I.I.I. Glossary

RETURN ON EQUITY- Net income divided by total equity. Measures profitability by showing how efficiently invested capital is being used.

MULTIPLE PERIL POLICY- A package policy, such as a homeowners or business insurance policy, that provides coverage against several different perils. It also refers to the combination of property and liability coverage in one policy. In the early days of insurance, coverages for property damage and liability were purchased separately.