Actual cash value – An amount equal to the fair market value of the stolen or damaged property immediately preceding the loss.
Agent – A licensed individual or organization authorized to sell insurance on behalf of an insurance company.
Auto insurance – Coverage on the risks associated with driving or owning an automobile.
Binder – A temporary agreement that provides coverage until a policy can be written or delivered.
Bodily injury – Any physical injury to a person. The purpose of liability insurance is to cover bodily injury to a third party, due to negligent or unintentional acts of the insured.
Broker – A licensed person or organization paid by a customer to look for insurance on their behalf.
Claim – A notice to an insurer that under the terms of a policy, a loss maybe covered.
Claimant – Any person who asserts right of recovery.
Collision deductive waiver – Coverage that waves a collision deductible if a person is hit by a negligent uninsured driver.
Deductible – The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable.
Depreciation – A decrease in value due to age, wear and tear, etc.
Disability Insurance – Health insurance that provides income payments to the insured wage earner, when their income is interrupted (or when they are terminated) because of illness or injury.
Exclusion – Certain causes and conditions, listed in the policy, that are not covered.
Expiration date – The date on which the policy ends.
Face amount - The dollar amount to be paid to the beneficiary when the insured passes away.
Financial guarantee insurance – A surety bond, insurance policy, or when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, under which loss is payable upon proof of occurrence of financial loss to an insured claimant.
Grace period – A period after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.
Guaranteed insurability – An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future, without evidence of insurability.
Health Insurance – A policy that will pay specifies sums for medical expenses or treatments. Health policies can offer many options and vary in their approaches to coverage.
Homeowner insurance – A combination of coverages for the risks of owning a home.
Insured – The person(s) protected in case of a loss or claim.
Insurer – The insurance company.
Liability insurance – Coverage for all sums that the insured becomes legally obligated to pay because of bodily injury or property damage, and sometimes other wrongs, to which an insurance policy applies.
Life insurance – A policy that will pay a specified sum to beneficiaries upon the passing of the insured.
Loan value – The amount which can be borrowed at a specified rate of interest from the insurance company by the policyholder, using the value of the policy as collateral.
Misquote – An incorrect estimate of the insurance premium.
Mortgage insurance – Life insurance that pays the balance of a mortgage if the mortgagor passes away.
Peril - The cause of a possible loss: fire, theft, etc.
Policy – A written contract of insurance.
Premium – The amount of money an insurance company charges for insurance coverage.
Quote - An estimate of the cost of insurance, judged on information supplied to the insurance company by the applicant.
Replacement value - The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.
Reinstatement – The restoring of a lapsed policy to full force and effect.
Rider – Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage.
Surcharge – An extra charge applied by the insurer
Surrender – To terminate or cancel a life insurance policy before the maturity date.
Title insurance – Coverage for losses if a land title is not free and clear of defects that were unknown when the title insurance was written.
Underwriting – The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged.
Uninsured motorist property damage – This will pay for damages to your automobile, set up to a limit, when caused by a negligent uninsured motorist.
Waiting period – A period of time set forth in a policy which must pass before some or all coverages commence.
Workers compensation insurance - Coverage providing four different types of benefits for employee job-related injuries or diseases as a matter of right.
