Exposure

Definition

• The total amount of liability an insurance company financially exposes themselves to when agreeing to an insurance policy.

Synonyms
uncertain risk, threat, jeopardy, insecurity, endangerment

Related Terms and Acronyms

• Aggregate Limit of Liability — Definition,
  • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
• Hazard — Definition,
  • Anything that poses a potential risk of injury or damage.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• Insurance Policy — Definition,
  • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• Liability — Definition,
  • A situation where one party is found to be legally responsible for something.
• Loss Control — Definition,
  • The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
• Loss Ratio — Definition,
  • A method of comparing an insurer's losses to premiums earned in a specific period of time.
• Loss Reserve — Definition,
  • A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
• Losses Incurred — Definition,
  • The total net losses of an entity in a year.
• Mortality and Expense Risk Charge — Definition,
  • A charge sometimes applied to reimburse an insurer for the risks in a policy.
• Netting — Definition,
  • The offsetting with a counter-party of financial obligations or payments one is owed with those one is entitled to receive, thus reducing the costs arising out of payment settlements. Netting is also used as a risk management tool to help counter-parties reduce their exposure to credit risk.
• Occurrence — Definition,
  • An event that triggers the need for insurance coverage.
• Peril — Definition,
  • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
• Policy Declarations — Definition,
  • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
• Reciprocal Insurance Exchange — Definition,
  • A group of individuals, firms and corporations that mutually insure each other.
• Specific Performance — Definition,
  • A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
• Total Loss (Ltot, TL) — Acronym & Abbreviation,
  • When as asset is considered to be damaged beyond repair.