Other Finance and Insurance Businesses Industry Terminology

We shifted premium collections from checks to ACH debits to cut DSO; Same Day ACH reduced our funding lag by one day; The ACH return (R01) indicated insufficient funds on the customer’s draft.

Mail the adverse action notice within 30 days of the credit denial; Include key score factors when the FCRA triggers apply; The insurer issued an adverse action notice when the renewal premium increased due to credit.

Usage-based telematics helped reduce adverse selection in auto; Our BNPL merchant mix showed adverse selection toward higher-return risk tiers; Broad underwriting without verification led to adverse selection and higher loss ratios.

The client signed an AOR letter to switch brokers; Carriers recognize AOR changes on the next policy effective date; The AOR is responsible for marketing the risk and coordinating renewals.

Our AML system flagged unusual premium payment patterns; The MSB filed a SAR within 30 days; We updated our AML risk assessment to include new virtual asset exposures.

We issued an ABS backed by prime auto receivables; Excess spread and OC support the ABS structure; The AAA tranche pays down first per the waterfall.

We closed a $50 million ABL revolver against AR and inventory; Weekly BBCs are required to update borrowing availability; File a UCC-1 to perfect the lender’s security interest.

The cat XoL attaches at $50 million; The policy has a $500k attachment point with 10% coinsurance above; We raised the attachment point to reduce reinsurance premium.

The MSB’s BSA program includes CDD and EDD for high-risk customers; We filed a CTR for cash premiums exceeding $10,000; 314(b) information sharing helped identify mule accounts.

We priced the facility at SOFR + 350 bps; Interchange dropped 10 bps year-over-year; The insurer cut commission by 25 bps.

Submit the monthly premium bordereau by the 10th; The claims bordereau reconciles paid and case reserves; Bordereaux quality drives trust in the binding authority.

Our BNPL approval rate rose after adding alternative data; We monitor BNPL vintage curves for early delinquencies; Regulators are moving to align BNPL with TILA disclosures.

We formed a Vermont captive to retain high-frequency losses; The program uses a fronting carrier with collateral in a trust; A protected cell captive allows multiple participants to segregate risk.

We increased the case reserve after new medical reports; Case reserve adequacy affects the loss ratio; The actuary reviewed case reserving patterns by line.

Our chargeback ratio exceeded the card network threshold; We implemented 3DS to reduce friendly fraud chargebacks; Use compelling evidence to win representment.

The combined ratio improved to 96%; Expense discipline offset higher catastrophe losses to keep the ratio under 100%; The MGA’s commission structure pressured the carrier’s combined ratio.

We sized OC to hit AAA; A reserve account traps cash when triggers breach; Monoline wraps once provided external credit enhancement.

We incorporated macroeconomic scenarios into CECL; LGD and PD assumptions drive our CECL reserve; Day-1 CECL increased for longer-tenor loans.

A $1,000 deductible lowered the premium; The policy has a per-occurrence deductible; The stop-loss policy includes an annual aggregate deductible.

The MGA has binding authority up to $5M TIV; Bordereaux and audits oversee delegated authority performance; The coverholder renews risks under the carrier’s rating plan.

Investors ran loan-level due diligence before the ABS deal; We completed MGA due diligence prior to granting authority; Enhanced due diligence was required for the high-risk MSB.

The platform launched embedded premium financing at checkout; We embedded small-business insurance into the POS onboarding flow; The OEM added embedded auto insurance at vehicle purchase.

We use eSignature for policy binds and endorsements; Audit trails satisfy ESIGN consent requirements; The lender’s Reg Z disclosures are delivered for e-consent.

Purchase cat XoL to cap aggregate losses; The layer attaches at $25M and exhausts at $75M; An occurrence XoL differs from aggregate stop-loss.

Excess spread covers early delinquencies; The trigger traps excess spread when OC falls; We modeled seasoning to stabilize excess spread.

The factor advanced 85% against verified invoices; Non-recourse factoring shifts credit risk to the factor; A UCC filing perfects the factor’s interest.

We certified permissible purpose before pulling credit; The consumer disputed a tradeline under FCRA; Risk-based pricing notices were triggered by the credit score.

The captive uses a fronting carrier in admitted states; The front requires a trust or LOC to secure obligations; Fronting fees are priced as a percent of GWP.

We issued annual GLBA privacy notices; Our vendor due diligence aligns with the GLBA Safeguards Rule; GLBA exceptions allow certain servicing disclosures.

GWP rose 12% with new MGA programs; Net written premium grew slower due to higher cessions; We track GWP by line and channel.

Property cat saw a hard market post-catastrophes; Retentions increased and limits contracted; E&S channels grew during the hard market.

CBD merchants are often classified as HRM; The acquirer set a rolling reserve for the HRM portfolio; We deployed 3DS and velocity checks to stabilize chargebacks.

IBNR increased due to reporting lags; Triangle methods informed IBNR for long-tail lines; IBNR volatility impacts the combined ratio.

The indemnity clause triggered defense and settlement; Indemnity basis differs from agreed value; The surety indemnity agreement allows recovery from the principal.

We issued a cat bond to cover peak wind risk; Collateralized re reloaded capacity in a tight market; ILS spreads widened amid model uncertainty.

Interchange optimization reduced costs for card-not-present sales; Debit interchange caps affect revenue; Network updates changed our interchange tables.

Co-borrowers signed with joint and several liability; The surety pursued all indemnitors jointly and severally; Intercreditor language addressed joint and several obligations.

Our KRI for chargeback rate breached the red zone; A KRI tracks claim cycle time to detect leakage; We set KRIs for third-party vendor outages.

KYB flagged a shell company with opaque ownership; We validated the merchant’s operating address and NAICS code; KYB refreshes are triggered by risk events.

We adopted eKYC with document and liveness checks; OFAC screening is embedded in our KYC flow; We escalate to EDD for PEPs and higher-risk profiles.

File a UCC-1 to perfect the ABL lender’s interest; We searched UCC records to confirm first lien position; PMSI rules can prime prior filings for specific collateral.

The coverholder writes E&S risks under Lloyd’s paper; The binder sets limits, territories, and classes of business; Lloyd’s audits coverholder compliance annually.

Senior secured loans show lower LGDs than unsecured; We calibrated LGD by segment and cycle; LGD plus PD and EAD determine expected loss.

The auto book’s loss ratio improved after rate filings; Weather events spiked the quarterly loss ratio; We target a 60–65% loss ratio for this program.

The MCA takes 10% of daily card batches; A confession of judgment may be used in some jurisdictions; We monitor holdback rates to manage cash flow pressure.

We validated the loss model per SR 11-7 principles; Challenger models reduced bias and drift; A model inventory and tiering drive MRM priorities.

Our program manager operates as an MSB with 40+ state licenses; MTL renewal deadlines drive compliance calendars; The bank conducts enhanced oversight of MSB partners.

Low deductibles may increase small claims frequency; Lapse in telematics monitoring raised moral hazard concerns; Guarantees can create moral hazard for lenders.

The filing follows NAIC model language; RBC ratios met NAIC standards; We submitted rate filings via SERFF per NAIC guidelines.

NCOs rose 80 bps in subprime vintages; We tightened underwriting after NCOs breached limits; Seasonality affects NCO rates in small-dollar lending.