This is the time between placing an order from a supplier and receiving the items from the supplier. It can include preparation of orders, packaging, freight to the buyer and […]

The individual person who is responsible for making all of the purchasing orders. This person will co-ordinate all aspects of purchasing from a number of suppliers. In a large company […]

The ability of a person to purchase goods. Also known as buying power and relates to the amount of money available to purchase goods. The purchasing power related to exchange […]

A theory stating that purchase power is equal when countries can transport freely capital, goods, services, and labor. Barriers do exist so exchange rates must change longterm to reflect a […]

The risk taken that may include the decline in the value of goods and services after they have been purchased. Any resulting loss that may rrsult from a particular purchase.

Absolute; complete; simple; unmixed; unqualified; free from conditions or restrictions ; as in the phrases pure charity , pure debt, pure obligation , pure plea, pure villenage, as to which […]

an accident that has been caused by an event that was unavoidable.

This is an annuity that makes periodic payments to the annuant and will only stop with the annuants death. The premiums are deemed to be fully earnt and paid. These […]

A strategy that uses external borrowed funds instead of internal funds. Refer to quasi arbitrage .

A economic system that shows little interference fromn a govenment body. The system is run by big business and revolves around money and capital assets .

An insurer owned by a single company. They write insurance for that company only. While easy to manage it may be more risky. AKA single parent captive. Refer to agency […]

A swap transaction that allows an insurer to diversify their portfolio by exchanging uncorrelated catastrophic hazards. Refer to catastrophe reinsurance swap .

One which is entirely gratuitous, and which dispenses its benefits without any charge or pecuniary return whatever. See In re Keech’s Estate (Surr.) 7 N. Y. Supp. 331; In re […]

This is the comparison of the cost of an item from the previuos year compared to this current year . This method is used in cost accounting practices.

In Scotch law. A debt due now and unconditionally is so called. It is thus distinguished from a future debt ,

An endowment policy that is paid when the person in the endowment is still alive. An endowment policy runs for a set number of years than matures and is paid […]

A trust that is irrevocable . The assets of the trust are acquired by a certificate exchange of beneficial interest instead of assets. This is different from gifting.

A ratio of losses of the re-insurer against the premiums that have been paid.

The domination of one company that supplies the majority of a product to the public. This company will distribute all of one product as it has out priced the competition […]

a plea that brings new material for the defence.

The amount an insurer needs to cover their expenses. Along with premium loading it is used to calculate fair premium . Refer to expense loading .

The way premium on property and causality insurance is calculated. Premium loading factors are not used in the process. AKA standard risk . Refer to speculative risk .

An economic term related to goods or services that does not generate any external entities. The producer or consumer of the goods or service will bear all of the costs […]

An economic term related to goods and services that provides services and benefit to the general public. The goods and services specified are for the public good .

An economic concept of the rate of theorertical interest That rises in a market of loanable funds. In this situation a perfect rate of competition and certainty applies. That is, […]