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Foundations of Casualty Actuarial Science

Refers to expected loss costs, modified for the insured’s own
loss experience.

Negligence
The failure to exercise the care that an ordinary prudent person
would exercise.

Net Premium
The gross premium less any return premium less commission.

Occurrence
An incident, event or happening; in casualty insurance this term
may be defined as continual, gradual or repeated exposure to an
adverse condition that is neither intended nor expected to result
in injury or damage, as contrasted with an accident or sudden
happening; in property contracts; occurrence is usually defined
as all losses within a specified period of time involving a particular
peril; general liability policies insure liability for bodily injury or
property damage that is caused by an occurrence.

Occurrence Basis
Traditional method of insurance coverage whereby coverage is
provided for losses from claims which occurred during the policy

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