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IMMEDIATE MEDICAL/SURGICAL PAYMENTS

Under most liability coverages, the insured has the right to incur expense for the immediate medical and/or surgical relief to others, and to be reimbursed by the company, regardless of fault.

IMPACT PRINTER

See Printer.

IMPLIED WARRANTY

Although warranties in law are generally thought of as those made by the seller (which they are), those made in an insurance transaction are also those representations made by the purchaser. In insurance, however, the emphasis is on statements (warranties) made by the purchaser upon which the contract of insurance relies. A warranty need not be spoken or written to be legally binding. An inference which is not specifically expressed in any way may result in an "implied warranty." A material fact which is not revealed simply because no question was asked relative to that fact, is an example. Let us say you want to insure your 1989 Mercedes Benz for full coverage comprehensive and collision. The agent will not ask you if there is an engine in the car, so you do not tell him there is none. It is assumed (implied) that there is an engine in the vehicle. It is also implied that the boat you are insuring is not at the bottom of the lake, or that there are no firemen battling the blaze at your home while you are taking out a fire policy. (See Warranty.)

IMPROVEMENTS AND BETTERMENTS

Fixtures, alterations, additions or installations made a part of the building by or at the expense of the tenant or lessee. Such “Improvements and Betterments” (painting, etc.) become the property of the owner of the premises, except that the tenant is responsible for restoring such betterments in the event of a loss under most leases. The tenant’s interest in improvements and betterments may be protected under a fire policy by the addition of the endorsement of the same title at the applicable regular contents rate, and is automatically covered under Homeowners Form HO-4 ("Tenant’s") policy for 10% of the Coverage amount.

INCHMAREE CLAUSE

In ocean marine, a clause which extends the policy to cover losses caused by bursting boilers, breakage of shafts, latent defects in machinery, hull or equipment, and faulty navigation or management. Named after a ship of the same name involved in a lawsuit in 1887.

INCREASE IN HAZARD

Can void a policy. (See Change in Occupancy.)

INCREASED LIMITS

See Basic Limits.

INCREMENT

An increase; an additional amount added, sometimes expressed as a percentage of the premium or the rate. See also Surcharge, Factor.

INCURRED LOSSES

Insurance company losses (claims) which have been paid or for which reserves have been set up. The statement of Incurred Losses usually covers a fixed period of time (one year, three years, etc.) and is computed by adding the losses paid during specified period to the reserves (unpaid losses) outstanding at the end of the period. The amount of the reserves shown at the beginning of the period is then subtracted. The resulting figure is the amount of "Incurred Losses." (See Loss Reserve.)

INDEMNITY

The restoration of individual, individuals or other entity to approximately the same economic condition as prior to any loss. Sometimes, because of applicable deductibles, coinsurance or other factors, such restoration may not be complete, but the principle of indemnification does not permit the person or persons suffering a loss to be better off after a loss than before.

INDEPENDENT ADJUSTER

See Adjuster.

INDEPENDENT AGENT

A licensed individual who represents two or more insurance companies for whom he sells and services policies, and whose income is derived solely on commissions. (Compare Captive Agent under Direct Writer and Broker.)

INDIRECT LOSS

See Consequential Loss.

class="quest2">INDUSTRIAL HYGIENE

Term referring to the technological approach to recognition, evaluation and control of environmental factors originating in or from the workplace, including conditions which may cause sickness, impaired health or well-being or discomfort and inefficiency among workers or others in the area of such factors. These may take many forms, among which are dust, fumes, irritating liquids, gases, vapors, mists or toxic waste. Radiation, noise, vibration or extremes of temperature or pressure are also among these factors. Industrial Hygiene also includes studies of stress resulting from boredom, monotony, worry, work pressures and fatigue. The Industrial Hygienist is charged with recognizing and minimizing or, ideally, eliminating the conditions which result in adverse effects.

INFLATION GUARD ENDORSEMENT

An endorsement (optional for an additional premium) providing for automatic increases in amount of insurance periodically to prevent possibility of the danger of falling below the 80% of replacement cost coinsurance requirement.

INHERENT VICE

"X-rated" where most insurance policies are concerned. Refers to an intrinsic or innate characteristic or condition of an article which, for no apparent reason, will cause fading, cracking or even disintegration, which cannot be traced to any outside influence. Pearls will lose their luster, opals will suddenly shatter, or furs will crack or split, all evidently due to some condition in the article itself.

INITIAL PREMIUM

See Premium.

INJURY

The word 'injury’ in law and in insurance is often used broadly. It can include (in addition to Bodily Injury) damage to property, or, in a broader sense, the result of an action or occurrence resulting in a change for the worse of an individual’s financial, social or professional condition or standing.

INJURY, BODILY

See Bodily Injury.

INLAND MARINE

A form of insurance designed to cover moving or moveable property, so-called because it has its origins in ocean ("wet") marine---probably the oldest form of property insurance. Since such property was known as "Floating Property," inland marine policies are frequently referred to as "Floaters." Ocean Marine contracts held the transporter liable for loss of goods before the beginning and after the completion of (in addition to) the actual ocean voyage, and the "non-ocean" part grew to large proportions during the 19th century. Most of the property reaching this country from Europe continued on its journey through the Erie and many other canals by barge, hence "Inland Marine" became a natural designation for such insurance. (See also All-Risk, Floater and Ocean Marine.)

INPUT DEVICE

Any device (card reader, magnetic tape or disk units, console typewriter terminal, etc.) capable of entering data into the Central Processing Unit (CPU) of the computer both for instructing it on how to process data and the data to be processed. (See Output Device.)

INSOLVENT INSURANCE COMPANY

See Guaranty Fund.

INSPECTION REPORT

See Credit Report.

INSTALLMENT PREMIUM

An installment payment of premium other than the initial (or "Deposit") premium under an installment premium plan. (See Audit.)

INSTRUMENT (LEGAL)

A written document detailing the terms of a legal agreement between two or more parties, spelling out the specific rights and obligations of each party. (See also Contract and Consideration.)

INSURABLE INTEREST

In the definition of insurance, we see that any loss in order to be paid must be measurable in terms of money. If a loss occurs, therefore, which cannot be translated in such measurable terms suffered by an individual or individuals, it then follows that he has not had a financial loss which can be attributed to the accident or occurrence, and he therefore has no "insurable interest" in the event. You may have a particular sentimental fondness for the Leaning Tower of Pisa, but, should it fall on its face, you would have to show a loss measurable in terms of money in order to prove you had an "insurable interest" in it. You cannot purchase insurance on property or persons with yourself as beneficiary in whose condition or state of well being you have no "insurable interest."

INSURANCE

1) An agreement by which the individual can, by payment (of "premium") to an insurance company, be indemnified partially or fully in the event of a covered loss. Such loss must be measurable in terms of money. 2) A pooling of contributions by a number of individuals for the purpose of lessening or eliminating economic loss to any one of such individuals by indemnifying him from the pooled contributions if he should suffer a loss from any one of the previously agreed upon hazards common to all the contributors. Ed. Note: As you can see from the above, insurance is almost the exact opposite of gambling. A gambler places a bet (thereby voluntarily exposing himself to loss) with the hope of monetary gain. On the Other hand, an insured (who is faced with an involuntary exposure to loss) pays a fee--the "premium"--in order to reduce or eliminate such exposure.

INSURANCE COMMISSIONER

See Commissioner Of Insurance.

INSURANCE CONSORTIUM

A franchised arrangement for independent insurance agencies which provide for an independent contractor to work as an associate of the individual agency in servicing accounts, thereby freeing the principal(s) to pursue the larger and more lucrative accounts. The franchise agreement, in addition to providing increased visibility through group advertising, also enables the agency to participate in the benefits in training, etc. It is similar to franchises now operating nationwide in the real estate field.

INSURANCE INFORMATION INSTITUTE

A clearing house for property and casualty insurance information supported by a great many stock and mutual insurance companies. Its main purpose is to provide information to both the public and the industry for better understanding of the operation and functions of this important sector of the economy.

INSURANCE POLICY

The written contract of insurance, including all endorsements attached. Endorsements usually include the wording: "attached to an forming part of Policyd No---," etc.

INSURANCE SERVICES OFFICE (ISO)

A property/casualty rating and advisory organization which provides a variety of services to the P & C industry nationwide. Among these are statistical, actuarial and advisory support based on its broad access to the experience of its many supporting member and subscriber companies. A voluntary, non-profit association, it also designs policy and endorsement forms for all classes of insurance in this field and provides manuals for rates and rules. It is the result of the consolidation in the early 70’s of a number of separate and independent associations and rating bureaus which performed these same services for specific lines of insurance.

INSURANCE TO VALUE

An amount in insurance substantially equal to the value of the property insured.

INSURED (ASSURED)

The person(s) or other legal entity on behalf of whom an insurance company agrees to pay benefits or to indemnify for losses in the event of certain occurrences as described in the policy.

INSURED (CARRIER)

An insurance company. There are a number of different types of insurers, definitions of which may be found elsewhere in the text: Admitted, Alien, Domestic, Foreign, Mutual, Stock, Stock-Participating, Reciprocal, Reinsurance, etc.

INSURING AGREEMENTS

The portion of the insurance policy which sets forth the terms under which the insurance company agrees to indemnify the insured for loss suffered from specified perils or to pay benefits upon the occurrence of certain events as described. In brief, the agreements describe the conditions under which the company will identify the insured in event of a loss.

INSURING CLAUSE

The part of the insurance policy which spells out the basic agreement between the company and the insured.

INSUROR

A local insurance agent who is a member of Independent Insurance Agents of America (IIAA), formerly the National Association of Insurance Agents, the so-called "Stock" Association.

INTEREST, ADDITIONAL

See Additional Interest.

INTEREST, INSURABLE

See Insurable Interest.

INTERESTED PARTY

See Party.

INTERFACE

A connection (electronic, manual or electronic/manual) which makes it possible for a peripheral device to communicate with the main storage of a computer. Since insurance companies use various makes of computers, a problem of communication for producers, insurance department and rating organizations arises when it is necessary to intercommunicate. The producer, for example, in the near future would possibly have need for more than one terminal if he represented several companies which had systems which differed from on another. Adaptable interfacing devices are now available which bring about compatibility.

INVESTMENT INCOME

The earnings of an insurance company from investments such as stocks, bonds, real estate and mortgages. The manner in which these funds may be invested is governed strictly by guidelines set by the state regulatory agencies (insurance departments) which require that a certain percentage of their premium income be held in liquid reserve for payment of claims. The investment of remaining available funds is also strictly regulated as to the percentages allowed to be used for investing in various categories.

INVITEE

An individual on premises owned or in the care, custody or control of the owner or lessee, who is on or in the premises at the expresses or implied permission of such owner or lessee or agent, for business of mutual benefit to both parties. A high degree of care is imposed by law on the owner (or controller) to see that the condition of the premises is such as to minimize the possibility of injury to the "invitee." (See also Licensee, Trespasser and Guest Laws.)

INVOICE

A listing sent to a purchaser containing a description of the merchandise, and sometimes the method of shipment, the unit cost and the terms. Also, a notice of charges made for services rendered or a combination of both. (See also Statement.)

ITEMS OF ORIGINAL ENTRY

See Source Document.