CIIG Certificate - independent subject foundations flashcards
CIIG Certificate - independent subject foundations · Build recall with a focused review session.
26 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Exposure
- A person, asset, activity or financial interest subject to a possible loss, which must be identified before treatment alternatives are compared.
- Loss frequency
- The number or rate of loss events over a defined exposure and period, distinct from the size of each loss.
- Loss severity
- The monetary or other defined magnitude of an event’s consequences, requiring a consistent unit and scope when observations are compared.
- Risk retention
- Keeping specified financial consequences within the organization or household rather than transferring those consequences through an external contract.
- Risk transfer
- Allocation of specified financial consequences to another party under an arrangement, with residual contractual and counterparty risks potentially remaining.
- Deductible
- An amount of covered loss retained by the policyholder under the contract’s stated calculation, which must not be assumed identical across products.
- Policy limit
- A contractual upper boundary on specified payments or coverage, applied using the actual wording, aggregation period and relevant sublimits.
- Exclusion
- Contract wording removing a specified circumstance or cause from coverage, subject to the actual policy and applicable legal interpretation.
- Endorsement
- A contractual amendment that can alter a policy’s terms, so coverage analysis must read it together with the relevant base wording.
- Underwriting
- Evaluation of a proposed exposure and the terms on which protection may be offered, using appropriate information and applicable constraints.
- Premium
- The contractual amount charged for defined insurance protection, distinct from a guaranteed investment return or the amount payable for every loss.
- Claim
- A request for a benefit or payment arising from an alleged insured event, requiring examination of coverage and supporting evidence.
- Indemnity
- A principle relating some insurance payments to a covered financial loss, whose operation and exceptions depend on product and law.
- Subrogation
- A concept concerning an insurer’s pursuit of certain recovery rights after payment, dependent on the actual contract and applicable law.
- Reinsurance
- A separate arrangement transferring specified insurer exposure to another insurer, without automatically releasing the original policyholder obligation.
- Proportional reinsurance
- An arrangement allocating specified premiums and losses in agreed proportions, with the contract defining the exact scope and calculation.
- Excess-of-loss layer
- A specified loss interval above an attachment amount and subject to a limit, rather than automatic cover of every consequence.
- Earned premium
- The premium amount attributed to expired coverage under a specified accounting model, distinct from the entire premium written or cash received.
- Claims reserve
- An estimate of obligations associated with claims under a defined measurement framework, rather than necessarily an equivalent dedicated cash asset.
- Combined ratio
- A measure combining defined loss and expense ratios to analyze underwriting, whose components and denominators must be checked before calculation.
- Ansoff matrix
- A framework classifying growth options by existing or new products and markets. It supports comparison of strategic changes, but the actual risk depends on capabilities, commitment and the particular situation.
- Business strategy
- The long-term plan of action a firm adopts to achieve its objectives and gain advantage over rivals, given its resources and environment. It involves choices about markets, products and methods of competing.
- SWOT analysis
- A review of a firm's internal strengths and weaknesses and external opportunities and threats. It informs strategy by matching capabilities to the environment, though it can become a static list if not updated.
- PEST analysis
- An examination of political, economic, social and technological influences on a business. It helps anticipate external change and shape strategy, but it is descriptive and does not by itself prescribe action.
- Takeover
- Acquiring control of another business by buying enough of its shares, often as a faster route to growth than internal expansion. It brings immediate capacity but risks overpaying and clashing cultures.
- Merger
- The joining of two businesses into a single organisation, usually presented as a partnership of equals. It can create synergies and market power, but integration problems often erode the expected benefits.