INCURRED BUT NOT REPORTED (IBNR) – Losses that have occurred but have not been reported to the insurer as of a particular date, sometimes referred to as “pure IBNR.”  The definition of IBNR is often expanded to include future development on case reserves and loss on reopened claims, sometimes referred to as RBNE (reserved but not enough).  The amount of IBNR is typically estimated by a casualty actuary.

INCURRED LOSSES – Losses that occur within a given time period, adjusted or not or paid during that period.  Excludes IBNR.

INCURRED LOSS RATIO – The percentage of losses incurred to premiums earned.

INDEMNIFY – Indemnify means “to make whole,” or return one to the state that occurred before the loss incident. Insurers generally indemnify two parties: persons damaged by a liability loss, and the insured damaged by a property loss.

INDUSTRIAL INSURED – An insured which procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer and whose aggregate annual premiums for insurance on all risks total at least $25,000 and who has at least 25 full-time employees.

INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY – Any company that insures risks of the industrial insureds that comprise the industrial insured group, and their affiliated companies.

INFLATION FACTOR – A loading to provide for increased medical costs and loss payments in the future due to inflation.

INSURANCE SERVICES OFFICE (ISO), Inc. – An organization that files rates and forms for its member insurance companies.  Insurance companies go to ISO to gain access to forms, exclusions, endorsements, etc.  Non-members may also purchase forms for their use.

INTERMEDIARY – A third party in the design, negotiation, and administration of a reinsurance agreement.  Intermediaries recommend to ceding companies the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers.

INTERMEDIARY CLAUSE – A provision in reinsurance agreements which identifies the intermediary negotiating the agreement.  Most intermediary clauses shift all credit risk to reinsurers by providing that: (a)  the cedant’s payments to the intermediary are deemed payments to the reinsurer; and (b)  the reinsurer’s payments to the intermediary are not payments to the cedant until actually received by the cedant.  This clause is mandatory in some states.

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After experiencing tremendous losses due to a natural disaster uncovered by my commercial carrier, I knew it was time to form a captive and shopped around for a captive manager...we couldn’t be happier that we chose Elevate.

Joe M.

Communication is quick and effective, documents are always organized and available and my questions are always answered efficiently and professionally.

Adam G.

We chose Elevate because of their reputation in our business community, and their services have exceeded expectations. We trust Elevate.

John R.

I have worked with Jerry Messick and the Elevate Captive team since 2012. They have been instrumental in guiding us properly on how to implement and run a captive successfully. The due diligence and proactive service on the part of the Elevate team is unrivaled. Their product knowledge and how to use the instrument to our benefit, while providing sound risk management and compliance principles is another huge differentiating factor for their firm. In addition, the team of experts that Elevate has referred us to in the legal and financial advisory areas has turned out to be top notch. The Captive is only as good as the entire team. Finally, it has to be mentioned that we “just plain like” Jerry and Co.. Friendly, smart and easy to work with. A real pleasure.

John H.