Explanation of Terms Used in Condensed Financial Statement Tables
Is the term used to describe insurance transactions between the insurance
buyer and the insurance company before or without regard to reinsurance
transactions among insurance companies.
Is usually defined as premium billed by property and casualty companies.
Rules of life insurance accounting require reporting premiums actually collected.
This item is a measure of marketing activity in this state for the year.
Is constructed from premium written this year and in previous years,
and in some instances, premium to be written in the future for current coverages.
It is approximately the pro rata portion of the premium charged for each
policy, for the portion of coverage provided, within the calendar year.
Equals losses paid, plus a year-end estimate of future payments for
all current and prior year claims, minus the losses incurred estimate for
the preceding year.
Equals losses incurred divided by premiums earned. This is the best
accounting representation of the portion of each premium dollar that has
been needed to honor the company's promise to pay claims.