for a loss that is covered under the policy. Insurance proceeds are sometimes paid directly to a care
What Is the Insurance Regulatory Information System (IRIS)? The Insurance Regulatory Information System (IRIS) is a collection of databases and tools used to analyze the financial statements of insurance companies. Managed by the National Association of Insurance Commissioners (NAIC), the Insurance Regulatory Information System (IRIS) has been available since 1972 and is primarily employed by regulators to
What Is an Insurance Risk Class? An insurance risk class is a group of individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage. Determining the insurance risk class is a primary component of an insurance company’s underwriting
What Is an Insurance Score? An insurance score, also known as an insurance credit score, is a rating computed and used by insurance companies that represents the probability of an individual filing an insurance claim while under coverage. The score is based on the individual’s credit rating and will affect the premiums they pay for the coverage.
What Is Insurtech? Insurtech refers to the use of technology innovations designed to find cost savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech. Key Takeaways Insurtech is the use of technology innovations designed to make the current insurance model
What Is International Competitive Bidding (ICB)? International competitive bidding (ICB) is a bidding and procurement process the World Bank requires of any borrower that obtains goods, work and non-consulting services with financing provided by the World Bank. Key Takeaways International competitive bidding (ICB) refers to a bidding and procurement process the World Bank requires of
What Is an Intangible Asset? An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory. Additionally, financial assets such as stocks and bonds, which derive
