Admitted Company

An insurance company licensed and authorized to conduct business in a specific state. For example, MedMal Direct Insurance Company is an admitted carrier in the state of Florida.

Annual Aggregate Limit
The maximum a carrier will disburse for claims resulting from incidents that occurred after the insured’s retroactive date and reported during the policy year.


Any notice of an intent to hold the insured responsible for damages resulting from the delivery or failure to deliver professional services by the provider or by someone for whom the provider is legally responsible.

Claims-Made Policy
A type of policy that covers claims reported during the policy period.

Sometimes referred to as a “Declarations Page” or “Face Sheet,” this portion of the policy typically includes the name and address of the insured, the policy period, the amount of insurance coverage, premiums for the policy period and any coverage restrictions.

Loss Reserves
Funds set aside to account for losses and loss expenses for reported claims and claims that have been incurred but not yet reported.

Occurrence Policy
A type of policy that covers claims stemming from incidents that occurred during the policy period even if that policy has been cancelled.

The contract between an insurance carrier and its insured. The policy defines what the carrier agrees to cover, the period of time the coverage is in place for, and the obligations and responsibilities of the insured.

Policy Term
The period of time for which a policy is written and active.

The funds paid by a policyholder in exchange for insurance protection.

Premium-to-Surplus Ratio (P/S)

The ratio of net written premium as related to surplus, which serves as an indicator of the carrier's financial strength and future solvency.

Prior Acts Coverage
Under a claims-made policy, the coverage provided for claims that occurred after the insured’s retroactive date and reported while the policy is still active.

Risk Management
A systematic approach used to identify, evaluate, and reduce or eliminate the possibility of an unanticipated outcome of medical treatment.

The amount by which the carrier's assets exceed its liabilities. 

Tail Coverage (Extended Reporting Coverage)
Coverage that provides protection against claims arising from professional services rendered after the insured’s retroactive date but reported after termination of the policy.