Reference 77 acronyms Quick lookup

Acronyms, decoded.

Insurance runs on three-letter codes. ACORD, COPE, FNOL, MGA, NCCI, ORSA, SOV, TIV. This is the working decoder ring, with cross-references to the chapters where each one earns its keep.

Heavy-traffic acronyms first; specialty terms appear in their own letters. For richer definitions, see the Glossary.

A
AAL
Annual Average Loss Expected loss per year for a defined catastrophe layer or treaty.
Ch. 36
ACORD
Association for Cooperative Operations Research and Development U.S. insurance standards body that develops application forms and data interchange standards.
Ch. 32
ADR
Alternative Dispute Resolution Mediation, arbitration, or other non-litigation resolution.
Ch. 31
AEP
Aggregate Exceedance Probability Probability that total annual losses exceed a defined size.
Ch. 36
ALAE
Allocated Loss Adjustment Expense Defense and other expenses tied to a specific claim.
Ch. 31
AOP
All Other Perils Property deductible category for non-named-storm perils.
Ch. 07
AUW
Assistant or Associate Underwriter Underwriter trainee or junior position.
B
BBR
Builders Risk Coverage for property under construction.
Ch. 12
BI
Bodily Injury or Business Interruption Context-dependent. Liability or property contexts.
BOP
Business Owner's Policy Packaged property and liability coverage for small commercial.
C
CAT
Catastrophe Defined large-scale event (hurricane, earthquake, wildfire).
Ch. 07
CGL
Commercial General Liability Standard liability policy for commercial insureds.
Ch. 01
COPE
Construction, Occupancy, Protection, Exposure Standardized property risk framework.
Ch. 34
CPP
Commercial Package Policy Multi-line policy combining property and liability for mid-market commercial.
CWP
Closed Without Payment Claim resolved without indemnity payment.
Ch. 33
D
D&O
Directors and Officers Liability Coverage for directors, officers, and the entity in securities matters.
Ch. 14
DOL
Date of Loss Date the underlying event occurred.
Ch. 33
DPW
Direct Premium Written Premium written before reinsurance ceded.
E
E&O
Errors and Omissions Professional liability coverage for occupational mistakes.
Ch. 15
E&S
Excess and Surplus Lines Non-admitted market for risks admitted carriers will not write.
Ch. 27
ECP
Exempt Commercial Purchaser NRRA category exempt from diligent search requirements.
Ch. 27
ECR
Excess of Loss Reinsurance Reinsurance attaching above a per-loss retention.
Ch. 26
EPL or EPLI
Employment Practices Liability Insurance Coverage for wrongful termination, discrimination, harassment.
Ch. 16
ERISA
Employee Retirement Income Security Act Federal statute governing employee benefit plans.
Ch. 17
ERP
Extended Reporting Period Tail coverage for claims-made policies after expiration.
Ch. 14
F
FEIN
Federal Employer Identification Number U.S. tax identifier for business entities.
FIO
Federal Insurance Office Treasury Department office monitoring the insurance industry.
Ch. 37
FNOL
First Notice of Loss Initial reporting of a claim to the carrier.
Ch. 31
G
GL
General Liability See CGL.
Ch. 01
GVW
Gross Vehicle Weight Vehicle classification metric for commercial auto rating.
Ch. 03
GWP
Gross Written Premium Total premium written before reinsurance ceded.
I
IBNR
Incurred But Not Reported Reserves for losses occurred but not yet reported.
Ch. 31
IID
International Insurers Department NAIC list of eligible alien insurers.
Ch. 27
IRPM
Individual Risk Premium Modification Filed schedule modification factor reflecting underwriter judgment.
Ch. 35
ISO
Insurance Services Office Bureau developing policy forms and loss costs for commercial lines.
Ch. 01
K
K&R
Kidnap and Ransom Coverage for kidnap, extortion, and political violence threats.
Ch. 21
L
LAE
Loss Adjustment Expense Cost of investigating and settling claims; includes ALAE and ULAE.
Ch. 31
LCM
Loss Cost Multiplier Carrier multiplier converting bureau loss costs to filed rates.
Ch. 35
LMA
Lloyd's Market Association Trade association for Lloyd's syndicates.
Ch. 24
LOI
Limit of Indemnity Policy maximum, used in some specialty contexts.
M
MGA
Managing General Agent Holds binding authority delegated by a carrier.
Ch. 25
MGU
Managing General Underwriter Holds underwriting authority on a single line or program.
Ch. 25
MIGA
Multilateral Investment Guarantee Agency World Bank Group political risk insurer.
Ch. 22
MRC
Market Reform Contract Standardized slip format used in the London market.
Ch. 24
N
NAIC
National Association of Insurance Commissioners Coordinating body for state insurance regulation.
Ch. 37
NCCI
National Council on Compensation Insurance Develops loss costs and class plans for workers compensation.
Ch. 04
NIPR
National Insurance Producer Registry NAIC-administered platform for producer licensing.
Ch. 37
NRRA
Nonadmitted and Reinsurance Reform Act of 2010 Federal reform of surplus lines taxation and broker licensing.
Ch. 27
O
OEP
Occurrence Exceedance Probability Probability any single event exceeds a defined size.
Ch. 36
OFAC
Office of Foreign Assets Control U.S. economic sanctions enforcement.
Ch. 37
ORSA
Own Risk and Solvency Assessment Carrier-prepared self-assessment of risk and capital adequacy.
Ch. 37
P
P&C
Property and Casualty Broad insurance industry segment covering both property and liability lines.
PCC
Protected Cell Company Captive structure with multiple legally segregated cells.
Ch. 29
PD
Property Damage Liability coverage trigger for damage to third-party property.
Ch. 01
PML
Probable Maximum Loss Worst-credible loss estimate for a defined event scenario.
Ch. 36
POI
Point of Impact or Period of Indemnity Context-dependent.
PPC
Public Protection Class ISO 1-10 rating of public fire protection capability.
Ch. 34
PRI
Political Risk Insurance Coverage for government action, political violence, and currency inconvertibility.
Ch. 22
R
RBC
Risk-Based Capital Standardized capital adequacy framework for U.S. insurers.
Ch. 37
RFP
Request for Proposal Broker-issued solicitation to carriers for quoted programs.
Ch. 28
ROL
Rate-on-Line Premium divided by layer limit; comparison metric in property cat reinsurance.
Ch. 36
ROR
Reservation of Rights Carrier letter preserving denial rights during investigation.
Ch. 31
RRG
Risk Retention Group Federally chartered group captive for liability coverage.
Ch. 29
S
SAP
Statutory Accounting Principles Insurance-specific accounting framework in U.S. financial reporting.
Ch. 37
SERFF
System for Electronic Rate and Form Filing NAIC platform for state rate and form filings.
Ch. 37
SIR
Self-Insured Retention Amount the insured pays before insurance responds, on liability lines.
SLA
Surplus Lines Association State-level surplus lines compliance authority.
Ch. 27
SLC
Surplus Lines Carrier Non-admitted carrier eligible to write surplus lines business.
Ch. 27
SOV
Schedule of Values List of insured locations and their values for property coverage.
Ch. 34
T
TIV
Total Insured Value Sum of building, contents, and BI values for a property location.
Ch. 34
TPA
Third Party Administrator Outsourced claims handler operating on behalf of a carrier or self-insured.
Ch. 31
TRIA
Terrorism Risk Insurance Act Federal reinsurance backstop for terrorism losses.
Ch. 37
U
ULAE
Unallocated Loss Adjustment Expense Internal carrier costs allocated through expense factors.
Ch. 31
UPP
Underwriting Profit Participation Profit-share structure in some captive and reinsurance arrangements.
Ch. 29
W
WC
Workers Compensation Statutory benefits for work-related injury, plus employer liability.
Ch. 04
X
XL
Excess of Loss Reinsurance form attaching above per-loss or aggregate retention.
Ch. 26
XS
Excess Coverage attaching above an underlying primary or excess layer.
Ch. 02