PRISM Glossary and Terms (public-entity risk pool glossary)

What this document is

PRISM Glossary and Terms (public-entity risk pool glossary) is a reference published by PRISM (prismrisk.gov), a public-entity risk-sharing pool. It is one of the documents that insurance license exam questions are written from, including property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• PRISM Glossary and Terms (Law of Large Numbers)

  “A mathematical concept which postulates that the more times an event is repeated (in insurance, the larger the number of homogeneous exposure units), the more predictable the outcome becomes.”

• PRISM Glossary and Terms (Deposit Premium)

  “Amount of premium paid at the beginning of the coverage period, which is then adjusted to a final premium amount at the end of the coverage period. This is most common in workers' compensation, where premiums are based on estimated payroll amounts at inception and adjusted based on actual payroll amounts afterwards.”

• PRISM Glossary (Directors, Officers and Trustees Liability)

  “Intended to protect nonprofit board members, officers, and directors for faulty decisions, which imperil the entity.”

• PRISM, Glossary and Terms (web page), Automobile Liability

  “Designed to afford bodily injury and property damage liability coverage associated with owned, non-owned and hired vehicles.”

Practice this material

Questions about this source

More Federal sources sources

• Coverage for Pre-existing Conditions (Affordable Care Act) - HealthCare.govFederal guidance
• 20 C.F.R. § 404.1520 -- Evaluation of Disability in General (the five-step sequential evaluation process)Regulation
• Parts of Medicare (Medicare & You / medicare.gov)Federal guidance
• Continuation of Health Coverage (COBRA) - U.S. Department of LaborReference
• Portability of Health Coverage (HIPAA) - U.S. Department of LaborReference
• Fair Credit Reporting Act - 15 U.S.C. § 1681a (Definitions)State statute
• 15 U.S.C. s. 1681b: FCRA permissible purposes of consumer reportsState statute
• 15 U.S.C. s. 1681c: FCRA requirements relating to obsolete information in consumer reportsState statute