| Glossary
|
|
Look
it up! Whether you want to learn about something new
or explain it to a client, our glossary of insurance
terms is a valuable and indispensable tool.
From A to Z, it's all here...
A | B | C
| D | E | F
| G | H | I
| J | K | L
| M | N | O
| P | Q | R
| S | T | U
| V | W | X
| Y | Z
|
|
A
Relinquishing title to lost or damaged property to
the insurance company in order to claim a total loss. Most
insurance policies prohibit this practice.
Liability that is imposed even though no negligence
or fault was committed. Usually imposed when a product or
operations are hazardous or highly dangerous.
When benefits in a life insurance policy are paid prior
to the death of an insured person when that person is terminally
ill and may require expenses for living and medical bills.
In life insurance, under these policies the dividends
instead of being disbursed as usual are applied to the policy
and cause it to mature prior to its maturity date.
The use of accumulated dividends to pay up a life insurance
contract or create an endowment.
An unforeseen fortuitous event that
is definite as to time and place.
A type of insurance that pays benefits in the event
of disability, disease or accidental injury or death.
An amount paid in a life insurance policy in the event
the insured dies from causes other than natural causes or
homicide.
A policy that provides coverage for
death, dismemberment resulting from accidental means. It
is often referred to a double indemnity.
A policy that covers death, dismemberment, loss of
sight, loss of income and medical expenses caused by accident
only, not disease.
Documents the time, cause, results, injuries, persons
involved and other facts of an incident for insurance purpose.
Business that an insurer accepts which does not meet
its underwriting criteria but is accepted for other reasons.
Examples include the value of the total account, the producer
or other sources of business.
A monthly statement from insurance companies to agents
showing premiums written, return premiums, commissions and
net amount due to the insurance company.
Pays for loss of records, which show how much is due
the insured against loss due to the inability to collect
outstanding receivables because of damage or destruction
due to a covered peril.
A participant's balance in any retirement plan that
is a defined benefit pension plan and is determined under
the terms of the plan expressed in the form of an annual
benefit, which begins at normal retirement age.
That portion of a retirement benefit that relates to
his period of credit service after the effective date of
the plan and before a specified date.
Present value of benefits attributed
by the pension benefit formula to employee service rendered
before a specified date and based on employee service and
compensation before that date.
A life insurance term that reflects
the increase in value and the benefits available for payouts
as the life of the policy progresses and premiums accumulate
and earn income for the insurance company.
Refers with respect to health and medical insurance
to the amount of time within each policy period that is
available for the insured to meet with deductible requirement.
Also could be defined as the period during which premiums
are payable on a deferred annuity.
Premiums paid by the purchaser of a variable annuity
are credited to the purchaser's account in the form of accumulation
units. The number of units purchased depends upon the current
valuation of a unit in dollars.
)
A non-profit insurance facility that
serves the insurance industry by developing and maintaining
standard forms, electronic data interchange and support
of agency automation.
The insurance company's cost of acquiring new business,
which includes agent's commission, marketing, inspection
and examination expenses.
An accident or event that is the result
of natural causes without any human intervention, such as
floods, lightning or earthquake.
A life insurance product where an unallocated fund
is maintained for the active members of the fund. Fund assets
are included in a deposit account. When a member retires,
an annuity is then purchased for them using the resources
within the fund.
Life insurance reserves set up by an insurer to accommodate
the present value of future death claims.
An amount equal to the replacement cost of damaged
property less appropriate depreciation.
The revision made to reserve or premiums based on an
insurer's experience and projected claims.
A flexible benefits system where current
benefit levels remain in effect and employees are permitted
to purchase benefits they need or extended coverage.
A clause used in some whole life insurance policies
that allow the insured to make unscheduled premium payments.
A party that is named on a policy in addition to the
named insured, usually someone who has a financial interest
in the insured's operations.
Coverage for the additional costs to
an insured for meals, living, quarters and other expenses
incurred while their property is being repaired.
A contract written by the insurer with no input from
the insured that must adhere to the terms set forth with
no negotiation. Any ambiguity in this type of contract will
be construed in favor of the insured.
A policy issued that does not guarantee the premium
upon renewal. The policy may be re-rated at renewal and
may by higher or lower than the previous policy.
A type of rating wherein group-specific demographics
are considered.
A person who determine and amount of
loss and settles claims for an insurance company.
The process of investigating, measuring
and settling losses with or by an insurance company.
An organization that adjusts losses for member insurance
companies.
An organization or individual who provides
administrative services to an employee benefit plan. May
be salaried or a contract arrangement.
A type of employee benefit arrangement
under which an insurance carrier will, for a fee, handle
the administration of claims, benefits and other functions
for a self-insured group.
A review in which assessment is made of the necessity
of a patient's admission to a hospital or other inpatient
institution.
An insurance company authorized to do business in the
State.
A method of funding retirement benefits whereby the
employer periodically sets aside funds for each employee
on a systematic basis during their working years.
Insuring risks with a higher chance of loss than assumed
in the applicable insurance rate.
Damages sustained by a claimant in the course of the
insured's advertising activities, which include libel, slander,
violation of right of privacy, misappropriation of advertising
ideas or infringement of copyright.
An association of health care providers
who offer health care coverage to a specific group of patients.
Providing continued contact that will support and increase
the progress made in a health treatment process.
A provision in a life insurance policy that adjusts
the death benefit payment if the age of the insured was
misrepresented at the time of application.
In life and health insurance, this
is a provision that allows the insurer to determine the
age of the insured and when that age changes to another
year to be used in setting rates and benefits of the policy.
Minimum and maximum ages below and above which the
insurance company will not accept or renew policies.
A licensed person or organization that
represents an insurance company and is authorized to solicit,
effect contracts of insurance and service policyholders
on behalf of the insurer.
The maximum dollar amount that may be collected for
any disability, period of disability or under the policy.
In a liability policy, it is the maximum amount payable
in the policy period.
An agreement made between the insurance
company and the insured as to the value of an item. This
value will be paid at the time of loss without depreciation
or other deductions.
An association of stock property and
casualty insurers that perform numerous functions such as
fire and accident prevention, reviews insurance legislation,
research, investigations, etc.
A contract in which the consideration between parties
to the contract is not equal. In the case of insurance contracts,
the insured pays the premium and may collect nothing from
the insurer if no loss occurs, or if a loss does occur,
the insured may collect considerably more than the amount
of the premium.
An insurance company that is domiciled in another country.
The application of a deductible under a health care
plan to all covered expenses incurred by a person as a result
of the same causes with an accumulation period.
Benefits for which the maximum amount payable for specific
services as itemized in the contract.
An organized, nontraditional system
of financing and delivering health care services from participating
providers on a prepaid basis to a voluntary enrolled population.
Health plan provision under which the
amount of benefits payable gives consideration to alternate
procedures, services or courses of treatment that might
be performed.
Benefits for health care services received as an outpatient.
A facility providing preventive diagnosis, emergency
services, surgery or other treatment not requiring overnight
confinement.
Health care system in which care if provided on an
outpatient basis, not requiring a hospital stay.
A type of life insurance policy that
provides income for a certain period, such as a number of
years.
A contract that provides an income for a specific number
of years, regardless of life or death.
The payment or one of regular payments an annuitant
makes for an annuity.
A factor used to determine the amount of annuity payable
for each dollar of a participant's contributions accumulated
to the date of retirement.
A monetary sum equal to the actuarial present value
of future payments to be made on account of annuities currently
being paid, set aside in a reserve.
A signed statement of facts made by
a person seeking coverage. In life insurance, the application
becomes part of the contract when the policy is issued.
A written estimate of the value of
damaged property.
A condition in the policy, which sets forth the procedures
to be followed when an insured does not agree with the insurance
company's estimate of the damaged property.
A pension, deferred profit sharing
or stock bonus plan that meets the requirements of the Internal
Revenue Code and the applicable regulations, such approval
qualifies the plan for favorable tax treatment.
A form of dispute resolution where
an independent panel renders a decision concerning liability
or amount of a loss.
The willful burning or setting fire
to a structure.
The charge levied by an insurer under
an assessable policy in addition to the policy premium,
in the event the insurer becomes unable to pay its total
losses.
An insurance company that is owned by its policyholders
and has the right to assess the policyholders for losses
and expenses.
The transfer of one person's interest
in a policy from one person to another, this requires approval
of the insurance company.
A health insurance benefit payment option where an
insured may assign policy benefits directly to the health
provider.
A captive insurance company that is
formed by the members of an association to provide insurance
only for their own association members.
Group insurance offering coverage to an association
the same as it would be offered to the employee group of
an employer.
An individual's age at his or her last
birthday.
A condition at property that can attract and injure
children.
Verification by accounting professionals of the books
or accounts of an insured to determine the final premium
when rates are based on payroll or sales of the insured.
A provision in a life insurance policy to utilize cash
value of the insurance policy to pay past due premiums,
this prevents a lapse in coverage.
After a loss has been paid, most policies provide that
the amount of insurance will automatically return to its
original amount.
Coverage for risks associated with driving and owning
an automobile. The policy can include liability, medical payments,
uninsured motorists, underinsured motorists, collision and
other than collision coverage.
Coverage that protects the insured against financial
loss because of legal liability caused by an automobile
accident.
This option coverage pays for the medical
expenses of insureds and passengers regardless of fault
in the accident.
Coverage to pay for loss to an insured's
vehicle resulting from collision, fire, theft, vandalism
and other perils.
A term used for loss in ocean marine
insurance.
A bond intended to guarantee the appearance
of a person in court to answer to a legal summons for personal
appearance.
A person who has custody of the property
of others.
A policy that provides coverage for property of customers
left in the care of a bailee such as a dry cleaners or repair
shop.
An owner of property (bailor) who delivers
it to another (bailee) are considered to have entered into
a contract of bailment.
The practice of charging full fees in excess of covered
amounts and then billing a patient for the portion of the
bill that the insurance company does not cover.
An ocean marine term which means the
willful and illegal sinking, casting away or damaging of
a ship at sea or its cargo.
The manual or starting rate for a specific
coverage based on a normal or standard class risk.
A list of perils covered in an insurance policy which
include fire, lightning, explosion, windstorm, hail, smoke,
aircraft, vehicle damage, riot, civil commotion, vandalism,
sprinkler leakage, sinkhole collapse and volcanic action.
Refers to a party who does not own an insurance policy
but has a financial interest in the property covered by
the insurance contract.
A person or entity named in a life
policy to receive proceeds of that policy.
A publication issued by the insurance company to an
employee that contains a general explanation of benefits
and related provisions of the health plan.
A percentage that is multiplied by a participant's
salary to determine a monthly benefit.
A list of specific benefits provided by an employee
benefit plan.
Period for application of deductibles, after which
time deductible must be satisfied again.
The amount paid by the insurance company
to a claimant or beneficiary under the policy.
Individual whose responsibility it is to administer
the employee benefits program.
A guarantee that the contractor will
enter into a contract, if awarded and furnish a performance
bond as required by the terms of the bond.
A temporary contract of insurance issued
verbally or in written prior to the issuance of the policy.
One limit on the policy covering several
types of property.
A contract of health insurance affording benefits,
such as accidental death and dismemberment that applies
to a class of persons not individually identified. Commonly
used for travel policy for employees.
A provision in loss of income policies that entitles
the insured person to collect up to a maximum limit in the
policy for all hospital and medical expenses incurred without
any limitations on individual types of medical expenses.
A policy covering all property of an
insured and property of others against most perils. Examples
are jeweler's block, camera and musical instrument dealers
and equipment dealers.
Independent, non-profit, voluntary
membership organizations formed for the purpose of prepaying
medical care expenses for their insureds (subscribers).
A policy providing property and liability for boat
owners that provides physical damage coverage to the boat
and liability for injuries to third parties.
A form of coverage that protects the
insured in the event they are sued by a third party for
bodily injury as a result of a covered occurrence.
A policy covering boats for liability, medical expenses,
collision and other perils of the sea.
A policy covering loss to objects such as pressure
devices, electrical equipment for damage to property, loss
of income and liability for damage to property of others.
A three-party contract in which one
party agrees to guarantee the act, performance or promise
of a second party to the third party. Two common types of
bonds are fidelity and surety bonds.
A list of perils covered in an insurance policy which
include fire, lightning, explosion, windstorm, hail, smoke,
aircraft, vehicle damage, riot, civil commotion, vandalism,
sprinkler leakage, sinkhole collapse and volcanic action,
plus additions which include breakage of glass, falling
objects, weight of ice, sleet or snow, water damage and
collapse as defined in the form.
A licensed person or organization that
represent the insured to the insurance company.
An amount of insurance purchased to
meet the requirement of an excess carrier with respect to
underlying insurance.
A property insurance form that covers
buildings including machinery and equipment in the course
of construction.
Breaking into or out of a property for the purpose
of unlawfully taking property.
An insurance policy covers autos and trucks of commercial
insureds.
When a partner dies or is disabled,
remaining partners are provided with the funds to purchase
that partner's interest in the firm.
A policy covering business owners for loss of income
and continuing expenses due to temporary shut down due to
a covered peril.
A type of commercial package policy, which provides
several coverages for a discounted premium and is designed
for small businesses.
A policy covering an insured in the
event of an accident while traveling on company business.
An agreement that binds the surviving partners to purchase
the partnership interest of the first partner to die at
a prearranged price set forth in the agreement and obligates
the estate of the deceased partner to sell his interest
to the surviving partners.
Defined by the Internal Revenue Code as a plan that
permits the participant to choose between two or more benefits
consisting of cash and qualified plans such as group life,
medical expense, disability, and dental benefits.
A deductible amount that applies to any eligible medical
expenses incurred by the insured during one calendar year.
The termination of an insurance policy before its expiration,
this can be done by the company or by the insured subject
to contractual (defined in a policy) terms and/or state
statutory regulations.
The amount of insurance, which an insurance
company is able to issue as a maximum as, limited by legal
or corporate restrictions.
An employer-sponsored plan in which contributions are
made to a participant's individual account.
A licensed person who, by contract,
represents only one insurance company.
insurance company that is a subsidiary of a non-insurance
corporation. This insurer writes insurance on its parent
company and its subsidiaries.
Use of a drug benefit identification card, which entitles
them to receive medication from a participating pharmacy
for minimum copay.
Coverage that protects shippers for damage to goods
in transit.
A benefit formula that bases benefits
on the employee's compensation over the entire period of
service with the employer.
A program separate from the primary
group health plan designed to provide a specialized type
of care, such as a mental health carve-out.
A process that focuses on coordinating a number of
services needed by clients.
The amount of cash accumulated in a life insurance
policy and payable upon the voluntary surrender of that
policy.
A category of insurance that includes legal liability,
workers compensation, automobile and crime coverages.
A peril, which causes an extraordinary
amount of damage such as a hurricane, tornado, earthquake
or flood.
A policy form, which is attached to commercial property
insurance that indicate the perils covered. The causes of
loss forms include basic, broad, special and earthquake.
The transfer of risk exposure from
one entity to another via a risk financing or transfer mechanism
that may include the purchase of insurance or a contractual
agreement.
1) The person or entity who has been designated on
a certificate of insurance that provides proof of an insured's
insurance coverages. 2) A person who represents the family
unit covered by a dental benefits program. Other family
members are referred to as dependents.
A certificate issued by the Department of Insurance
to an Insurance Company.
A form that the agent completes which lists the coverage
the insured has purchased and provides proof of coverage
to others as needed by the insured.
An individual who completed ten college
level courses and examinations in the areas of design and
operation of employee benefit plans.
A professional who has studied extensive
aspects of financial planning and passed a series of exams
administered by the College of Financial Planning.
A professional who has studied extensive
aspects of insurance including property, casualty, life
and health insurance and has passed a series of exams administered
by the Society of Certified Insurance Counselors.
The period of time approved as necessary for a patient
to receive inpatient care in a hospital.
A professional who has studied financial
planning, investments, life and health insurance and has
passed a series of exams administered by the American College.
A professional who has studied extensive
aspects of life insurance and has passed a series of exams
administered by the American College.
A professional who has studied extensive
aspects of property and casualty insurance and passed a
series of exams administered by the American Institute for
Property and Liability Underwriters.
An uprising of a group of people causing injury or
damage.
A notice to an insurance company that
a loss has occurred, which may be covered under the terms
of the insurance policy.
An entity that manages the claim process for, or on
the behalf of, an insurer or a self-insured. Activities
may include determination of coverage, adjusting, review,
and on going tracking and reporting.
The first or third party, any person
who is presenting a claim, which may be covered under the
terms of the policy.
A liability policy under which coverage applies at
the time the claim is presented rather than at the time
of occurrence.
In health care prepayment, the routine examination
by a carrier of the claim submitted to it for payment of
benefits.
A rate making method in which types
of risks are grouped rates calculated accordingly.
The systematic arranging of properties, persons or
business operations into groups or categories.
A condition in the policy, which states
that the insured must carry at least, a percentage of the
replacement cost of the property or they are penalized at
the time of loss and forced to pay a percentage of the claim.
Provides coverage for damage to the policyholder's
vehicle caused by collision with another object or upset
to the vehicle.
Use of various types of plans such
as self-funded for basic plan and insured for supplemental
major medical coverage.
A ratio used by insurance companies to determine their
profitability; it is usually a ratio of losses and expenses
to earned premiums.
A commercial policy which provides
liability coverage to business owners including bodily injury,
property damage, personal injury, advertising injury and
medical payments to others as a result of the insured's
negligence.
A commercial policy that can include several policies
such as property, liability, crime and auto at a discounted
premium.
A percentage of the premium paid by
the insurance company to the agent or broker as a fee for
writing and servicing insurance policies.
An officer who is elected or appointed
by the State to oversee and administer matters of insurance.
Health care plans that deliver comprehensive,
coordinated health care services to voluntary enrolled members
on a pre-paid basis.
A group premium rate that does not differentiate between
single and family policies.
Provides protection similar to a combined
basic and major medical plan. Features usually include a
low deductible, less than 100% reimbursement and a high
maximum benefit.
A package of health care services and benefits including
prevention, early detection and early treatment of conditions.
A plan that combines basic and major medical coverage
in one plan.
A policy, which provides coverage for,
an insured for bodily injury and property damage to a third
party.
Mandatory coverage required by some States in certain
circumstances such as in workers compensation and automobile
insurance.
A crime policy, which protects insureds against the
loss of money or other property when theft occurs via the
computer.
Failure to disclose a material fact before or after
a loss, which may void an insurance policy.
Where two or more policies cover the same risk in the
same manner with the same conditions and policy effective
dates.
The part of the policy which sets forth
the duties of the insured including duties after a loss,
loss settlement, mortgagee rights, appraisal and salvage.
An insurance policy designed for the owner of condominiums,
which includes property and liability coverage.
A financial loss, which results from direct damage
to property such as loss of income and additional living
expenses.
A federal act which makes provision
for the continuation of an employee's and dependent's health
insurance coverage should the employee terminate his or
her employment.
Person named to receive benefits in a policy if the
primary beneficiary is deceased.
Legal liability that may be incurred by an insured
as a result of negligence on the part of independent persons
who perform work for the insured.
Under the laws of COBRA, employers have the obligation
to make available to employees and dependents some continued
benefit coverage after the employment relationship has been
terminated. Employees must pay for this coverage.
A legal obligation assumed under a contract by the
insured.
The transfer of funds by either an employer or an employee
to an employee retirement plan.
This is created whenever annual contributions exceed
the maximum allowable deductions. This carry-over can be
deducted in future years, in which payments are less than
the maximum deduction allowed by the Internal Revenue Service.
A provision included in many life and health insurance
policies whereby an insured is permitted to change from
one type of policy to another or increase limits without
taking physical examinations or prove insurability.
in a health insurance policy, insurance companies to
avoid duplicate payment for losses insured under more than
one policy use this provision.
A flat, pre-set fee paid by an insured
for office visits, drugs and other medical services as a
member of an HMO or preferred provider.
Once a major medical policy has paid the full stated
amount of limits to an insured, if additional expenses are
to be incurred, this deductible is the amount that must
be paid by the insured before additional coverage is available.
A variety of bonds that may be required
in lawsuits or other court proceedings.
The event, which determines when coverage of a liability
policy applies such as an "occurrence" or "claims made".
The protection provided under a contract
of insurance.
A form of health insurance that provides payments to
creditors in case of disablement of debtors with respect
to amount owed on installment loans.
A form of life insurance that provides payments to
creditors in the case of death of debtors with respect to
amount owed on the balance of the loan.
A variety of related coverages that protect against
losses of money, securities and property due to employee
dishonesty, forgery, theft, burglary, robbery, kidnap, extortion
and fraud.
Insurance against hail damage to growing crops. Often
includes other perils such as fire, windstorm, lightning,
drought, frost, excessive heat, snow, sleet, etc.
estimated compensation for injuries to a claimant.
the sum payable to beneficiaries as a result of death
of a policyholder.
The first page of an insurance policy which gives information
concerning the policy such as name and address of the insured,
amount of coverage, policy period and risk covered.
an insurance company's refusal to offer
a policy for a perspective insured.
A type of life insurance policy in which the death
benefit starts out a the full stated amount, but declines
on a set scale throughout the life of the policy, finally
reaching zero at the end of the policy term.
The amount stated in the policy that
the insured must pay in the event of a covered loss.
An annuity contract providing for the initiation of
payments at a designated future date or age.
A life insurance policy designed to pay a higher death
benefit after a certain period of time to allow the benefits
to become vested.
A premium payment method, which allows the insured
to pay the premium on an installment basis rather than the
entire premium up front.
A form of pension plan, which requires contributions
from both the employer and employee. The benefit is known
while the amount of contributions varies.
A form of pension plan, which requires contributions
from the employer and employee. Benefit varies according
to factors such as participant's income, age, etc.
A clause in a life insurance policy, which allows the
insurer to defer the payment of benefits to the beneficiary
for a specified period of time after death of the insured
under certain conditions.
A type of health insurance coverage for specified dental
services.
Usually the spouse and children of a covered individual,
as defined in a contract.
A group annuity plan in which members of the plan or
their employers make scheduled deposits or payments to the
plan.
A tentative charge made at the start of a policy, which
will be adjusted when the actual earned premium has later
been determined.
A bond, which insures against losses from forgery or
alteration of outgoing negotiable instruments only.
A bond for use by financial institutions to guarantee
the safety of funds made by depositors and their availability
for withdrawal as indicated in the terms of the deposit.
The reduction in value of property caused by deterioration
or obsolescence.
The 12 month period used for calculating the premium
to be charged for continuation of coverage under the rules
of COBRA.
A medical claims reimbursement system, developed by
Medicare for hospitals, where predetermined payment amounts
have been set for certain listed procedures.
A property policy that covers perils
not included in other policies such as flood and earthquake.
A system for the collection of premiums, the insurance
company sends a notice of the premium due directly to the
insured in lieu of sending it to the agent.
Causes of loss that produces property damages.
Damage to property, which causes a financial loss to
the insured.
An insurance company, which uses employees to sell
direct to the public, they do not appoint agents.
A policy written to cover corporate
officers against damages from claims resulting from the
negligent or wrongful acts in the course of their duties.
Inability to work due to injury or illness.
A type of health insurance that provides periodic payments
to an insured while they are unable to work due to injury
or illness.
An annuity that is payable in the event that an employee
becomes disabled before the age of usual retirement.
A type of self-insured plan where employees' claims
are paid directly out of the company's cash flow as an expense
and are therefore tax deductible when paid, not incurred.
A period of time, after the termination of a policy,
during which the insured may discover a claim, which would
be covered under the policy even though it was reported
after the coverage period. This clause is usually found
in claims-made coverages and crime insurance policies.
The termination of an employee's health insurance coverage.
Unemployed workers no longer covered by a group insurance
plan.
The process of taking money through loans and surrendered
policies from a financial intermediary in an attempt to
earn a higher yield elsewhere.
The loss or loss of use of a limb or loss of sight
from an accident.
An amount of money paid to the insured
as a result of profits earned by the insurance company.
an insurance company domiciled in the State where it
is incorporated.
A provision where certain benefits are doubled when
an accident is due to specified circumstances.
A substitute for a check, used by insurance
companies to pay claims.
Laws, which pertain to owners and operators of businesses
that serve or provide alcoholic beverages concerning liability
for injury or damage caused by or to an intoxicated driver.
A limited forms of health insurance that pays for treatment
of specific diseases such as cancer.
A provision in a business auto policy designed to protect
the insured when driving cars other than the vehicles described
in the policy.
A personal lines property insurance policy that insures
a dwelling, other structures, personal property and fair
rental value for 11 named perils.
A personal lines property insurance policy that insures
a dwelling, other structures, personal property, fair rental
value and additional living expense for 16 named perils.
A personal lines property insurance policy that insures
a dwelling, other structures, personal property, fair rental
value and additional living expense for direct risks of
physical loss on the dwelling and 16 named perils on personal
property.
That portion of the premium, which the company is entitled
to for coverage provided during the policy period.
The privilege or right of an owner
of property to use non-owned property usually adjoining
the owned property.
actual out of pocket expenses incurred by an insured
as a result of a loss such as medical expenses, loss of
income, transportation expenses and property damage.
The date in the policy on which coverage begins.
The date an individual and/or dependents become eligible
for benefits under their employee benefit plan.
A certain period of time, usually 31 days when potential
members of a group policy can enroll without evidence of
insurability for life or health insurance.
Conditions that an employee must meet to participate
in a plan or obtain a benefit.
Also known as a waiting period before benefits are
payable in a disability insurance policy.
A program designed to help employees
whose job performance is being adversely affected by personal
problems such as alcoholism, hypertension, etc.
A plan established by an employer to provide employees
with certain benefits such as pension, profit-sharing, sickness,
etc.
A crime policy, which protects insureds
from dishonest acts of employees such as theft of money
or property.
Coverage, which provides protection for, an employer,
which defends the insured in the event of lawsuits, brought
by employees or their families.
An amendment to the policy issued by
the insurance company.
Payable to the insured if they are living as of the
maturity date stated in the policy or to a beneficiary if
the insured dies prior to that date.
A person eligible as a subscriber or
a dependent in accordance with an employee benefit plan.
A liability policy that defends the insured in the
event of lawsuits brought by their clients due to alleged
negligence of the insured.
A statement of a person's physical condition, occupation
or other factor affecting his or her acceptance for insurance.
A liability policy that provides extra coverage above
other liability policies.
Certain causes and conditions listed in the policy
that are not covered.
A method of rating, which takes into consideration
the loss history of a particular risk and applies a credit
or debit to future rates accordingly.
The date on which a policy ends.
Chance of loss and measure of rating
units or premium basis of a risk.
An endorsement added to a property insurance policy
which includes the perils of windstorm, civil commotion,
smoke, hail, aircraft, vehicles, explosion and riot.
Coverage for retired persons to cover the surplus after
retirement health insurance and Medicare benefits are exhausted.
Additional income protection available in a business
income policy that covers the insured after their property
is repaired and before business is back to where is was
prior to loss.
An additional period of time for claims to be reported
after claims made liability policy expires.
An option available in some whole life insurance policies
allowing the insured to use the cash value of the policy
to purchase additional term life insurance.
A business insurance policy or an endorsement of a
business insurance policy that provides coverage for expenses
incurred by the insured caused by loss to property.
The dollar amount listed in a life
insurance policy that is paid to the beneficiary when the
insured dies.
Reinsurance, which is purchased on an item by item
basis.
A State program designed to provide
"fair access to insurance requirements" for property owners
who have difficulty purchasing fire insurance in certain
areas.
A coverage included in dwelling policy, which provides
the insured reimbursement for the loss of rents due to a
covered property.
A deductible in a health insurance policy that is satisfied
by the combined expenses of all covered family members.
A bond, which reimburses an employer
for losses resulting from dishonest acts of employees.
A person who occupies of position of
trust, such as holding money or property of others.
A policy, which provides protection for those who administer
pension or other employee benefit funds, coverage is provided
for loss due to errors or omissions by the administrator.
A statute, which requires a motorist to provide evidence
of the ability to pay for negligence in causing losses to
others from the operation of a motor vehicle.
A policy covering property damaged by fire, lightning
and removal of property from the premises to avoid further
loss.
Provides coverage for an insured that damages premises
by fire for property they rent or occupy.
Coverage that pays the entire covered amount without
use of a deductible.
In Commercial insurance, the party named first in the
declarations. This person has significant duties and obligations
in the contract.
A life insurance annuity providing
guaranteed payments for the term of the annuity.
A life insurance or annuity benefit
paid on a regular basis that does not vary.
The cancellation of a policy as of the time it was
effective with the entire premium refunded to the policyholder.
A schedule in group insurance under
which everyone is insured for the same benefits regardless
of salary or position.
Offered by employers to employees that allow the employee
some choices in the benefits, coverages and limits selected.
A variable life insurance where the
insured has the right to choose the amount and time of premium
payments.
An inland marine policy that covers
property at various locations.
Coverage purchased by a financial institution to protect
their interest alone or its joint interest with the merchant
under a special form.
A policy, which provides coverage in the event property
is damaged by surface waters, which cause flooding conditions.
A policy, which extends an additional
limit of liability insurance above the primary policy providing
exactly the same coverage.
An insurance company doing business in one State but
incorporated in another State.
A commercial crime insurance policy
that provides coverage for losses resulting from forgery
or alteration of checks, drafts and similar instruments.
Accidental, unexpected and unforeseen.
A cooperative type of life or disability insurance
that some social organizations offer to their members.
A provision that permits the insured
to choose any licensed health provider.
An endorsement for property policies, which provides
for replacement of the operation or function portion of
a building or personal property.
An amount of insurance purchased to
satisfy the requirement of an excess carrier with respect
to underlying insurance.
Provides liability coverage for service stations and
car dealerships for premises, operations and automobiles.
In ocean marine insurance, a loss that is common to
all interests such as owners of the hull and cargo.
Credits or discounts given by some auto insurance companies
for drivers with favorable driving records.
Credits or discounts given by some auto insurance companies
for drivers with high scholastic achievement.
A period after the premium due date,
during which an overdue premium may be paid without penalty
and with no lapse in coverage.
A provision in life insurance contracts for death benefits
that are less than the face amount of the policy in the
early years of the contract and increases with the passage
of time.
A pension program underwritten and administered by
an insurance company.
A life and health insurance contract made with an employer
or others that covers a group of employees or other members
of a group.
Insuring a number of persons under a single master
contract.
An insurance policy that provides benefits guaranteed
by the insurer.
A provision in a life or health insurance policy, which
guarantees the insured the right and ability to increase
or purchase additional coverage without proving insurability.
A policy where the insured has the right to continue
in force by timely payment of premiums to a specified age,
during which time the insurer has no right to make any change
in provision to the policy, but may make changes in premium
rates by policyholder classifications.
A State fund created to provide funds
to pay claims of persons who were insured with a company,
which becomes insolvent.
A condition, which increases the possibility
of loss.
A policy that pays specified sums for medical expenses
or treatments.
A pre-paid medical group practice plan
that provides a predetermined medical care benefit package.
A contractual agreement in which one party agrees to
assume certain liability which otherwise would be borne
by the other party.
A personal lines package policy that provides coverage
for the insureds dwelling, other structures, personal property,
and additional living expenses and provides liability for
the premises and insureds.
A plan that makes cash payments or reimburses employees
for hospital charges up to a certain amount.
Health Insurance that protects the insured against
the cost of hospital care resulting from illness or injury
of the insured person.
A form of health insurance that provides a specified
daily, weekly or monthly payment during hospital confinement.
The ship, which is covered in an ocean
marine insurance policy. It is also the plane in an aviation
policy.
Provides financial protection to the insured in the
event that an insured watercraft is damaged.
A type of annuity policy that begins making benefit
payments as of the last premium payment.
Property, which is not damaged but cannot be used due
to defective parts.
Additions to buildings made by tenants enhancing the
value of real estate.
A clause in many life and health insurance policies
that sets a time period during which the insurer has to
investigate and determine any grounds for voiding or contesting
coverage because facts provided in the application.
The liability for future payments on
losses which have already occurred by have not yet been
reported to the insurance company and/or losses that have
been reported, but have not yet developed to their "ultimate"
incurred.
To restore a person to the same position
they were in prior to the loss.
A licensed person who represents several insurance
companies on a commission basis and who owns the expiration
records of their customers.
A financial loss, which results from
direct damage to property such as loss of income and additional
living expenses.
A retirement savings program for individuals
in which yearly tax deductible contributions up to a limit
specified by tax laws can be made.
An endorsement added to property insurance policies,
which increases the amount of insurance by a certain percentage,
which is listed on the policy each year.
The characteristics of property, which cause deterioration
or damage within that property.
A category of insurance, which provides coverage for
personal property, imported, exported as well as instrumentalities
of transportation and communication and mobile property.
A physical examination of a property
to determine information important to the insurance company
such as value, condition and hazards.
A financial interest in property in the event of loss
to the property, one would suffer a financial loss.
A social device for the transfer of
risk from individuals to the insurance company.
the top insurance regulatory official in a State.
An organization chartered in a State to operate as
an insurer in various types of insurance such as property,
casualty, life and health.
A written contract between the insured and the insurer
detailing the coverage that is provided, applicable exclusions,
limitations, conditions in the event of loss, the premium
and other details pertinent to the contract.
An organization, which files rates
and policy, forms on behalf of member insurance companies.
The person or organization to be protected
by an insurance policy.
The insurance company or other organization
that is providing insurance coverage to policyholders.
The part of the insurance policy that details the coverage
provided.
A beneficiary that cannot be changed without their
consent.
A knowledgeable benefits professional
that assists plan sponsors in designing, purchasing and
administering health insurance programs.
The outside covering of an insurance
policy, it provides information such as phone numbers to
call in the event of loss and may contain many of the basic
coverage provisions.
In ocean marine insurance, it is the
voluntary throwing overboard of part of the cargo for the
purpose of saving life or property.
A policy covering the property of a jeweler and their
customers.
An inland marine policy insuring jewelry.
One of the insureds in a type of life insurance policy
covering more than one insured.
A combination type of life insurance
policy that converts to annuity.
A type of life insurance policy covering
more than one insured, the death benefit is paid when either
one of the insureds dies.
A type of liability that occurs when more than one
party is involved in a contract and where both are liable
jointly and individually.
An association of insurance companies
formed by the State to provide coverage to those who are
unable to obtain a policy in the voluntary market.
A federal law, which provides legal
protection to maritime employees who are not covered, by
State workers compensation laws in the event of work related
injury.
A method used by underwriters to decide the rates for
a particular risk without use of standard or class rates.
A type of bond often requested by courts
to guarantee performance by a party involved in court proceedings.
Life insurance policies written for children under
16 years of age.
A retirement plan for self-employed
persons and their employees in which yearly tax deductible
contributions can be made up to a limit specified by the
Internal Revenue Code.
Protection of a business against financial loss caused
by the death or disability of a vital member of the firm.
A bond given by a contractor to guarantee payment to
laborers and suppliers used in the work performed under
the contract.
Termination of an insurance policy without reinstatement.
An amendment to the Commercial General Liability policy,
which excludes certain products or activities of the insured.
A mathematical concept that states that the greater
the number of exposures, the more predictable the outcome
becomes.
A provision in a policy insuring a vessel where the
policyholder agrees that the vessel will not be in use for
a period of time.
The practice of purchasing policies
to cover limits in layers when risks have high limits or
exposures.
Protection for the insured's interest in a favorable
lease.
Imposed by law rather than by contract or agreement
usually involves negligence.
A life insurance policy that allows an option in which
the beneficiary may choose either to receive the face amount
of the policy at the time of death of the insured or a percentage
of the total value, whichever is greater.
A life insurance policy where the premium remains the
same throughout the term of the policy.
A term life insurance policy whose face value does
not change throughout the term of the policy.
A risk financing mechanism that provides protection
for an insured that is accused of "wrong-doing" by a third
claimant.
The policy limits on the face of the policy, which
is the maximum amount payable in the event of a loss.
A provision in some insurance property and casualty
policies that states that if the insurance company, within
a specified period of time, offers a broadened version of
the current policy for no additional premium, the insured
is given the benefit of increased coverage.
A certificate of authority granted
by the State to insurance companies, agents, brokers and
loss adjusters as a permit to engage in the insurance business
within the State.
A type of performance bond often required by municipalities
to indemnify them against loss from breach of regulation
or ordinance.
A series of payment that continue throughout
the remaining lifetime of the annuitant.
The average number of years that a person of a given
age is expected to live.
A benefit payout option available in some life insurance
policies where the beneficiary is able to have the benefits
converted into an annuity based upon life expectancy and
payable as long as the beneficiary is alive.
A benefit payout option available in
some life insurance policies where the beneficiary is able
to have the benefits converted into an annuity based upon
life expectancy and for a set period of time whether or
not the beneficiary is alive.
A policy that promises to pay at the death of the insured
or at another determined time, if earlier.
A life insurance policy that has a trust named as the
beneficiary instead of an individual.
Specially designed life, health and disability insurance
policies where conditions are set in the policy that the
insured maintain a specified type of lifestyle in order
to collect coverage.
A health insurance plan that provides only specific
types of services or areas of medical specialty such as
mental illness.
A life insurance policy that provides benefits only
if the insured dies of a specific type of illness, injury
or disease, such as cancer.
A type of life insurance policy for which the insured
pays a premium during a limited number of years or specified
period of time.
A limited type of health insurance
that usually has low limits and limited benefits such as
Medicare supplements.
The class of business to be written
such as property, casualty, life or health.
An insurance policy that covers legal liability of
dram shop, liquor control or alcoholic beverage laws.
A policy covering horses and other cattle against injury
or death.
A collection of individuals who assume policy obligations
at their own risk.
A term referring to the lengthy period
of time between an occurrence of an event and the date it
is reported to the insurance company.
An occurrence, which is reported to
the insurance company and may result in payment to the insured
or other claimant.
A coverage, which provides a condominium unit owner
with protection in the event they are assessed by the condominium
association for injury or damage not covered by association
insurance.
A flat charge added to the premium
of workers compensation risks.
Steps and procedures made by insureds to reduce the
frequency or severity of claims.
The loss history for an account, line of business or
book of business.
The calculation of how often a type of loss occurs
to an account, a line of business or a book of business
within a given period of time.
A benefit in health, accident or disability insurance
policies to provide for loss of the insured's wages or income
while ill, injured or disabled.
An amendment to a policy listing a bank or other lien
holder for the purpose of protecting their interest in the
event of a loss. All first party claims will be made payable
to the insured and the loss payee.
The amount of money paid for losses
divided by the premiums paid to the insurance company, it
is used in determining profitability of the company.
An estimate, set by adjuster, of the
amount an insurer expects to pay for reported claims.
An agreement signed by the policyholder to cancel an
insurance policy.
A policy designed to reimburse the insured for excess
medical expenses in and out of the hospital.
Intentional and willful vandalism and destruction of
property.
A policy covering the improper actions or failure to
exercise proper care by a medical professional or attorney.
A type of insurance protection or plan
that manages the services provided to an insured or member
by placing limits on the number and type of services covered.
A licensed agent who represents an insurance company
and is authorized to accept business from other licensed
agents on behalf of the company.
Standard rates used by insurance companies for common
risks.
A policy written by an insurance company for one risk,
not a standard contract.
One of the major divisions of insurance primarily written
for maritime risks and property in transit.
An insurance policy, used in group insurance that covers
a group of persons to whom certificates of insurance are
issued as evidence of individual coverage under the policy.
Any information, which influences an insurance company
underwriter to accept or reject an application for insurance.
A false statement of an important statement on an application.
A law passed by Congress that granted authority to
the States to continue to tax and regulate insurance.
Provided by the U.S. Federal Government to pay for
medical care for the needy.
Provides for payment of medical, surgical and hospital
expenses.
Pays the cost of medical care to an injured eligible
party regardless of fault, general included in general and
automobile liability policies.
The U.S. Federal Government plan for
paying certain hospital and medical expenses for those who
qualify, primarily those over 65 years of age.
A voluntary private insurance plan available to Medicare
eligibles to cover the costs of deductibles, coinsurance
and other medical services not covered by Medicare.
A system of rating in which the experience
of the insured is a factor in determining the rate.
The lowest flat or earned policy charge for which a
policy is issued.
This is an arrangement where the employer and the insurance
company or service plan agree that the employer will be
responsible for paying all claims up to an aggregate level
with the carrier responsible for the excess.
A false, incorrect, improper or incomplete statement
of a material fact.
A policy designed to meet the needs of mobile home
owners that covers the home, personal property and personal
liability when the home is used as a residence.
A policy covering only one type of policy.
A State plan that writes all of the workers compensation
insurance in that State.
A criminal mental attitude that contributes
to a loss.
A lax mental attitude that contributes
to a loss.
Depicts the average number of illnesses amongst a large
group of persons.
The number of deaths resulting from
each specific type of illness or disease.
Depicts how many members of a group, starting at a
certain age, will be alive at each succeeding age.
A condition in the policy that affords the financial
institution or individual listed as mortgagee certain rights.
Self-funded or insured corporate group benefit plan
that covers medical, dental, pensions for mostly small employers.
An insurance company owned by its policyholders.
A person designated in the insurance
policy as the insured.
A policy, which specifies the exact
causes of loss covered in the policy.
An organization of State officials
having authority to regulate insurance.
Established by the NAIC in 1953, which defines those
subjects, which should be considered as marine insurance
for regulatory purposes.
The failure of a person to act in a
reasonable and prudent manner.
The amount that will be paid to the insured or beneficiary
at the time of the insured's death or surrender of the policy.
The gross premium less any return premium
or dividend. Also described as premium less commission.
Coverage designed to compensate victims for medical
claims resulting from automobile accidents without regard
to fault.
An insurance company, which is permitted to do business
in a State but is not licensed in that State.
A provision in some policies that neither
the policyholder nor the insurance company may terminate
the contract during its term nor make changes to the provisions
of the policy.
A term applied to employee benefit plans in which the
employer bears the full cost of the benefits for the employees.
The condition existing when two or
more policies do not cover identically.
A benefit to a life insurance policyholder, which provides
the amount of money or paid-up insurance from a life insurance
policy to its owner when terminated by that person before
the policy, matures.
A contract that insures a person against off-the-job
accident or sickness.
Provides coverage to an insured in
the event they are held liable for the acts of others driving
on behalf of the insured. It can also provide coverage for
the insured driving a vehicle not owned by them.
A policy, which does not share in policyholder dividends
declared by the company.
When an insurer chooses not to offer renewal coverage
on a policy for causes such as higher losses, failure to
comply with recommendations, etc.
Insurance agents must be licensed in each State where
they write business, when an agent is domiciled in one State,
but writes business in another, the agent is considered
a nonresident in all States other than the State they are
domiciled.
The party to whom the surety is obligated
in a bond.
The party who is bound by the obligation
covered by a bond.
The use of an insured building.
A fortuitous event happening at a specific
period of time and an incident, which occurs over a period
of time.
Coverage for maritime exposures such as vessels, cargo
and passengers.
Protects officers and directors of
a corporation against damages from claims resulting from
negligent or wrongful acts in the course of their duties.
A part of an auto or yacht liability policy, which
extends coverage to persons or organizations other than,
the named insured.
A period of time during which new subscribers may elect
to enroll in a health insurance plan or prepaid group practice.
A term used for policies that provide
coverage for perils that are not specified in the policy,
but are covered unless they are excluded specifically in
the contract.
A life insurance concept that applies
to those policies which offer the insured or beneficiary
a selection of the methods to be used for the payment of
benefits.
A group health contract that gives the insurance company
the right to determine if the contract is to be renewed
or terminated upon each renewal period.
A property endorsement that provides coverage to pay
for renovations to buildings required by State or local
ordinances after a covered loss.
A form of whole life insurance with premiums payable
on an annual, semiannual, quarterly or monthly basis to
the death of the insured.
A trust-funded pension plan that provides death benefits
through the purchase of ordinary or whole life insurance
contracts for employees covered.
A type of disability insurance providing coverage for
the cost of overhead expense to continue business operations,
in the event the insured should become ill, injured or disabled.
A liability policy that provides coverage
for the insured for the negligent acts of independent contractors
hired by the insured.
A policy that contains two of more forms of coverage.
Such as property and liability insurance.
A whole life insurance policy that gives standard protection,
but where the policy becomes paid up at a certain age.
A provision which requires the insurer, at their option,
to restore or pay for the entire set or pair or to only
pay for the portion of the value of that set or pair.
Insurance on which the policyholder is entitled to
receive policy dividends reflecting the difference between
the premium charged and actual experience.
In ocean marine insurance, a loss either partial or
total which falls one or more properties or interests such
as cargo owners.
A plan that provides benefits, after
retirement, from a trust or other separately maintained
fund, by the purchase of insurance or from general assets.
A fund consisting of money contributed
by the employer and/or employees plus earnings to provide
benefits after retirement.
The cause of a loss.
A form of property insurance written without an expiration
date.
A policy providing specific coverage for items such
as jewelry, fine arts, coins, stamps and silverware.
Injury, other than bodily injury, such as libel, slander,
false arrest, wrongful eviction, invasion of privacy, malicious
prosecution and false imprisonment.
Provides insurance for medical expenses, loss of income,
funeral expenses and other costs arising out of injuries
caused by automobile accidents, also known as no-fault insurance.
Types of insurance written for individuals such as
automobile, homeowners, watercraft and mobile homes.
In auto insurance; damage to the insured's vehicle
caused by collision or other perils such as fire, theft,
vandalism, windstorm, etc.
The contact of insurance, which sets
forth the promises of the insurance company and the duties
of the insured.
Designed to provide protection for the liability exposures
that may result from damage and clean-up costs caused by
pollution.
An ocean marine policy designed to protect a vessel
that is portside for a lengthy period of time.
For a participating life insurance policy, it is the
dividend paid after the death of the insured, which includes
the earnings owned since the last dividend payment.
Injuries from accidents or sickness, which occur earlier
than the date on which insurance became effective.
The amount an insurance company charges
as consideration for coverage.
The individual named first in a life insurance policy
to receive the policy benefits and proceeds.
Primary
Care Provider (PCP) / Gatekeeper
A primary care physician (PCP) is a physician that directs
all of a patient's health care under a Managed Care health
plan. Ideally, the primary care physician (usually an internist,
family practitioner, obstetrician-gynecologist, or pediatrician)
will know the patient's complete medical history and make
initial diagnoses for any illness. In most managed care
plans, patients cannot see Specialists without a referral
from their PCP.
The policy providing the first layer of coverage that
will respond first to any loss exceeding the deductible.
The initial layer or amount of insurance applying to
loss, the underlying level.
In a bond, it is the one whose honesty,
fidelity or ability to perform is guaranteed.
The stated amount that a policy of health or accident
insurance will pay in the event of covered loss.
An auto, station wagon, pickup or van not customarily
used in business.
The period of time in a health insurance policy between
when the policy goes into effect and when coverage actually
becomes available to the insured.
The person who solicits insurance from
the buyer and places it with the insurer such as a licensed
agent, broker or solicitor.
Provides coverage for an insured that is sued due to
alleged negligence as a manufacturer, seller or distributor
of products.
A signed statement required by the
insurance company after a loss, which sets forth the circumstances
and amount of loss.
Coverage for buildings and personal property against
physical loss or damage.
When the insurance company terminates the policy, return
premium is calculated on the exact period coverage was provided.
The adjustment of benefits paid because
of a mistake in the amount of the premiums paid or the existence
of other insurance coverage on the same accident or disability.
For ship owners against liabilities
arising out of the operation of the vessel for loss of life,
injury or illness to passengers and crew.
A 10-category ranking or schedule of public fire protection
of cities and towns.
The uninterrupted chain of events, which causes a loss
or damage.
A person who, for a fee, represents a policyholder
in the adjustment of their losses.
Damages awarded by the courts separate from compensatory
damages usually on account of wanton misconduct to serve
as a punishment for the wrongdoer.
Nontaxable benefits that can be included in a cafeteria
plan such as group term life, accident and health and dependent
care.
A plan the Internal Revenue Service approves as meeting
the requirements of Section 401(a) of the 1954 Internal
Revenue Code to receive tax advantages.
An occurrence entitling a person to elect continuation
coverage under COBRA, such as termination of employment,
death of a covered employee, etc.
The price per unit for insurance.
Returning a portion of the premium to the insured as
an inducement for buying the policy.
A type of annuity, which allows for the return of all
premiums paid to the beneficiary, including interest should
the insured die prior to the accumulation period.
Restoration of the policy without any lapse in coverage.
A transaction whereby an insurance
company transfer part or all of their risk to another insurance
company.
A term life insurance policy that offers the renewal
of the coverage without making the insured take physical
exams or otherwise prove insurability.
A policy issued to replace one that
has expired.
The full cost to replace property with similar quality
without deduction for depreciation.
An endorsement, which requires the policyholder to
report the values of property to the company at certain
intervals such as monthly, quarterly, etc.
an amount representing a liability
of an insurer, usually for losses that have not yet been
paid.
A health or disability policy providing
income protection for insureds that experience reduced income
when returning to work after an accident or illness because
they are unable to work on a full-time basis.
A plan that allows people who are unable to purchase
insurance through voluntary markets to buy insurance at
generally higher rates.
The amount of risk kept by an insurance
company in a reinsurance arrangement or kept by the insured
in an insurance policy.
A specific type of annuity designed to provide benefits
to the annuitant once a specific retirement age has been
reached.
The earliest date for which coverage is afforded under
a claims-made form.
A procedure, which uses the insured's experience during
the policy year to determine the file premium.
An amendment to a policy.
The category of loss exposure in question
and the Uncertainty concerning loss.
An insurance company organized by a group of businesses
or institutions in the same line of business to provide
liability insurance for the owners or organizers.
The act of taking of property by violence
or threat of violence.
When an agent moves a book of business
from one carrier to another.
The clause in an ocean marine hull policy, which covers
damage done to another ship by collision and other property
damage also caused by collision.
The amount the insurance company is
entitled to receive due to the sale of property recovered
after a loss has been paid.
A list of properties or items, which
are insured.
A system of making fire insurance rates for commercial
properties determined by a physical inspection of each risk.
Funds that reimburse employers for the difference between
the total compensation benefits and the partial compensation
that would have been paid to a disabled employee had that
not been disabled previously while working for another employer.
When an employer decides to fund and administer their
own employee benefit plan instead of using outside sources.
The retention of sufficient exposure units by an entity
to permit the Law of Large numbers to operate. No insurance
company collects premiums and assumes risk.
In some health care plans, the opportunity offered
to laid-off workers or those with insufficient hours to
maintain health benefits by paying the premium themselves
to avoid lapse in coverage.
A prepayment plan that guarantees to
provide covered health care services to subscribers, as
opposed to indemnifying expenses.
When the policyholder prior to the expiration date
terminates the policy, the return premium is calculated
on approximately 90 percent of the pro-rata premium.
A type of retirement plan designed
for small businesses where the employer makes contributions
to the employee's IRA.
The collapse of a building into subterranean voids
created by the action of water on limestone or rock formations.
A property coverage form that protects
insured from risks of physical loss subject to policy exclusions.
1) A single amount of insurance covering a single type
of insurable property such as building or contents. 2) The
amount of insurance available for any one loss and usually
stated with an Aggregate Limit.
Accidental discharge of water from automatic sprinklers
and similar fire prevention devices.
The value of property is agreed upon at the issuance
of the contract.
A process by which an insurance company
pays their insured and seeks reimbursement from the responsible
party.
The employee or member who elects coverage
under the plan.
Also known as Part B, this is a voluntary
insurance program that provides benefits for physician and
other medical services under the Social Security Act for
aged and disabled individuals who elect to enroll.
The person or organization guaranteeing
the fulfillment of an obligation.
A written agreement where one party
(surety) obligates itself to a second party (obligee) to
respond for the default of a third party (principal) in
failing to perform specified duties within a stated time.
Health insurance policies that provide benefits for
doctor's operating fees.
Policies written by insurers who are not licensed in
the State where the risks are located.
A charge for the cancellation of an insurance or annuity
policy.
The net proceeds, after applicable charges, available
from the termination or cancellation of insurance or deferred
annuity contract.
Payments made to the spouse of a deceased participant.
A policy issued on behalf of a number of companies,
which share a risk or class of certain risks.
Liability that exists for losses that
are not discovered or reported and settled until some time
after the policy has expired.
Liability coverage that is typically purchased upon
the discontinuance of claims-made policy, or the change
of a claims-made policy to an occurrence policy, that provides
protection for exposures that are not yet discovered and
reported.
The rate made and published by a rating
bureau.
State employer liability laws that mandate the minimum
benefits that must be offered to temporarily injured, sick
or disabled employees who are not covered by workers compensation
laws.
A type of homeowner's policy for people who rent homes
or apartments.
A type of life insurance that is written to cover only
a certain period of time, since it is not a whole life policy,
it does not build cash value.
The cessation of coverage caused either
by the expiration, cancellation or non-renewal of the policy.
Rates based on the physical, environmental, political
and overall potential of geographic locations.
An inland marine policy covering loss or damage to
scenery, costumes and other properties of a production.
Any act of stealing.
The claimant who makes a demand against
a liability policyholder of another company.
The party that has been contracted
by an insurer, self-insured, pool, reciprocal, or similar
to administer services that are identified. These services
may include claims administration, premium collection, underwriting,
and other administrative functions.
A policy that pays for indirect losses that are related
to time such as loss of income and continuing, expenses.
Protection, which indemnifies the purchaser of real
estate against loss occasioned from defects in legal title
to property.
A civil wrong causing injury to persons
or property.
Loss to all insured property, the maximum
amount of the policy may be paid.
A type of life or accident policy sold at airports,
railroads, etc. to provide coverage for bodily injury or
death suffered by passengers.
A reinsurance agreement between an
insurance company and the reinsurance company, which provides
for the sharing of risk for a period of time.
Written to cover a single shipment of property to cover
loss by specified or open perils.
A group insurance program where an entire related group
of people is offered access to the same coverage usually
life, health, accident and disability.
The practice of misrepresenting an
insurance policy for the purpose of causing the insured
to cancel one policy and in order to accept another.
The amount an insured is obligated in a liability policy
to pay in the event of a loss.
A range of services related to insurance that some
insurance companies and subsidiaries offer to their insureds
but can be separated from the insurance transaction.
A form of liability coverage that protects the insured
against claims in excess of the limits of their primary
liability policies.
A policy provision that provides reimbursement up to
a maximum amount for the costs of all extra miscellaneous
hospital services.
Insurance that is insufficient to cover a loss.
The limits of the primary policy below the excess or
umbrella policy, which will respond first to loss.
Flexible premium life insurance policy under which
the policyholder may change the death benefit and vary the
amount or timing of premium payments.
Coverage an insured may purchase to protect himself
or herself from injury or damage caused by a hit and run
motorist or one who has no insurance.
Coverage an insured may purchase to
protect himself or herself from injury or damage caused
by a negligent party who does not have enough insurance
or funds to cover the loss.
A person who works for an insurance
company accepts or rejects risks on behalf of the company;
their duty is to prevent the adverse selection of risk.
The process of identifying and classifying the potential
degree of risk, the purpose of underwriting is to avoid
the adverse selection of risk.
The part of the premium representing the remainder
of the policy term.
A State fund created to reimburse persons injured in
auto accidents who cannot collect damages awarded to them
because the negligent party if insolvent or uninsured.
A property with nothing in it and unoccupied.
A policy in which the company agrees
to the value of property and will pay the policy amount
without regard to depreciation in the event of a total loss
to the property.
An annuity that is expressed in terms of benefit units
instead of fixed dollar amounts.
A life insurance policy under which the premiums are
level, but the benefits are not level.
Protection, which an employer may purchase
to cover employees not otherwise included in workers compensation
laws.
Coverage that is offered by companies that is not required
to be purchased by federal or state requirement.
The duration of time between the start of a disability
and the start of benefits, as provided in the policy.
An intentional relinquishment of a
right.
A condition of an insurance policy which states that
the coverage will not be prejudiced if the insured has waived
in writing prior to a loss any rights of recovery from a
party responsible for the loss.
A statement by the insured about the
truth on which the contract depends.
A type of life insurance that provides a face value
death benefits for the entire life of the insured.
Coverage that provides benefits mandated by State law
to employees who are injured by work related accidents or
disease.
One policy, covering all involved interests for large
construction projects.
|
