Glossary

Social inflation is a term given to the phenomenon of unexpected rising insurance claim costs because of societal trends and views toward litigation.

The Society of Professional Benefit Administrators is a nonprofit national trade association founded in 1975 and headquartered in Chevy Chase, Maryland, whose members include third-party administration firms who provide comprehensive ongoing administrative services to client employee benefit plans and, under its stop loss service partner category, for insurers, managing general underwriters, and reinsurers of self-funded health plans.

A soft market is one side of the market cycle that is characterized by low rates, high limits, flexible contracts, and high availability of coverage.

A soft target refers to a building or facility with such light security and protective safeguards that it is an easy target for an act of violence, such as by terrorists.

A solicitor is a representative of an agent appointed and authorized by that agent to solicit and receive applications for insurance.

The solvency margin is the insurer's unimpaired surplus as a percent of outstanding loss reserve.

Solvency ratio refers to a statutory ratio test, which is usually net written premiums divided by capital and surplus.

A sophisticated insured is an insured that is knowledgeable as to risk management, insurance, and risk financing practices and does not require the same level of protection under insurance laws as an average insurance consumer.

Source revelation provisions are provisions in media liability policies indicating that in the event of a claim against the insured, the insured is not compelled to reveal to the insurer defending the claim the source of the material that is the subject of a claim.

Spamming involves sending unwanted and unsolicited email to an individual's or corporation's communications system.