Travelers 2004 Annual Report Download - page 53

National Association of Insurance
Commissioners (NAIC) ............ Anorganization of the insurance commissioners or directors of all 50
states and the District of Columbia organized to promote consistency
of regulatory practice and statutory accounting standards throughout
the United States.
Net written premiums ............... Direct written premiums plus assumed reinsurance premiums less
premiums ceded to reinsurers.
Operating income (loss) ............. Netincome (loss) excluding the after-tax impact of net realized
investment gains (losses) and cumulative effect of changes in
accounting principles when applicable.
Operating income (loss) per share ...... Netincome (loss) excluding the after-tax impact of net realized
investment gains (losses) on a per share basis.
Operating return on equity ........... Theratio of operating income to average equity excluding net
unrealized gains or losses on investment securities, net of tax.
Personal lines ...................... Thevarious kinds of property and casualty insurance that are written
for individuals or families.
Pool ............................. Anorganization of insurers or reinsurers through which particular
types of risks are underwritten with premiums, losses and expenses
being shared in agreed-upon percentages.
Premiums ......................... Theamount charged during the year on policies and contracts issued,
renewed or reinsured by an insurance company.
Producer ......................... Contractual entity which directs insureds to the insurer for coverage.
This term includes agents and brokers.
Property insurance .................. Insurance that provides coverage to a person or business with an
insurable interest in tangible property for that person’s or business’s
property loss, damage or loss of use.
Quota share reinsurance ............. Reinsurance wherein the insurer cedes an agreed-upon fixed
percentage of liabilities, premiums and losses for each policy covered
on a pro rata basis.
Rates ............................ Amounts charged per unit of insurance.
Reinsurance ....................... Thepractice whereby one insurer, called the reinsurer, in
consideration of a premium paid to that insurer, agrees to indemnify
another insurer, called the ceding company, for part or all of the
liability of the ceding company under one or more policies or
contracts of insurance which it has issued.
Reinsurance agreement .............. Acontract specifying the terms of a reinsurance transaction.
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