SelectRateISO Rating PlatformExplore SelectRate →

CoverPayInsurance Payments, Simplified.Explore CoverPay →

Resources

Insurance Operations Glossary

Name: Selectsys
Address: US

The Selectsys ecosystem connects AI, automation, and insurance operations through one Operating Model. This glossary defines the terms, metrics, and systems that appear across all platform and blog pages. Each definition links to its detailed explanation or live example inside the platform.

See the Operating Model Request a Demo

AI Assist (Underwriting Assistant)

AI-powered guidance system inside RQB and EI that reads underwriting rules, flags missing data, and suggests risk fit.

AI BPO

A delivery model that pairs AI automation with trained Insurance BPO teams. AI tools extract, route, and validate data, while human teams finalize tasks with SLA and QA control.

Learn more

AI OCR (Optical Character Recognition)

Automation that converts PDFs and document images into structured data for RQB and EI. It reduces manual entry and speeds up intake.

Explore

Analytics and PQI

Analytics measure cycle time, hit ratio, and SLA performance. PQI (Policy Quality Index) combines accuracy, speed, and audit to score overall quality.

See how PQI works

Agency Management System (AMS)

Software for MGAs, carriers, and wholesalers to manage accounts, policies, documents, tasks, and reporting across the insurance lifecycle.

For MGAs, carriers, and wholesalers:
Should support multi-carrier data, bordereaux, delegated-authority controls, audit trails, and integration with quoting, underwriting, and policy systems.

In Selectsys:
Expert Insured is our AMS for MGAs, carriers, and wholesalers, integrated with RQB (Rate • Quote • Bind), AI Assist, and Policy Administration BPO.

Features:
Accounts/contacts, tasks, documents, endorsements, renewals, bordereaux, analytics; role-based permissions, audit logs, SLA + PQI tracking; carrier API integrations; reporting.

Appetite Rules

Logic that screens submissions by class, state, limits, or exclusions to determine fit before rating.

Admitted vs. Non-Admitted

Admitted carriers are state-licensed and follow rate/form filing; non-admitted (E&S) do not but offer flexible terms.

Related: RQB

AAIS Commercial Lines

Commercial insurance programs built using rating guidance, forms, and manuals provided by the American Association of Insurance Services (AAIS), commonly used by MGAs, wholesalers, and carriers.

Related: AAIS Commercial Lines Platform

Accounting Visibility

The ability to view premium activity, policy-level transactions, and reporting status directly from the operating platform.

AAIS Rating

The application of rating rules, manuals, and guidance published by the American Association of Insurance Services (AAIS) to calculate premiums for commercial insurance risks.

AAIS Insurance Forms

Standardized policy forms and endorsements published by AAIS that define coverage terms, conditions, exclusions, and modifications for commercial insurance programs.

ACH (Automated Clearing House)

Electronic bank-to-bank payment method used for premium collection, installment billing, and recurring withdrawals within insurance payment workflows.

Related: Installment Billing, CoverPay

Agency Bill vs Direct Bill

Billing structures where either the agency collects premium (agency bill) and remits to the carrier, or the carrier bills the insured directly (direct bill), with reconciliation requirements differing for each model.

BPO (Business Process Outsourcing)

Insurance-focused outsourcing model where trained operations teams execute core insurance workflows such as submission intake, underwriting support, policy processing, endorsements, renewals, accounting, compliance, audits, and claims support inside client systems under defined SLAs and quality controls.

BPO Pod

A dedicated, trained mini-team mapped to a specific workflow. Each Pod works under a defined SLA, QA process, and escalation path.

See example

Bordereaux

Periodic data reports (e.g., premium, claims, risk) sent from MGA/coverholder to carrier for delegated programs.

Bind Pack / Policy Pack

The assembled set of bind documents (forms, schedules, invoices, notices) generated at bind/issue.

Related: Expert insured, Forms Engine, RQB

Builders Risk Rating

The process of pricing builders risk insurance based on project type, construction value, duration, location, construction phase, and exposure while a structure is under construction.

Carrier Reporting (AAIS Context)

Carrier reporting in an AAIS context refers to standardized operational and financial reports delivered to carriers for delegated authority programs using AAIS rating, forms, and policy structures. These reports typically include policy activity, premium movement, endorsements, bordereaux, and audit-ready data aligned to AAIS standards.

Control Tower

Central dashboard providing real-time visibility, SLA tracking, and workload monitoring across RQB, EI, AI, and BPO Pods. It identifies bottlenecks, exceptions, and SLA breaches.

Explore

Cycle Time

Average time it takes to complete a workflow step (such as from submission to quote, or quote to bind). Measured in hours or business days and tracked in Analytics dashboards.

Certificates of Insurance (COI)

Proof of coverage documents issued for third parties, often with holder-specific wording.

Commercial Lines Platform

An end-to-end insurance platform that supports rating, quoting, binding, policy issuance, endorsements, and accounting for commercial insurance programs.

Related: AAIS Commercial Lines Platform

Commercial & Specialty Rating Platform

A rating system designed to support commercial and specialty insurance lines by applying complex rating logic, underwriting inputs, endorsements, and line-specific rules across multiple carriers and programs.

Course of Construction Rating

A form of builders risk rating that prices insurance coverage while a project is actively under construction, with exposure increasing as work progresses.

Related: Builders Risk Rating Platform

CoverPay

Insurance-native payment infrastructure supporting installment billing, agency bill, direct bill, endorsement billing, automated payment retries, gateway integrations, and reconciliation inside the Selectsys ecosystem.

Related: CoverPay, Premium Accounting, RQB

Credit Card Vaulting

Secure tokenized storage of insured payment credentials within a compliant gateway environment, enabling recurring billing without storing raw card data in the insurance platform.

Related: Unified Payment API, CoverPay

Data Fabric

The data layer that connects all Selectsys tools (AI OCR, RQB, EI, BPO, Analytics). It normalizes fields, enforces templates, and provides a single data source across systems.

Learn more

Document Accuracy

Percentage of documents created or processed without errors or rework.

Delegated Authority

Contracted authority allowing MGAs/coverholders to underwrite, bind, and issue on behalf of a carrier under specific terms and audits.

Delegated Authority Platform

A system designed to support MGAs and program administrators operating under carrier-granted authority to underwrite, bind, issue, and service policies.

Delegated Authority Rating

Rating performed by MGAs or program administrators under carrier-granted authority using approved rating rules, forms, and underwriting guidelines.

Expert Insured (EI)

Selectsys Policy Administration and Forms System that manages accounts, documents, and audit logs across the insurance lifecycle.

Explore

E&S (Excess & Surplus Lines)

Market segment for risks not written in the admitted market, using non-filed rates/forms and surplus lines rules.

Related: RQB, Expert insured

Endorsements

Mid-term policy changes that modify coverage, limits, deductibles, or terms after a policy has been issued.

Related: Endorsement Support, Expert insured

Endorsement Processing Outsourcing

Outsourcing of mid-term policy changes that modify coverage, limits, or terms, executed with validation, QA, and audit-ready controls inside insurance systems.

Forms Engine

Capability inside EI that automatically generates and manages policy and endorsement forms based on templates and RQB data.

FNOL (First Notice of Loss)

The initial claim report that starts the claims workflow and downstream servicing.

Hit Ratio

The percentage of quotes that convert into bound policies.

Formula: Bound / Quoted × 100

Integrated Accounting

Accounting functionality that is directly aligned with issued policies, endorsements, and premium transactions, providing real-time visibility without separate reconciliation systems.

Issuance and Servicing

Post-bind workflows that handle policy document creation, endorsements, certificates, and service tasks.

Insurance BPO

A specialized insurance operating model where execution work is handled by insurance-trained teams rather than generic outsourcing staff. Insurance BPO focuses on execution, not decision-making, and supports carriers, MGAs, and wholesalers at scale.

Related: Insurance BPO

Inland Marine Rating

The process of pricing inland marine insurance risks such as mobile property, transportation exposures, and contractor equipment using line-specific rating factors and endorsements.

Insurance BPO for MGAs

Insurance BPO tailored for managing general agents that supports delegated authority programs by handling submission intake, underwriting support, policy issuance, endorsements, renewals, bordereaux, trust accounting, and compliance while preserving underwriting authority.

Related: Insurance BPO for MGAs

Insurance BPO for Wholesalers

Insurance BPO designed for wholesalers that manages high-volume, multi-carrier execution including submissions, policy processing, renewals, accounting coordination, and carrier portal management across complex placements.

Related: Insurance BPO for Wholesalers

Insurance BPO for Carriers

Insurance BPO that provides carriers with scalable operational support across underwriting preparation, policy servicing, accounting, compliance, audits, and claims intake without transferring underwriting or claims authority.

Related: Insurance BPO for Carriers

Insurance Installment Billing

Structured premium billing schedules allowing insureds to pay over time with automated invoicing, installment tracking, recalculation after endorsements or cancellations, and accounting synchronization.

Insurance Payment Retry Automation

Automated logic that reattempts failed premium payments based on configurable retry rules, triggers required notices, and allows secure payment updates before policy cancellation.

Insurance Endorsement Billing

Automatic premium recalculation and billing adjustments triggered by mid-term endorsements, ensuring installment schedules and accounting entries reflect policy changes immediately.

ICS (Incomplete Submissions)

Definition:
ICS stands for Incomplete Submissions, referring to policy or submission files received without all required data or documents during intake.

Purpose:
ICS measures the percentage or count of incoming submissions missing key fields or attachments. Reducing ICS improves quoting speed, accuracy, and underwriting efficiency across the operating model.

Example Usage:

“Cycle time ↓ 20–35% • ICS ↓ 30–50%”
“Automation and triage reduced ICS by 40% within the first quarter.”

Loss Runs

Carrier-issued claims history used for underwriting and renewal pricing.

Notice of Cancellation (NOC)

Regulatory-compliant notice issued when premium remains unpaid beyond defined grace periods, initiating policy cancellation timelines according to jurisdictional rules.

PQI (Policy Quality Index)

A composite score measuring policy accuracy, SLA compliance, and audit pass rate. Higher PQI = cleaner, faster, more compliant workflows.

Read full definition

Playbook

A standardized SOP that defines the exact steps, inputs, QA checks, and SLAs for each workflow handled by BPO Pods.

Explore

Policy Issuance

The process of generating and delivering official policy documents after a risk is bound, including declarations, forms, endorsements, and policy packets.

Related: Expert Insured

Policy Management System

Subsystem focused on post-bind workflows, issuance, endorsements, renewals, cancellations, document assembly, and audit/compliance.

For MGAs, carriers, and wholesalers:
Must connect to underwriting, quoting, and forms libraries with auditability for delegated authority programs.

In Selectsys:
Delivered inside Expert Insured with a Forms Engine that generates policy/endorsement packets using RQB data and templates.

Features:
Issuance and endorsements with templates/approvals; COIs and document packages; renewal and remarketing cadence (120/90/60/30).

Policy Processing Outsourcing

Outsourcing of policy issuance, mid-term changes, documentation updates, and system validation to insurance-trained operations teams operating under defined workflows and SLAs.

Related: Policy Processing Outsourcing

Program Administrator

An organization responsible for overseeing delegated authority insurance programs, enforcing standards, coordinating carriers and MGAs, and ensuring compliance, reporting, and governance.

Payment Failure

A failed premium transaction due to insufficient funds, expired card, ACH rejection, or gateway error, requiring retry logic, insured notification, and potential cancellation workflow.

Payment Gateway Control

Operational model where the insurance organization retains ownership of its merchant account and gateway credentials while integrating payment processing into rating and policy workflows.

Related: Unified Payment API, CoverPay

QA (Quality Assurance) Score

Percentage of tasks or documents that pass quality review on the first attempt.

Quote Sheet

Summary document generated in RQB showing premium, limits, and terms offered to a client.

Quote Proposal

Client-ready summary comparing options (premium, limits, terms) with actions to request bind.

Related: RQB, Hit Ratio

RQB (Rate • Quote • Bind)

Selectsys rate, quote and bind workflow within SelectConnect that connects rating sources, generates quotes, and assembles bind packs.

Learn more

Renewal and Remarketing

Process that handles policy renewals with 120/90/60/30-day cadence and offers alternate quotes or save options.

Explore

Rate Quote Bind Issue

The core insurance workflow covering rating a risk, generating a quote, binding coverage, and issuing policy documents.

Renewal Processing Outsourcing

Outsourcing of renewal preparation, documentation cleanup, remarketing support, and system updates to ensure timely and accurate policy renewals at scale.

Related: Renewal Processing Outsourcing

Rating Issuance and Accounting Alignment

An operating model where rating outputs directly drive policy issuance and accounting entries, ensuring consistency across premium, endorsements, reporting, and reconciliation.

SLA (Service Level Agreement)

A defined turnaround time or accuracy target for each workflow, tracked in Control Tower and PQI metrics.

Submission Triage

AI workflow that scores completeness, applies appetite rules, and routes submissions to the right team or carrier.

Straight-Through Processing (STP)

End-to-end automated flow from intake to quote/bind/issue without manual rekeying.

Submission Intake Outsourcing

Outsourcing of submission receipt, completeness checks, document organization, data normalization, and routing to prepare clean files for underwriting review.

Related: Submission Intake Outsourcing

Specialty Lines Rating

The pricing of non-standard or complex insurance risks that require customized rating logic, underwriting inputs, and endorsements beyond standard admitted lines.

Task Queue

The prioritized list of actionable work items inside EI, RQB, or BPO dashboards, visible in the Control Tower.

Turnaround Time (TAT)

The elapsed time to complete a workflow step (e.g., submission → quote); tracked in SLAs.

Trust Accounting Clearing

Reconciliation process ensuring collected premiums are properly allocated between agency trust accounts, carrier payables, commissions, and fees in accordance with regulatory requirements.

Underwriting Inputs

Underwriting inputs are the structured data elements used to evaluate and price insurance risk, including exposure details, classifications, limits, deductibles, locations, construction attributes, and loss history.

Underwriting Support Outsourcing

Outsourcing of pre-underwriting operational work such as clearance, file preparation, data validation, and documentation while underwriting authority remains with licensed underwriters.

Unified Insurance Payment API

API layer that connects rating, policy issuance, installment billing, and accounting workflows to external payment gateways while maintaining reconciliation visibility inside the platform.

Operating Model

Selectsys’s connected operating model that unites AI, automation, and BPO Pods across the full insurance lifecycle.

See the Operating Model

White Label Insurance Platform

A white label insurance platform is a configurable insurance system that allows MGAs, wholesalers, or program administrators to operate under their own brand while using shared underlying technology for rating, policy issuance, servicing, and accounting.