4.4 Legal risk - Scor

M
MARINE AND AVIATION INSURANCE ALSO REFERRED TO AS OFFSHORE/SPACE AND
TRANSPORTATION INSURANCE
Insurance covering damage occasioned during carriage (by sea, river, land, or air) to the means of transport (“hull”),
excluding motor-driven land vehicles, and to the goods carried (“cargo”), and third party liability incurred by the carrier.
MATHEMATICAL RESERVE
Amount that a Life insurance or capitalization company must set aside and capitalize in order to meet its commitments
to the insured.
MORBIDITY
The probability that an individual in a given group will develop a certain disease or disorder.
MORTALITY
The relative incidence of death of Life insureds or annuitants holding a Life insurance policy.
N
NET WRITTEN PREMIUM
Gross premiums less the portion of premiums paid for retrocession.
NON-PROPORTIONAL (EXCESS OF LOSS) REINSURANCE
Reinsurance contract written to protect the ceding company from all or part of claims in excess of a specified amount
retained (priority). This generally takes the form of Excess of Loss (or XL) or excess of annual loss reinsurance.
NON-TRADITIONAL REINSURANCE
Initially, this concerned a multi-year, multiline form of reinsurance whose contract terms included an aggregate limit of
liability and loss sensitive features (e.g. profit sharing or additional premium). Currently, it also encompasses technical
and investment accounts within a single cover, securitization of insurance risks, credit derivatives, and climate
derivatives.
O
OCEANE (OBLIGATION CONVERTIBLE EN ACTIONS NOUVELLES OU EXISTANTES)
The issuer of this convertible bond may give the creditor or new shares issued for the occasion, or existing shares held
in a portfolio.
P
PERILS
PERILS provides index values which can be used in industry-loss-based ILS transactions. The underlying data for the
index is thereby directly collected from insurance companies underwriting property business in the affected areas and is
processed in a standardized procedure to estimate industry-wide insured losses, which then form the basis of the
PERILS index service.
POLITICAL RISK
All political or administrative events, actions or decisions that could lead to losses for companies contracting or investing
abroad.
PREMIUMS EARNED
Premiums an insurance company has recorded as revenues during a specific accounting period.
PRIMARY INSURER
An insurance company that issues insurance contracts to the public generally or to certain non-insurance entities.
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