Accident – An unfortunate event that happens unintentionally
Act of God – A sudden act of nature, such as tornadoes, earthquakes, or floods
Actual Cash Value – The existing value of replacing an article with a similar one in the same condition
Additional Interest Insured – Another party liable for an accident involving an insured person or an insured vehicle and who has been named as an Additional Interest Insured under the policy
Additional Premium – An additional payment for an alteration during the policy period, which increases the hazard or the company’s liability
Adjuster – A person who evaluates an insurance claim to determine the insurer’s liability
All Perils – An optional coverage to protect vehicles for all types of losses, except those specifically excluded in your policy
All Risk – A policy that covers all risks, except those specifically excluded
Amount of Risk – The company’s entire liability at a specific location
Application – A form used by the prospective insured to state facts requested by the insurance company
Appraisal – A valuation of property made for determining the amount of damage or loss
Arson – An act of deliberately burning a property
Assume Liability – Also known as contractual liability; this means that one party takes on under the terms of a contract
Assurance – Similar to insurance, which refers to financial coverage that provides you protection against unforeseen events
Assured – Similar to insured, which refers to person or property covered by insurance
Assurer – Similar to an insurer, which refers to the insurance company providing the policy
Authorization – A permission or right to act on behalf of another
Automobile Insurance – A contract between you and an insurer that protects you financially in the event of vehicle accidents
Avoidance of Risk – An approach that eliminates any exposure to risk
Basic Rate – The standard charge for a given type of risk
BP/PD – Bodily Injury / Property Damage Liability Coverage
Binder – A temporary agreement until a formal policy is issued
Bodily Injury – A term used to describe physical harm, including sickness, disease, or death
Bodily Injury Liability – The amount of money that you’d be responsible for in case you cause someone an injury or death during an accident
Broad Form – Any of the commercial or personal lines property forms, which provide coverage on a named perils basis
Broker – An independent person or firm who acts as an intermediary between a consumer and an insurance company
Burglary – An illegal entry into a property with the intent to commit a crime
Business Interruption – Replaces income lost in the event of a fire or other insured peril
Cancellation – Termination of an insurance overage during the policy period
Catastrophe – A sudden event causing great damage
Civil Liability – The liability to another party for causing them some form of harm or damage
Claim – A request to an insurer for coverage or compensation
Clause – A term used to identify a particular part of a policy or endorsement
Coinsurance – A clause in a property insurance policy, which the insured shares in losses to the extent that he is underinsured at the time of loss
Collision Coverage – An optional coverage to protect your vehicle when damage occurs in the event of a collision
Comprehensive Insurance – A car insurance policy that covers damages to your vehicle from causes other than collision or overturning
Compulsory Insurance – Any form of insurance that is required by law
Consequential Damage – Special damages from an indirect result of an accident
Cover – To insure or to protect
Coverage – Similar to insurance, which refers to financial coverage that provides you protection against unforeseen events
Declarations – A summary or basic overview of an insurance policy
Deductible – An amount of money you are responsible to spend before your insurance coverage responds
Depreciation – The loss of value of a property over a period of time
Direct Loss – A loss due to a direct consequence of a particular peril
Direct Writer – An insurance company that issues policies through salaried employees who represent it exclusively
Earthquake Insurance – A damage to you or your property caused by an earthquake
Effective Date – The date on which a policy goes into effect
Embezzlement – The fraudulent use of money which has been entrusted to a person or entity
Employers Liability Insurance – Covers businesses against claims by employees who have suffered injuries in the workplace
Endorsement – Also known as a rider, it is an amendment or addition to an existing insurance contract
Exclusions – A loss or damage that is not covered by an insurance policy
Expiration – The date your insurance coverage ends
Exposure – A person, business, or property’s potential risks or losses
Extended Coverage – An extension of what a standard property insurance policy offers
Fair Market Value – The price that a buyer is willing to pay to a seller
Fire – A state or instance of combustion
Fire Insurance – A coverage for loss or damage due to a fire
Fire Resistive Construction – A building, which has exteriors, walls, floors, and roofs constructed of fire-resistive materials
Floater Policy – A type of insurance policy that covers moveable property
Flood Insurance – A coverage for loss or damage due to flood
Forgery – False writing with intent to defraud
Form – An insurance policy itself or riders and endorsements attached to it
Fortuitous Event – An unexpected occurrence
Garaging Location – The postal code where your vehicle is parked when not in use
Grace Period – A period after the deadline wherein a policyholder is allowed to make payments without penalty
Hazard – A situation that increases the likelihood of an occurrence of loss arising from a peril
Homeowner Insurance – An elective combination of coverages that protect the home against damages
Housekeeping – The general care and maintenance of an insured property
Improvements and Betterments – Additions, upgrades, or modifications made by a property tenant at his own cost
Indemnify – Making compensation to another party by payment, repair, or replacement
Indirect Loss – A type of loss due to a peril, but not caused directly or immediately
In-Force – A term that means the premiums are being paid actively or have been fully paid
Inland Marine Insurance – A type of business insurance that protects products, materials, or equipment when in transit over land
Inspection – A checking of facts and other details about an applicant or claimant
Insurability – The acceptability of an applicant for insurance
Insurance – Financial coverage that provides an insured with protection against unforeseen events
Insurance Policy – A legal document containing the terms of the contract issued to the insured
Insurance to Value – Insurance written in an amount approximating the value of the property insured
Insured – A person or property covered by insurance
Insurer – The insurance company providing the policy
Joint Tenancy – The ownership of property shared equally by two or more people
Lapse – The termination of a policy because the insured failed to pay the premium amount even during the grace period
Lessee – Also called the tenant, a lessee is a person who rents a property from a lessor
Lessor – Also called the landlord, a lessor is a person who rents a property to a lessee
Liability Insurance – Provides an insured with protection against claims resulting from injuries or damage
Liability Limits – The sum or sums beyond which a liability insurance company does not protect the insured on a particular policy
Libel – Any false or malicious written statement about a person
Limit of Liability – A maximum amount an insurance company would pay for a claim
Limits – A maximum amount a policy can pay either overall or under a particular coverage
Loss – The amount of reduction in the value of an insured’s property by an insured peril
Loss of Use Insurance – The coverage to compensate when the insured cannot use their property due to a peril
Market Value – The price for which something can be sold on a certain market
Material Misrepresentation – A policyholder makes a false statement or information of important material
Moral Hazard – A condition of morals that increases the possibility of a loss from a peril
Morale Hazard – An attitude of a policyholder that increases the possibility of a loss from a peril
Mortgage Insurance Policy – A policy that compensates mortgage lenders in case the borrower defaults
Mortgagee – A person or entity that lends money to a borrower
Named Insured – The listed owner of an insurance policy
Named Perils – A term to define a specific danger a policy insures a policyholder against
Negligence – The failure of a person to act in a reasonable manner
No-Fault Insurance – Designed to cover financial losses due to an accident, regardless of who was at fault
Occasional Driver – The person who is not the primary driver of the vehicle
Occupancy – The type and character of the use of property in question
Occurrence – A circumstance that results in an insured loss
Partial Loss – A loss that does not entirely destroy the insured property or exhaust the insurance applying thereto
Peril – A danger that causes a possible loss
Personal Articles Floater – Covers valuable items, such as cameras or jewelry, on an all-risk basis
Personal Effects Floater – An inland marine policy for tourists who want worldwide coverage, except in the insured’s domicile, on their personal effects
Personal Injury – A sustained injury other than bodily injury
Personal Property – A belonging of an insured other than real property
Personal Property Floater – A broad policy that covers all personal property worldwide, including the insured’s domicile
Personal Property Limitations – The coverage limitations of a standard homeowner’s policy
Physical Damage – An actual damage to property
Physical Damage Coverage – Protects a policyholder’s vehicle from theft, vandalism, and other types of damage
Physical Hazard – The material, structural, or operational features that can increase the probability of damage
Pilferage – An act of stealing items of small value
Policy – A legal document containing the terms of the contract issued to the insured
Policy Expiration Date – The date your insurance coverage ends
Policy Limit – The maximum amount a policy will pay
Policy Period – The term of duration which the policy provides protection to the policyholder
Policyholder – The person or property covered by insurance
Preferred Risk – An insured with a lower risk of loss and thus eligible for a reduced rate
Premises – The particular location of the property or a portion thereof as designated in a policy
Premium – The amount an insured pays to the insurance company
Primary Residence – The residence an insured inhabits for the majority of a policy term
Principal Driver – The main driver of a vehicle
Professional Liability Insurance – Protects professionals, such as doctors or lawyers, against negligence and other claims
Prohibited Risk – Any class of business, which an insurer will not insure under any condition
Proof of Loss – A formal document made by the policyholder to the insurer when damage occurs
Property Damage Liability – Covers an insured for any financial liability for damage to the property of others
Property Damage Uninsured Motorist – Protects an insured in situations where his vehicle has been hit by another driver without insurance
Property Insurance – Covers losses and damages to an insured’s property
Protection – A term used interchangeably with the word “coverage” to denote the insurance provided under the terms of a policy
Quote – An estimate of the premium for the insurance coverage, based on information of the applicant
Rate – The per-unit cost of insurance
Rated – A policy that is issued with an additional premium charge
Reimbursement – The payment of money related to the amount of the loss
Reinstatement – An act of restoring a lapsed policy back in force
Reinsurance – Also known as insurance for insurance companies
Renewal – The continuation of coverage
Replacement Cost – The cost of replacing property without subtracting its depreciation
Rider – Also known as an endorsement, it is used to add or delete coverage
Risk – A possibility or chance of loss
Risk Management – The practice of analyzing loss exposures and determining how to them
Robbery – An act of felonious taking with the use of force or threat
Settlement – A policy benefit or claim payment
Specified Perils – An optional coverage that insures the policyholder’s vehicle against damage resulting from particular perils pre-defined in the policy
Subrogation – The legal right of an insurance company to pursue another party responsible for the damages to its policyholder
Tenants Policy – A homeowner’s form designed to protect renters from losses
Theft – An act of stealing
Third-Party Insurance – The protection of the insured against liability for damage to others
Total Loss – The complete destruction or damage of the property
Transfer of Risk – The passing of all or part of a risk to a third party
Umbrella Liability Policy – A policy that pays for liability losses in excess of those covered in homeowners and auto insurance
Underwriter – A person who evaluates risks and exposures of applicants
Underwriting – The process of evaluating the risk and exposure of potential clients
Vandalism – Physical damage to property
Vandalism and Malicious Mischief (VMM) – A coverage that protects an insured from losses sustained from willful vandalism
Valuation – Usually by an appraisal; an estimation of the worth of an item
VIN – The vehicle identification number on a vehicle
Waiver
1. A rider waiving (excluding) liability for a stated cause of accident or (especially) sickness
2. A provision or rider agreeing to waive (forego) premium payment during a period of disability
3. The surrender of a right that is known to exist
Accident – An unfortunate event that happens unintentionally
Act of God – A sudden act of nature, such as tornadoes, earthquakes, or floods
Actual Cash Value – The existing value of replacing an article with a similar one in the same condition
Additional Interest Insured – Another party liable for an accident involving an insured person or an insured vehicle and who has been named as an Additional Interest Insured under the policy
Additional Premium – An additional payment for an alteration during the policy period, which increases the hazard or the company’s liability
Adjuster – A person who evaluates an insurance claim to determine the insurer’s liability
All Perils – An optional coverage to protect vehicles for all types of losses, except those specifically excluded in your policy
All Risk – A policy that covers all risks, except those specifically excluded
Amount of Risk – The company’s entire liability at a specific location
Application – A form used by the prospective insured to state facts requested by the insurance company
Appraisal – A valuation of property made for determining the amount of damage or loss
Arson – An act of deliberately burning a property
Assume Liability – Also known as contractual liability; this means that one party takes on under the terms of a contract
Assurance – Similar to insurance, which refers to financial coverage that provides you protection against unforeseen events
Assured – Similar to insured, which refers to person or property covered by insurance
Assurer – Similar to an insurer, which refers to the insurance company providing the policy
Authorization – A permission or right to act on behalf of another
Automobile Insurance – A contract between you and an insurer that protects you financially in the event of vehicle accidents
Avoidance of Risk – An approach that eliminates any exposure to risk
Basic Rate – The standard charge for a given type of risk
BP/PD – Bodily Injury / Property Damage Liability Coverage
Binder – A temporary agreement until a formal policy is issued
Bodily Injury – A term used to describe physical harm, including sickness, disease, or death
Bodily Injury Liability – The amount of money that you’d be responsible for in case you cause someone an injury or death during an accident
Broad Form – Any of the commercial or personal lines property forms, which provide coverage on a named perils basis
Broker – An independent person or firm who acts as an intermediary between a consumer and an insurance company
Burglary – An illegal entry into a property with the intent to commit a crime
Business Interruption – Replaces income lost in the event of a fire or other insured peril
Cancellation – Termination of an insurance overage during the policy period
Catastrophe – A sudden event causing great damage
Civil Liability – The liability to another party for causing them some form of harm or damage
Claim – A request to an insurer for coverage or compensation
Clause – A term used to identify a particular part of a policy or endorsement
Coinsurance – A clause in a property insurance policy, which the insured shares in losses to the extent that he is underinsured at the time of loss
Collision Coverage – An optional coverage to protect your vehicle when damage occurs in the event of a collision
Comprehensive Insurance – A car insurance policy that covers damages to your vehicle from causes other than collision or overturning
Compulsory Insurance – Any form of insurance that is required by law
Consequential Damage – Special damages from an indirect result of an accident
Cover – To insure or to protect
Coverage – Similar to insurance, which refers to financial coverage that provides you protection against unforeseen events
Declarations – A summary or basic overview of an insurance policy
Deductible – An amount of money you are responsible to spend before your insurance coverage responds
Depreciation – The loss of value of a property over a period of time
Direct Loss – A loss due to a direct consequence of a particular peril
Direct Writer – An insurance company that issues policies through salaried employees who represent it exclusively
Earthquake Insurance – A damage to you or your property caused by an earthquake
Effective Date – The date on which a policy goes into effect
Embezzlement – The fraudulent use of money which has been entrusted to a person or entity
Employers Liability Insurance – Covers businesses against claims by employees who have suffered injuries in the workplace
Endorsement – Also known as a rider, it is an amendment or addition to an existing insurance contract
Exclusions – A loss or damage that is not covered by an insurance policy
Expiration – The date your insurance coverage ends
Exposure – A person, business, or property’s potential risks or losses
Extended Coverage – An extension of what a standard property insurance policy offers
Fair Market Value – The price that a buyer is willing to pay to a seller
Fire – A state or instance of combustion
Fire Insurance – A coverage for loss or damage due to a fire
Fire Resistive Construction – A building, which has exteriors, walls, floors, and roofs constructed of fire-resistive materials
Floater Policy – A type of insurance policy that covers moveable property
Flood Insurance – A coverage for loss or damage due to flood
Forgery – False writing with intent to defraud
Form – An insurance policy itself or riders and endorsements attached to it
Fortuitous Event – An unexpected occurrence
Garaging Location – The postal code where your vehicle is parked when not in use
Grace Period – A period after the deadline wherein a policyholder is allowed to make payments without penalty
Hazard – A situation that increases the likelihood of an occurrence of loss arising from a peril
Homeowner Insurance – An elective combination of coverages that protect the home against damages
Housekeeping – The general care and maintenance of an insured property
Improvements and Betterments – Additions, upgrades, or modifications made by a property tenant at his own cost
Indemnify – Making compensation to another party by payment, repair, or replacement
Indirect Loss – A type of loss due to a peril, but not caused directly or immediately
In-Force – A term that means the premiums are being paid actively or have been fully paid
Inland Marine Insurance – A type of business insurance that protects products, materials, or equipment when in transit over land
Inspection – A checking of facts and other details about an applicant or claimant
Insurability – The acceptability of an applicant for insurance
Insurance – Financial coverage that provides an insured with protection against unforeseen events
Insurance Policy – A legal document containing the terms of the contract issued to the insured
Insurance to Value – Insurance written in an amount approximating the value of the property insured
Insured – A person or property covered by insurance
Insurer – The insurance company providing the policy
Joint Tenancy – The ownership of property shared equally by two or more people
Lapse – The termination of a policy because the insured failed to pay the premium amount even during the grace period
Lessee – Also called the tenant, a lessee is a person who rents a property from a lessor
Lessor – Also called the landlord, a lessor is a person who rents a property to a lessee
Liability Insurance – Provides an insured with protection against claims resulting from injuries or damage
Liability Limits – The sum or sums beyond which a liability insurance company does not protect the insured on a particular policy
Libel – Any false or malicious written statement about a person
Limit of Liability – A maximum amount an insurance company would pay for a claim
Limits – A maximum amount a policy can pay either overall or under a particular coverage
Loss – The amount of reduction in the value of an insured’s property by an insured peril
Loss of Use Insurance – The coverage to compensate when the insured cannot use their property due to a peril
Market Value – The price for which something can be sold on a certain market
Material Misrepresentation – A policyholder makes a false statement or information of important material
Moral Hazard – A condition of morals that increases the possibility of a loss from a peril
Morale Hazard – An attitude of a policyholder that increases the possibility of a loss from a peril
Mortgage Insurance Policy – A policy that compensates mortgage lenders in case the borrower defaults
Mortgagee – A person or entity that lends money to a borrower
Named Insured – The listed owner of an insurance policy
Named Perils – A term to define a specific danger a policy insures a policyholder against
Negligence – The failure of a person to act in a reasonable manner
No-Fault Insurance – Designed to cover financial losses due to an accident, regardless of who was at fault
Occasional Driver – The person who is not the primary driver of the vehicle
Occupancy – The type and character of the use of property in question
Occurrence – A circumstance that results in an insured loss
Partial Loss – A loss that does not entirely destroy the insured property or exhaust the insurance applying thereto
Peril – A danger that causes a possible loss
Personal Articles Floater – Covers valuable items, such as cameras or jewelry, on an all-risk basis
Personal Effects Floater – An inland marine policy for tourists who want worldwide coverage, except in the insured’s domicile, on their personal effects
Personal Injury – A sustained injury other than bodily injury
Personal Property – A belonging of an insured other than real property
Personal Property Floater – A broad policy that covers all personal property worldwide, including the insured’s domicile
Personal Property Limitations – The coverage limitations of a standard homeowner’s policy
Physical Damage – An actual damage to property
Physical Damage Coverage – Protects a policyholder’s vehicle from theft, vandalism, and other types of damage
Physical Hazard – The material, structural, or operational features that can increase the probability of damage
Pilferage – An act of stealing items of small value
Policy – A legal document containing the terms of the contract issued to the insured
Policy Expiration Date – The date your insurance coverage ends
Policy Limit – The maximum amount a policy will pay
Policy Period – The term of duration which the policy provides protection to the policyholder
Policyholder – The person or property covered by insurance
Preferred Risk – An insured with a lower risk of loss and thus eligible for a reduced rate
Premises – The particular location of the property or a portion thereof as designated in a policy
Premium – The amount an insured pays to the insurance company
Primary Residence – The residence an insured inhabits for the majority of a policy term
Principal Driver – The main driver of a vehicle
Professional Liability Insurance – Protects professionals, such as doctors or lawyers, against negligence and other claims
Prohibited Risk – Any class of business, which an insurer will not insure under any condition
Proof of Loss – A formal document made by the policyholder to the insurer when damage occurs
Property Damage Liability – Covers an insured for any financial liability for damage to the property of others
Property Damage Uninsured Motorist – Protects an insured in situations where his vehicle has been hit by another driver without insurance
Property Insurance – Covers losses and damages to an insured’s property
Protection – A term used interchangeably with the word “coverage” to denote the insurance provided under the terms of a policy
Quote – An estimate of the premium for the insurance coverage, based on information of the applicant
Rate – The per-unit cost of insurance
Rated – A policy that is issued with an additional premium charge
Reimbursement – The payment of money related to the amount of the loss
Reinstatement – An act of restoring a lapsed policy back in force
Reinsurance – Also known as insurance for insurance companies
Renewal – The continuation of coverage
Replacement Cost – The cost of replacing property without subtracting its depreciation
Rider – Also known as an endorsement, it is used to add or delete coverage
Risk – A possibility or chance of loss
Risk Management – The practice of analyzing loss exposures and determining how to them
Robbery – An act of felonious taking with the use of force or threat
Settlement – A policy benefit or claim payment
Specified Perils – An optional coverage that insures the policyholder’s vehicle against damage resulting from particular perils pre-defined in the policy
Subrogation – The legal right of an insurance company to pursue another party responsible for the damages to its policyholder
Tenants Policy – A homeowner’s form designed to protect renters from losses
Theft – An act of stealing
Third-Party Insurance – The protection of the insured against liability for damage to others
Total Loss – The complete destruction or damage of the property
Transfer of Risk – The passing of all or part of a risk to a third party
Umbrella Liability Policy – A policy that pays for liability losses in excess of those covered in homeowners and auto insurance
Underwriter – A person who evaluates risks and exposures of applicants
Underwriting – The process of evaluating the risk and exposure of potential clients
Vandalism – Physical damage to property
Vandalism and Malicious Mischief (VMM) – A coverage that protects an insured from losses sustained from willful vandalism
Valuation – Usually by an appraisal; an estimation of the worth of an item
VIN – The vehicle identification number on a vehicle
Waiver
1. A rider waiving (excluding) liability for a stated cause of accident or (especially) sickness
2. A provision or rider agreeing to waive (forego) premium payment during a period of disability
3. The surrender of a right that is known to exist
