Insurance Glossary

Featured Insurance Term: Comprehensive Coverage - The other part of "Physical Damage Coverage." Also called "Other than Collision," provides reimbursement for physical damage to an insured vehicle, which does not involve collision. For instance, this would include damage due to fire, theft, hail, flying objects, glass damage, vandalism, and animal collision. Losses would be subject to a pre-determined and declared deductible. The coverage is optional but is often required by vehicle lien-holders.

More Insurance Terms

A

• ABS - Anti-Lock Braking System. A...
• Absolute Assignment - Transferring rights and ownership...
• Accelerated Benefits - Also known as "Accelerated...
• Accident Forgiveness - An endorsement or rider...
• Accidental Death and Dismemberment - A form of life/disability...
• Actual Cash Value - The depreciated or "market-value"...
• Additional Living Expenses - ALE. A provision of...
• Adjustable Life Insurance - A life insurance policy...
• Adjuster - An employee or independent...
• All Perils - Also known as "Open...
• Anti-Theft Device - Any device or system...
• Appraisal - An evaluation of the...
• At-Fault Party - In an auto accident,...

B

• Beneficiary - The person, estate, charity,...
• Binder - A policy contract that...
• Blanket Coverage - A "blanket" provides coverage...
• Bodily Injury Liability - Covers the at-fault insured...
• Builders Risk Insurance - A supplemental insurance that...

C

• Cash Surrender Value - Also known as "Cash...
• Cash Value - A permanent life insurance...
• Catastrophe - A natural "Act of...
• Certificate of Financial Responsibility - A document (SR-22, FR-44,...
• Claim - A request made by...
• CLUE Report - Comprehensive Loss Underwriting Exchange...
• COBRA - Consolidated Omnibus Budget Reconciliation...
• Coinsurance - Some types of health...
• Collateral Assignment - A temporary transfer of...
• Collision Coverage - Physical damage coverage to...
• Competitive Auto Repair Parts - When repairs are made...
• Comprehensive Coverage - The other part of...
• Compulsory Auto Insurance - By state law, the...
• Consumer Directed Health Care - A concept that includes...
• Contingent Beneficiary - Should the named beneficiary...
• Continuous Coverage - Maintaining coverage by renewing...
• Convertible Term Insurance - A term life insurance...
• Copayment - A relatively lesser fee...
• Covered Person - Any individual covered by...
• Credit Life Insurance - Coverage for borrowers, such...

D

• Death Benefit - Payment upon the death...
• Declarations Page - The page of an...
• Declined Risk Class - Those whose condition is...
• Decreasing Term Life Insurance - The death benefit of...
• Deductible - The pre-determined amount of...
• Defensive Driver Credit - Some auto insurance companies...
• Depreciation - The lessening value of...
• Diminution of Value - The loss of value...
• Disability - With health insurance, when...
• Disability Income Insurance - Coverage that pays a...
• Double Indemnity Benefit - Also known as "Accidental...
• Drive-Other-Car Endorsement - In addition to coverage...
• Driver Training Discount - Some States and companies...

E

• Earthquake Insurance - Provides coverage to a...
• Economic Loss - The total amount lost...
• Effective Date - Also known as "Inception...
• Emergency Road Service Coverage - Provides roadside assistance in...
• Endorsement - Also known as a...
• Endowment Insurance - A type of life...
• Excess and Surplus Lines - Specialty market companies that,...
• Exclusions - Terms under which insurance...
• Expiration Date - The date from which...
• Extended Replacement Cost Coverage - Supplements home replacement cost...

F

• Face Amount - The amount payable to...
• Fair Access to Insurance Requirement Plans - FAIR. Homeowners whose homes...
• Family Benefit Coverage - An optional supplement to...
• Fire and Allied Lines - Insurance that covers direct...
• Flood Insurance - Purchased separately from a...
• Floodplain - An area of land...
• Free Look - During the first 10-30...

G

• Gap Insurance - In the case of...
• Good Student Discount - A credit offered by...
• Group Life Insurance - Life insurance provided through...

H

• HIPAA - Health Insurance Portability and...
• HMO - Health Maintenance Organization. A...
• Home Health - Health care for a...
• Homeowners Insurance - Standard homeowners insurance is...

I

• Increasing Term Life Insurance - Over the life of...
• Indemnity - The restoration of an...
• Indemnity Health Plan - A health insurance plan...
• Independent Practice Associations - Independent Practice Associations (IPAs)...
• Inflation Guard Clause - If this clause is...
• Insurable Interest - The insurance principle that...
• Insured - A person (or entity)...

L

• Lifetime Maximum Benefit - The pre-determined amount of...
• Long Term Care - A health plan usually...
• Loss of Use - Covers "Additional Living Expenses."...

M

• Managed Care - Refers to a variety...
• Maximum Dollar Limit - The specific amount outlined...
• Mechanical Breakdown Insurance - Type of auto insurance...
• Medicaid - Health care assistance funded...
• Medical Payments - Terms that refers to...
• Medicare - A federal government program...
• Medicare Supplement - Also known as "Medigap."...
• Motor Vehicle Record - MVR. Each licensed driver...
• Multi-Car Discount - A credit offered to...

N

• Named Perils - In a named peril...
• No-Fault - A type of auto...
• Non-Participating Whole Life Insurance - A Whole Life insurance...
• Noncancellable Health Insurance - Also know as a...

O

• Occupational Accident - An accident that occurs...
• Open-Ended HMO - This type of HMO...
• Ordinance or Law Coverage - An endorsement to a...
• Ordinary Life Insurance - Also called "Continuous Premium...
• Other Structures - When dealing with home...
• Out-of-Network Provider - A health care provider...

P

• Passive Restraint System - A system in the...
• Peril - Any event that results...
• Permanent Life Insurance - A type of life...
• Personal Liability Insurance - Coverage for legal defense...
• Personal Property - In a standard homeowners...
• PIP - Personal Injury Protection (PIP)...
• PPO - Preferred Provider Organizations. A...
• Pre-existing Condition - Group and individual health...
• Primary Care Provider - Within a managed care...
• Primary Use - The main purpose for...
• Property Damage Liability - Type of auto insurance...

R

• Rental Reimbursement - A type of auto...
• Replacement Cost - The cost required to...

S

• Schedule - An endorsement to property...
• Settlement Options - Refers to the choices...
• Spendthrift Trust Clause - A provision in a...
• Subrogation - The right of the...

T

• Term Life Insurance - Life insurance that expires...
• Title Insurance - Coverage that provides protection...
• Total Loss - A vehicle (or property)...

U

• Uninsured/Underinsured Motorists Coverage - A type of auto...
• Universal Life Insurance - A flexible, permanent, adjustable...

V

• Variable Life Insurance - Similar to Universal Life...
• VIN - Vehicle Identification Number. Every...

W

• Whole Life Insurance - A permanent life insurance...
• Workers Compensation - State law usually requires...