Incurred Claims – Incurred claims equal the claims paid during the policy year plus the claim reserves as of the end of the policy year, minus the corresponding reserves as of the beginning of the policy year. The difference between the year end and beginning of the year claim reserves is called the increase in reserves and may be added directly to the paid claims to produce the incurred claims.
Indemnity Plan – Also called "fee-for-service," these plans primarily existed before the rise of HMOs, IPAs and PPOs. With indemnity plans, the individual pays a pre-determined percentage of the cost of health care services, and the insurance company (or self-insured employer) pays the other percentage. For example: an individual might pay 20 percent for services and the insurance company pays 80 percent. The fees for services are defined by the providers and vary from physician to physician. Indemnity health plans offer individuals the freedom to choose their health care professionals.
Individual Retirement Account (IRA) – A trust or custodial account for the exclusive benefit of an individual or his/her beneficiary. By law, certain individuals can make tax-deductible contributions up to a fixed annual amount, currently $2,000 for an individual and $4,000 per couple.
Insured – A person or organization covered by an insurance policy, including the "named insured" and any other parties for whom protection is provided under the policy terms.
Insurer – The party to the insurance contract who promises to pay losses or benefits. Also, any corporation engaged primarily in the business of furnishing insurance to the public.
Inter vivos Trust – A trust created while the creator of the trust is living. Also known as a living trust.
Investment Income – The income generated by a company’s portfolio of investments (such as in bonds, stocks, or other financial ventures).