Worker's Compensation Insurance

30 Fraud An intentionally deceptive act committed to obtain an unfair or unlawful advantage. Fraud usually involves monetary gain. Frequency The number of times a loss occurs. Hazard A circumstance that increases the likelihood or potential severity of a loss. Indemnity In a property and casualty contract, the objective is to restore an insured to the same financial position after the loss that the insured had prior to the loss. In the most basic sense, indemnity is compensation for a loss. Independent Adjuster A person or organization that provides claims adjusting services to different insurers on a contract basis. Insurance A method of shifting risk from a person, business, or organization to an insurance company in exchange for the payment of premium. The insurance company commits to be responsible for covered losses. Insured The policyholder(s) entitled to coverage under an insurance policy. Insurer The insurance company that issues insurance and agrees to pay for losses and provide covered benefits. Judgment Rating A rating modification (either decrease or increase) that is based on the underwriter’s experience, best judgment, and analysis in classifying and underwriting a particular type of risk.