A policy which has been allowed to expire because of non payment of premiums.

The insurer who determines the terms and rating applicable to large insurance placements involving participation by several insurers. The lead usually takes the largest share of a risk, with other insurers following the lead.

A financial instrument obtained from a bank guaranteeing the availability of funds to be collected in the future under a reinsurance contract. Often required in overseas markets where currency restrictions or concerns about reinsurer solvency exist.

A form of general insurance that provides cover in regard to the insured's legal obligation for loss or damage to another person.

Companies that are owned by their shareholders. The liability of its shareholders is limited to the fully paid up value of the shares.

A line is the amount an insurer retains on a risk under a proportional treaty. It is also used to refer to the amount a reinsurer will accept on a piece of business.

Transacts business only within the country where it is registered.

This refers to the international insurance and reinsurance business written in London. It consists of the following segments: international reinsurance; marine and aviation; US excess and surplus lines business; and direct overseas business written in the UK

A term used to describe a risk or class of business that may have claims notified or settled long after risks have expired. The financial outcome for these classes will not be known with certainty for several years. Liability insurance is long tail.

Generally refers to the amount of reduction in the value of an insured's property caused by an insured peril. In an insurance sense it usually does not mean "misplacing" an item.

The history of losses suffered by an insured or intending insured. This includes losses which were not covered by insurance.

The percentage that incurred losses bear to earned premiums.

An amount set aside to provide for outstanding claims.