Even if a service is covered, you may still need to pay a deductible, copayment or co insurance. This page provides an index of insurance terms and. It is critical that you know and understand the public liability insurance definition as many large and small companies will depend on your expertise when choosing a policy. Dictionary of insurance terms a absolute liability. Basic causes of loss form one of the three insurance services office, inc. The term property insurance includes many lines of available insurance. If there is any conflict between these definitions and the provisions of the. One party is the insured person or organization and the other is the insurance company. Insurance professionals with whom you may come into contact should be prepared to.
The code is a selfregulatory form of regulation, that is, the insurance industry, not the government, is. Below are some commonly used insurance terms and their meanings. Important insurance terms finding an affordable student health insurance plan can be difficult, especially if there are insurance terms you dont understand. Agent a person or a group of people selling insurance on behalf of an insurance company. Insurance courses for agents, producers, adjusters. A contract of insurance is that whereby one party, the insurer, undertakes, for a premium or an assessment, to make a payment to another party, the policyholder or a third party, if an event that is the object of a risk occurs. This chapter also introduces the fundamental insurance equation, a key concept that is referenced frequently in other chapters. 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. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Understanding of basic insurance terms is particularly low among the currently uninsured. The type of vehicle, the purpose of its use, its age model, cubic capacity and the fact that the driver has a consistently bad driving record. This should be equivalent to paid premiums, in most instances. There may be certain risks regarding the basic honesty and integrity of a person. Insurance handbook insurance information institute.
Below are some of the basic health insurance terms and dont miss the handy dandy chart showing how theyre used. The terms listed below introduce our members to basic insurance terminology used throughout the industry. Insurance represents many benefits to society such as recovery from unexpected loss at an affordable cost for most people. The minimum limits of liability that can be carried by an insured. A statement of coverage issued to an individual insured under a group insurance contract, outlining the insurance benefits and principal provisions applicable to the member. Property and casualty insurance glossary the bottom line we hope this article on property and casualty insurance glossary was informative. These definitions do not alter or modify the terms of any insurance contract. The insurance council of australia, as a response to the needs of the insurance industry and with the assistance of the insurance enquiries and complaints ltd. Insuredthe term insured refers to the person who has taken insurance against various risks and who pays a premium.
Liability for damages even though fault or negligence cannot be proven. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well. Consumer glossary national association of insurance. Insurance policy over and above a basic liability policy. A company person whos named as an additional interest on a policy 2. The language of insurance can be quite complex and confusing. Insureris the company which accepts risks after receiving premiums and pays claims. Actuary a professional trained in the mathematics of insurance and risk management, including the calculations of. Insurance insurance is a contract in which an insurance company promises to compensate an insured. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies.
Iso, commercial property insurance causes of loss forms. A person who investigates and settles losses for an insurance carrier. The terms of an insurance contract are embodied in a w ritten document called the insurance policy. Insured the individual whose property or liability is covered by an insurance policy. With the help of our easy to follow basic terminology guide, youll be able to start comparing quotes from multiple national providers online in just minutes. Insurance a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Surcharge additional cost added to the basic premium, usually due to atfault claims or legal action. If you run an insurance brokerage, you will need to know about a wide variety of policy types that are available to both business and the general public. Insurance terminology north american training group. Before you go through the below terms lets take an example of an insurance policy which will help you to better understand the below terms. Agent the insurance company representative who sells policies on behalf of the insurer. Basic limits the minimum amounts of insurance for which it is the practice to quote premiums in liability insurance.
If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. Please read your official policy for full details about coverages. A fee or percentage of the premium paid to an insurance broker or agent. A legal definition of insurance that appears in many insurance laws is the. 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. Public understanding of basic health insurance concepts on. Principles of general insurance principles of insurance 58 b in motor insurance. Can be liable for an accident that involves an insured person vehicle 3. Basic insurance terms and definitions flashcards quizlet.
The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. No insurance website could be complete without offering and index of insurance terms and definitions. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. 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. Make sure you know the basics before you buy your next insurance policy. The current commercial time element coverage forms are.
Structured settlement a monetary legal agreement often paid out as an annuity rather than in a lump sum. When making decisions about health coverage, consumers should know the specific meanings of terms used to. 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. Oct 14, 2014 for example, gerber life customer service representatives can help you to understand basic insurance terminology, decide how much life insurance you need and can afford, find out how to choose the best kind of policy for you, and assist you in other ways. Learn vocabulary, terms, and more with flashcards, games, and other study tools. These include basic activities such as eating, bathing, dressing, walking. Foreword adult basic education, the organisations are working together to help tackle financial literacy and to address the issue of access to financial products and services for those with literacy and numeracy difficulties. Many of the terms you encounter when dealing with health insurance are not familiar. The basic causes of loss form cp 10 10 provides coverage for the following named perils. 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. Glossary of life insurance terms department of financial.
Term insurance that provides coverage for one year. Even if a service is covered, you may still need to pay a deductible, copayment or coinsurance. Start studying basic insurance terms and definitions. 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. Coverage excludes shortterm medical insurance, the federal employees health benefit program and noncomprehensive coverage such as basic hospital. Allowable charge sometimes known as the allowed amount, maximum allowable, and usual, customary, and reasonable ucr charge, this is the dollar amount considered by a health insurance company to be a reasonable charge for medical services or supplies based on the rates in your area.
Glossary of commercial insurance terms commercial insurance is divided into two main categories. Notification to the insurance company that a loss has occurred and a demand of payment for the loss, as provided by the terms of the insurance policy. Weve curated a list of advanced and basic insurance terms and their definitions to better help you understand the often confusing world of insurance. Use this informative property and casualty insurance glossary to better understand basic insurance terms and definitions. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well business terminology shouldnt be reserved for insurance agents. Except for binders and contracts for temporary insurance covered by ors 742. The amount of outofpocket expenses that you or your business must pay before the payment is made by an insurer. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. To gain insight into your companys insurance policy, its helpful to have a grasp of basic business insurance terms. Insurance helps individuals, through the sharing of loss, to sustain a normal standard of living and at the same time helps the overall economy in the event of loss. Common health insurance terms and definitions wps health. Print and pdf formats, and quantity discounts are available for most.
An insurance policy describes the rights and obligations of both parties. Iec, developed the general insurance code of practice the code. Confidence in understanding these terms is much higher among those in the marketplace target population who are currently purchasing nongroup coverage 53. Notification to an insurance company that you believe a payment is due to you or your company under the terms of the policy. You buy an insurance policy on the name of your wife for an insurance cover of rs. Represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. 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. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. The written application is considered part of the policy if.
This list is in no way comprehensive, but serves as an informational tool for our members. Sometimes the insurance buying process can be a bit confusing, especially when you shop for coverage online. Basic causes of loss form insurance glossary definition. It is important to understand the following legal terms that relate to insurance. For example, gerber life customer service representatives can help you to understand basic insurance terminology, decide how much life insurance you need and can afford, find out how to choose the best kind of policy for you, and assist you in other ways. 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. Learn insurance industry vocabulary that will help you better understand your insurance policies. Insuranceinsurance is a contract in which an insurance company promises to compensate an insured. 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. A person licensed by the state insurance authority to sell insurance products. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. Insurance bureau of canada are indicated with an asterisk. Policy forms vary i n complexity depending upon the type of.
The agent represents the insurance company in all transactions. Causes of loss forms establish and define the causes of loss or perils for which coverage is provided. We intend to add more definitions as we find more terms that might useful to our users and insurance consumers. Conventional indemnity plan an indemnity that allows the participant the choice of any provider without effect on reimbursement. Type of packing, mode of carriage, name of carrier, nature of goods, the route. Insurer is the company which accepts risks after receiving premiums and pays claims. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. As weve said, an insurance policy is a legally binding contract between two parties. Where the property insured is completely destroyed or so badly damaged that it. All are extremely important but on this first page, we have tried to explain in plain english what the most important and. An independent agent represents more than one company.
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. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Allowable charge sometimes known as the allowed amount, maximum allowable, and usual, customary, and reasonable ucr charge, this is the dollar amount considered by a health insurance company to be a reasonable charge for. Simply having the basic understanding of insurance definitions can make the difference between having a plan that will cover you for the majority of your medical expenses and one that. Understanding business insurance terminology trusted choice. Insurance agent a legal representative of one or more insurers for which the representative has a contractual agreement to sell insurance. Premium the amount you pay monthly for your health insurance plan.
Actuary someone who uses statistics and mathematical models to calculate insurance risks and premiums. The difference reflects the insurers expenses for operating the plan. The dental services, procedures, and prescription drugs your plan covers. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. 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. Get a free online adult life insurance quote or call us at 18007042180 to get started. Insurance terminology north american training group, inc. This can be a deductible, copayments, or co insurance see separate definitions of these terms. It also places restrictions on the amount of costsharing that patients must pay for these services. An event or occurrence which is unforeseen and unintended.
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