Life and Health Insurance Glossary

Annualized New Premium (ANP)

ANP is an important factor in measuring the performance of our Allianz Life agents.

For policies with annual payment mode, the ANP is equal to this policy's regular premium. For monthly, quarterly and semi-annually payment modes, you can multiply by 12, 4 or 2 respectively to compute ANP.

Single premium policies, i.e. one time payment policies, are accounted for with 10% of the single premium amount.

Beneficiary
is the person who receives the proceeds of an insurance. The beneficiary can be different from the insured and the policyholder.

Claim
is a demand or notice of the right or alleged right of any party, to be recovered by an insurance company on account of an alleged loss resulting from a cause covered by the policy.

Claim and Insurance Benefits
are expenses which consist of: claims and insurance benefits where payment is based on the occurrence of an insured event. Such claims and benefits include death claim, disability claim and health insurance claim; claims and benefits due on maturity date; and claims and benefits due to surrender of the contract.

First Year Premium (FYP)
First Year Premium is the effective premium paid so far for policies not older than 12 months.

Grace Period
is a period following the premium due date, during this period the premium may be paid. The policy stays in force during this period.

Gross Premium
is a premium received from policyholder.

Gross Written Premium (GWP)
Gross Written Premium is the most important Agent performance measurement for the Health Insurance Business. Gross Written Premium is the sum of First Year Premium (FYP) and Renewal Premium.

Insured
is the person, whose life or health is covered by an insurance. The insured can be different from the beneficiary or policyholder.

Liability for Future Policy Benefit
is an obligation to the policyholder that concerns the premium that is due, including grace period premium. In the insurance business, this term is also referred to as premium reserve.

Minimum Level of Solvency Margin
is the minimum amount of solvency which is defined as being the fund required to cover the risk of losses that may arise from assets default and liabilities in accordance with decree of minister of finance about the financial soundness of insurance and reinsurance companies.

Policy
is the printed document issued by the insurance company to the insured stating the terms of the insurance contract.

Policyholder
is the owner of an insurance policy. The policyholder can be different from the insured and the beneficiary.

Premium
is a payment that a policyholder makes to pay for his/her insurance coverage. Premiums can be paid all at once as a lump sum or as regular payments.

Premium Receivable
is a claim of premium to the policyhoder which is due and is still within the grace period.

Reinsurance
is an agreement whereby an insurance company transfers part or all of its risk of loss under insurance policies it writes by means of a separate contract or treaty with a reinsurance company.

Reinsurance Claim
is part of the claim that becomes a liability of the reinsurer in accordance with the reinsurance agreement.

Reinsurance Payable
is a liability that arises from reinsurance transactions in relation to the charging or reinsurance premium, reinsurance commission, profit commission and reinsurance claim.

Reinsurance Premium
is a part of the gross premium which is due to the reinsurer based on the reinsurance agreement.

Reinsurance Receivable
is a claim to the reinsurer which arises from reinsurance transactions, in relation to the receipt of reinsurance premium, reinsurance commission, profit commission and reinsurance claim.

Risk-Based Capital (RBC)
Is the ratio between solvency margin and required minimum solvency margin.

Solvency Margin
is a measurement used to assess an insurance company’s ability in fulfilling its liabilities to the policyholders, which is reflected by comparison between allowable net value or admitted assets and the company’s liabilities.

Unearned Premium
is a part of the gross premium which has not been recognized as revenue since the period covered extends beyond the end of the current period.