Glossary

Subject premium, in conjunction with retrospective rating, the portion of the premium applied to the retro formula.

A sublimit is a limitation in an insurance policy on the amount of coverage available to cover a specific type of loss. A sublimit is part of, rather than in addition to, the limit that would otherwise apply to the loss. In other words, it places a maximum on the amount available to pay that type of loss, rather than providing additional coverage for that type of loss. In professional liability insurance, sublimits are usually a stated percentage of an aggregate limit of coverage under a policy. For example, under a lawyers professional liability policy written with a $500,000 aggregate limit of coverage, there may be a 10 percent sublimit on coverage (i.e., $50,000) for punitive damages. In property insurance, however, sublimits may be stated as dollar amounts or as a percentage of the limit that would otherwise apply. For example, under a commercial property policy with a $2 million limit applicable to loss from all other causes, there may be a $100,000 sublimit on coverage for loss from flood, a $500,000 sublimit on loss from earthquake, and a debris removal sublimit of 25 percent of the direct damage loss amount. In both examples, the sublimit is the most the insured can collect for the type of loss to which the sublimit applies.

A submission refers to a proposal for insurance submitted to an underwriter.

Subpart F income is a definition of income in the US Tax Code as underwriting and investment income earned by an offshore insurer/reinsurer writing primarily US risks.

A subpoena is a command to appear at a certain time and place to give testimony.

A subpoena duces tecum is a form of subpoena requiring not only the appearance of the subpoenaed party but also that the subpoenaed party produce books, papers, and other items.

Subprime loans are loans on residential real estate carrying interest rates that are substantially above the prime mortgage loan rate.

Subrogation is the assignment to an insurer by terms of the policy or by law, after payment of a loss, of the rights of the insured to recover the amount of the loss from one legally liable for it.

A subrogation provision is a provision in an insurance policy addressing whether the insured has the right to waive its recovery rights against another party that may have been responsible for loss covered under the policy.

Subsidence is a sinking of filled, graded, or undermined earth or soil to its original or natural elevation.