Investment risk is the possibility that the investment income generated from unearned premiums or loss reserves will be lower than expected at the rate calculation.
An invitee is a person who has been given an explicit or implied invitation to enter the premises for the business benefit of the owner. According to common law, the owner of the land is obliged to show the highest care for the invitee.
Irrevocable Letter of Credit (ILOC) – An ILOC or standby letter of credit is a contractual agreement between a financial institution (bank) and the party to whom the letter is issued. It requires the bank to pay drafts that meet the terms of the letter of credit. ILOCs can be used to secure cash owed by an insured under various types of risk financing programs (eg deductibles and retrospective loss payments). They can also be used as a form of guarantee in a construction context, where they have the advantage of not being subject to a preferential requirement when filing for bankruptcy.