Running the Platform Glossary · Insurance

ACORD: the insurance industry's standards body, publishing forms, the AL3 batch format, P&C and life XML message standards and newer API standards (ACORD & Data Standards).
AL3: ACORD's batch format for carrier-to-agency policy, claim and commission data, under much of the agency download traffic (ACORD & Data Standards).
Big bang conversion: converting every in-force policy to a new system at one cutoff, midterm (Replacing a Core System).
Conversion transfer: a pair of entries moving a policy's unearned premium from the old system's ledger to the new one at conversion, excluded from written premium, premium tax, statistics and commissions (Replacing a Core System).
Core platform: the system of record for an insurer's policies, billing and claims, bought from a vendor or built (Core Platforms).
Data call: a regulator's request for data the routine reports don't contain, answered under the call's own definitions and deadline (Regulatory & Statistical Reporting).
Data collection agent: a contractor designated by a state agency to receive reports on its behalf, such as Verisk for Texas workers' comp claims EDI (ACORD & Data Standards).
FROI and SROI: the First and Subsequent Reports of Injury, the IAIABC EDI transactions workers' comp insurers send to states (ACORD & Data Standards).
Maintenance type code (MTC): the code on an IAIABC EDI transaction naming the event it reports, such as 00 (original FROI) or IP (initial indemnity payment) (ACORD & Data Standards).
Parallel run: operating both systems on the same work to compare results; in a policy conversion, the premium, bills, notices, claim postings and reports, before cutover (Replacing a Core System).
Premium tax: a state tax on insurance premiums written on risks in the state, computed from direct premium by state with deductions, credits and prepayments (Regulatory & Statistical Reporting).
Renewal rollover: converting each policy to a new system at its renewal, so the old system runs off over one term (Replacing a Core System).
Retaliatory tax: a tax on a foreign insurer equal to the excess of what its home state would charge a company from this state over this state's own charges on the same premium (Regulatory & Statistical Reporting).
Statistical agent: an organization designated by states to receive insurers' statistical plan data, such as Verisk ISO or NISS (Regulatory & Statistical Reporting).
Statistical plan: the rules and codes under which an insurer reports premium and loss transactions to a statistical agent, by line, coverage, class and territory (Regulatory & Statistical Reporting).
Subledger: a ledger fed by one system (premium, receivables, commissions, taxes, losses, reinsurance) that rolls up to the general ledger and feeds the statutory statement (Insurance System Architecture).
System of record: the one system whose copy of a record wins when systems disagree; during a conversion it differs policy by policy and claim by claim (Core Platforms).
TXLife: ACORD's life, annuity and health XML message envelope, carrying requests with a TransRefGUID and TransType (ACORD & Data Standards).