capacity
The measure of an insurerís ability to issue contracts of insurance. Measured usually by the largest amount it will accept on a given risk or, in certain situations, by the maximum volume of business that the company is prepared to accept.
managing general agent (MGA)
An independent business operation given authority by a number of insurance companies to solicit business on behalf of such companies. Responsibilities include recruiting, training, and supervising agents.
run-off
An article in a reinsurance contract stating that the reinsurer remains liable under the ceding company’s policies in force at termination for losses occurring after the date of termination of the reinsurance contract.
captive insurance company
An insurance company that provides insurance to, and is controlled by, its owners.
reciprocal insurance exchange
A means of insurance whereby each subscriber appoints a central underwriter as attorney-in-fact to share insurance costs with other insureds in the same group.
parametric insurance
Insurance that is triggered by a pre-defined event and generates a pre-determined payout, regardless of damage.
