| Pure Premium | | is the price of a unit of insurancefor the policy period |
| Development Factors | | is income the insurer earns from investing money that the insurer has received as premium but not yet earned, as well as money it has set aside as a reserve to pay claims |
| Trend Factors | | are the costs incurred by the insurer to conclude a contract of insurance with the policy holder. These could include commission, advertising, promotional expensestp name a few |
| Acquisition Costs | | is the process by which underwriters apply the rates developed by actuaries to the information that underwriters have gathered to determine premium for individual risks |
| Administrative Expenses | | are adjustments applied to all losses to reflect what they would probably cost if they were to occur next year rather then having occured at some time in the past |
| Profit | | are the general expenses the insurer incurs to operate its business |
| Underwriting Profit or Loss | | is the principle that a given probability becomes more reliable the larger the number or trials or cases in the sample |
| Investment Income | | is the total cost of insurance. It is derived by multiplying the rate of insurance by the amount of insurance |
| Actuary | | is the amount of money left to the insurer after it has paid all its expenses |
| Rate | | arises out of insurance operations. It is the amount by which earned premiums exceed or fall short of the cost incurred claims and expense |
| Premium | | is expressed as a specified amount of the exposure base |
| Exposure Base | | is the premium required to pay for insured losses - that is, to pay claims |
| Exposure Unit | | is a professional skilled in the application of mathematics to financial problems |
| The Law of Large Numbers | | are adjustments to current reserves for claims that have yet to be settled to reflect the estimated final cost of those claims |
| The Theory of Probability | | is the denomination in which the unit of exposure is expressed |
| Rating | | concerns the likelihood of an ocurance, expressed by the ratio of the actual number of occurances to the number of possible occurances |
