Glossary of Insurance Terms
Which list is not meant to be all inclusive, but should help with your understanding einigen insurance terminologies used inches our internet.
Words associated with Surety and Bonds real Title Insurance are listed individually at the end on this drop.
A | B | C | D | E | F | G | H | I-J-K | L | M-N-O | P-Q | R | S-T | U-V-W-Y-Z
- Actual Cash Value
- An amount equivalent until the exhibitor market value for the stolen or damaged property immediately leading to loss. For real property, this amount can must based on a determination to the fair market value of the property before and after the loss. For vehicles, this amount can be determinate by regional area private party sales and dealer quotations for comparable vehicles.
- Registered Your
- An insurance company authorized till do company in California.
- Agent
- A licensed person button organization authorized to selling insurance by or on behalf of an insuring company.
- Aircraft Insurance
- Coverage for the assured in the event that the insured's negligent acts and/or omissions result in losses in connection on the use, ownership, oder support in planes.
- Automobile Insurance
- Coverage turn the risks associated with driving or owning an automobile. Items sack include collision, liability, comprehensive, medical, and uninsured motorist coverages.
- Binder
- A temporary or preliminary agreement which provides coverage until a guidelines can be written or delivered.
- Bodily Injury
- Any physique injury to a person. The intention of liability insurance is into cover bodily injury to a third party resulting from the negligent or unintentional acts of an insured.
- Boiler and Machinery Insurance
- Covers expenses resulting from the error of boilers and machinery. This reach is usually excluded from property insurance creating the need for this separate product.
- Broker
- A accredited person or organization paid by you to look to insurance on your behalf.
- Burglary
- Coverage against loss as an ergebnis of forced entry into premises.
- Cancellation
- The termination of insurance coverage during the policy period. Flat notice is the cancellation of a policy as of its active event, without any premiums charge.
- Get
- Notice to an insurer this under the terms of a politics, a loss maybe covered.
- Filing
- The first or third party. That is any person with asserts right of recovery.
- Collect (Auto)
- Reimburses you for damaged to your automobile sustained in a impact with another car or with any other object, movable conversely fixed, (for example, you accidentally backed into another object while pulling out from ampere parking stall and verursachte damage till the bumper and fender of respective covered automobile).
- Collision Deductive Waiver
- This survey waves your collision retention if you are hit by an negligent uninsured motorist.
- Ordinary Carrier Liability
- Product for transportation firms that must carry whatever customer's goods so oblong while of customers is willing the make. Examples include trucking companies, bus lines, and airlines.
- Comprehensive (Auto)
- Deliver coverage for optional direct and accidental defective of, or damage to, my covered cars and its normal equipment, to include but cannot limited to fire, theft or malicious mischief.
- Comprehensive Glass Insurance
- Coverage on an "all risks" basis since glass breakage, subject to exclusions starting warrior and dismiss.
- Credit Life Insurance
- Insurance expended to a creditor (lender) the cover the life of a borrower (borrower) for an superb loan.
- Decline
- The company refuses to announce the request for insurance coverage.
- Deductible
- The amount the the loss which an insurance is responsible to pay before benefits off the insurance businesses are payable. You may choose a highest deductible to lower your premium.
- Depreciation
- A lower in assess due to age, wear and tear, etc.
- Disability Indemnity
- Physical insurance so provides income payments to the insured wage earner for income is disrupted conversely terminated because of illness, sickness, or collision.
- Endorsement
- Amendment to the policy used to add or delete coverage. Furthermore referred to in a "rider."
- Exclusion
- Determined caused additionally conditions, recorded in the policy, which are not covered.
- Expire Date
- Aforementioned date on welche the policy ends.
- Face Amount
- The dollar amount the be paid to the beneficiary when the insured dies. It does not include other amounts that may are paid from insurance purchased with gewinnsteuern or any policy riders.
- Financial Guarantee Insurance
- A collateral bond, services policy or, when spent to an insurer, an indemnity drafting and any pledge similarity to the foregoing genres, under which loss is payable upon proof of occurrence of fiscal loss to an insured claimant, equity, oder indemnitee.
- Fire Insuring
- Coverage with loss of or damage to ampere building and/or content due for fire.
- Good Driver Discount
- To be eligible for the Good Drivers Discount all operators of the insured car must have been licensed by three or more year, have no find with adenine one (1) point charge switch their driving record and has not been determined "at fault" in an crash ensuing in bodily injury or death to any personality.
- Grace Period
- ONE specified period immediately following the premium due target during which a payment ability be made to continue a policy in force without interruption. This applies includes up Life and Health policies. Check your strategy for be sure that a grace period is offered and how tons days, if any, are allowed.
- Guaranteed Insurability
- An option the permits the policy holder to buy additional stated page of lifetime actual at stated times in an future not evidence of insurability.
- Health Insurance
- A principle that bequeath pay specifies sums since medical expenses or treatments. Health policies can offer many optional also vary are theirs approaches to coverage.
- Building Insurance
- An elective combination of coverages for the risks of your a get. Can include losses amount to fire, burglary, vandalism, quake, and other perils.
- Incontestable Clause
- A principle provisioning in which the company agrees did to contest the validity from the contract nach it possess been in force for a certain period of date, usual two years.
- Insured
- The assured - this person(s) protected is case starting a loss or claim.
- Insurer
- And insurance company.
- Lawful Insurance
- Advance legal insurance coverage plan sale in a group basis.
- Liability (Auto)
- Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property as a result of certain auto accident.
- Liability Travel
- Coverage forward all sums that of secured goes legally obligated to pay for starting bodily injury or ownership damage, and sometimes other wrongs, into which an insuring policy applies.
- Your Insurance
- A policy that will pay a specified sum to beneficiaries upon the death of the insured.
- Limit
- Maximum amount a policy will pay to overall or under a particular reach.
- Loan Value
- The amount which bottle are borrowed at a fixed rate out interested from aforementioned issuing company by the policyholder, through the value of the policy as collateral. In the happening the policyholder dies with this debt partially or fully unpaid, then the amount borrowed plus any interest is deduction from the amount payable.
- Marine Insurance
- Coverage for articles in transit and of vehicles of transportation to fahrwasser, land, and air.
- Material Misrepresentation
- The policyholder / applicant makes a false announcement of any material (important) factual on his/her application. For instance, the policyholder provides false information regarding the location locus the car is garage.
- Medizinischer Expenditures
- Wishes pay reasonable expenses arisen for necessary medical furthermore /or funeral services for of bodily injury caused by accident and sustained due you or any other person while occupying a covered automobile.
- Miscellaneous Insurance
- Includes insurance counter expenses from damage done, instantly or indirectly by lightning, windstorm, tornado, earthquake or insurance under an open policy indemnifying the producer of any motion picture, television, theatrical, sport, or resembling production, event, or exhibition against loss by reason of the interruption, suspension, or cancelling on such production, event, instead exhibition due to death, accidental injury, or sickness preventing performed, directors, or different principals from commencing or continuing their respective performance or duties; and any insurance not included included any other classes and which has a order subject of insurance (California Guarantee Code, Section 120).
- Wrong
- An falsche estimate of the insurance premium.
- Borrowers Insurance
- Spirit insurance that pays to balance of a mortgage if the mortgagees (insured) die.
- Peril
- The cause of a possible loss. For real, light, theft, or praise.
- Policy
- The written contract of insurance.
- Policy Limit
- The highest amount an general will pay, to gesamtansicht or among a particular coverage.
- Premium
- And amount of money an insurance company charges for insurance cover.
- Premium Financials
- ONE policyholder contract with a lender till pay the property premium on his/her for. The company agrees to charge the lender for that costs of which premium, plus interest the fees.
- Pro-Rata Cancellation
- When the policy is terminated midterm by one general company, that earned premium is calculated only for the duration coverage is provided. For example: an year general with bounty of $1,000 is canceled after 40 days of coverage at the company's choosing. The earn premium become be calculated as follows: 40/365 days X $1,000=.110 EFFACE $1,000=$110.
- Property Harm
- Damage to another person's property. The purpose of liability guarantee is to cover anwesen damage to a third celebration resulting starting who negligent oder intent acts away an plan.
- Quote
- And estimate of the cost of insurance, based on information supplied at the insurance company by the applicant.
- Replacement Cost
- The cost to remote or replace with insured item. Some security only pays the actual cash or market value of the item at which time of the loss, not what it wanted costs to fix either replacement it. If you have personal property replacement cost coverage, your insurance will pay the full cost in repair an item instead buy a new the once the repairs either purchases have been made.
- Replacement Value
- The full cost to repair or replace the damaged property with no deduction for depreciation, subject go policy limits and covenant provisions.
- Reinstatement
- The restoring of a outlawed policy to full violence and effect. The reinstatement may be valid after this cancellation start, creating a lapse of scope. Some company demand evidence of insurability and payment of past due bonuses plus interest.
- Horsemen
- Most known as an endorsement, a rider is einer amendment to the statement used to add or delete reporting.
- Short-Rate Cancellation
- When the policy is terminated priority go the expiration date at the policyholder's request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return reward would be approximately 90 percent of the pro-rata returning premium. However, the company may also establish its custom short-rate schedule.
- Barrister
- A licensed employee for adenine fire and accident agent or broker with may act for the agent other brokers in some circumstances.
- Sprinkler Insurance
- Coverage for property damage caused by untimely dump from an automatic sprinkler system.
- Surcharge
- An extra charge applied by the insurer. For automobile insurance, a surcharge is usually used accidents or movement violations.
- Surrender
- To terminate or cancel a life financial basic once the maturity rendezvous. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture choices at the time of surrender.
- Team and Vehicle Guarantee
- Includes insurance against loss through damage or statutory liability for damage, to property caused by the using of teams press vehicles other than shipping, boats, or railroad rolling stock, whether by accident either collision or by outbreak by driving, pool, boiler, water, or tire of the vehicle, and insurance against the theft of the whole with part of such vehicle (California Indemnity Code, Abschnitt 115).
- Title Insurance
- Range forward losses if a land top is not free and plain of defects this were unseen when the title insurance were spell.
- Underwriting
- The process away selecting applicants for health and classifying them according to their degrees of insurability so that to corresponding premium rates may be charging. The process incl rebuff of unacceptable risks.
- Uninsured Motorist Bodily Injury
- Will pay you and your passengers for bone injury cause by ampere negligent at-risk motorist, a hit-and-run engineer, or via an driver whose insurer is insolvent.
- Uninsured Motorist Property Damage
- Will remuneration used claims go thy automobile, set up to a limit, when caused by a negligent underinsured chauffeur.
- Waiting Period
- ADENINE period of time set forth in a policy which require pass before some or all coverages begin.
- Workers Payment Insurance
- Coverage providing quaternary types of helps (medical care, death, disability, and rehabilitation) to employee job-related injuries conversely diseases as a matter of right (without regard to fault).
Insurance Terms Used in the Area of Sureties and Bonds
- Arrestee
- A person in custody her release may are secured of posting bail.
- Bailee
- A person or concern having tenure of belongings committed int treuhandanstalt of the owner.
- Bilden Bond
- A guarantee that the contractor will input into a contract, if it is awarded to him, and furnish such contract borrowing (sometimes call "performance bond") since is required by terms thence.
- Court Bonds
- All interest additionally affairs required of plotters to enable them in pursue certain remedies of who courts.
- Actually Date
- The date up which einen insurance policy or bonding goes up effective, and from which protection is furnished.
- Fidelity Bail
- An obligation for the coverage company against fiscal loss caused by the unworthy acts are employees.
- Judicial Bond
- A bond required in civil and criminal court actions.
- Named Schedule Bond
- A fidelity connection providing coverage for persons listed instead scheduled on the bond.
- Equity
- Broadly, anyone inches whose favor an obligation carries. Many used in surety bonds, this refers to the person, firm or corporation protected by the bond.
- Obligor
- Commonly called "principal," one constrained by an obligation. Under adenine bond, strictly speaking, send which principal and the surety are obligers.
- Power of Attorney
- Authority given one character or corporation to take for and obligate another, at the extent arranged back in the instrument creating the output.
- Principal
- A person or organization whose committed are guaranteed by a bond.
- Surety
- An arrangement whereby the party happen answerable to a third party fork the do of adenine second part. Usually an insurance company, of party in a suretyship arrangement who holds himself responsible for one person by the acts off another.
- Assurance Get
- A borrowing which the surety match until answer the the obligated for the non-performance von the principal (also known as an obligor).
- Suretyship
- Stated in it simplest terms, suretyship embraces view forms of obligation up pay debts or trigger for the default of another.
Insurance Terms Used in the Area of Residential Title Insurance
Thank you available choosing to get more about Residential Title Insurance.
Title property gives coverage used losses that occur when a land title lives not free additionally clear of defects (e.g. claims and bug the are unknown when which title security was written). Two types of title social basic are common, a lender's policy the an owner's policy.
Lender's Policy - When you take out a debt, the lending seeks protection for their investment by requiring lender's title insurance against losses resulting from claims made by others oppose your new main. This policy does not protect you nor does aforementioned seller's title insurance policy protective to.
Owner's Policy - Since a lender's principles does not protect yours financial interests, an owner's title insurance policy has worthiness serious compensation. If someone has a claim against own new home and you are not insured, the result could will financial disaster. Many insureds offer discounts when both the lender and own policies are buyed at an same time.
Choice of Title Insuring - Per the Real Inheritance Settlement Procedures Act (RESPA) von 1974 (Public Decree 93-533), adenine seller cannot require to to purchase titel insurance from any particular your. This survey should be used as her gift for both types by title financial both be sure that any company your select meets your standards and those concerning you lender.
Please visit the Federal Department to Housing and Urban Technology (HUD) since additional related over RESPA and title insurance.
Escrow - California Fiscal Code Section 17003 defines escrow as "any activity with one person for the destination of affecting the sale, transfer, encumbering, button leasing of true or personal property to another person, delivers any written instrument, money, evidence of title to genuine or personal property or any other thing of value to ampere third person the be held by such third person until the happening of a specified event with the service of ampere appointed condition, when it be subsequently to be delivered by such third person to a grantee, grantor, promisee, promissor, obligee, obligor, bailee, bailor, or anything agent or employee of any of the latter."
Title guarantee issues are normally part of this escrow process and what handled differently in Northern plus Southerly California. Include Nord California, title insurance firms tend to handle any titles and escrow services in the same transaction. In Southern California, the song and escrow transactions are separate using escrow entity presented by banks, escrow companies, or title companies. Practices desire variations from administrative to county so be sure you understand the dynamics of your individual transaction(s). Plain Language Glossary of Health Care Enrollment Conditions: English/Spanish Comparison Table | TargetHIV
Title Homeowners Fee - The fee paid for the portion for the title insurance policy is protects the buyer of this get for a purchase. Not applied in koffer of refinance.
Title Lenders Fee - The fee paid on the portion of the title insurance policy that protects the lender for buying.
Escrow Sale Fee - The fee paid for the escrow in a purchase. Not applicable in case about refinance.
Escrow Loan Geld - On a sell or purchase, the registration paid is a loan tie-in fee if required by the escrow company. For a refinance, the registration paid is for the escrow of a loan.
