What Is Incurred But Not Reported (IBNR)? Incurred but not reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims and/or events that have transpired, but have not yet been reported to an insurance company. In IBNR situations, an actuary will estimate potential damages, and the insurance company may decide to
What Is Indemnity? Indemnity is a comprehensive form of insurance compensation for damages or loss. When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages
What Is Indentured Servitude? Indentured servitude is a form of labor where an individual is under contract to work without a salary to repay an indenture or loan within a certain timeframe. Indentured servitude was popular in the United States in the 1600s as many European immigrants worked in exchange for the price of passage
What Is an Independent 401(k)? The term independent 401(k) refers to a tax-advantaged retirement savings plan available to individual small business owners and their spouses. It is a variation of the 401(k) plan that many large employers offer their workers. Since it is a small business owner 401(k), the employer and employee are one and
What Is an Independent Auditor? An independent auditor is a certified public accountant (CPA) or chartered accountant (CA) who examines the financial records and business transactions of a company with which they are not affiliated. An independent auditor is typically used to avoid conflicts of interest and to ensure the integrity of performing an audit.
What Is an Independent Contractor? An independent contractor is a self-employed person or entity contracted to perform work for—or provide services to—another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. In addition, an entity that uses the services of an independent contractor is not required
What Is the Independent Insurance Agents and Brokers of America (IIABA)? The Independent Insurance Agents and Brokers of America (IIABA) is a national organization of independent insurance brokers. Founded in 1896, the IIABA is headquartered in Alexandria, Virginia, and represents approximately 25,000 independent brokerage firms. Key Takeaways The Independent Insurance Agents and Brokers of America
What Is an Index? An index is a method to track the performance of a group of assets in a standardized way. Indexes typically measure the performance of a basket of securities intended to replicate a certain area of the market. These could be constructed as a broad-based index that captures the entire market, such
What Is an Index Roll? The term index roll refers to a passive index investment strategy that uses a combination of index funds and long-term equity anticipation securities (LEAPS). An investor who uses this strategy must roll over a series of LEAP options to gain exposure to a long-term move in an index. Leverage from the
What Is an Indexed Rate? An indexed rate is an interest rate that is tied to a specific benchmark with rate changes based on the movement of the benchmark. Indexed interest rates are used in variable-rate credit products. Popular benchmarks for an indexed rate include the prime rate, LIBOR, and various U.S. Treasury bills and
