Insurance Learning Center > Insurance Glossary >
Insurance Glossary
The following is a glossary of insurance terms.
When shopping for insurance coverage, a knowledge of the coverage types, and insurance language, will help you when making a decision of which agent or insurance company to choose. If you are unsure of a term, or a coverage definition, refer to the insurance glossary (or, for more detailed information, our insurance learning center) to be sure that you know what questions to ask when shopping for the best insurance rate and proper coverage.
- Acceleration Clause The part of a life insurance contract that states when a loan may be declared. . . full definition for Acceleration Clause
- Accidental Death Benefit The benefit, in addition to the death benefit paid to the beneficiary, when a death. . . full definition for Accidental Death Benefit
- Active Participant Status Active Participant Status is a reference to an individual's participation in an employer sponsored retirement. . . full definition for Active Participant Status
- Activities of Daily Living Activities of daily living consist of: using a toilet, moving from room to room, getting. . . full definition for Activities of Daily Living
- Actual Cash Value Actual cash value (ACV) is the cost to replace damaged or destroyed property with comparable. . . full definition for Actual Cash Value
- Actuary An actuary is a mathematician who specializes in the insurance industry. The calculate. . . full definition for Actuary
- Adjustable Rate An adjustable rate is an interest rate that is variable and changes. The interest. . . full definition for Adjustable Rate
- Adjuster An adjuster is a representative from the insurance company. The adjuster determines the company’s. . . full definition for Adjuster
- Admitted Assets In an insurance company’s annual statement there are assets permitted by law, which can be. . . full definition for Admitted Assets
- Agent An individual who sells and services insurance policies.. . . full definition for Agent
- Aggregate Limit This refers to liability insurance and indicates the total amount of coverage that the insured. . . full definition for Aggregate Limit
- Annual Administrative Fee An annual administrative fee is a charge associated with administering a group employee benefit plan.. . . full definition for Annual Administrative Fee
- Annual Crediting Cap An annual crediting cap is the maximum interest rate that an equity indexed annuity can. . . full definition for Annual Crediting Cap
- Annuitization Annuitization is the conversion of part or all of a qualified retirement plan or nonqualified. . . full definition for Annuitization
- Annuitization Options Simply describes the choices in the way to annuitize. For example, life with a 20. . . full definition for Annuitization Options
- Annuity An annuity is an agreement by an insurance company to make periodic payments that continue. . . full definition for Annuity
- Assets
- Attained Age This is an insured's age at a particular time. With term life insurance policies an. . . full definition for Attained Age
- Automobile Liability Insurance Coverage when an insured driver is legally liable for bodily injury or property damage caused. . . full definition for Automobile Liability Insurance
- Balance Sheet Balance Sheet refers to a listing of a companies assets, liabilities, and surplus as of. . . full definition for Balance Sheet
- Benefit Period The Benefit Period refers to the number of days for which benefits are paid to. . . full definition for Benefit Period
- Broker An insurance representative that represents his or her client rather than a particular insurance company.. . . full definition for Broker
- Broker Agent An agent or broker is an independent insurance salesperson representing insurance companies searching to maximize. . . full definition for Broker Agent
- Capital Capital describes the Equity of shareholders of a stock insurance company. The company's capital and. . . full definition for Capital
- Captive Insurance Agent A representative of a single insurance company who is obliged to submit business only to. . . full definition for Captive Insurance Agent
- Case Management Case management is the system of coordinating medical services to treat a patient. Generally used. . . full definition for Case Management
- Casualty Casualty is defined as liability or loss resulting from an accident.. . . full definition for Casualty
- Casualty Insurance
- Chartered Property and Casualty Underwriter (CPCU) CPCU is a professional designation earned after the successful completion of 10 national examinations given. . . full definition for Chartered Property and Casualty Underwriter (CPCU)
- Claim A claim is a demand made by an insured, or an a beneficiary of an. . . full definition for Claim
- Coinsurance Coinsurance can be found in property insurance and in health insurance. This requires the. . . full definition for Coinsurance
- Collision Insurance Collision coverage applies to physical damage to an insured's automobile resulting from contact with another. . . full definition for Collision Insurance
- Commercial Lines Commercial Lines insurance is for businesses, professionals and anything other than someone’s personal insurance.. . . full definition for Commercial Lines
- Common Carrier A 'common carrier' A business or agency that is available to the public for transportation. . . full definition for Common Carrier
- Comprehensive Insurance Comprehensive or “other than collision” coverage, as more commonly referred to now days, covers damage. . . full definition for Comprehensive Insurance
- Conditional Reserves This item represents the aggregate of various reserves which, for technical reasons, are treated by. . . full definition for Conditional Reserves
- Cost of Living Adjustment (COLA) COLA is the automatic adjustment applied to Social Security retirement payments when the consumer price. . . full definition for Cost of Living Adjustment (COLA)
- Coverage Insurance Coverage is the scope of protection provided under an insurance policy. Coverage will generally. . . full definition for Coverage
- Coverage Area A coverage area is the geographic region covered.. . . full definition for Coverage Area
- Death Benefit A death benefit is the limit of insurance coverage, or the amount of benefit, that. . . full definition for Death Benefit
- Deductible A deductible is the amount of loss that an insured pays before the insurance coverage. . . full definition for Deductible
- Direct Agent A direct insurance agent represents only one company and sells only its policies. Often. . . full definition for Direct Agent
- Direct Writer A direct writer is an insurance company whose distribution mechanism is either a direct selling. . . full definition for Direct Writer
- Dividend A dividend is the return of part of a policy's premium for a policy issued. . . full definition for Dividend
- Elimination Period An elimination period refers to the time which must pass after filing a claim before. . . full definition for Elimination Period
- Exclusions Exclusions are items or conditions that are not covered by an insurance contract. A couple. . . full definition for Exclusions
- Exposure Exposure is the measure of vulnerability to loss.. . . full definition for Exposure
- Floater A Floater is a separate policy available to cover the goods beyond the coverage provided. . . full definition for Floater
- Grace Period A 'grace period' is the length of time (usually 31 days) after a premium is. . . full definition for Grace Period
- Guaranteed Issue Right The right to purchase insurance without physical examination; the present and past physical condition of. . . full definition for Guaranteed Issue Right
- Hazard A 'hazard' is a circumstance that increases the likelihood or probable severity of a loss.. . . full definition for Hazard
- Indemnity Indemnity is the restoration to a victim of a loss. This restoration is made by. . . full definition for Indemnity
- Insurance Regulatory Information System (IRIS) The IRIS was introduced by the National Association of Insurance Commissioners (NAIC) in 1974 to. . . full definition for Insurance Regulatory Information System (IRIS)
- Laddering Laddering is a practice of purchasing investments that mature at different time intervals to help. . . full definition for Laddering
- Loss Ratio A loss ratio describes the ratio of incurred losses and loss adjustment expenses to net. . . full definition for Loss Ratio
- Peril A peril is defined as the cause of a possible loss.. . . full definition for Peril
- Personal Lines Coverage Personal lines coverage refers to insurance for individuals and families, such as private passenger auto. . . full definition for Personal Lines Coverage
- Preferred Auto Preferred auto coverage is accessible to drivers who are free of accidents, violations and claims.. . . full definition for Preferred Auto
- Preferred Provider Organization (PPO) A PPO is defined as a network of medical providers who charge on a fee-for-service. . . full definition for Preferred Provider Organization (PPO)
- Premium Premium refers to the price of insurance protection for a specified risk for a specified. . . full definition for Premium
- Private Passenger Auto Insurance Policyholder Risk Profile Private passenger auto insurance policyholder risk profile refers to the type of business the insurance. . . full definition for Private Passenger Auto Insurance Policyholder Risk Profile
- Renewal An insurance renewal is the automatic re-establishment of in force status and is effected by. . . full definition for Renewal
- Replacement Cost
- Section 1035 Exchange A section 1035 exchange refers to a part of the IRS (Internal Revenue Service) code. . . full definition for Section 1035 Exchange
- Section 7702 Section 7702 is the part of IRS code that defines the conditions a life insurance. . . full definition for Section 7702
- Standard Auto Standard auto insurance for good drivers with relatively few accidents, claim or violations during their. . . full definition for Standard Auto
- Surplus Surplus is defined as the amount by which assets exceed liabilities and can be used. . . full definition for Surplus
- Surrender Charge A surrender charge is a fee charged to an insurance policyholder when a life insurance. . . full definition for Surrender Charge
- Surrender Period
- Term Life Insurance Term life insurance is coverage that provides protection for a specified period of time. Typical. . . full definition for Term Life Insurance
- Umbrella Policy An umbrella policy is often referred to as a PUP (personal umbrella policy). This provides. . . full definition for Umbrella Policy
- Underwriter An underwriter is an individual trained in evaluating risks and determining rates and coverages. . . full definition for Underwriter
- Underwriting Expenses Incurred This refers to the expenses, including commissions, salaries and advertising costs, which are attributable to. . . full definition for Underwriting Expenses Incurred
- Underwriting Guidelines Underwriting guidelines provide a detail of the practices that an insurance company uses to assess. . . full definition for Underwriting Guidelines
- Unearned Premiums An unearned premium is the part of the premium applicable to the unexpired part of. . . full definition for Unearned Premiums
- Uninsured Motorist Coverage Coverage on a personal auto policy that covers an insured collision with a driver who. . . full definition for Uninsured Motorist Coverage
- Universal Life Insurance Universal Life Insurance is often referred to as UL coverage. UL is a combination. . . full definition for Universal Life Insurance
- Valuation Valuation is a mathematical analysis of the financial condition of a particular plan or policy.. . . full definition for Valuation
- Variable Life Insurance Variable insurance is a form of life insurance where the face value can fluctuate depending. . . full definition for Variable Life Insurance
- Viatical Settlement Provider A provider who serves as a sales agent, but does not actually purchase insurance policies.. . . full definition for Viatical Settlement Provider
- Viator A viator is a terminally ill person who sells his or her life insurance policy. . . full definition for Viator
- Waiting Period A waiting period is the time which must pass after filing a claim, before an. . . full definition for Waiting Period
- Waiver of Premium
- Whole Life Insurance Whole life insurance is life insurance that might be kept in force for a person's. . . full definition for Whole Life Insurance
Assets refer to all the available funds, or properties of every kind or possession of. . . full definition for Assets
Casualty Insurance is coverage that is primarily concerned with losses caused by injuries to persons. . . full definition for Casualty Insurance
Replacement cost refers to the amount needed to replace damaged personal property, or dwelling property,. . . full definition for Replacement Cost
A surrender period is a set amount of time during which you have to keep. . . full definition for Surrender Period
Waiver of premium is a provision in some insurance contracts which enables an insurance company. . . full definition for Waiver of Premium