Glossary of Insurance Terms (X through Z)

x

y

yearly renewable term (YRT) insurance. One-year term life insurance that is renewable at the end of the policy term. Also known as annually renewable term (ART) insurance. See also term life insurance.

yearly renewable term (YRT) reinsurance method. A reinsurance premium payment method under which a ceding company pays a one-year term insurance premium to the reinsurer on the anniversary date of each reinsured policy.

z

zero-based budgeting (ZBB). A budgeting process in which a company begins with the premise that no resources will be allocated for the next accounting period unless and until each expense is shown to be in accord with the company's strategic and operational goals.