Car Insurance

Were comedian Jeff Foxworthy to make fun of risk management and insurance he’d find plenty of material in “Rupp’s Insurance & Risk Management Glossary.”

If you think a “drop-down provision” is a software function on a vendor’s application … you might be a redneck.

Drop-down provision: Provision contained in umbrella liability policies, where the policy will provide primary coverage in the event that the underlying aggregate limits are exhausted.

If you think a yield curve means giving way to traffic when making left-hand turns … you might be a redneck.

Yield curve: Graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from the shortest to the longest available.

If you think a “flammable limit” refers to the point at which you combust when trying to get your carrier to pay a claim … you might be a redneck.

Flammable Limit: Gases and flammable liquids that can form flammable mixtures with air or oxygen have upper and lower limits to the concentrations that will provide ignitable mixtures.

If you think a silo is a tall, windowless building where farmers store grain … you might be a redneck.

Silo: A trench, pit, or tall cylinder sealed to exclude air and used for storing silage. *

If you think the only difference between ERM and ORM is a vowel … you might be a redneck.

ERM: Enterprise Risk Management. ORM: Operational Risk Management.

If you think the expression “admitted insurer” is a term of embarrassment … you might be a redneck.

Admitted insurer: Carrier authorized to do business in a state by the state’s insurance department.

If you think the term “evacuation expense” refers to the cost of doing business in the bathroom, you might be a redneck.

Evacuation expense: A form of political risk insurance.

If you think the words “maxi-tail” refers to flirting with as many members of the opposite sex at a re/insurance industry trade show … you might be a redneck.

Maxi-tail: A provision of some claims-made policies that permits the insured an unlimited length of time to report a claim under the policy after its termination.

If you think the difference between RIMS and RMIS … is but a letter transposed you might be a redneck.

RIMS: Risk and Insurance Management Society Inc. RMIS: Risk Management Information Systems.

If you think the “zone system” refers to what defenders do on a basketball court … you might be a redneck.

Zone system: A method of insurance examination set by the N.A.I.C. If you think “going bare” means parading about without any clothes … you might be a redneck.

Going bare: An uninsured organization or a firm without any type of insurance program.

If you think “in rem” means the fluttering of eyelids when people are asleep due to Rapid Eye Movement … you might be a redneck.

In rem: Authority granted by an admiralty court to take or keep in custody a ship until a claim has been decided.

If you think a “chain” means exactly what you think it means … you might be a redneck.

Chain: A land measurement used by surveyors that is equal to 66 feet, or 100 links, or 4 rods.

If you can’t understand why the insurance industry can’t agree on anything, even at a trade show called ACORD … you might be a redneck.

ACORD: Association for Cooperative Operations Research and Development. If you can neither hear nor understand the difference between indemnity and indemnitee … you might be a redneck.

Indemnity: Compensation for an incurred loss.

Indemnitee: A party receiving compensation from an indemnitor.

If you think “face value” refers to premiums paid by supermodels to insure themselves … you might be a redneck.

Face value: Value shown on a security.

If you think a “sinking fund” refers to your corporate savings account … you might be a redneck.

Sinking fund: Fund established by a self-insurer to pay for incurred losses.

If you think “skip-repossess insurance vehicle” refers to fleet vehicles impounded by a repo man named Skip … you might be a redneck.

Skip-repossess insurance vehicle: Coverage on cars or trucks taken as collateral by lending institutions.

If you think a bull is a 1,000-pound animal that you don’t want to stare down under any circumstances … you might be a redneck.

Bull: Driver of a ear intentionally crashed into another vehicle in a staged accident with the intent of filing a fraudulent claim.

If you think a cow is an animal that chews cud and gives milk … you might be a redneck.

Cow: Automobile struck in an accident staged in order mille a fraudulent claim.

If you attempt to buy liability insurance for your umbrella … you might be a redneck.

Umbrella liability: A special liability policy to go beyond a primary policy.

If you find the term “wet marine insurance” redundant … you might be a redneck.

Wet marine insurance: Ocean marine insurance covering ships and cargoes.

If you think “new for old” is a contract misprint … you might be a redneck.

New for old: Provision contained in older marine policies that when damaged for lost equipment or parts are replaced, there is an agreed discount to represent the depreciation of the old items.

If you think “chomage” is French for unemployed … you might be (a little more than) a redneck.

Chomage: An early form of business interruption insurance.

If you think a “sub-agent” or a “sub-broker” refers to middlemen who do a bad job representing carriers or buyers … you might be a redneck.

Sub-agent: Agent reporting to an MGA and not directly to an insurer.

Sub-broker: A reinsurance broker from whom another reinsurance broker is able to obtain reinsurance business.

If you think “bottomry” refers to carnal pleasure conducted by ancient Greeks … you might be a redneck.

Bottomry: The oldest known form of risk transfer. Used by ancient Greeks and provided that a ship not returning to port is absolved of any debt on the ship itself or on its cargo.

If you think a “‘D’ ratio” is what you expected on your school report card many years ago … you might be a redneck.

‘D’ ratio: Ratio used in calculating a workers’ compensation experience rating plan.

If you think the prefix “retro” accurately describes the reinsurance industry … you might be a redneck.

Retro: Prefix meaning backward or situated behind.”

If you think a retrocessionaire is a retiree selling trinkets in a booth in the 100-aisle at the RIMS convention … you might be a redneck.

Retrocessionaire: A reinsurer who assumes reinsurance from another reinsurer.

If you think the retrocessional marketplace spends too much time looking back instead of forward … you might be a redneck.

Retrocession: Transfer of assumed reinsurance to another reinsurer.

If you think somebody’s bound to end up short (preferably not you) in a “facultative semiobligatory reinsurance treaty” deal … you might be a redneck.

Facultative semiobligatory reinsurance treaty: Facultative obligation treaty whereby the ceding insurer may select which risks it will cede to the reinsurer who has the right to reject the risk.

If you think “Chinese retro” means the retrocessional market in China … you might be a redneck.

Chinese retro: A separate insurance policy, written in conjunction with a retrospective rating policy plan, protecting the policyholder against having to pay a penalty or extra premium in excess of the standard retrospective premium in the event of an adverse loss ratio.

If you think a “raise” means a salary increase … you might be a redneck.

Raise: An exploratory mining tunnel, excavated upward, to reach an ore load.

If you love a “double trigger” you are a redneck.

Double trigger: Policy form used for large commercial accounts where coverage is not provided until two triggering events occur.