Understand insurance terminology with our comprehensive glossary. Clear definitions for complex insurance terms.
The value of property at the time of loss, calculated as replacement cost minus depreciation.
A professional who analyzes financial risk using mathematics, statistics, and financial theory.
A person or organization added to an insurance policy who receives coverage under the policy.
A professional who investigates insurance claims to determine the extent of liability.
When high-risk individuals are more likely to purchase insurance than low-risk individuals.
A licensed professional who represents an insurance company and sells its products.
The maximum amount an insurer will pay for all covered losses during a policy period.
Insurance that covers all risks except those specifically excluded in the policy.
An insurance policy that provides coverage for one year.
An evaluation of property to determine its value for insurance purposes.
A high-risk driver who cannot obtain insurance through normal channels and is assigned to an insurer by the state.
Insurance that provides financial protection against physical damage and bodily injury from traffic collisions.
A person or entity designated to receive benefits from an insurance policy.
A temporary insurance contract that provides coverage until a permanent policy is issued.
Coverage that pays for injuries to others when you are at fault in an accident.
An independent insurance professional who represents clients and shops multiple insurers for the best rates.
Purchasing multiple insurance policies from the same company to receive a discount.
Coverage that compensates for lost income when business operations are suspended.
A formal request to an insurance company for payment or compensation for a covered loss.
Auto insurance that pays for damage to your vehicle from collisions with other vehicles or objects.
Auto insurance that covers damage to your vehicle from non-collision events like theft, vandalism, or natural disasters.
A provision requiring the insured to share costs with the insurer after the deductible is met.
The portion of an insurance policy that specifies the obligations of both the insurer and insured.
A fixed amount paid by the insured for covered services, typically at the time of service.
The scope of protection provided under an insurance policy.
The maximum amount an insurance company will pay for a covered loss.
The amount you must pay out-of-pocket before your insurance coverage kicks in.
A summary page of your insurance policy containing key information about coverage, limits, and premiums.
A driving technique that reduces risk by anticipating dangerous situations and making safe decisions.
The decrease in value of property over time due to wear, age, or obsolescence.
Coverage that provides income replacement if you cannot work due to illness or injury.
Insurance that covers the physical structure of your home.
A written amendment to an insurance policy that changes the coverage or terms.
Specific conditions or circumstances listed in a policy that are not covered.
A multiplier used to calculate workers compensation premiums based on claims history.
The possibility of loss or damage.
Additional protection beyond standard policy limits.
The amount of money payable to beneficiaries upon the death of the insured in a life insurance policy.
A state-run insurance pool providing coverage for high-risk properties.
Additional coverage for movable property regardless of location.
Coverage for damage caused by flooding, typically not covered by standard homeowners policies.
Auto insurance that includes liability, collision, and comprehensive coverage.
Coverage that pays the difference between what you owe on a vehicle and its actual cash value if totaled.
Business insurance that covers bodily injury, property damage, and personal injury claims.
The time after a premium due date during which coverage continues without penalty.
Coverage that pays to rebuild your home regardless of policy limits.
A condition that increases the likelihood or severity of a loss.
Coverage that pays for medical and surgical expenses.
A driver with a history of accidents, violations, or other factors indicating higher probability of future claims.
A health insurance plan that requires members to use a network of providers.
Coverage that protects your home and belongings against various perils.
A separate, typically higher deductible that applies specifically to hurricane damage.
Compensation for damages or loss.
An insurance agent who represents multiple insurance companies.
An endorsement that automatically increases coverage limits to keep pace with inflation.
The financial stake a person has in property or life being insured.
A numerical rating based on credit information used to predict insurance risk.
The person or entity covered by an insurance policy.
The company that provides insurance coverage and pays claims.
The termination of an insurance policy due to non-payment of premiums.
Insurance that pays for bodily injury or property damage you cause to others.
Written defamation that damages a person's reputation.
Coverage that pays a benefit to beneficiaries upon the death of the insured.
The maximum amount an insurer will pay for a covered claim.
Physical damage to property or bodily injury that triggers insurance coverage.
Coverage that pays additional living expenses when your home is uninhabitable due to a covered loss.
Auto insurance that pays medical expenses for you and passengers regardless of fault.
Federal health insurance program for people aged 65+ and certain younger people with disabilities.
State and federal program providing health coverage for low-income individuals.
Actions taken to reduce the severity of a loss.
Coverage that pays the lender if the borrower defaults on a mortgage.
A specific risk or cause of loss listed in an insurance policy that is covered.
Failure to exercise reasonable care, resulting in damage or injury.
Auto insurance that pays for your injuries regardless of who caused the accident.
When an insurer chooses not to renew a policy at the end of its term.
A specific cause of loss covered by an insurance policy.
Additional coverage for valuable personal property.
Auto insurance that covers medical expenses and lost wages regardless of fault.
Coverage that protects you against claims for bodily injury or property damage you cause.
A written contract between an insurer and insured detailing coverage terms.
The person or entity who owns an insurance policy.
The amount paid for an insurance policy, typically monthly, quarterly, or annually.
A formal statement provided by the insured to the insurer detailing a claim.
Auto insurance that pays for damage you cause to others' property.
A health plan that offers more flexibility in choosing healthcare providers.
The cost of insurance per unit of coverage.
An insurance policy issued with higher premiums due to increased risk.
Restoring a lapsed insurance policy to active status.
Continuing an insurance policy for another term.
Coverage that protects a tenant's personal property and provides liability protection.
The cost to replace damaged property with new property of similar kind and quality.
An addition to an insurance policy that modifies coverage or terms.
The chance of loss or damage.
A certificate of financial responsibility required for high-risk drivers.
A list of items covered under a policy, often with specific values.
Spoken defamation that damages a person's reputation.
The insurer's right to pursue a third party that caused an insurance loss.
Additional insurance beyond primary coverage.
A guarantee that specific obligations will be fulfilled.
Life insurance that provides coverage for a specific period of time.
When damage to property exceeds its value, or repair is not feasible.
Auto insurance that pays for towing and minor roadside repairs.
Extra liability coverage that goes beyond the limits of other policies.
Auto insurance that pays when the at-fault driver has insufficient coverage.
The process of evaluating risk and determining whether to provide insurance.
Auto insurance that pays for injuries caused by a driver with no insurance.
The time that must pass before certain coverage becomes effective.
A voluntary relinquishment of a known right.
Permanent life insurance that provides coverage for life and builds cash value.
Insurance that provides benefits to employees injured on the job.
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