We think youll agree that a little knowledge will go a long way toward helping you make sense of it allso you can make smart decisions that will benefit you and your family, today and for years to come. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage. Below are some commonly used insurance terms and their meanings. Use this informative property and casualty insurance glossary to better understand basic insurance terms and definitions. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Indemnity plan a type of medical plan that reimburses the patient andor provider as expenses are incurred. The original glossary of insurance terms was compiled by john s. A glossary of auto insurance terms can really help you understand your policy as you deal with a claim. Life insurance glossary learning about life insurance can be a daunting task, especially if one doesnt know the meaning of the specialized words, of which there are many. Captive insurance company a reinsurance company, often located offshore, which is owned by a corporation or association and provides reinsurance of direct insurance written to insure the corporation or the associations members. This coverage is subject to the terms, limits and conditions.
Yet every day, its becoming more and more important for health care consumers to have at least a basic knowledge of the industrys terminology. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. If there is any conflict between these definitions and the provisions of the. This page provides an index of insurance terms and. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. Even if a service is covered, you may still need to pay a deductible, copayment or co insurance. An event or occurrence which is unforeseen and unintended. List of insurance terms and definitions for uniform. Glossary association of marine underwriters of san francisco. Coop plan a health insurance plan that will be sold by memberowned and operated nonprofit organizations through.
Conventional indemnity plan an indemnity that allows the participant the choice of any provider without effect on reimbursement. Insurance terminology north american training group, inc. These definitions represent a common or general use of the term. Between academic school terms benefits may not be paid to a school employee between school terms based on the wages earned from an educational institution and all school wages will be restricted from use on the claim. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in. Please read your official policy for full details about coverages. This can be a deductible, copayments, or coinsurance see separate definitions of these terms. The liability of a wrongdoers automobile insurance company to pay someone harmed by the wrongdoer, even if the wrongdoer has violated the terms of the insurance policy, for example, by driving with an expired license. These plans reimburse the patient andor provider as expenses are incurred. This can be a deductible, copayments, or co insurance see separate definitions of these terms.
This should be equivalent to paid premiums, in most instances. These general definitions are provided for educational purposes. Declaration part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and supplemental information. It can also help you compare car insurance rates accurately as youre shopping for car. The term refers to the fact that the company carries or assumes certain risks for the policyholder. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. Many of the terms you encounter when dealing with health insurance are not familiar. Insurance terms used in the area of residential title insurance. Policy forms vary i n complexity depending upon the type of. However, a claim may be paid if the school employee also. Liability arising from extremely dangerous operations. Glossary of commercial insurance terms commercial insurance is divided into two main categories. Request by an insured for the insurance company to cover an incurred loss.
A person responsible for investigating and settling a claim. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy. Its okwe know as well as anyone that the language of health insurance can be hard to understand. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Term used in universal life policies to describe the total of all premiums and earnings credited to the account before deductions for any expenses, loans, and surrenders. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only. Health care services that your health insurance or plan doesnt pay for or cover.
Both men served on operating commit tees of the commission on insurance terminology cit, which worked to develop more precise insurance definitions during 19581971, and both sought to continue the efforts of the commission. Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. Agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Claim notice to an insurance company that a loss has occurred that may be covered under the terms and conditions of the policy. Where the property insured is completely destroyed or so badly damaged that it ceases to be a. The difference reflects the insurers expenses for operating the plan. The az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Glossary of health insurance terms december 12, 2008 prior insurance must have provided a minimum level of coverage. Insurance glossary understanding common insurance terms. Insured the policyholder protected in case of a loss or claim. Either a specified dollar amount, a percentage of the claim amount, or a specified. Dec 27, 2019 life insurance terminology doesnt have to be confusing.
Title insurance provides coverage for losses that occur when a land title is not free and clear of defects e. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Please further note that definitions and plan options may vary by state and plan. The termination of an inforce insurance contract by either the insured or the insurer before its normal expiration date. For example, if a plan has an actuarial value of 70%, on average, you would be responsible for 30% of the costs of all covered benefits. Mar 25, 2020 insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Definitions provided by insurance bureau of canada are indicated with an asterisk. An asset in insurance terms is something with monetary value that is covered by an insurance policy, such as a car or a property. An independent agent represents more than one company. Auto insurance glossary of terms if you feel like you need to take a foreign language course to speak insurance dont worry, youre not alone. The language of insurance can be quite complex and confusing.
Term insurance that provides coverage for one year and. Liability for damages even though fault or negligence cannot be proven. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. Health care services that help a person keep, learn or. Incurred loss an amount representing the losses paid plus the change in outstanding loss reserves within a given period of time. Glossary of risk management terms this is a comprehensive list of insurance terms. Represents the interests of the insured in searching for insurance coverage at the lowest cost and.
Investments with original maturities of three months or less qualify under this definition. Bonds of various types guarantee a payment or a reimbursement for financial losses resulting from dishonesty, failure to perform and other acts. Every industry has its own jargon, and the property and casualty insurance business is. Not sure where to start when it comes to learning about and shopping for life insurance. Key terms for understanding car insurance nerdwallet. Form of life insurance allowing the owner to change the face amount, premium amount. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions.
Webmd provides definitions of terms related to health insurance, the affordable care act and medicare. Agent the insurance company representative who sells policies on behalf of the insurer. Sea fever pdf format this is a glossary of shipping terms and marine terminology as it pertains to marine insurance. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. However, this coverage is being limited each year as insurers begin to recognize the risk of advertising claims related to internet activities. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. But, you need to at least understand the basic auto insurance terms because they spell out what you are and arent covered for in your policy. Glossary of life insurance terms department of financial. Insurer the party who pays for losses in an insurance arrangement. Most of the definitions below are provided courtesy of the insurance institute of canada. Not all concepts or coverages identified in this list are found at chapman university. The dental services, procedures, and prescription drugs your plan covers. While these terms can be confusing, the better you understand them, the better you will be prepared to successfully gain coverage and access to the treatments that are right for you. That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.
Learn insurance industry vocabulary that will help you better understand your insurance policies. Weve curated a list of advanced and basic insurance terms and their definitions to better help you understand the often confusing world of insurance. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. Below are definitions for some of the more commonly used terms and how. Thank you for choosing to learn more about residential title insurance. Community rating a way of pricing insurance, where every policyholder pays the same premium, regardless of health status, age or other factors. Deductible the amount of loss paid by the policyholder. The terms of an insurance contract are embodied in a w ritten document called the insurance policy. The following glossary of common terms related to automobile insurance may give you a better idea of what is being said. Even if a service is covered, you may still need to pay a deductible, copayment or coinsurance. However, a claim may be paid if the school employee also has sufficient wages from non. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. No insurance website could be complete without offering and index of insurance terms and definitions.
This specialty coverage is designed primarily for contractor risks whereby the general liability definition is enhanced to include. Here, youll find plainenglish definitions for 33 of the most common insurance terms. If you feel like you need to take a foreign language course to speak insurance dont worry, youre not alone. When making decisions about health coverage, consumers should know the specific meanings of terms used to discuss health insurance. The information has been gathered from many sources believed to be reliable, but the association assumes no responsibility for the accuracy of the information. An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without adjustment to. Common health insurance terms and definitions wps health.
Dictionary of insurance terms a absolute liability. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. The defined terms and coverage provisions in your policy or certificate of insurance, such as reasonable and customary, may be different from the general information provided below, and the policy or certificate language will prevail. Comprehensive loss underwriting exchange clue report. A complaint that you communicate to your health insurer or plan. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies.
The term property insurance includes many lines of available insurance. Jan 07, 2014 this document contains a list of commonly used health insurance terms and their definitions to help consumers better understand how health insurance coverage works. Insurance economic device whereby the individual or business pays a cost premium in exchange for protection against financial loss. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Here is a translation of some basic insurance lingo. The cost of repairing or replacing damaged property with property of the same kind and quality, less depreciation i. Insurance terminology north american training group. Under that policy, the insurer must compensate the policyholder in accordance with the policys terms and conditions if the asset is damaged or destroyed and the policyholder makes a claim.
Life insurance terminology doesnt have to be confusing. Consumer glossary national association of insurance. Insurance terms glossary understanding common insurance terms. The business auto definition of hired autos, however, includes autos. We intend to add more definitions as we find more terms that might useful to our users and insurance consumers. The insurance contracts act allows an insurer to avoid. Property and casualty insurance glossary the bottom line we hope this article on property and casualty insurance glossary was informative. Bond a security that obligates the issuer to pay interest at specified intervals and to repay the principal amount of the loan at maturity. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. Casualty insurance a form of liability insurance providing coverage for. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. Incurred expense a cost of administering insurance which has happened, whether or not paid. The agreement is a contract also known as an insurance policy.
Insurance company that actually underwrites and issues the insurance policy. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Insurance definitions, dictionary, glossary and terms. All are extremely important but on this first page, we have tried to explain in plain english what the most important and. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril.
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