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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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Suggested Citation:"Glossary." National Research Council. 2023. Shared-Risk Insurance Pools for Transit Agencies: A Guide. Washington, DC: The National Academies Press. doi: 10.17226/27419.
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35   AAIS. American Association of Insurance Services (AAIS) is an advisory organization that pro- vides insurance policy forms designed to be used by many different insurers. ACORD. “ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance and related financial services indus- tries. ACORD facilitates fast, accurate data exchange and efficient workflows by developing electronic standards, standardized forms, and tools to support their use. ACORD members worldwide include hundreds of insurance and reinsurance companies, agents and brokers, software providers, financial services organizations, and industry associations. ACORD maintains offices in New York and London” (ACORD 2020). Actuarial Opinion. An actuarial opinion is how actuaries report their work. It is the reported “opinion” of an actuary following extensive analysis of a given situation. Actuarial Science. Actuarial science is the discipline that applies mathematical and statistical methods to assess the risk of loss. Actuaries use rigorous mathematics to model matters of uncertainty. Adverse Selection. Adverse selection refers to situations in which a pool offers coverage to a potential member whose actual loss is substantially more significant than the loss known to the pool. The pool suffers adverse effects by providing coverage at a cost that does not accurately reflect its actual risk exposure. For example, a pool may suffer adverse effects by providing coverage for bus transportation in a metropolitan area when all other pool mem- bers operate only in rural areas. Aggregate Excess. Aggregate excess coverage pays claims once total claims for an annual period exceed a predetermined retention amount. The retention can be stated as a flat dollar amount often calculated as a percentage of expected losses, as a percentage of standard contribution, or in terms of a specific loss ratio. Aggregate Limit. The aggregate limit is the maximum amount the pool will pay for covered losses during a specified period. Allocated Loss Adjustment Expenses (ALAE). ALAEs are costs attributed to the processing of a specific claim. Fees set aside to pay outside attorneys, experts, and investigators used to defend claims are examples of ALAE. Annual Contribution. A contribution is a fee paid by pool members in exchange for a 1-year coverage document that guarantees payment of covered loss as defined by the pool. Assessment. The board can make deficit assessments to fund any deficit incurred by the pool. The amount of such assessment is determined by the board. Glossary

36 Shared-Risk Insurance Pools for Transit Agencies: A Guide Attachment Point (for reinsurance). The point at which excess insurance or reinsurance limits apply. For example, a pool’s expected loss (loss pick) may be $1,000,000; this is usually the “attachment point” at which reinsurance limits would begin to apply. Automobile Liability Coverage. Coverage protects pool members against financial loss because of legal liability for automobile (including bus) -related injuries to others or damage to their property. Automobile Physical Damage. Coverage protects pool members from financial loss because of damages to their vehicles from perils such as collision, vandalism, fire, and theft. Best Practices. A best practice is a method or technique that is superior to any alternatives. It produces results superior to those achieved by other means or it has become a standard way of doing things. Bodily Injury Liability. Bodily injury liability coverage applies to injuries the designated driver or policyholder causes to someone else. Capital. It is an all-purpose term having one of three different meanings: the amount initially needed to set up a pool, the initial amount paid into a pool, or the total paid-in capital plus other forms of capital, like letters of credit; or the sum of these two, plus accumulated surplus. Case Reserve. Amount the claims adjuster puts on an individual claim that has not yet been paid; there are no provisions for development and no IBNR (incurred but not reported) claim amounts. Casualty Loss. A loss primarily caused by injuries to persons and legal liability imposed for bodily injury or damage to property of others. Causes of Loss. An insurance term that identifies an action or accident that when combined with exposure and hazard, creates a risk of loss. It can be direct, the action immediately preceding the loss, or indirect, part of an unanticipated chain of events leading to a loss. Certificate of Authority. A certificate of authority provides the pool’s official name, owner’s name, and legal status in a legal context. Claims-Made Coverage. Claims-made coverage provides coverage triggered when a claim is made against the pool member during the specified period, regardless of the wrongful act that gave rise to the claim. There are two features of claims-made coverage that can affect the settlement of a claim: retroactive date and extended reporting period. Claims Management. When a pool member incurs a loss, a claim is made to the pool to cover the loss as stipulated in the pool’s coverage documents. For the pool, settling losses and adjust- ing differences between itself and the claimant is known as claims management. Claims Management Services. Claims management services consist of advice or assistance regarding claims for compensation, restitution, repayment, or any other remedy for loss or damage or consideration of some other obligation. Claims management services cover litigation or claims under regulation schemes or voluntary arrangements. Claim Reserves Reviews. Claim reserves estimate what an individual claim will cost, and that amount of money is set aside or reserved to pay that claim. Working with actuaries, the board should review these reserves annually to help ensure they are not over- or understated. Collision. Collision coverage pays for damage to the pool’s vehicle resulting from a collision with another vehicle or object—such as a tree or telephone pole—from flipping over, or from damage caused by potholes. Comprehensive. Comprehensive covers events such as fire, falling objects, missiles, explo- sions, earthquakes, windstorms, hail, flood, vandalism, riot, or contact with animals, such as birds or deer. This coverage reimburses the pool for loss due to theft or damage caused

Glossary 37   by something other than a collision with another car or object. It will also pay to repair a windshield if it is cracked or shattered. Confidence Level. Statistical concept expressing the degree of confidence that, for instance, total losses will be below or above a given amount in any specified period, typically 1 year. The confidence level, or percentage, is the long-run probability that the estimates will hold over many simulated estimate periods. Contributions. Contributions are funds paid to the pool (called premiums in commercial insur- ance) that provide insurance-like coverage. Contributions are used to pay claims and claim- related expenses and do not constitute an equity interest. Coverage Documents. Most shared-risk pools issue coverage documents that rely on contract law, not insurance law. Coverage documents must include the following provisions: declara- tions, coverage agreements, exclusions, conditions, and endorsements (see Phase 10 for a discussion of coverage document content). Coverage Document Management. Coverage document management is creating, communi- cating, and maintaining policies and procedures dealing with pool coverage agreements. It includes daily dealing with the paperwork and the details of pool contracts of coverage. Coverage Document Servicing. Coverage document servicing encompasses all activities related to issuing and maintaining coverage documents issued by the pool. Coverage document servic- ing includes verification of names and addresses, issuing certificates of insurance, creating, and issuing loss runs, checking the coverage document for accuracy, reviewing both the pre- vious term policies and the new ones during renewals, and publishing loss runs. Coverage Tower. A description of the multiple layers of insurance coverage a given organiza- tion may have. The primary layer is at the bottom (which is the layer most often replaced by a pool), followed by excess layers on top of that. Deductible. An amount the pool will deduct from the loss before paying up to its coverage document limits. Most pools contain a per-occurrence deductible provision that stipulates that the deductible amount specified in the pool declarations will be subtracted from each covered loss to determine the pool’s loss recovery amount. Usually, the deductible amount is not deducted from coverage document limits. Discounting. The expense load factor is an amount the pool adds to the loss to pay pool expenses, Contributions = Claims + Expenses Load Factor. The load factor is expressed as a percentage of the pool’s total cost of risk. As the pool obtains income from investing its surplus funds (if any), a portion of that income may be used to reduce or discount the expense load factor. This method of reducing the load factor is referred to as “discounting” in this Guide. Economies of Scale. Economies of scale are cost advantages harvested by pools when purchased services (management and services provider), functions, and activities become efficient. This happens because costs are spread over a larger number of functions and activities. Costs can be both fixed and variable. Economic Power. Economic power is this Guide’s method of expressing confidence in a pool’s ability to sustain its operations within an acceptable level of self-insured retention (SIR). Pool economic power is derived from predictability. Predictability of loss is a function of time and exposure (minimum 3 plus years of loss data, from consistent exposure to loss). With economic power: • The pool’s actual annual loss will more closely mirror the expected loss the longer the pool functions with consistent exposure to loss. • The greater the number of consistent exposures to loss, the more reliable the expected loss is.

38 Shared-Risk Insurance Pools for Transit Agencies: A Guide Endorsement. An amendment to a coverage document that modifies an original or standard agreement. Event. A loss occurrence where multiple claims have a single cause of loss. Excess Insurance. Excess insurance covers the pool against specific amounts beyond the pool’s coverage document limits. Expected Losses, Otherwise Known as “Loss Pick.” An actuary’s estimate of future losses is based on past losses. Typically, 5 years of historical loss data will be used to estimate a coming year’s expected loss (loss pick). Loss picks are used to quantify an estimate of the loss component of the rating. Written contribution is composed of expenses and the loss pick [International Risk Management Institute (IRMI) n.d.]. Exposure. A situation, practice, or condition might lead to loss of assets, people, and so forth. Forecasts of exposure can be used to forecast future losses. Exposure is also used to measure loss costs, for example, the number of vehicles for automobile liability, revenue for general liability, and so forth. Extended Reporting Period. This helps cover claims made during a specified time after the policy expires. Generally, it lasts between 30 and 60 days. So, if coverage expires in December 2021, and you have a 60-day extended reporting period, your insurer can help cover claims reported in this window. This is also known as tail coverage [The Hartford 2023 (https://www .thehartford.com/business-insurance/tail-coverage)]. It’s important to members that claims -made coverage is only effective: • If filed during the pools’ coverage period or within your extended reporting period. • For a loss occurring on or after your retroactive date. Financial Modeling. A financial model is an economic tool built to forecast the pool’s finan- cial performance into the future. The forecast is based on the pool’s historical performance assumptions about the future and requires preparing an income statement, balance sheet, cash flow statement, and supporting schedules. Frequency. Frequency refers to the number of claims the pool expects to see; high frequency means many claims, and low frequency means few claims. Fronting. Fronting is using a licensed, admitted commercial insurer to issue an insurance policy on behalf of the pool without the intention of transferring any of the risks of loss. The pool retains the risk of loss with an indemnity or reinsurance agreement. Fronting companies charge a fee for this service, generally between 5% and 10% of the pool contribution. Using a commercial insurer as a front would allow the pool to comply with financial responsibility laws imposed by many states that require evidence of coverage written by an admitted insurer, which is often the case for automobile (including bus) liability insurance. Gross Contributions. The total of all contributions paid by pool members for a specified period, usually 1 year. Incurred but Not Reported (IBNR). IBNR is a method of reserving used by actuaries to account for claims or events that have transpired but have not yet been reported to the pool. To an actuary, these events and losses are said to have been IBNR. An actuary will estimate potential damages, and the pool may decide to set up reserves to allocate funds for the expected losses. Incurred Loss. The total amount of paid claims and loss reserves are associated with a particular period of time, usually 1 year, including actual loss paid, outstanding interest, the expense to obtain third-party recoveries, and IBNR.

Glossary 39   Insuring Clause. The section of a coverage document that states what risks are covered, the perils and exposures, and the dollar amount of coverage. ISO. The Insurance Services Office is an advisory organization that provides insurance policy forms designed to be used by many insurers and has precisely the same provisions, regard- less of the insurer issuing the policy. Joint and Several Liability. A legal doctrine applying in some states that allows an injured person to sue and recover from any one or more of several wrongdoers at their option, regardless of that wrongdoer’s degree of negligence. The injured party cannot receive double compensation but can choose to recover 100% of a damages award from any defendant who is found liable to any extent (International Risk Management Institute n.d.). Joint Powers Agreement. A contract between multiple public agencies to cooperate for a given reason, typically to operate outside of a singular agency’s typical jurisdiction. These are usu- ally used in California and Minnesota. Law of Large Numbers. The law of large numbers is a statistical hypothesis stating that the larger the number of exposure units independently exposed to loss, the greater the probability that actual loss experience will equal expected loss experience. In other words, data credibility increases with the size of the data pool under consideration. Liability Insurance. Coverage paying or rendering service on behalf of an insured for loss arising from legal liability to others. Liquidity. The measurement of the pool’s ability to meet its debt obligations, particularly short- term debt. Loss Control. Loss control is a risk management technique that seeks to reduce the possibility of a loss and reduce the severity of those that occur. A loss control program should help the pool reduce claims through safety and risk management information systems and activities. Loss Development. Loss development is an actuarial function expressing how losses will ulti- mately pay out over time. The trending factors are developed after a sufficient number of years of loss history and from year to year. Loss Development Factor (LDF). After the initial reporting period, there is a general upward trend in liability and claim totals called “loss development.” A standard method of adjusting losses for the growth in claims and incurred but not reported (IBNR) losses is to apply LDFs. LDFs are used to arrive at the ultimate value expected for a claim. For example, an LDF of 1.50 means that for every $1 of current claims, the ultimate payout will be $1.50. A total of $50,000 in current claims would result in an ultimate payout of $75,000. Loss Exposure. The condition that presents the ability for someone or something to be harmed due to another person’s or organization’s action, intentional or not. Loss Pick. See Expected Loss. Loss Projections. Loss projection is the process of predicting future losses by analyzing past losses. When forecasting losses, the law of large numbers, exposure data, anticipated changes in pool operations or structure, inflation, and other relevant factors are considered. Loss Recoveries. Loss Recoveries means all proceeds of insurance paid or payable to the pool arising out of any loss, damage, or casualty affecting the pool; all awards, damages, and pay- ments paid or payable to the pool. Loss Report. A loss report is a listing of reported claims, providing such information as the date of occurrence, type of claim, the amount paid, and the amount reserved for each as of the report’s valuation date (International Risk Management Institute n.d.).

40 Shared-Risk Insurance Pools for Transit Agencies: A Guide Loss Reserves. Loss Reserves estimate the value of a claim or group of claims not yet paid. A case reserve estimates the amount for which a particular claim will ultimately be settled or adjudicated. Loss Trending. Adjusting historical losses to account for inflationary trends so that their value is in current dollar amounts. Historical loss amounts are multiplied by “trending factors” to convert historical loss amounts to present dollar amounts” (International Risk Manage- ment Institute n.d.). Medical Payments. This coverage pays for the treatment of injuries to the passengers of the pool’s vehicles. Moral Hazard. This term describes a subjective hazard that increases probable loss frequency or severity due to a covered peril. Occurrence Coverage. A form of coverage for bodily injury or property damage during a specified period regardless of when claims are made. Claims are only covered for losses that occurred during the coverage document period. For example, a claim is made today against a pool member that occurred during a previous specific coverage period. The claim would be managed based on the pool’s terms of coverage in place at the time of the claim not those currently in place. Paid Losses. Paid losses and allocated loss adjustment expenses (ALAE) paid to claimants. Peril. Cause of loss; an event that causes a loss: collision, bodily injury, theft, etc. Probability Analysis. Probability analysis is a technique for forecasting events, such as accidental loss, assuming that a stable probability distribution governs them. The larger the number of past losses, the more stable the environment, and the more reliable the forecast. Proforma Financial. Proforma financial statements are financial reports usually issued by an actuary using loss history and assumptions or hypothetical conditions about events that may have occurred in the past or which may occur in the future. They usually include income statements, balance sheets, and cash flow statements. Property Damage Liability. This coverage pays for damage the pool may cause to someone else’s property: car, lamp posts, telephone poles, fences, buildings, or other structures your car hit. Pure Contributions. Pure contributions (premiums in commercial insurance) are the actual or expected cost to the pool to indemnify its members for loss. They do not include loss adjust- ment expenses or overhead. Pure Risk. Pure risk is a risk with an opportunity for a loss but no gain. Pure risks are generally insurable, whereas speculative risks (which also present profit opportunities) are not (Inter- national Risk Management Institute n.d.). Rate Class. Rate class is a term used in commercial automobile and fleet insurance to describe the type and weight of the automobile (including bus). That is gross vehicle weight for trucks, gross combined weight for truck tractors, and load capacity for trailers. Automobiles are clas- sified by vehicle size, with higher rates for larger vehicles. Rating. Rating is a portion of the underwriting process. Based on the results of the under writing process, the rating assigns a price based on what the pool believes it will cost to assume the financial responsibility for the member’s potential claims. Rating Loading Factor. A factor applied to pure contribution (pure premium in commercial insurance) to produce a premium rate. It includes underwriting, general and contingency, taxes and fees, and acquisition and marketing expenses.

Glossary 41   Reinsurance. Reinsurance is when the pool passes a portion of its coverage onto a commercial insurer to reduce the financial cost if a claim exceeds the pool’s planned coverage limit. Rein- surance follows the coverage document’s coverage. It adds additional coverage limits under the same coverage as the pool’s coverage document. Reinsurance may be on a pro rata basis (share all loss excess of the attachment point) or stop-loss basis (do not share loss excess of the attachment point). Required Contributions. The pool’s contribution level collectively meets its obligation to pay pool member loss. The level of contributions required by the pool for each member to meet its obligation to pay pool member loss. Retroactive Date. Pool coverage if an incident occurs on or after a specified date. For example, your coverage starts in January 2021 and has a November 2019 retroactive date. If a claimant sues you in February 2021 for an event in December 2019, the pool can help cover the claim because it happened after your retroactive date. The claim was reported during the policy period. Risk Management. Risk management is the practice of identifying and analyzing loss exposures and taking steps to minimize the risks’ financial impact (see diagram in Figure 8). Risk of Loss. Risk of loss is a term used to refer to the liability of the pool to compensate its members if there is damage or loss. Risk-Sharing Pool. A group of organizations that share their risk of pure loss. RMIS. A Risk Management Information System (RMIS) is an automated tool used to manage individual claims, identify trends, market the pool’s shared-risk program, forecast loss, create actuarial studies, and communicate internal loss data. RMIS may also provide tracking and management reporting capabilities to help the pool monitor and control the overall cost of risk efficiently and effectively. Self-Insured Retention (SIR). A pool member must pay a dollar amount specified in the pool’s liability coverage document before the pool will respond to a loss. Thus, under an SIR provi- sion, the pool member (rather than the pool) would pay defense or indemnity costs associ- ated with a claim until the SIR limit was reached. After that point, the pool would pay any additional payments for defense and indemnity covered by the pool. The pool has no legal obligation to the member with a SIR until a claim exceeds the SIR. Solvency. A pool’s liquidity and solvency ratios are the tools board members use to make invest- ment decisions. Liquidity ratios measure the pool’s ability to convert its assets into cash. On the other hand, the solvency ratio measures the pool’s ability to meet its financial obligations. Sovereign Immunity/Tort Liability. Sovereign immunity laws establish the sovereign status of state governments to grant immunity to themselves and thereby limit an operating agency’s maximum liability for an accident. “At least 33 states’ acts limit, or ‘cap,’ the monetary amount for damages that may be recovered from judgments against the state, and at least 29 states (often in combination with a cap) prohibit a judgment against the state from including punitive or exemplary damages. Today, state tort claims acts modeled after the Federal Tort Claims Act (FTCA) are the most prevalent statutory waiver allowing tort claims against the state. These acts either provide a general waiver of immunity with certain exceptions or reenact immunity with limited waivers that apply only to certain claims. State claims acts (as opposed to tort claims acts) are another statute that limits immunity and establishes a procedure for claims against the state. These acts establish a special court of claims, board, or commission to determine such claims and may also limit damages or provide for certain exceptions to liability. Connecticut, Illinois, Kentucky, North Carolina, and Ohio use this approach” (National Conference of State Legislatures 2010).

42 Shared-Risk Insurance Pools for Transit Agencies: A Guide State Investment Policy. An investment policy describes the parameters for the investment of government funds. It identifies the investment objectives, preferences or tolerance for risk, constraints on the investment portfolio, and how the investment program will be managed and monitored. Stop-Loss Insurance (Excess of Loss). Stop-loss insurance is a commercial insurance policy designed to limit claim coverage (losses) to a specific amount. This coverage ensures that a catastrophic claim (specific stop-loss) or numerous claims (aggregate stop-loss) do not drain the financial resources of the pool. Subrogation. The assumption by a third party of another party’s legal right to collect a debt or damages. Third-Party Administer (TPA). A TPA is a firm that handles various types of administrative responsibilities fee-for-service. These responsibilities typically include claims administration, loss control, risk management information systems, and risk management consulting (Inter- national Risk Management Institute n.d.). Tort Liability. The liability for damages resulting from the commission of a tort, including neg- ligence, against another person. Most insurance excludes intentional torts (such as assault or battery), so the insurance claims are largely based on unintentional actions or omissions, or negligence of some degree. See “Sovereign Immunity/Tort Liability.” Total Cost of Risk. The total cost of risk is the sum of the pool’s risk management and operating costs (see Table 7). Total Return on Investment. This is used to measure the pool’s performance, including interest, capital gains, dividends, and distributions realized over a given period. Trend Analysis. Like probability analysis, trend analysis involves looking for patterns in past losses and then projecting those patterns into the future. However, trend analysis is based on a changing world. Trend analysis looks for changes in loss frequency or severity that might coincide with changes in other variables that are easy to forecast accurately. Some trends can Elements of Cost Costs Paid Loss & ALAE $371,000 Retain Loss (SIR) Unknown at this time Underwriting $280,000 Management $40,000(1) Service Provider $230,000(1) Actuary $10,000(1) Marketing $20,000 General $50,000 Regulatory Fees $10,000 Pool Administration If any $0 Total $731,000 (1) Included in underwriting expense. Table 7. Total cost of risk (based on total contributions of $1 million).

Glossary 43   only be discerned by intuitive judgment, with no charts or graphs. There are two types of arithmetic trending techniques: time series analysis and regression analysis. Trend analysis for a shared-risk pool would be adjusting historical losses to account for inflationary trends so that their value is in current dollar amounts. Historical loss amounts are multiplied by “trending factors” to convert historical loss amounts to current dollar amounts. Ultimate Loss. The total sum the pool member, the pool, and excess/stop-loss insurers pay for a fully developed loss [i.e., paid losses plus outstanding reported losses and incurred but not reported (IBNR) losses]. It may not be possible to know the exact value of ultimate losses for a long time after the loss. Actuaries assist with these projections for financial modeling and year-end reserve determinations. Underwriting. Underwriting is the process used to determine the loss it will pay on behalf of its members. Underwriting involves measuring risk exposures and selecting the contribu- tion that needs to be charged to bear the loss. Pool management should develop a set of guidelines, rules, and requirements and then use those to make decisions regarding the acceptance of members, determining a member’s risk of loss, and rating members. Pools should develop rating formulas based on their members’ experience working with actuaries not purely on a basic underwriting formula or insurance industry experience. Underwriting Documents. Underwriting documents are used to establish a pool’s rate for bearing the loss of its members. Examples include application forms, driver records, notes, photographs, building descriptions, claims information, and history. Underwriting Expenses. Underwriting expenses are costs and expenditures associated with underwriting activity. Underwriting expenses include a wide range of spending, and the exact definition differs among underwriters. This Guide includes management fees, service pro- vider fees, and actuarial fees as underwriting expenses. Unearned Premium. An unearned premium is the premium amount that corresponds to the period remaining on an insurance policy. In other words, it is the portion of the policy pre- mium that has not yet been “earned” by the insurance company because the policy still has some time before it expires (Hayes 2021). Unearned Premium Reserves. The amount of unearned member contribution on pool coverage as of a specific date (total annual premium less amount earned). Uninsured and Underinsured Motorist Coverage. This coverage pays for injuries, such as medical expenses resulting from an accident caused by a driver with little or no insurance. Written Contribution. Written contribution is a term that describes the total amount contrib- uted to the pool by its members to pay for loss and pool operations for a specified time.

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 Shared-Risk Insurance Pools for Transit Agencies: A Guide
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Transit agencies are finding it increasingly difficult to find, purchase, and maintain adequate and affordable insurance coverage for public transit vehicles. The number of smaller insurance providers is decreasing due to the volatile nature and demands of the insurance industry and insurance coverage requirements in general.

NCHRP Research Report 1079: Shared-Risk Insurance Pools for Transit Agencies: A Guide, from TRB's National Cooperative Highway Research Program, explains how insurance pools function, how to evaluate the feasibility of a shared-risk insurance pool, and how to establish and manage this type of pool.

Supplemental to report is a presentation and NCHRP Web-Only Document 374: Developing a Guide to Shared-Risk Insurance Pools for Transit Agencies: Conduct of Research Report.

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