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A
Accident - An unforeseen event or circumstance without any purpose.
Accident Insurance - Insurance for unexpected physical damage.
Accident Only (AD&D) - A coverage, individually or in combination, for death, dismemberment, disability, or hospital and medical care caused by an accident. Includes student accident, sports accident, travel accident, blanket accident, specific accident or accidental death, and dismemberment.
Accidental Bodily Injury - Sudden damage to a person.
Accidental Death & Dismemberment - Insurance contract which pays a stated benefit by happening events like death and/or dismemberment caused by an accident.
Act of God - An act of God is an unavoidable natural occurrence that causes damage to your insured property in terms of insurance coverage. Natural disasters and heavy storms are examples of this.
Actual Cash Value - Repayment charge for indemnification for loss or damage of property; in most cases it is replacement amount excludes depreciation.
Actuarial Report (PC Insurance) - A report or other presentation, arranged as a legal means of conveying to the state regulatory right and the Board of Directors, or its equivalent, the actuary's expert conclusions, and recommendations, of recording and communicating the methods and procedures, of assuring that the parties discussed are aware of the importance of the actuary's idea or decisions and that documents the review carrying the opinion.
Actuary - Sales professional who analyzes possibilities of risk including estimation of premiums, profits, and other relevant insurance industry standards.
Additional Interest Insured - A person or company that has been named as an extra interest insured on a policy can be responsible for an accident that includes an insured person or vehicle.
Additional Living Expense Coverage - If a covered event damages your home, making it uninhabitable for a temporary period of time, extra living expenses (ALE) coverage in the insurance policy of your homeowners may assist pay for accommodation and any enhanced food expenses to keep equal living standards while your house is being repaired or reconstructed. For instance, while your house is being repaired from fire or storm damage, ALE might assist cover a hotel or temporary home.
Adjuster - A person who reviews claims and suggests contract options based on estimations of damage and insurance policies held.
Admitted assets - Insurer assets that can be considered on the balance sheet to define the financial viability of the company.
Admitted Company - An insurance company that has a license to do business in a state(s), domiciled in an alternative state or country.
Advance Premiums - Happen when a policy has been prepared, and the premium has been paid prior to the valid date. These are the responsibilities of the company and not included in the printed premium.
Adverse Selection - The social aspect that persons with a higher than average expectation of loss seek higher insurance coverage than those with less risk.
Advisory Organization - Member companies sponsor groups whose purpose is to collect loss statistics and publish trended loss values.
Affiliate - A person or object that directly, or indirectly, through one or more other persons or objects, is controlled by or is under constant control with the insurer.
Agent - A person who independently or on behalf of a company sells, helps, or negotiates insurance policies.
Aggregate - The total or maximum amount of coverage that is payable for a particular loss, or various losses, during the policy, or on an individual project.
Aircraft - Any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo.
ALAE - An evaluation of the claims adjustment associated with a claim or claims.
Alien Company - An insurance company authorized by the laws of a foreign country and must adjust to state governing standards to lawfully sell insurance services in that state.
Allied Lines - The written coverages with property insurance, e.g., glass, tornado, windstorm; sprinkler and water damage; explosion and civil commotion; growing products; flood; rain; and damage from aircraft and vehicle, etc.
All-Risk (Open Peril) - A type of policy that covers a wide variety of losses and risks that are not explicitly excluded in the policy contract.
Alternative Workers' Compensation - Any workers except standard workers' compensation coverage, employer's liability, and excess workers' compensation (e.g., large deductible, managed care).
Ambulatory Services - health services provided to members who are not confined to a health care institution. Ambulatory services are often referred to as "outpatient" services.
Annual Statement - A yearly report that should be recorded with each state that an insurer does business in, which provides a picture of the financial situation of a company and significant events which happened throughout the reporting year.
Annuitant - The heir of an annuity fee, or a person whose life and annuity is payable.
Annuities – Immediate Non-variable - A contract that provides set-up payment of the annuity at the end of the first interval of payment after buying which may change, however, the annuity payouts must start within 13 months.
Appraisal - Value estimation
Apartment Insurance (Renter’s Insurance) - Apartment insurance is property insurance that offers cover for the assets, liabilities, and potentially living costs of a policyholder in the event of a loss event. Single-family home, apartment, duplex, condo, studio, loft or townhome insurance is accessible for renters.
Arbitration - A binding dispute resolution the tactic interfered with by a conciliator with no interest in the result.
Assessed Value - Determined rate for real or private property which authorized by a taxing entity
Asset - Expected financial benefits obtained or managed by a particular entity as a result of past transactions or events.
Asset Risk - In the capital formula based on risk, the risk attached to the assets of the company.
Assigned Risk - Governmental fund in the standard insurance market that get established to write business refused by carriers
Assisted Living Care - A policy that gives coverage when a policyholder is confined to an assisted living equipment and fits the requirements of the policy for the coverage.
Assumed Reinsurance - The assumption of danger under a reinsurance contract or treaty by another insurance organization.
Authorized Company - An insurer licensed or admitted to do business in a particular state.
Authorized Control Level Risk Based Capital - Theoretical capital plus surplus should be maintained by the insurance business.
Authorized Reinsurance - Reinsurance by a reinsurer that is licensed or otherwise authorized to carry out reinsurance in a state.
Attractive Nuisance - An attractive nuisance is an aspect that you add to your estate, which improves its importance or enjoyable factor, while also improving your private responsibility as it is more probable to injure children or visitors. Examples include swimming pools, trampolines, treehouses, facilities for playgrounds and fountains, or lakes.
Auto Liability - Coverage that protects against economic loss due to legal responsibility for motor vehicle-related injury or property harm induced by accidents resulting from the possession, maintenance, or use of a motor vehicle (including recreational cars such as motor homes). The commercial is described as all motor vehicle policies which include cars used mainly for profit or profit purposes in connection with the company, commercial institutions, activities, jobs, or operations conducted on. The state in question defines no-fault.
Automated Clearing House payments - Automated clearing house payments (also referred to as ACH payments, automatic payments, or electronic payments) are electronic withdrawals from the bank account or credit card of a policyholder used to pay insurance premiums or other kinds of bills.
Automobile Liability Insurance - Bodily injury coverage and property harm caused by car possession or operation.
B
Balance Sheet - Accounting declaration indicating a company's economic situation at a specific date.
BCEGS - Building Code Effectiveness Grading Schedule - Classification system for assessing building codes per geographic area with particular emphasis on mitigating natural disaster losses.
Beneficiary - An individual who may qualify to receive payment on account of his will, life insurance Betterment
Betterment - Betterment is the enhancement of the estate. This word is often used to reference home modifications — such as repairing a damaged roof — that boosts its value and policy on insurability.e, retirement plan, annuity, trust, or other agreements.
Bind Coverage - When the policy is made effective by the agent or the insurance company or their representative. This generally involves a policy payment.
Binder - As a temporary insurance approval, a binder indicates that coverage for a particular quantity of time is in location (bound), generally between 30 to 60 days. When the policy is given, it will be substituted by a declaration section.
When a policyholder requests a car or home loan, the loan company typically requires proof of insurance — which can be provided in the form of a signed binder.
Blanket coverage - Property and liability coverage extending to more than one place, ownership class, or employee.
Boatowners/Personal Watercraft - Covers harm to ships of enjoyment, engines, trailers, boating facilities, and personal watercraft as well as liability for bodily injury and harm to property.
Bodily Injury (BI) - Physical injury to the individual, including illness or illness.
Boiler & Machinery or Equipment Breakdown & Machinery - Boiler, machinery, and other electrical equipment failure coverage. Benefits include I insured property that was immediately harmed by the accident; (ii) temporary repairs and expediting costs; and (iii) responsibility for harm to property of others. Coverage involves equipment inspection as well.
Bonds - A type of debt security with a creditor stake in the business in the debt holder. Obligations issued by company units, government units, and certain non-profit units with a set timetable for one or more future cash payments; involve company paper, negotiable deposit certificates, repurchase contracts, and trust certificates for machinery.
Book Value - Original expenses, including capitalized purchase and accumulated depreciation expenses, unamortized premium and discount, deferred origination and engagement charges, immediate write-downs, and adjustment increases/decreases.
Broad Form ( Wide-Ranging Insurance) - Broad type is an insurance policy that includes you and/or your property against any hazard that the insurer permits.
Broker - An individual who gets insurance policy sales and service commissions. These people operate on the customer's behalf and are not limited to selling strategies for a particular business, but commissions are paid by the business with which the sale was created.
Building - Walled and roofed structures, which are primarily above the ground and permanently attached to the ground. (Building Coverage exist for all portions permanently fixtured to the home)
Building Codes Coverage - Typically an optional insurance coverage for your homeowners, construction codes coverage pays the difference in price if your house is harmed by a covered event and involves more costly repair or reconstruction expenses to align with town ordinances or newer construction codes. Older homes are often needed to be repaired or reconstructed with, for instance, upgraded roofing materials, electrical and wiring machinery, and plumbing systems.
Building Ordinance or Law - Loss coverage due to the enforcement of regulations or laws regulating the construction and repair of damaged buildings. Older damaged buildings may require electrical upgrades; heating, ventilation, and air conditioning (HVAC), roofing materials, fences, and city-based plumbing systems. Many groups have a construction ordinance(s) requiring the demolition and reconstruction of construction that has been destroyed to a defined extent (typically 50 percent) in accordance with current building codes rather than merely repairing it. Standard forms of commercial property insurance do not cover the loss of the building's undamaged portion, the cost of demolishing that undamaged portion of the building, or the increased cost of rebuilding the entire building in accordance with the current building codes. However, coverage by approval for these exposures to losses is commonly accessible. Standard homeowners’ policies include a provision that grants a restricted quantity of building ordinance coverage (e.g. 10 percent of the dwelling limit); this amount can be improved by approval.
Builders' Risk Policies - This coverage insures against loss to structures during building, typically written on a reporting or finished value form. The coverage also involves machinery and equipment used during building, as well as building materials.
Bundling (Combining Policies) - Is the acquisition by the same business of various kinds of insurance. Examples are a combination of homeowners and car insurance, or life, health, and home insurance. Because of multiple policy discounts, bundling can lead the policyholder to significant savings.
Burglary and Theft - Property coverage took or destroyed by breaking and entering the premises of the insured, burglary or robbery, falsification or counterfeiting, fraud, kidnapping and ransom, and exposure to off-premises.
Business Auto - Coverage of motor vehicles involved in commercial activities other than those in the garage business. Business auto filings include individual or combined coverage such as Auto Liability, PIP, MP, Uninsured Motorist and/or Underinsured Motorists (UM / UIM); Specified Loss, Comprehensive and Collision Causes.
Business Interruption - Loss of income owing to property damage to a business unit This coverage can be caused by an immediate covered loss such as fire, water damage, etc.
Business Owners Policy - Property, liability, and company interruption insurance typically covered.
C
The Calendar Year Deductible - In health insurance, the quantity payable by the insured during the calendar year before the insurer becomes liable for additional costs of failure.
Capital and Surplus - The assets of a company are lower than its liabilities.
Capital and Surplus Requirement - Statutory requirement for businesses to retain their capital and surplus in an amount equivalent to or exceeding a defined quantity to assist in ensuring the company's solvency by offering a financial cushion against expected loss or misjudgment and usually measured as a company's admitted assets minus its statutory accounts.
Capital Gains (Losses) - Excess (lack) of the asset's selling cost over its book value. Calculated for accrual of discount or amortization of premium and for depreciation on the grounds of initial costs adjusted as suitable.
Capitation Arrangement - A compensation plan for which a physician or other medical provider is paid a flat quantity, generally on a monthly basis, for each subscriber who has chosen to use that physician or medical provider in connection with certain managed care agreements. Under the terms of the contract, the capitated provider is generally responsible for the delivery or arrangement of all contractual health services required by the person covered.
Captive Agent - An employee selling or performing insurance contracts for a particular insurer or insurance fleet.
Captive Insurer - An insurance company set up by a parent company to ensure the exposures of the parent.
Car Insurance (Auto Insurance/ Automobile Insurance/ Vehicle Insurance/ Motor Insurance) - Car insurance is an agreement between an insurer and a car proprietor. A car insurance policy offers economic security against the expenses of a car accident, including harm to property and private liability.
Carrying Value (Amount) - The value of the SAP book plus interest accrued and decreased by any valuation allowance and any unadmitted modification given to the investment.
Cash - An interchange medium.
Cash Equivalent - Short-term, extremely liquid investments, both (a) easily convertible to known quantities of money, and (b) so close to maturity that they pose the insignificant danger of value modifications due to interest rate modifications. Under this definition, investments with initial maturities of 3 months or less qualify.
Casualty Insurance - A type of liability insurance covering negligent acts and omissions such as compensation for employees, mistakes and omissions, fidelity, crime, glass, boiler, and multiple forms of malpractice.
Catastrophe Bonds - Bonds issued by an insurance company with financing linked to disaster losses or acts of God caused by the business. A loss exceeding a certain magnitude causes a decrease in the value of the bond or a shift in the composition of the bond as loss payments are made from bond funds.
Catastrophe Loss - Large loss of magnitude with little forecasting capacity.
Ceded Premium - Premium quantity (fees) used to buy reinsurance.
Ceding Company - An insurance company that transfers risk through reinsurance purchases.
Centers for Medicare & Medicaid Services (CMS) - U.S. government agency in charge of licensing federally skilled HMOs. This was formerly the Administration of Health Care Financing.
Change in Valuation Basis - Changes in interest rates, mortality assumptions or reservations, or other factors influencing the calculation of policies in force in the reserve.
Chartered Life Underwriter (CLU) - A professional designation granted by the American College to persons in the field of life insurance who pass a series of insurance, investment, taxation, employee benefit plans, property planning, accounting, management, and economics examinations.
Chartered Property Casualty Underwriter (CPCU) - Professional designation granted by the American Institute of Property and Casualty Underwriters to persons in the field of property and liability insurance who pass a series of insurance, risk management, economics, finance, management, accounting, and law examinations. Designates also need to have at least three years of insurance or associated field experience.
Claim - An insured request for remittance of payment for losses caused and covered by the policy contract.
Claims Adjustment Expenses - Costs anticipated to be incurred in adjusting and recording accident and health claims, auto medical claims, and compensation claims for employees.
Claims-Made Form - A type of liability insurance that pays only if the insurance company submits both the event that creates (triggers) the claim and the real claim during the term of the policy
Class Rating - A procedure for determining prices for all candidates within a specified set of features, such as private demographic places and geographic location.
Class Rating - A clause in most estate insurance policies to encourage policyholders to perform sensible insurance amounts. If the insured fails to maintain the amount specified in the clauses (usually at least 80%), the insured will share a higher share of the loss. A proportion of each claims the insured will bear in medical insurance.
Collar - Agreement to obtain payments as a purchaser of an Option, Cape, or Floor and make payments as a vendor of another Option, Cape, or Floor.
Collateral Loans - Unconditional payment obligations secured by an investment commitment.
Collateralized Bond Obligations (CBOs) - An investment-grade bond supported by a pool of low-grade debt securities, such as junk bonds, divided into tranches on the basis of different credit risk concentrations.
Collision Coverage (COLL) - Collision coverage pays for the harm to your car when your insured car overturns or collides with another item. Collision coverage may also apply to a non-owned or private use leased vehicle in your custody or operated by you. Some exclusions may be applicable. See your strategy.
Combinations - A unique package policy form consisting of insurance for private cars and homeowners.
Combined Ratio - An indication of the insurance company's profitability, calculated by adding the proportions of loss and cost.
Commencement Date - Date when the organization first became bound by policy issuance and/or reinsurance contract for any insurance danger. Same as coverage's "efficient date."
Commercial Auto - Coverage of motor vehicles owned by a trading company that protects the insured against economic loss due to legal liability for motor vehicle-related injury or harm to the property of others induced by accidents resulting from the possession, maintenance, use or custody of a motor vehicle. This involves Business Car, Garage, Truckers, and/or Other Commercial Auto Combinations.
Commercial Earthquake - Coverage of earthquake properties for business enterprises.
Commercial Farm and Ranch - A Commercial Agricultural and Ranching Risk Package Policy covering both assets and liability. Coverage involves barns, stables, other agricultural buildings, and inland marine farming, such as mobile machinery and livestock.
Commercial Flood - Sold to business enterprises, distinct flood insurance policy.
Commercial General Liability - Flexible & wide coverage of business responsibility with two main sub-lines: sub-line premises/operations and sub-line products / finished operations.
Commercial Mortgage-Backed Securities - A type of mortgage-backed security secured by a commercial real estate loan.
Commercial Multiple Peril - Policy packaging two or more insurance covers the company from multiple exposures to property and liability risks. Includes frequent fire, allied lines, multiple other coverages (e.g., conditions difference), and coverage of responsibility. Such coverages, if written separately, would be included in other annual declaration lines. Include multi-peril insurance policies (other than farm owners, homeowners, and car policies) that include other than auto liability coverage under this form of insurance.
Commercial Package Policy - Provides a wide asset and liability coverage package for commercial ventures other than those supplied through a policy for company owners.
Commercial Property - Property insurance coverage sold to business enterprises.
Commission - A proportion of insurance company premiums paid to agents for the sale of policies.
Community Rating - A rating system in which normal ratings are developed and generally adjusted for each group on the grounds of expected use by group employees within particular rules.
Completed Operations Liability - Policies covering the liability of contractors, plumbers, electricians, repair stores and comparable companies to individuals who have suffered physical injury or property damage as a result of faulty job or activities are done jobs abandoned by or for the insured, away from the premises of the insured.
Comprehensive Coverage (COMP) - If your insured car is harmed by a case other than a crash, the damage will be paid for by Comprehensive coverage. This involves fire, theft, windstorm, flood, and vandalism damage. If your car is stolen, when applicable, Comprehensive will cover transportation costs and usage loss.
Comprehensive General Liability (CGL) - Unless specifically excluded in the policy contract, coverage of all company liabilities.
Comprehensive Personal Liability - Comprehensive liability coverage for exposures resulting from people’s and family members ' residential premises and operations. (Protection against exposure to non-commercial liability for people.)
Comprehensive/Major Medical - Policy providing full insured compensation, HMO, PPO, or Hospital, Medical, and Surgical Service Coverage. Coverage excludes short-term medical insurance, the Federal Employee Health Benefits Program, and incomplete coverage such as fundamental hospital only, medical only, hospital containment allowance, surgical, outpatient allowance, defined disease, intensive care, and coverage of organ and tissue transplants.
Concurrent Causation - Loss of assets caused as a result of two or more hazards where only one compensation is covered but both are paid by the insurer as a result of a concurrent event.
Conditions - The insurance contract requirements that the insured must uphold in order to qualify for compensation.
Condominium Insurance (Condo Insurance) - Condominium insurance includes your home and the inside of your condo. Condo insurance also protects others from bodily injury or property harm. The building itself and the adjacent estate will be covered by your condo association.
Condos - Homeowners insurance sold to the mentioned property's condominium holders.
Construction and Alteration Liability - Cover the responsibility of the insured to individuals who have suffered physical injury or property harm as a result of demolition, new construction, or modification of the structure on the premises of the insured.
Contingency Reserves - Required as a hedge against negative operational experience by some jurisdictions, especially negative claim experience.
Contingent Liability - Liability of the insured to individuals who have suffered physical injury or property harm from the job of an autonomous contractor employed by the insured to conduct, illegal, inherently hazardous, or directly monitored job by the insured.
Continuation of Care Requirement - Legislative or contractual provision requiring suppliers to provide insolvency care for a period of time after the date of insolvency of the Health Plan Company.
Continuing Care Retirement Communities - Senior housing arrangements that include some provision for competent nursing care in relation to housing.
Continuously Insured - Continuously insured implies that your insurance coverage has been in effect at all times from an insurer or more than one insurer, without any break or lapse in coverage for any reason.
Contract Reserves - Reserves established when future advantages exceed future net premiums owing to the gross premium framework. In relation to claim and premium reserves, contract reserves are reserves.
Contractual Liability - Liability coverage of the insured who, by written or oral contract, assumed the legal liability of another party. Includes a contractual liability policy that provides coverage for all commitments and liabilities incurred under the terms of service agreements granted by the supplier by a service provider.
Convertible Term Insurance Policy - An insurance policy that can be transformed without a medical evaluation into continuous insurance. The insurer is needed to renew the policy subject to policy circumstances regardless of the insured's health.
Coordination of Benefits (COB) - Provision for eliminating insurance and setting up a timely and orderly payment system for claims where the individual is covered by more than one group insurance and/or group service plan.
Copay - Cost-sharing mechanism in group insurance plans where the insured pays a defined quantity of medical costs incurred and the insurer pays the remaining quantity.
Corrective Order - Directive of action of the commissioner to be finished by the insurer.
Covered Lives - The complete amount of life insured under individual policies and group certificates, including dependents.
Credit - Individual or group policies providing debtor benefits for full or partial repayment of debt related to a particular loan or other credit transaction in the event of disability or involuntary debtor unemployment, except in connection with first mortgage loans.
Credit – Assumption Agreement - An insurance certificate issued under a current insurance agreement showing that the ceding insurance company took all the risks under the agreement.
Credit - Credit Default - Coverage bought by producers, merchants, academic organizations, or other credit-extending suppliers of products and services for compensation for losses or damages arising from non-payment of debts owed to them in respect of products or services supplied in the ordinary course of the company.
Credit – Involuntary Unemployment - Makes the creditor's loan/credit transaction payments when the debtor becomes unintentionally unemployed.
Credit Accident and Health (Group and Individual) - Coverage provided or offered to borrowers in connection with a consumer loan transaction where the proceeds are used to repay a debt or installment loan if the consumer is disabled as a result of an accident, including business not exceeding 120 months.
Credit Disability - Makes the creditor's monthly loan/credit transaction payments upon the insured debtor's disability.
Credit Health Insurance - Policy assigning creditors as insurance beneficiaries to the debtor remitting the balance of payments to the creditor if the debtor becomes disabled.
Credit Involuntary Unemployment - Credit insurance that offers a monthly or lump sum advantage during an unpaid leave of absence from jobs due to specific causes such as a layoff, closure of the company, strike, near the relative disease, and child adoption or birth. Sometimes this insurance is called a Credit Family Leave.
Credit Life Insurance - Policy assigning creditors as insurance beneficiaries to the debtor thereby remitting the balance of payments to the creditor after the debtor's death.
Credit Personal Property Insurance - Insurance written in connection with a credit transaction in which the collateral is not a motor vehicle, mobile home or immovable property and which covers the dangers of goods purchased through a credit transaction or used as collateral for a credit transaction and concerns the interest of the creditor in the goods purchased or pledged collateral, in whole or in part; or deals with the dangers of products bought in connection with an open-ended transaction.
Credit Placed Insurance - Insurance bought unilaterally by the creditor who is the so-called insured after the date of the credit transaction, covering the loss, cost or harm of the property as a consequence of fire, theft, collision or other loss hazards that would either impair the interest of the creditor or adversely impact the quality of the collateral. "Placed Home Creditor" implies "Placed Insurance Creditor" for households, mobile homes, and other property. "Creditor Placed Auto" refers to a car, boat, or other vehicle insurance.
Credit Risk - Part of a risk-based investment formula addressing the collectability of receivables from a company and the risk of losing a supplier or intermediary receiving advance capitation payments.
Credit Score - A credit score is a numerical value representing the likelihood that an individual will repay on time a loan or other debt. The greater your credit score, the better the chance for loans, credit cards, car funding, etc. to be endorsed. Factors such as the history of bill payment, credit history, debt-to-credit ratio, and much other economic information may influence your credit score positively or negatively.
Creditor-Placed Auto - Single interest or dual interest credit insurance purchased unilaterally by a creditor who is the so-called insured after the date of the credit transaction, providing cover for property losses that would either impair the interest of a creditor or adversely affect the value of collateral on cars, boats or other vehicles.
Creditor-Placed Home - Single interest or dual interest loan insurance bought unilaterally by a creditor who is the so-called insured, after the date of the credit transaction, offering cover for property losses that would either impair the interest of a creditor or adversely impact the value of collateral on homes, mobile homes, and other assets
Crop - Coverage protecting the insured against crop loss or harm from a multitude of hazards including, but not restricted to, fire, lighting, income loss, tornado, windstorm, hail, flood, rain, or insect harm.
Crop-Hail Insurance - Coverage for hail, fire, or lightning damage to the crops.
D
Date of Issue - Date of issue of a policy by an insurance business.
Declarations - Policy statements on applicants and properties covered, such as demographic and occupational data, property requirements, and anticipated annual mileage.
Deductible - Part of the insured loss paid by the policy-holder (in USD).
Defensible Space - Defensible space is about decreasing fire danger in the vicinity of your home. Essentially, to preserve the defensible room, you keep the region around your estate free of fuel products, including vegetation.
Deferred Annuity - Annuity payment to be produced as a one-time payment or a series of installments to commence at any future date, such as a defined amount of years or a defined age.
Demutualization - Conversion into a capital inventory business of a mutual insurance business.
Dental Insurance - Policy offering only the advantages of dental treatment such as regular dental examinations, preventive dental work, and dental procedures required to treat caries and teeth and jaw diseases.
Depreciation - Depreciation is the decrease in the value of an object due to the era, wear, tear, or obsolescence.
Derivative - Value-priced securities of other economic tools such as commodity prices, interest rates, inventory market prices, domestic or foreign exchange rates.
Difference In Conditions (DIC) Insurance - Special type of open-hazard coverage published in combination with fundamental fire coverage and intended to protect against losses not reimbursed in conventional types of fire. Examples are flooding coverage and earthquake coverage.
Direct Homeowners Insurance (Online Insurance) - This allows customers to purchase insurance coverage straight from a company's website or by telephone rather than by an autonomous agent or broker.
Direct Incurred Loss - Loss that equates the proximate cause to the insured risk.
Direct Loss - Direct Writer - An insurance firm that sells insured policies through wage or exclusive agents only; reinsurance firms that deal directly with ceding businesses rather than using brokers.
Direct Written Premium - Total premiums received by the insurance business without any adjustment for the transfer to the reinsurer of any part of those premiums.
Directors & Officers Liability - Liability coverage protecting the company's managers or officers from liability resulting from the performance of their professional responsibilities on behalf of the company.
Disability Income - Policy intended to compensate insured persons for a part of the revenue they lose as a result of an invalid injury or disease.
Disability Income - Long-Term - Policies providing weekly or monthly revenue advantage for more than five years for individual coverage and more than one year for group coverage for accident and/or sickness-related complete or partial disability.
Disability Income - Short-Term - Policies providing a weekly or monthly revenue advantage up to five years for individual coverage and up to one year for group coverage for accident and/or sickness-related complete or partial disability.
Dividend - The reimbursement of a part of the premium paid by the surplus insured.
Domestic Insurer - A domiciled and licensed insurance company in the state in which it sells insurance.
Driver Improvement Course - Drivers aged 55 and older can take a course of voluntary driver enhancement to refresh their driving abilities and improve them. If they fulfill eligibility criteria, taking this course may qualify these drivers for a discount.
Dual Interest - Insurance that protects the interest of the creditor and the debtor in obtaining the debtor's loan transaction collateral. "Dual interest" involves "Limited Dual Interest" insurance.
Dwelling Property/Personal Liability - Special package policy type consisting of residential and/or related fire lines and private responsibility insurance.
DIY Home Inspection - A DIY home inspection is quite self-explanatory in general. But at Esurance, by completing a home inspection using our easy-to-use app within 20 days of your policy start date, you can save a cool $50 on your homeowners' policy.
E
Early warning system - An insurance industry regulator system intended to identify practices and risk-related trends that add to systemic risk by evaluating the economic stability of the insurer.
Earned Premium - The part of the prepaid premium assigned to the insurance company for the year-to-date loss experience, costs, and profit.
Earth Movement - Earth motion, in this context, is soil motion owing to natural and/or geological events (i.e. earthquakes, landslides, mudslides, sinkholes).
Earthquake - Property coverage for losses, including those triggered by a volcanic eruption, leading from a sudden earthquake or shaking. Excluded are losses that result after the covered case from fire, explosion, flood, or tidal wave.
EBNR - Earned But Not Reported - The insurer reasonably expects to obtain premium quantities for which agreements are not yet final and the precise amounts are not yet definite.
EDP Policies - Protection coverage against losses resulting from harm or destruction of electronic information processing hardware and software.
Effective Date - Date of entry into force of the insurance policy.
Elevators and Escalators Liability - Assurance of liability for harm to the body or assets resulting from the use of elevators or escalators operated, maintained, or regulated by the insured.
Employee Benefits Liability - Employer liability protection for claims resulting from provisions in an employee benefits insurance plan given for employee financial and social welfare. Pension plans, group life insurance, group health insurance, group revenue insurance, and accidental death and dismemberment are examples of products covered.
Employee Retirement Income Security Act of 1974 (ERISA) - A federal statute regulating personal retirement norms, including vesting conditions, financing mechanisms, and design of plans.
Employers Liability - Employers ' liability coverage for employers ' legal responsibility resulting from employee injury. This code should be used when issuing coverage as an approval or as part of the compensation policy of a statutory worker.
Employment Practices Liability Coverage - Employers' responsibility insurance coverage for the misconduct, discrimination, or sexual harassment of present or former employees of the insured.
Encumbrance - Outstanding mortgages or other debt relating to immovable property and any unpaid acquired or construction expenses.
Endorsement - An amendment or rider to a policy that adjusts coverage and takes priority over the overall agreement.
ENERGY STAR® - The ENERGY STAR label program was introduced in 1992 by the U.S. Environmental Protection Agency (EPA) to define and encourage energy-efficient goods, homes, and structures. ENERGY STAR products include appliances, home office equipment, lighting, heating, and cooling equipment, and consumer electronics — and typically provide lower energy consumption for homeowners, resulting in lower utility bills and greenhouse gas emissions.
Enrollment - The total number of plans that provide coverage to the enrollee and their dependents, not the total number of covered lives.
Equipment Breakdown Coverage: - Equipment breakdown coverage is an optional coverage of commercial insurance policy that may help pay for the cost of repairing or replacing damaged or broken-down equipment after a covered incident. It may help cover equipment that is used for your business, such as boilers, machinery, or even office air-conditioning, computers, and security systems.
Environmental Impairment Liability (EIL) - Pollution or environmental contamination coverage for negligence or omission.
Environmental Pollution Liability - Insured liability coverage for individuals who have been injured by acids, fumes, smoke, poisonous chemicals, waste products, or other pollutants.
Equity Indexed Annuity - A fixed annuity earning interest or providing advantages related to an internal benchmark or equity index, subject to a minimum guarantee.
Errors and Omissions Liability | Professional Liability other than Medical - Assurance of liability of a professional or quasi-professional insured to individuals who have suffered physical injury or property damage or who have suffered any loss as a result of omissions resulting from the performance of services to others, mistakes of judgment, breach of duty or negligent or wrongful conduct of the company.
Escrow - An escrow account is a sort of savings account that is intended to retain cash that you use to pay for expenditures related to homeowners, such as property taxes and homeowners insurance. Instead of paying for these expenses in big lump amounts, your lender's typically managed escrow account parcels the payments in smaller, regular installments.
Event Cancellation - Financial loss coverage owing to the cancelation or postponement of a particular case due to weather or other unexpected causes beyond the insured's control.
Excess and Umbrella Liability - Liability coverage of an insured in excess of a particular quantity specified in the fundamental policy published by the main insurer; or a self-insurer for losses in excess of the quantity specified; or an insured or self-insured for known or unknown gaps in fundamental coverage or self-insured retention.
Excess of Loss Reinsurance - Loss sharing system in which the insurer pays all claims up to a stipulated quantity and the reinsurance company pays any claims exceeding the quantity stipulated.
Excess Workers' Compensation - Specific and/or aggregate surplus workers ' compensation insurance published above the point of attachment or self-insured retention.
Exclusions - Exclusions are circumstances not covered by a particular policy of insurance. Any particular exclusion will be specified in your insurance policy for homeowners.
Expense Ratio - Percentage of premium revenue earned and policies for service. Deduced by subtracting associated costs from losses incurred and dividing them by written premiums.
Experience Rating - Rating system in which each group is rated completely on the grounds of its own anticipated claims in the era to come, with retrospective modifications for previous periods. Under federal qualifying circumstances, this technique is forbidden.
Exposure - Potential risk of loss.
Extra Expense Insurance - Type of property insurance for exceptional business interruption-related expenses such as a power failure back-up generator.
Extended Premises Coverage - An optional coverage of your homeowners ' insurance policy, expanded coverage of the premises expands coverage of your property's visitors ' responsibility. For 2-, 3-, and 4-unit housing, it is often compulsory, but it may also be helpful for individuals with non-adjacent, vacant land.
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Face Amount - The value of the policy to be issued at the date of maturity or death.
Facultative Reinsurance - Reinsurance for a particular policy for which the initial insurer and reinsurer may negotiate terms and conditions.
Fair Rental Income Protection - Fair rental income security is optional insurance coverage on your homeowner's insurance policy that reimburses lost income at market value if a room you rent out after a covered loss is uninhabitable.
FAIR Plan - Fair Access to Insurance Requirements - State pools intended to provide insurance by conventional means to estate owners who are unable to acquire estate insurance.
Fair Value - The amount by which the asset (or responsibility) could be purchased (or incurred) or sold (or resolved) in the present transaction between willing parties other than in the purchase of compulsory or liquidated assets. Quoted market prices in active markets are the strongest proof of fair value and, if available, should be used as the grounds for measurement. If there is a quoted market price, the fair value is the product of the number of units trading times the market price.
Family Liability Protection - A normal coverage on most homeowners ' insurance policies, family liability protection (also known as homeowners ' responsibility coverage, liability insurance, etc.) includes the legal liability of homeowners if their negligence results in injury or property damage to another person. It may also contain legal defense if that injury or property damage has been given by the homeowner.
Family Member - For homeowners insurance purposes, a family member is someone who lives in the same home as the policyholder and is connected through blood, marriage, or other recognized ties (such as adoption, foster care, or wardrobe). Students living away from home for insurance reasons may still be regarded as family members.
Farmowners Insurance - Insurance for farm owners sold for personal, family, or household purposes. Similar to a homeowner’s policy, this package policy has been created for farms and ranches and involves both ownership and liability coverage for private and company losses. Coverage involves farmhouses and their contents such as portable machinery and cattle, barns, stables, other farm buildings, and inland marine farming.
Federal Flood Insurance - Coverage by the National Flood Insurance Act, a federally subsidized flood insurance program enacted in 1968, for qualifying residents and businesses in flood-prone regions.
Federally Reinsured Crop - Federal Crop Insurance Corporation (FCIC) reinsured in whole or in part under the Standard Reinsurance Agreement (SRA). This involves Multiple Peril Crop Insurance (MPCI); Catastrophic Insurance, Crop Revenue Coverage (CRC); Protection of Income, and Revenue Assurance.
Fees Payable - Charges incurred but have not yet been paid.
Federal Employer Identification Number (FEIN) - or the Federal Tax Identification Number (FTIN), also known as the Employer Identification Number (EIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to corporate organizations operating in the United States for identification purposes.
FEMA - Federal Emergency Management Agency - An independent agency responsible for responding, planning, mitigating, and recovering natural disaster attempts.
Fidelity - A bond or policy that covers the loss of an employer arising from the dishonest act of an employee (e.g. money loss, securities, valuables, etc.).
Financial Guaranty - A security bond, insurance policy or compensation agreement (which is issued by an insurer) or equivalent type of guarantee under which a loss is payable on the basis of evidence of economic loss to an insured claimant, debtor or compensator as a consequence of inability to fulfill a financial duty or any other permissible item defined or determined as financial guarantee insurance.
Financial Reporting - Insurance businesses must retain documents and submit annual and quarterly accounts to regulators in compliance with statutory accounting principles (SAP). Statutory rules also govern how insurers should set up reserves for the assets and claims they have invested and the conditions under which they can claim reinsurance credit ceded.
Financial Responsibility Law - A statute requiring motorists to demonstrate auto-related loss payment ability.
Financial Statement - The insurance company's balance sheet and declaration of profit and loss insurance carriers use this declaration to regulate an insurance company based on reserve requirements, assets, and other liabilities.
Fire - Coverage protecting the insured against loss of actual or personal property from fire or lightning hazard harm, including company disruption, rent loss, etc.
Fire Legal Liability - Coverage of liability for property loss as a consequence of the insured's distinct negligent acts and/or omissions allowing the spreading fire to cause injury to the body or property of others. An instance is a tenant who causes fire harm to the property while occupying the property of another party through negligence.
Flood - Coverage that protects the insured from flood loss or harm to property or property. (If flood coverage is provided on a property insurance policy as an extra threat, file it under the relevant property insurance filing code.)
Force-Placed Insurance - As your mortgage business typically needs ongoing homeowners insurance cover as a condition of your loan, they can buy insurance on your behalf if you allow the insurance of your homeowners to expire.— this is known as force-positioned insurance. Typically, your lender will pay for the policy through your escrow account, which can increase your mortgage payments as force-placed insurance policies are typically more expensive (and can cover fewer incidents) than typical home insurance policies.
Foreign Insurer - An insurance company that sells policies in a State other than the State of incorporation or residence.
Foreign Investment - An investment in a foreign jurisdiction, or an investment in a foreign jurisdiction, real estate or asset. An investment shall not be considered to be foreign if the issuer, skilled source of main credits, or skilled guarantor is a national jurisdiction or a national resident, unless: a). The issuing individual is a shell company entity; and b) the investment is not presumed, approved, secured or insured by a national authority or a person who is not a shell company entity domiciled in a national jurisdiction.
Foreign Jurisdiction - A jurisdiction outside the United States, Canada, or any of the above provinces or political subdivisions.
Fraternal Insurance - A type of group insurance or disability insurance accessible to fraternal organization employees.
Fronting - An arrangement whereby a main insurer operates as a record insurer by issuing a policy but then passes the full danger on to a reinsurer in return for a commission. The fronting insurer is often authorized to do a company in a nation or state where the danger is situated, but not the reinsurer.
Full Coverage - "Full coverage" is a popular word used by individuals to define how much coverage they have for auto insurance. Although "complete coverage" does not exist, it often means that the policy has more than just coverage of liability.
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Garaging Location - A garage site is where you park your vehicle primarily when you don't use it. This is your primary residence in general.
Generally Accepted Accounting Principles (GAAP) - A summary of accounting standards, values, and best practices in the preparation of financial statements to ensure consistency in reporting.
General Ledger Code (GL Code) - A list of alphanumeric characters assigned to each financial entry in an organization's registry.
Goodwill - The distinction between the price of obtaining the entity and the share of the book value of the property obtained by the reporting organization.
Gramm-Leach Bliley Act (GLBA) - Act, repealing the Glass-Steagall Act of 1933, enables commercial banks, investment organizations and insurance companies to be consolidated. Set up a structure of federal and state regulatory obligations for these financial industries. It allows financial services firms to merge and participate in a variety of fresh company operations, including insurance while trying to tackle regulatory problems arising from such combinations.
Gross Paid-in and Contributed Surplus - Capital earned exceeding the par value of the issued inventory.
Gross Premium - Net insurance premium plus commissions, working commissions, and mixed commissions. This is the premium for life insurance, including dividends.
Group Accident and Health - Group coverage (e.g., single employer workers and their dependents) paying planned advantages or medical expenses caused by illness, accidental injury, or accidental death. Excludes amounts due to uninsured accidents and health plans as well as the uninsured part of the partly insured accident and health plans.
Group Annuities – Deferred Non- Variable and Variable - An annuity agreement providing accumulation on the basis of both (1) funds accumulating on the basis of guaranteed interest rates or extra interest rates applied to assigned factors and (2) funds where the accumulation varies according to the rate of exchange of the underlying investment portfolio that chosen by the policyholder. The agreement stipulates that payments will be initiated at a specified future date.
Group Annuities – Deferred Variable - An annuity agreement providing an accumulation fund where the accumulation differs according to the return rate of the underlying investment portfolio chosen by the policyholder. Must include at least one alternative for the accumulation to differ according to the return rate of the underlying investment portfolio selected by the policyholder and may include at least one choice for the sequence of payments to differ according to the return rate of the underlying investment portfolio that chosen by the policyholder. This annuity agreement stipulates that payments will be initiated at a specified future date.
Group Annuities – Immediate Non-Variable and Variable - An annuity agreement providing the accumulation on the basis of both (1) funds accumulating on the basis of guaranteed credit interest rates or extra interest rates applied to the specified factors and (2) funds where the accumulation varies according to the rate of exchange of the underlying investment portfolio that chosen by the policyholder. The agreement stipulates that payments may differ at some interval, but the annuity payouts must start within 13 months.
Group Annuities – Immediate Variable - Annuity contract providing for the first payment of the annuity after purchase at the end of the fixed payment interval. The interval may differ, but within 13 months the annuity payouts must start. The quantity differs with the value of the shares bought by the insurance companies as investments.
Group Annuities – Unallocated - Annuity contracts or portions thereof where the pensioner's annuity is purchased by the insurer.
Group Annuity - A contract offering revenue for a defined period or lifespan for an individual or individuals set up to benefit a group of staff.
Group Health - Health insurance is given to employers, organizations, trusts, or other organizations covering staff or members and/or staff to whom a coverage certificate may be given.
Group Credit – Life - Contracts sold in connection with transactions or other credit transactions that do not exceed the specified duration and/or amount and provide mortgage insurance.
Group Health Organizations – Health Maintenance (HMO) - A plan under which the registrant pays a set affiliation fee in advance in exchange for a broad spectrum of extensive healthcare facilities with authorized HMO suppliers in the assigned service area.
Guaranty Fund - Financing mechanism used by States to provide resources to cover insolvent reporting entities ' policyholders ' commitments.
H
Hard Market - A market with high demand and low supply.
Hazard - Circumstance that tends to raise the likelihood or severity of the loss.
Hold-Harmless Agreement - A risk transfer mechanism by which one party assumes another party's liability by agreement.
Homeowners Insurance - Package policy combining coverage of actual and personal property with coverage of private liability. Typical coverage of residential estate, appurtenant buildings, unplanned personal property, and extra living expenses. Includes fixed location portable homes.
Home Insurance Calculator - A home insurance calculator enables you to estimate how much coverage you might want to take into account before you get a quote for your homeowners' insurance policy.
Home Inventory - In essence, a home inventory is a documentation of your home and inside belongings. In case you experience a robbery or other loss, it is essential to produce a comprehensive home inventory — including any receipts or other relevant records. If you're doing home renovations, upgrading your equipment, or buying extra value products, updating your home inventory is essential to keeping your home and its contents thoroughly documented at all times. This can speed up the claims process considerably and guarantee that you get the most out of your home policy.
Home Warranty - A home warranty is usually a type of household system and appliance protection — such as electrical wiring, garage door openers, plumbing, pools, dishwasher, smoke detectors, and AC units and heaters. A warranty is typically purchased by the house seller to help reassure potential buyers that if something happens after the keys are turned over, these systems will be covered. It is important to note that home warranties are expiring and do not replace homeowners’ insurance, which, in addition to the systems and appliances of your home, covers much more. It is also essential to note that while home warranties cover unsuccessful devices and equipment, homeowners’ insurance can suddenly and accidentally cover the harm.
Hovercraft - A self-propelled ground-effect car comprising, but not restricted to, flarecraft and air-cushion cars.
Hull Insurance - Coverage of ship or aircraft harm and attachments.
I
Identity Theft Expense Coverage ( Identity Theft Insurance) - It is a normal, optional coverage on many homeowners’ insurance policies and can come to your assistance if you are a victim of identity theft. This coverage often provides services to repair your name and credit harm.
Incontestability Provision - Life insurance and annuity provision limiting the period in which the insurer is entitled to cancel the contract on the grounds of material misrepresentation in the policy application.
Increased Building Structure Coverage - An optional coverage on your home policy, enhanced coverage of the construction system provides extra security for your on-site systems in extreme instances where your initial coverage boundaries are not enough.
Incurred But Not Reported (IBNR or Pure IBNR) - Claims that happened but were not notified by the insurer on the date of reporting. Estimates are set for these claims to be booked. May include losses reported to the reporting organization but not yet included in the claims scheme or bulk arrangements. Bulk clauses are reserves included with other IBNR reserves that represent deficiencies in the reserves of recognized cases. IBNR may sometimes include incurred estimates but not sufficiently reported (IBNER)
Incurred Claims - Payment of claims plus reserved amounts for those incurred but not yet paid.
Incurred Losses - Durable losses, whether paid or not, over a defined period of time. Combining compensation paid during the period plus unpaid losses sustained during the period minus exceptional losses at the start of the period incurred during the preceding period is typically discovered.
Indemnity, Principle of - A general legal principle relating to insurance that requires an individual recovering under an insurance policy to be restored to the approximate financial position he or she was in before the loss occurred. The legal principle of limiting damage compensation is equal to the losses incurred.
Independent Adjuster - Freelance contractors paid a premium on behalf of businesses to adjust losses.
Independent Agent - A representative of various insurance undertakings that sell and operate records under the American Agency System and services policies.
Independent Contractor - An individual who is not hired by a business but who works to provide products or services to customers for a fee on his own.
Index Annuity - An interest with set annuity linked to the equity index, such as the Dow Jones Industrial Average or S&P 500.
Individual Annuities – Deferred Variable - An annuity agreement providing an accumulation fund where the accumulation differs according to the return rate of the underlying investment portfolio selected by the policyholder. Must include at least one alternative for the accumulation to differ according to the return rate of the underlying investment portfolio selected by the policyholder and may include at least one choice for the sequence of payments to differ according to the return rate of the underlying investment portfolio that chosen by the policyholder. This annuity agreement stipulates that payments will be initiated at a specified future date.
Individual Annuities – Immediate Variable - Annuity contract providing for the first payment of the annuity after purchase at the end of the fixed payment interval. The interval may differ, but within 13 months the annuity payouts must start. The quantity differs with the value of the shares bought by the insurance companies as investments.
Individual Annuities – Special - Contracts with some remarkable characteristics.
Individual Annuities- Deferred Non-Variable and Variable - An annuity agreement providing accumulation on the basis of both (1) funds accumulating on the basis of guaranteed interest rates or extra interest rates applied to assigned factors and (2) funds, where the accumulation varies according to the rate of exchange of the underlying investment portfolio, chosen by the policyholder. The agreement stipulates that payments will be initiated at a specified future date.
Individual Annuities- Deferred Non-Variable - An annuity agreement providing accumulation on the basis of funds accumulating on the basis of a guaranteed interest rate or extra interest rate. This annuity agreement offers for payment initiation at a specified future date.
Individual Annuities- Immediate Non-Variable - Annuity contract providing for a fixed annuity payment at the end of the first payment interval after purchase. The interval may differ, but within 13 months the annuity payouts must start.
Individual Annuities- Immediate Non-Variable and Variable - An annuity agreement providing accumulation on the basis of both (1) funds accumulating on the basis of guaranteed interest rates or extra interest rates applied to assigned factors and (2) funds, where the accumulation varies according to the rate of exchange of the underlying investment portfolio, chosen by the policyholder. The agreement stipulates that payments may differ at some interval, but the annuity payouts must start within 13 months.
Individual Health - Health insurance where the policy is given to a person who covers the person and/or their dependents on the external market, including group policy conversions.
Individual Credit – Credit Disability - Makes the creditor's monthly loan/credit transaction payments upon the insured debtor's disability.
Individual Credit – Life - Contracts sold in connection with loan/credit transactions or other credit transactions that do not exceed the specified duration and/or amount and provide death insurance cover.
Industrial Life - Industrial life insurance, also referred to as "debit" insurance, is insurance under which premiums are paid monthly or more frequently, the face amount of the policy does not exceed a specified quantity, and the words "industrial policy" are printed on the face of the card in prominent type.
Inland Marine - Property coverage that may be in transit, retained by a bailee at a fixed place, mobile goods that are often located at distinct places (e.g. off-road building equipment) or planned ownership (e.g. Homeowners Personal Property Floater) including products such as live livestock, antique or collector-value property, etc. This line also involves transportation and communication instruments such as bridges, tunnels, piers, wharves, docks, pipelines, power and telephone lines, and towers for radio and television.
Insurable Interest - A right or connection with respect to the subject matter of the insured agreement so that the insured may suffer an economic loss due to harm, loss, or destruction to the insured. (Bickelhaupt and Magee)
Insurance - A financial instrument that transfers risk to a business from a person and reduces risk uncertainty through pooling.
Insurance Fraud (Insurance Scam) - It is an act which deliberately defrauds an insurance company in order to receive payment. Fraud can take many forms, from over-inflated bills of repair to staged fires and other events, to exaggerated allegations of stolen property or damages. Insurance fraud is a major cause of increasing insurance expenses today, and all countries impose rigorous anti-crime legislation. High penalties, heavy fines, and imprisonment can be faced by convicted perpetrators.
Insurance Holding Company System - It comprises of two or more members, one or more of whom are insurers.
Insurance Regulatory Information System (IRIS) - a baseline solvency screening system for the National Association of Insurance Commissioners (NAIC) and state insurance regulators established in the mid-1970s.
Insurance Score - Insurance results are based on analytical models that assess objectively the relative probability of future insurance losses based on credit history elements. Independent consumer reporting organizations provide these ratings and analyses of their importance.
Insurance to Value - Insurance amount bought vs. the insured property's real replacement cost expressed as a proportion.
Insured - Party(s) covered by the policy of insurance.
Insurer - An insurer or reinsurer approved under the legislation of any state to write property and/or casualty insurance.
InsureHopper - It’s us. InsureHopper is the first insurance company that provides a space for both customers and agents to get and give bindable quotes and directly communicate without any hassle. We work with most of the insurance carriers that offer direct-to-consumer Auto, Home, and Commercial Insurance. Our innovative insurance strategy enables clients to benefit from affordable prices, excellent discounts, and a wealth of useful internet instruments. We also assist clients to find affordable insurance in countries where we do not work and can help them find reliable cars, households, renters, lives, health, motorcycles, ATVs, Segway golf carts, scooters, boats / PWCs, trailers, cars, snowmobiles, classic cars, commercial auto, condo, flood, umbrella, pet, cell phone, and business insurance products.
Intermediary - A individual, company, or other company entity (not registered as a medical supplier) that arranges, through agreements with physicians and other registered medical suppliers, to provide health services to and from a health insurer through a distinct agreement between the medical insurer and the medical insurer.
International - Includes all companies transacted outside the United States and its territories and property where it is not possible to determine the suitable line of the company.
Internet Liability Insurance/Cyber Insurance - Cyber trade coverage including breach of copyright, defamation, and privacy violations.
Investment Grade - The requirement has been established that a securities rating agency acceptable to the commissioner is in one of the top four generic lettered rating categories, that such a credit rating agency has recognized the duty in writing as being of investment-grade quality, or, if that obligation has not been submitted to any such rating agency, the Securities Valuation Office of the National Association of Insurance Commissioners has determined that the obligation is investment grade (Class 1 and Class 2).
Investment Income Accrued - Investment revenue gained on the reporting date but not legally due until after the reporting date to the reporting organization.
Investment Income Due - Investment revenue gained and legally due from the date of reporting to the reporting organization.
Investment Income Gross - It is reported as earned and includes investment revenue gathered over the period, changes in investment revenue due and accrued, changes in unearned investment revenue plus any amortization (e.g. discounts or bond premiums, mortgage loan origination charges, etc.).
Investment Property - An investment property is any property used to produce income for the proprietor. Examples of popular investment properties include apartment complexes, rental houses, and holiday rentals.
Irrevocable Beneficiary - A life insurance policy beneficiary with an interest in the policy proceeds even during the lifetime of the insured because the policy proprietor has the right to alter the designation of the beneficiary only after acquiring the permission of the beneficiary.
J
Joint and Last Survivor Annuity - Retreat plan that continues to be paid for as long as at least one annuitant, two or more, is alive.
Joint Underwriting Association (JUA) - A loss-sharing mechanism that combines several insurance companies to provide additional ability owing to exposure type or size.
Joint-Life Annuity - An annuity agreement that ceases when the first of two or more annuitants dies.
Judgment - A judgment is a final ruling of a law court.
K
Key-Persons Insurance - A policy bought by a company that ensures the life or lives of staff essential to company activities.
Kidnap/Ransom Insurance - Ransom or extortion coverage and associated costs.
L
Landlord Insurance - If you own a property you're renting full-time, there's a good chance you'll need landlord insurance, which can help protect your personal liability financially, especially in the event of injury from a tenant (or their guests) — which homeowners insurance is unlikely to cover. Landlord insurance also includes the building itself and the contents of the building. If you are held liable for the medical expenses of others or are ever brought to court for accidents or property damage, landlord insurance is typically the best way to help safeguard your finances.
Lapse - Policy termination due to non-payment of the necessary renewal premium.
Lender - Any person or organization providing financial assistance is a lender. When someone gets a loan, they have to pay back the lender incomplete, with interest, within a period agreed upon.
Level Premium Insurance - A Life insurance policy for which the cost is distributed equally over the premium period remains constant over the entire period.
Liability - A certain or likely future sacrifice of financial advantages resulting from a specific entity's current commitments to transfer assets, or to provide services to other organizations in the future as a consequence of previous transactions or occurrences three essential characteristics: a). It embodies a current obligation or liability to one or more other entities that involve settlement by likely future transfer or use of the property on a designated or determinable date, when a given event occurs, or on-demand; b)The obligation or obligation obliges a specific entity to prevent the future sacrifice, leaving it with little or no discretion; and c) the transaction or other events that obliges the entity has already occurred.
Life Event - The word "life event" relates to a live case that changes the status or living conditions of a person considerably. Common examples of life occurrences include marriage, divorce, severe medical diagnosis, disabling injury, pregnancy/childbirth, home purchase, and wife or near relative death.
Lifetime Disability Benefit - A provision in certain income policies for disability to recover lost wages in the event of permanent disability for the duration of the disability or the remainder of the life of the insured.
Limited Benefit - Vision, prescription medication, and/or any other single service plan or program policies. Also, include short-term care strategies that provide coverage in an environment other than a hospital acute care unit for less than one year for medical and other services supplied.
Limited Payment Life Insurance - A form of life insurance with a predetermined number of premiums payable.
Limited Policies - Health insurance coverage, such as cancer, for a specific condition.
Limits - Maximum policy value to be obtained.
Line of Business - Company classification published by insurers.
Liquor Liability - Coverage of liability of an organization engaged in the retail or wholesale sale of alcoholic beverages or the serving of alcoholic beverages to individuals who have suffered physical injury or harm to property caused by an intoxicated individual.
Living Benefits Rider - A life insurance rider who provides long-term care for terminally ill people.
Lloyd's of London - Association providing membership in multiple rich individual syndicates organized to write insurance for a specific hazard.
Loan-backed Securities - Pass-through certificates, collateralized mortgage obligations (CMOs), and other securitized loans not included in structured securities where payment of interest and/or principal is directly proportionate to the interest and/or principal received by the issuer from the mortgage pool or other underlying securities.
Loan/Lease Payoff Coverage - Loan/Lease Payoff coverage, sometimes referred to as "gap" coverage, pays the difference between what you owe on your car and what your insurance pays if your car is declared a complete loss or robbed and not retrieved, less your full or collision deductible
Long Duration Contracts - Contracts that fulfill both the following conditions, excluding financial guarantee contracts, mortgage guarantee contracts, and security contracts: (1) the term of the agreement is greater than or equal to thirteen months and (2) the insurer can not cancel or boost the premium during the term of the contract.
Long-Term Care - Policies providing coverage for a period not less than one year for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or private care services offered in a hospital environment other than an acute care facility, including policies providing advantages for cognitive impairment or loss of functional ability. This involves strategies that only provide home care for nurses, home care, community-based care, or any mixture. The policy does not include coverage given under Medicare Advantage, a comprehensive/major medical policy, or for products of accelerated heath benefit type.
Long-Term Disability Income Insurance - Policy offering monthly revenue payments for handicapped insured persons for a long period of time, typically two years or longer.
Loss - Physical property damage or physical injury, including loss of use or earnings
Loss Adjustment Expense (LAE) - Expected cost payments in connection with loss adjustment and recording should be incurred. It can be categorized into two wide categories: Adjusting and Other (AO) and Defense and Cost Containment (DCC). It can also be divided into (Allocated Loss Adjustment Expense) and (Unallocated Loss Adjustment Expense).
Loss Frequency - Incidence of policy claims over a premium period.
Loss of Use Insurance - Protection policy against loss of use owing to property damage or destruction.
Loss Payable Clause - Protection of a third-party mortgage in the event of default on insured assets, secured by a loan, lost or damaged.
Loss Ratio - The proportion of losses on premiums gained.
Loss Reserve - The number of claims incurred but not yet paid by insurers that insurers set aside.
Loss Reserves - An estimate of the liability or provision in the financial statement of the insurer, stating the quantity that the insurer expects to pay for losses incurred but not yet recorded or recorded claims not paid.
Loss Payee - A loss payee is an individual or organization with a legal interest in a property that is insurable. In the event of buying a house, typically the mortgage firm would be the loss payee.
Losses Incurred - Includes claims paid and/or reserved amounts for future payments
Losses Incurred But Not Reported (IBNR) - An estimated sum that the insurance company has set aside to pay claims that may have happened, but the insurance business has not yet been reported for some reason.
M
Major Medical - A contract for hospital /surgical/medical expenses providing extensive advantages as described in the contracting state.
Malpractice - Alleged misconduct or negligence resulting in loss or injury to a professional act.
Managed Care - Health care delivery system that tries to affect the use, quality, and price of services delivered.
Mandated benefits - State or federal insurance requirements.
Manufactured Home - A manufactured home is a manufactured home that meets the United States ' Manufactured Home Construction and Safety Standards. Housing and Urban Development Department in 1976. Unlike past mobile homes, today's manufactured homes come with many upgrades and can look closely like a typical site-built home.
Manufacturers Output Policies - Provides broad coverage of the personal property of the insured manufacturer, including raw materials, processed products, finished products, and products shipped to customers.
Margin Premium - A deposit bought or sold by an organization with a broker in regard to Future Contracts.
Market Value - Fair value or price capable of deriving from the current sale of an asset.
Mechanical Breakdown Insurance - Premiums attributable to measures relating to repair or replacement service, or compensation for service, operational or structural failure of assets owing to material or workmanship defects, or ordinary wear and tear. (May contain cars, mobile devices, ships, appliances, electronics, residual structures, etc.)
Mine Subsidence - Mine subsidence is the earth’s motion resulting from underground mines failure or collapse and often resembles sinkholes or troughs. Most homeowners’ insurance policies do not cover mine subsidence harm, but some countries have mandated insurers to provide coverage to citizens living in high-risk regions. There are also separate, stand-alone policies.
Minimum Premium Plan - An arrangement whereby an insurance carrier handles the administration of claims for a fee and ensures the self-insured group against big claims. The employer self-funds a set proportion of the estimated monthly claims (e.g. 90 percent), and the insurer covers the rest.
Mobile Homes - Homeowners - Homeowners insurance was marketed to portable homeowners.
Mobile Homes under Transport - Coverage of mobile homes for private or commercial use while under transportation.
Modified Guaranteed - Annuity containing a clause adjusting the value of the funds withdrawn on the basis of a contract formula. The formula represents changes to market value.
Member - An individual who has been registered as a subscriber or an eligible dependent of a subscriber and for whom the health organization has assumed liability for the provision of health facilities as may be provided.
Moral Hazard - Characteristics of personality improve the likelihood of loss. For example, failing to take proper care to protect insured property as the insured knows that if it is damaged or stolen, the insurance company will replace it.
Moral Hazard - Insured negligence or neglect that could lead to likely loss.
Morbidity - Frequency or severity of disease or disease in a population subset.
Morbidity Risk - A person's potential for disease, injury, or other physical or psychological impairment, temporary or permanent. The risk of morbidity excludes the potential for the death of an individual but involves the potential for death-related disease or injury.
Morbidity Table - A statistical record of the disease rate between the age groups defined.
Morbidity - Frequency or severity of disease or disease in a population subset.
Morbidity Risk - A person's potential for disease, injury, or other physical or psychological impairment, temporary or permanent. The risk of morbidity excludes the potential for the death of an individual but involves the potential for death-related disease or injury.
Morbidity Table - A statistical record of the disease rate between the age groups defined.
Mortality Table - Chart showing the death rates of a specific population at each era shown as the number of fatalities per thousand.
Mortgage - A note used to secure real estate loans.
Mortgage Guaranty - Insurance that compensates a lender for foreclosure loss if the borrower fails to fulfill the mortgage payments needed.
Mortgage Insurance - A type of life insurance cover payable to a third party lender/mortgagee for loss of credit payments upon the death of an insured/mortgage.
Mortgage-Backed Securities - A type of asset-backed security secured through a mortgage or mortgage collection. These securities also need to be grouped into one of the top two scores as determined by an accredited credit rating agency and generally pay regular payments comparable to coupon payments. In addition, the mortgage must have originated from a financial institution regulated and permitted.
Motor Vehicle - A self-powered land or amphibious vehicle; or any trailer or semi-trailer being transported, towed, or attached to a car for towing.
Multi-Peril Insurance - Personal and corporate property coverage in one policy combining several kinds of property insurance.
Municipal Bond Guarantee Insurance - Coverage sold to municipalities to ensure that bonds issued are paid in principle.
Municipal Liability - Assurance of liability for municipal acts.
Municipal Obligation Bond - Any safety or other tool, including a government lease but not a lease of any other governmental organization under which a payment obligation is established, given by or on behalf of a government unit to finance a project serving a significant public purpose, and (1) payable under the jurisdiction of that government unit from tax revenue but not from tax allocations; (2) Payable or guaranteed by the United States of America or any of its agencies, departments or tools, or by a State Housing Agency; (3) Payable from tariffs or fees (but not tolls) levied or gathered in regard of a non-nuclear utility project, a public transport facility (other than an airport facility) or a government greater education facility; or (4) Payable from future appropriations in regard of lease commitments.
Mutual Insurance Company - A private insurer owned by its policyholders, operating as a non-profit organization that may or may not be incorporated.
Mutual Insurance Holding Company - A firm organized as a mutual and owned capital stock insurer or insurers to benefit many individuals, typically those in the same sector, from pooling danger.
N
North American Industry Classification System (NAICS) - The framework used by Federal government insight organizations to classify business institutions for the purpose of gathering, reviewing, and reporting statistical data relevant to the U.S. market economy.
Named Insured - The person identified in the policy agreement as to the insured.
Named Peril Coverage - Loss insurance expressly specified in the policy agreement.
Negligence - Failure to exercise reasonable consideration resulting in personal or other loss or harm.
Net Admitted assets - Total assets whose values may be included in the insurer's annual statement by state law.
Net Income - Total revenue from the activities of an insurer, less complete expenditures, and revenue tax.
Net Premiums Earned - Asset/casualty or health policy premiums not to be transferred to the policyholder if the policy is canceled.
NFIP - National Flood Insurance Program - Under the National Flood Act of 1968 flood insurance and floodplain management for private and commercial property.
Nonadmitted assets - assets of economic value other than those that may be used to meet policyholder commitments or assets that are inaccessible owing to burdens or other concerns of third parties and should not be acknowledged in the balance sheet.
Nonadmitted Insurer - Unlicensed insurance company to do business in a specified state.
Non-controlled Stock Insurers - Insurers in which a parent business has: 1) an economic interest represented by direct or indirect possession of less than 50 percent of the voting shares and 2) the capacity to exercise control over the insurer, e.g. by voting stock or by contract management.
Non-proportional Reinsurance - Reinsurance that does not secure individual lives for specific amounts of reinsurance, but rather reinsurance that protects the overall experience of the ceding company throughout its entire business portfolio, or at least a broad segment thereof. Stop loss and disaster are the most prevalent types of non-proportional reinsurance.
Notional Value - The main value on which future payments are based in the derivative transaction as in the reporting currency at a particular time period (the "as of" reporting date).
Nuclear Energy Liability - Responsibility for bodily injury and property damage arising from nuclear material (whether radioactive or not) on the premises of the insured business or in transit.
O
Occasional Driver - An individual who is not the insured vehicle's main or principal driver is an occasional driver.
Occurrence - An accident, including injurious exposure to circumstances resulting in non-expected or designed bodily injury or property damage from the insured's point of view during the policy era.
Ocean Marine - Coverage of exposures to the ocean and inland water transport; products or cargo; vessels or hulls; income; and liability.
Officer - The Chairman, Vice-Chairman, Treasurer, Actuary, Secretary, Controller, and any other individual performing the tasks of the business corresponding to those performed by the above officers.
Option - An agreement granting the purchaser the right to purchase or obtain, sell or deliver, enter, extend or terminate a money settlement on the basis of the real or anticipated cost, amount, results, or value of one or more Underlying Interests.
Other Accident and Health - Accident and health coverage not otherwise correctly categorized as Group Accident and Health or Credit Accident and Health (e.g. jointly renewable and non-cancelable individuals, guaranteed renewable, non-renewable only for specified purposes, etc.).
Other Considerations - Unallocated considerations of annuity and other unallocated deposits that involve any danger of mortality or morbidity and are not recorded as direct premiums, considerations of a direct annuity, or contract-type deposit funds.
Other Liability - Coverage protecting the insured from legal liability arising from negligence, carelessness, or failure to act resulting in harm to property or personal injury to others.
Other structures coverage - Typically included as a normal home policy coverage, other home coverage systems ensure non-dwelling buildings on your property — such as carports, fences, and storage sheds.
Other Underwriting Expenses - Allocable costs other than expenditures for loss adjustment and investment expenditures.
Our - In the policy, “Our” refers to the Company providing the insurance.
Out-of-Pocket Expenses - In addition to what your home insurer pays when you file a claim, Out-of-Pocket Expenses are what you pay. Typically these are the outcome of your choice of deductibles and coverage restrictions.
Owner Occupied - Homeowners insurance sold to the property's owners.
P
Package Policy - Two or more separate policies coupled into one agreement.
Par Value - The stock or bond's nominal or face value.
Peril - The cause of harm to property or personal injury, the cause of the insurance desire. "The reason for the loss"
Permanent Life Insurance - Policy remaining active for the insured's lives.
Personal Auto Policy - Coverage intended to ensure personal passenger cars and certain kinds of lorries owned by individuals or husbands and wives.
Personal Earthquake - Earthquake land coverage for personal, household, or family purposes.
Personal Flood - Sold for personal, family, or household purposes, distinct flood insurance policy.
Personal GAP Insurance - Credit insurance covering surplus debt over primary property insurance advantages in the case of a complete loss to a collateral asset.
Personal Injury Protection (PIP) Coverage - PIP is a coverage in which the insured person's medical, hospital, and funeral expenses, people in the insured vehicle, and pedestrians struck by the insured vehicle are paid by the car insurance company within the specified limits. PIP is the fundamental coverage introduced in the state of no-fault car insurance.
Personal Injury Liability - Coverage of liability for persons who have been discriminated against, falsely arrested, illegally detained, libeled, maliciously sued, slandered, suffered from identity theft, mental anguish, or disease alienation, or breached their privacy rights.
Personal Injury Protection Coverage/PIP - Automotive coverage available in countries that have passed no-fault or auto-repair legislation to reform insured and insured passenger injury therapy legislation.
Personal Liability (Personal Obligation/ Personal Responsibility) - Personal liability relates to a scenario where a person is legally liable for damages caused to another party or their property. When someone is considered to be personally responsible, they are financially obliged to compensate the other party for damages in compliance with the legislation of domestic and state responsibility. In their home insurance, car insurance, and virtually any other type of property and casualty insurance policy they own, policyholders may carry personal liability coverage. Individuals may also buy personal umbrella insurance to ensure against cases of liability not covered by their other insurance policies and beyond the basic policy boundaries.
Personal Property - Single interest or dual interest credit insurance (where the collateral is not a motor vehicle, mobile home or real estate) covering the hazards of goods purchased or used as collateral and involving a creditor's interest in goods purchased or pledged collateral in whole or in part; or covering the hazards of goods purchased in connection with an open-ended credit transaction.
Pet Insurance Plans - Veterinary care plan insurance policy for the care of the insured owner's pet (e.g. dog or cat) in case of disease or accident.
Policy - A written contract ratifying the lawfulness of an insurance contract.
Policy Dividend - A refund to the participating life insurance policy of part of the premium. The payment amount is determined by subtracting from the premium charged the real premium cost. The payment can be taken as money, an increase in paid-up insurance applied to a purchase, left on deposit with the insurance company, or applied for a one-year purchase term insurance.
Policy Expiration Date - Your current insurance policy ends on the expiry date of your policy, which can be found on your current policy documents, Declarations Page, Insurance ID card, or latest notice of cancellation. This date should not be confused with due dates for payment.
Policy Period - Duration of the insurance coverage period.
Policy Reserve - The quantity of cash specifically assigned by a life insurance business to fulfill its policy commitments; reserves are in location to ensure that the business can pay all future claims.
Policyholders Surplus - assets exceeding a company's liabilities or net income in excess of any monies indebted to legal liabilities.
Policy Jacket - A policy jacket is a brochure that includes all non-declaration and endorsement language of homeowners’ insurance policy, including exclusions, insurance contracts, definitions and circumstances, and the premium.
Policy Term - The duration of your policy is active and your policy term is in force.
Pollution - Pollution of the environment.
Pool - An association set up to absorb losses by means of a risk-sharing system to limit individual exposures.
Preferred Provider Organization (PPO) - Arrangement, insured or uninsured, where agreements are concluded with health care suppliers by Health Plan Companies (usually business insurers and, under certain conditions, self-insured employers). The health plans concerned often refer to these contracted suppliers as "preferred" and provide an incentive, generally in the form of reduced deductibles or co-payments, to promote the use of these suppliers by covered people. Members are entitled to compensation advantages for non-participating supplier services with important copayments, and suppliers are often compensated on a discounted service basis, but not always.
Preferred Risk - Insured or insurance applicant with a reduced probability of danger than the normal applicant.
Premises and Operations - Policies covering the liability of the insured to persons who have suffered physical injury or property damage in the premises of the insured during normal operations or routine maintenance, or from the operations of the insured on or off the premises of the insured.
Premium - Money paid reflecting the expectation of loss for insurance coverage.
Premiums Earned - The part of the premium for which the policy protection or coverage has already been granted during the part of the policy term now expired.
Premiums Net - The quantity calculated from the interest and mortality table used to calculate the statutory policy reserves of the reporting entity.
Premiums Written - Total premiums produced by all policies (contracts) published by an insurer within a specified time span.
Primary Insurance - Preceding coverage where more than one policy includes the same loss.
Primary Residence - For most of your policy term, a primary residence is a location where you will reside.
Primary Use - Primary use is how you use your car primarily. Opportunities for primary use include job, company, enjoyment, or farm use.
Principal Driver - The individual most often driving the vehicle is the main driver.
Prior Approval Law - State regulatory requirement that all insurance tariffs and forms be pre-approved.
Private Mortgage Insurance (PMI) - Private mortgage insurance is intended to safeguard the lender financially if the homeowner stops paying on the home loan. If you have a conventional loan and make a down payment of less than 20 percent of the purchase price of the home, it is typically necessary. It may also be necessary when refinancing with a standard loan and your equity is less than 20 percent of the value of the house. Usually, the lender establishes PMI through a personal insurer and adds the premium to the mortgage payments.
Private Passenger Auto (PPA) - Applications covering individually or in any combination such as Auto Liability, Personal Injury Protection (PIP), Medical Payments (MP), Uninsured / Uninsured (UM / UIM); Specified Causes of Loss, Comprehensive and Collision.
Producer - A person selling, serving, or negotiating insurance policies either on behalf of a business or independently.
Product Liability - Insurance coverage protecting the manufacturer, distributor, vendor or lessor of a product from legal liability arising from a faulty situation that causes personal injury or harm to any person or entity connected with the use of the product.
Professional Errors and Omissions Liability - Coverage accessible for payment of liability resulting from the performance of professional or business-related responsibilities, covering the requirements of the particular profession. Examples include abstractors, accountants, insurance adjusters, architects, technicians, brokers and insurance agents, attorneys, real estate agents, stockbrokers.
Proof of Loss - A sworn evidence of loss is a declaration produced in support of a claim by the homeowner to the insurance company. It generally involves fundamental data on the loss and its currency quantity. Proof of loss form may include the date and cause of the loss, some documents that support the amount of the loss being claimed, and people who have a vested interest in the claim.
Property - Coverage protecting insured against loss or harm to actual or personal estate from a multitude of hazards including, but not restricted to, fire, lighting, company disruption, loss of rent, glass breakage, tornado, windstorm, hail, water damage, explosion, riot, civil disturbance, rain, aircraft or vehicle harm.
Property Damage Liability Coverage (PD) - When an insured person is legally liable for an accident, PD coverage pays for damage resulting from the accident to the property of others. If you are sued, PD also pays for the costs of legal defense. There may be some exclusions that apply. Please see your policy.
Pro-rata (proportional) Reinsurance - Part of the losses and share of the premium reinsurer with the ceding organization.
Protected Cell - An insurance-linked security held within the insurance or reinsurance company and used to insulate the proceeds of the bonds offered from the insurer's overall business hazards, providing an extra amount of convenience to the securitized instrument's shareholders.
Protection and Indemnity (P&I) Insurance - A wide type of insurance coverage for marine legal liability.
Provider Sponsored Network (PSN) - Formal affiliations of suppliers, sometimes referred to as ' integrated distribution systems, ' organized and operated to provide an integrated network of health care suppliers with which third parties, such as insurance companies, HMOs or other Health Plan Companies, may contract covered people for health care services. Some inclusion models include Medical Hospital Organizations, Management Service Organizations, Group Without Walls Practices, Medical Foundations, and Cooperatives of Health Providers.
Provisions - Contingency described in the policy of insurance.
Proximate Cause - Event covered by the policy contract of the insured.
Public Adjuster - Independent claims adjuster in place of insurance companies representing policyholders.
Pure Premium - That part of the premium equivalent to anticipated losses void of the costs of the insurance company, premium taxes, contingencies, or profit margin.
Pure Risk - Circumstance including the loss or no loss but no benefit option.
Q
Qualified Actuary - A individual who meets the fundamental education, experience, and continuing education criteria of the Actuarial Opinion Statement Specific Qualification Standard.
Quote - A quote is an estimate of premium insurance given by an insurance agent, sales representative of certified insurance, or internet engine. Provide honest, precise data about your home, the region you reside in, etc. to obtain the most precise quote.
R
Rate (Premium) - Value of insured losses as a price per insurance unit.
Risk-Based Capital (RBC) Ratio - Ratio used to define under-capitalized insurance firms. Calculated by splitting the assets of the company by the minimum quantity of capital legislative officials, the insurance activities were considered necessary to assist.
Rebate - A partial or all refund of premium payment.
Reinsurance - A contract between the insurer and another approved (re)insurer where the reinsurer agrees to cover all or some of the main insurer's loss and/or loss adjustment costs. The hypothesis for a premium is in return. Compensation is proportional or non-proportional
Reinsurer - Company that assumes the danger of reinsurance.
Renewable Term Insurance - Insurance renewable by the policyholder for a restricted amount of consecutive terms and not subject to a medical examination.
Renewal Letter (Policy Renewal/ Renewal Slip) - A letter of renewal is a form that an insurer sends to a policyholder just before the present policy term expires and the next one starts by mail or electronically. The premium for the upcoming term is also stated in a renewal letter.
Rental Reimbursement Coverage (RREIM) - If you have a claim covered under Comprehensive or Collision coverage, Rental Reimbursement offers rental car coverage. The bought limit is subject to daily rental quantities.
Renters Insurance - Responsibility for the contents of the renter's residence. Coverage does not include the structure but includes any attached products that the renter has supplied or altered.
Replacement Cost - The cost of replacing assets owing to ordinary wear and tear without a decrease in depreciation.
Reported Losses - Includes both expected loss payments related to insured incidents that happened and were reported to the insurance company but have not yet been paid.
Reserve - A part of the premium for future claims retained.
Reserve Credit - Reduction of ceded reinsurance reserve quantities. The claim reserve and/or the unearned premium reserve may be included in the reductions.
Residence - A member's place of residence as demonstrated by his or her determination as a resident.
Residual Market Plan - Method designed to cover people with higher than average danger who are unable to acquire insurance via ordinary market channels.
Retention - An inner fund allocation mechanism for exposure to losses used instead of or as a risk transfer complement to an insurance company.
Retention Limit - Maximum medical and hospital expenses shall be borne by the insurer alone. Depending on the terms of the reinsurance contract, the limit may be for an individual claim and/or total claims for the insurers.
Retrocession - The part of the danger that the reinsurance company will cede or the insurance quantity that the business decides not to maintain.
Retrospective Rating - The method of determining insurance policy costs on the basis of real loss experience determined as an adjustment to the original premium payment.
Rider - Modification of a policy contract.
Risk - Uncertainty about the likelihood of loss by a hazard pursued insurance.
Risk Retention Act - The 1986 federal statutes amending parts of the 1981 Product Liability Risk Retention Act and implemented to improve the efficiency of the organization of risk retention groups and purchasing groups.
Risk Retention Group - Group-owned insurer arranged to assume and distribute the hazards of liability to its members.
Roadside Assistance Coverage - Roadside Assistance offers clients with services such as towing, flat tire change, locksmith service, and battery jump-start, who can choose the service for an extra premium if it is not included in their insurance policy already.
S
Safety Program - A standardized safety program acts as a framework for the systematic identification and correction of OSHA violations and for the correction of hazards not protected by OSHA regulations.
Salvage - The recoverable value after a loss.
Second Home (Vacation Home/ Secondary Residence) - Second Named Insured - Any home you own that is not your primary residence is a second home. Second homes are often used as holiday homes, guest houses, or properties for rent term.
Secondary Coverage (Secondary Insurance) - Secondary coverage enables the insured to pay for expenses and damages that your main coverage does not already cover.
Statutory Accounting Principles (SAP) - The National Association of Insurance Commissioners ' set of accounting principles used to prepare statutory accounts for insurance firms.
Securitization of Insurance Risk - A technique of accessing assets and hedging hazards for insurance companies by turning policies into securities that can be sold on financial markets.
Security - A share, shareholding, or other interest in the property or undertaking of the issuer or undertaking of the issuer.
Self-Insurance - Insurance type often used for high-frequency low severity hazards where risk is not transmitted to an insurance company but kept and accounted for internally.
Separate Account - Separated funds retained and invested by an insurer separately of other assets for group pension fund purposes.
Short-term Disability - A normal business defining a period of the moment is eligible for short-term disability coverage, typically 2 years or less.
Short-Term Medical - Policies that provide significant medical coverage, typically 30 to 180 days, for a brief period of time. For various periods, these strategies may be renewable.
Standard Industrial Classification (SIC) - A four-digit numerical description of major companies and industries. SIC codes are allocated on the basis of similar characteristics shared by the company's goods, services, delivery, and production systems.
Sinkhole - A sinkhole is a floor cavity created by the erosion of subterranean water. A typical homeowner’s insurance policy does not cover sinkholes harm, but some insurers give policy approval, while there are also distinct sinkhole insurance policies.
Situs of Contract - The jurisdiction in which the agreement is concluded or supplied in accordance with the agreement.
Social Insurance - Compulsory insurance plan administered by a federal or state organization with a focus on social adequacy.
Soft Market - The market of the purchaser, defined by an abundance of insurance premiums.
Special revenue bond - Any security or other tools under which a payment duty is established, issued by or on behalf of a government unit to finance a project that serves a significant public purpose and is not payable from sources in connection with the payment of municipal bonds.
Specialist - A specialist relates to an insurance professional who has a separate and advanced understanding of a specific form of insurance or business practice when used as a word in the insurance sector. A shopper with in-depth issues about insurance alternatives for homeowners may seek advice from a specialist in home insurance.
Specified Disease Coverage - Coverage that offers predetermined advantages mainly for cancer care expenditures and/or other designated illnesses.
Specified/Named Disease - Policies that only provide advantages for the diagnosis and/or therapy of a specific disease or disease. Benefits can be paid as a cost, per diem, or as a principal amount.
SR-22 - An SR-22 is a court-requested document showing evidence of economic accountability for individuals accused of certain traffic violations.
Standard Risk - An individual who is deemed to be a normal risk and insurable at standard prices in accordance with the underwriting norms of a company. Based on their deviation from the normal, high, or low-risk applicants may qualify for additional or discounted prices.
State Children's Health Insurance Program - Policy published in conjunction with the Federal / State Partnership established under Title XXI of the Social Security Act.
State of Domicile - State in which the home office of a company is situated.
State Page - Premiums and losses exhibit for each state-licensed to a business. The home state gets a timetable for each jurisdiction that the firm has written direct business or paid, incurred, or unpaid amounts.
Statement Type - This refers to the main form of business under which the firm submits its annual and quarterly declaration, such as Life, Property, Health, Fraternal, Title.
Statement Value - The Statutory Accounting Principle book value decreased by any valuation allowance and non-admitted adjustment applied to an employee or comparable investment group, e.g. bonds, mortgage loans, common stock.
Statutory Accounting - Method of accounting standards and principles used by government regulators to assess the economic situation of regulated firms and other insurance companies. This technique tends to be more conservative than most businesses ' generally accepted accounting principles. In accordance with the Statutory Accounting Principles, compliance with solvency and other norms is determined using economic records.
Stock Insurance Company - Company owned by shareholders.
Stop Loss/Excess Loss - Individual or group policies covering a health plan, a self-insured employer plan, or a medical provider offering coverage to ensure that any claim or loss of a plan exceeds a defined dollar quantity.
Structured Securities - Loan-backed securities that have been split into two or more classes of investors where the interest and/or main payments of any class of bonds have been assigned in a way which is not proportionate to the interest and/or principal received by the issuer from the bond pool or other underlying securities.
Structured Settlements - Periodic fixed payments to the applicant for a fixed period of time, or for life, for the settlement of the claim.
Subrogation - Situation in which an insurer has the legal right, on behalf of the insured, to bring an insurance claim against a third party that caused the insured loss. The insurer shall maintain the right to seek reimbursement for losses incurred by the insurer at the third party's fault.
Subrogation Clause - Insurance policy section granting an insurer the right to take legal action against a third party liable for a loss to an insured for whom a claim was paid.
Subsequent Event - Events or transactions that arise after the balance sheet deadline but before the statutory financial statements are released and/or accessible for issuance before the deadline of the audited financial statements.
Subsidiary Company - Subsidiary companies are independent legal entities founded by the parent company or by another entity.
Substandard Risk - (Impaired risk) risks considered unwanted owing to a medical condition or dangerous occupation requiring a waiver, a unique policy form, or a greater premium charge.
Superfund - Federal act requiring retroactive environmental pollution liability where the responsible party is responsible for environmental clean-up regardless of the length of time since the pollution occurred.
Surety Bond - A three-party arrangement whereby a guarantor (insurer) assumes a duty or liability to pay a second party (obligor) if the main debtor (obligor) becomes in default.
Surplus - Term of insurance referring to income retained.
Surplus Line - Specialized estate or liability coverage accessible through non-admitted insurers where there is no coverage accessible through an admitted insurer, authorized to sell that specific coverage in that state.
Swap - Agreement to exchange or make direct payments as the purchaser of an Option, Cape, or Floor and make payments as the vendor of another Option, Cape, or Floor.
T
Tenant Legal Liability - Coverage of the liability of a tenant for fire harm to the leased premises (including garages) occupied by the tenant; such coverage is generally given as an exception to the policy exclusions applicable to assets in the care, custody or control (CCC) of the insured. Under the normal general business liability (CGL) policy, the named insured's fire legal liability is subject to the "harm to the insured".
Tenants - Insurance for homeowners sold to tenants occupying the property outlined.
Term - The time period for which policy is in effect.
Term Insurance - Life insurance payable only if the insured's death happens within a defined period of time, such as 5 years or 10 years or before the defined era.
Third-Party - Persons were other than insured persons or insurers who have suffered losses or are entitled to receive payment because of insured acts or omissions.
Tracking Device - Tracking Device is an electrical device that is able to track and recover your car and contact the reaction center automatically.
Title Insurance - Coverage that ensures true and private estate title validity. Buyers of actual and personal property and mortgage lenders depend on the coverage to safeguard them against losses from existing undiscovered defects when issuing the policy.
Total Liabilities - Total money that the insurance company owes or is anticipated to owe.
Total Loss - A complete loss in the insurance context is an insurer's judgment that the price or cost of repairing damaged property exceeds the policy's value.
Total Revenue - Prima, earnings, income from investment, and income from other sources.
Towing and Labor (TL) - By adding this coverage to the policy, when the car is unable to be driven, the insurance company pays the cost of towing your car to an auto repair shop and covers a specified amount of necessary labor charges.
Travel Coverage - Covers economic loss due to cancelation/interruption of the journey; lost or damaged baggage; delays in the journey or baggage; missed connections and/or itinerary modifications; and losses due to harm to the rental car.
Treaty - The ceding company's reinsurance agreement with the reinsurer.
U
Unallocated Loss Adjustment Expenses (ULAE) - Loss adjustment costs not specifically associated with a claim.
Umbrella and Excess (Commercial) - Coverage of liability for a commercial venture in excess of a specific amount set out in the basic policy issued by the primary insurer; or a self-insurer for losses in excess of a specified amount; or an insured or self-insured person for known or unknown gaps in basic coverage or self-insured retention.
Umbrella and Excess (Personal) - Non-business liability protection for persons above the particular quantity specified in the fundamental policy published by the main insurer; or a self-insurer for losses above the quantity specified; or an insured or self-insured person for recognized or unknown gaps in fundamental coverage or self-insured retention.
Unauthorized Reinsurance - Reinsurance by a business not approved in the state of domicile of the reporting business.
Underinsured Motorist Coverage: Underinsured Motorist Bodily Injury (UNDUM) & Underinsured Motorist Property Damage (UMPD) - Policy choice for bodily injury or loss of property created by a motorist with inadequate coverage to cover the complete quantity of losses in the dollar. The injured party's compensation is equivalent to the distinction between the losses incurred and the motorist's fault-related responsibility.
Underlying Interest - assets, liabilities, or other interest(s) underlying a derivative instrument, including, but not restricted to, any or more bonds, currencies, indices of prices, commodities, derivatives or other tools of the financial market.
Underwriter - Person identifying, examining, and classifying the degree of the danger represented by the suggested insured to determine whether or not coverage should be supplied and, if so, at what rate.
Underwriting Risk - The method by which the insurance company reviews the risk and determines whether or not the insurer accepts the risk, classifies the risk accepted, and determines the suitable coverage level.
Unearned Premium - The amount of the premium to be paid by the policyholder but not yet covered.
Unearned Premium Reserve - All premiums (charges) obtained for coverage beyond the reporting date; appears as the balance sheet liability.
Underinsured Motorist Coverage (UNDUM) - A coverage which provides for a driver to receive damages for any injury he or she receives from an uninsured, negligent driver. The insured pays a premium to the insurance company to include this coverage to his/her policy.
Unpaid Losses - Claims that are in the settlement process. The word may also include allegations made but not disclosed.
Us - In the policy, “Us” refers to the Company providing the insurance.
V
Valued Policy - An insurance contract for which the amount of the insured loss is agreed in advance and is not related.
Valued Policy Law - State legislation specifying that, in the case of a complete loss to a dwelling, the insured shall receive the face amount of the policy rather than the actual cash value, irrespective of the concept of compensation.
Variable Annuity - An annuity agreement under which the premium payments are used to buy inventory and each unit's value is relative to the investment portfolio's value.
Variable Universal Life - Combines the flexible premium characteristics of universal life with the varying life element in which the surplus credited to the account's money value relies on distinct accounts ' investment outcomes. The policyholder chooses the accounts that are required to make the premium payments.
Vehicle Identification Number (VIN) - Your vehicle's Vehicle Identification Number (VIN) is generally discovered on your dashboard's driver side, car registration, or title. The VIN is a 17 letter and number mixture that can be used to define a car's make, model, and year.
Viatical Settlements - Contracts or agreements in which a customer agrees to buy a life insurance policy in whole or in portion.
Vehicle Identification Number (VIN) - VIN is a 17 character alpha/numeric, except the letters I, O, and Q, which at least has 6 numeric characters. You can find it at the corner of the dashboard of the driver's side where it meets the windshield.
Vision - Policy on restricted benefit expenditure. It provides advantages for accessories for eye care and eye care. Generally offers a specified quantity of dollars per annual eye exam. For glasses and contacts, the benefits often include a stated dollar amount. May include eye-related surgical advantages for injury or illness.
W
Warrant - An agreement granting the holder the right to buy the underlying financial instrument at a specified cost and moment or at a number of prices and times in accordance with a timetable or warrant.
Warranty - Coverage protecting against defects of the manufacturer after the standard warranty period and returning the item to its original intended use for repair after a breakdown. Warranty insurance usually protects customers from economic loss due to the inability of the seller to correct or compensate for faulty or incomplete work and the price of components and labor needed to restore the usefulness of a product. Includes, but is not restricted to, coverage of all commitments and commitments incurred by a service contract supplier, mechanical breakdown insurance, and insurance service agreements.
Water Backup Coverage (Sewer Backup Coverage) - Water backup coverage can assist repair harm from water from the floor up, such as a broken sump pump or overflowing drain. Note that this coverage is distinct from flood insurance, which is not included in the normal home policy.
Watercraft - A craft principally designed to be propelled on or in water by wind, engine power, or electric motor.
We - In the policy, “We” refers to the Company providing the insurance.
Whole Life - Life insurance can be maintained for the entire life of a person and that pays the person's death benefit whenever it may be.
Workers' Compensation - Insurance covering the liability of an employer for the injury, disability, or death to individuals employed, regardless of fault, as prescribed by the legislation of state or federal employees on compensation and other statutes.
Written Premium - Contractually determined amount paid to the policyholder by the reporting organization for the efficient term of the agreement based on the expectation of danger, policy advantages, and costs related to the cover provided for under the terms of the insurance contract.
Y
YMM - It stands for Year, Make and Model of the car.
You (Your) - In the policy, “you” and “your” refer to the “named insured” shown in the Declarations and the spouse if a resident of the same household.