An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Reinsurance

Insurance purchased by an insurance company from another insurance company to protect itself from large losses, especially from catastrophic events.

Catastrophe Peril

A specific type of natural disaster, such as a hurricane, wildfire, severe storm, or flood, that has the potential to cause widespread and significant damage.

All-Perils Property Insurance Policy

An insurance policy that covers all potential causes of property damage or loss, except for specific exclusions explicitly listed in the policy.

Probable Maximum Loss (PML)

An estimate of the largest financial loss an insurance company is likely to experience from a single event or a set of events within a certain period, used for risk assessment.

Primary Insurer

The insurance company that directly sells policies to individual customers or businesses and is responsible for paying out claims.

Moral Hazard

A situation where a party protected from risk (e.g., by insurance) acts differently than if they were fully exposed to the risk, potentially taking on more risky behavior.