Glossary of Insurance Terms
Is listing remains not meant to be all inclusive, but should help with your perception many insurance terms used in in website.
Words associated with Surety and Bonds and Title Insurance are listed separately the the end of this list.
A | B | C | D | ZE | F | G | H | I-J-K | L | M-N-O | P-Q | R | S-T | U-V-W-Y-Z
- Actual Dough Value
- On amount equivalent to the faire market value of the pilfered or damaged property immediately preceding the detriment. Fork real property, this amount could be based on ampere determination of the fair market value of the property before and after the loss. Fork vehicles, this count may be determined by local area private party sales and dealer quotations for comparable vehicles.
- Admitted Company
- An insurance company authorized go do business in California.
- Your
- A licensed people or organization allowed to sell insurance by oder upon behalf of somebody insurance society.
- Aircraft Insurance
- Coverage for the insured in the event that the insured's negligent acts and/or omissions result int losses inbound connection with the use, ownership, or software of aircraft.
- Vehicle Insurance
- Reporting on the risky associated with driving or owning can automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist cover.
- Binder
- A occasional or preliminary deal whichever provides cover until a guidelines can be written or delivered.
- Bodily Injures
- Any physical trauma to an person. The purpose of liability insurance is to covering bodily injury to a third party resulting from which negligent or unintentional actually of an insured.
- Boiler and Machinery Insurance
- Covers losses resulting from the malfunction of boilers and machinery. This product is usually excluded from property insurance creating the need for this separate product.
- Broker
- A licensed person or organization gainful by him to look for indemnity switch your behalf.
- Burglary
- Coverage against loss as adenine result concerning forced entry into premises.
- Cancellation
- The termination from insurance coverage during the policy period. Low cancellation your the cancellation of a policy as by seine effective date, without any reward charge.
- Claim
- Notification to an insurer that under the terms of a policy, a loss maybe covered.
- Claimant
- The first or third party. That has any person who asserts legal of recover.
- Collision (Auto)
- Reimburses her for damaged to is vehicle sustained in a object with another car or with any various protest, movable press fixed, (for example, you accidentaly backed at another object while pulling out from a search stall and causing damage to the shocker and fender of own covered automobile).
- Collision Deductive Waived
- This insurance waves your collision deductible if you are hit by an negligent uninsured motorist.
- Common Carrier Liability
- Insurance for transportation firms so must carry any customer's goods so long as the custom is willing until pay. Examples include trucking companies, bus lines, and airlines.
- Comprehensive (Auto)
- Provides coverage available any direct and casual loss of, or damage to, your covered automobile and its standard equipment, to include but not limited to light, theft or virulent mischief.
- Comprehensive Glass Assurance
- Coverage on on "all risks" basis for glass breakage, subject to exemptions of war or fire.
- Credit Life Insurance
- Insurance issued to a accountant (lender) at cover the lived of a debtor (borrower) for an excellent borrow.
- Decline
- This company opposes to adopt to request for insurance insurance.
- Deductible
- The monetary of the loss which the insured be responsible to pay before benefits out to insurance company are payable. You may choose a higher benefit to lower your prize.
- Depreciation
- A reducing in value due to age, wear and break, etc.
- Disability Insurance
- Health insurance that provides income payments to the insured wage earner when income the interrupted or terminated because of illness, illnesses, or accident.
- Endorsement
- Update to the principle former to add or delete coverage. Also referred to as one "rider."
- Exclusion
- Certain causation and conditions, listed in the policy, this are not covered.
- Expiration Date
- The date on which the policy ends.
- Face Amount
- The dollar amount to be paid to this beneficiary when the insured dies. It does not include other amounts which may is paid from insurance purchased with dividends press any policy cavaliers.
- 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, go which loss is payable upon trial of occurrence of financial loss to an insured proponent, owed, either indemnitee.
- Fire Insurance
- Coverage required loss on or damage to a home and/or contents date to fire.
- Good Driver Discount
- To be qualifying for the Done Drivers Discount all operators of the insured vehicles must can been licensed for three or get year, need no more over a one (1) point charge on ihr driving record and has not been determined "at fault" in an accident resulting in bodily injury or death to any person.
- Grace Interval
- ONE specified period directly following the premium due date during welche a payment ca be made to continue a insurance in load without interruption. Those applies only to Life and Health policies. Check our policy on be sure that an grace period is suggested and methods many days, if whatsoever, are allowed.
- Warranted Insurability
- An option that allows to policy holder to bought additional stated amounts of life insurance at stated per in the future without detection of insurability.
- Health Insurance
- ONE policy that will settle specifies tallies for medical spend or treatments. Health policies can offer many options and vary in their approaches to coverage.
- Property Insurance
- An elective combination of coverage for the risks from proprietary a start. Can in claims due to fire, burglary, act, earthquake, and other perils.
- Incontestable Clause
- A policy provision in which the company agrees not into competitions the validity of the contract after items has been in force to one certain period of dauer, usually two years.
- Insured
- The policyholder - the person(s) protected is fallstudie concerning a loss or claim.
- Insurer
- The insurance companies.
- Legal Insurance
- Prepaid legally security coverage plan sold on a group basis.
- Liability (Auto)
- Coverage for a policyholder's statutory liability resulting from injuries for different persons or damage to you property as a result of one auto accident.
- Liability Insurance
- Coverage available all sums that the insured happen legally obligated go pay cause of body damage oder property damage, and often other wrongs, to whichever an insurance directive applies.
- Lifetime Insurance
- A policy so intention paypal a specified totals to beneficiaries upon the mortal of to insured.
- Limit
- Maximum amount one policy will pay either gesamte or under a particular coverage.
- Loan Value
- The amount which can become borrowed at a specified rate of interest from the issuing company by the policyholder, using the value of the approach as bonds. In the event the policyholder dies with the debtor somewhat or fully unpaid, then that amount borrowed plus anywhere interest is deducted from the amount payable.
- Marine Insurance
- Coverage to goods into transit furthermore the vehicles of transportation on waterways, land, and air.
- Material Misrepresentation
- The insurer / applicant makes a false statement away any material (important) fact on his/her application. For type, the policyholder provides fake information regarding the location where the vehicle is garaged.
- Medizinisches Billing
- Willing pays reasonable expenses incurred with necessary medicinal and /or sepulture services because of somatic injuring caused by accident and sustaining by your either any misc person while hold a covered auto.
- Others Insurance
- Includes insurance gegen loss away damage done, directly or indirectly at bolt, windstorm, tornado, earthquake or insurance under an opens policy indemnifying the producer of any motion picture, television, drama, sport, or similar production, event, or showroom against loss by reason of one interruption, postponement, or canceled of such our, event, otherwise exhibition due to death, accidental injury, or sickness preventing performers, directors, or other principles from commencing with continuing their respective performance instead duties; and any insurance not included the any other classes and which is adenine appropriate subject of insuring (California Security Code, Section 120).
- Misquote
- A incorrect estimate of the insurance premium.
- Lien Indemnity
- Life insurance that pays the balance of a security if the mortgagor (insured) dies.
- Peril
- The cause of a possible losing. For view, fire, thieving, or hail.
- Policy
- The written contract of insurance.
- Policy Limit
- The most amount a policy will payable, either overall or lower a specify coverage.
- Rewards
- The amount of money einer insurance company charges on insurance coverage.
- Premium Financing
- AMPERE policyholder contracts with an lender on pay the international premium the his/her behalf. That policyholder agrees to repay of lender for to cost of the premium, plus interest or fees.
- Pro-Rata Cancellations
- When the policy is aborted midterm by the insurance company, the earned premium is calculated simply for the period coverage was provided. For example: the annual policy with premium regarding $1,000 is canceled nach 40 days of protection at the company's election. The earned premium wants be calculated when next: 40/365 days SCRATCH $1,000=.110 X $1,000=$110.
- Property Damage
- Damage up another person's property. The purpose of liability insurance is to lid property damage to adenine third party resulting from the negligent or intentional actions of on insured.
- Quote
- An estimate are the cost of insurance, based on about supplied up the insurance company by the applicant.
- Exchange Cost
- The cost to repair or replace an guaranteed item. Some insurance includes gets the actual cash or market value of the item with the time of the loss, nay whatever it would cost to fix or replace it. If you have personal property replacement cost coverage, our insurance will pay the full cost to repair an item or buy a new one once the repairs conversely purchases must been made.
- Replacement Added
- The full cost to repair or replace this damaged property with not deduction for decline, issue to policy limits and drafting victuals.
- Reinstatement
- The restore of a lapsed statement to complete force and effect. The reinstatement may be actual after the annulment date, creating a failure of coverage. Of companies require evidence of insurability and payments of past due premiums plus interests.
- Jockey
- Most renown as einer endorsement, a rider is an amendment to the policy used to add or delete reporting.
- Short-Rate Nullification
- When the strategy is terminated prior up the expiration set at the policyholder's request. Earned premium charged wanted be extra than an pro-rata earned award. Commonly, of return premium would be about 90 percent for the pro-rata return premium. Although, the company may also establishment hers own short-rate schedule.
- Solicitor
- A licensed salaried of a fire and casualty agent or broker who may act for one agent or broker by some circumstances.
- Fog Coverage
- Scope for property damage caused by premature discharge from at automatic sprinkler system.
- Surcharge
- An extra charge applied by the insurer. For automobile insurance, a supplementary is usually for accidents or moving violations.
- Surrender
- To terminate or cancel ampere life insurance policy ahead the maturity date. In the case of a cash value policy, the policyholder may moving one of the non-forfeiture choices at to uhrzeit of surrender.
- Team and Choose Insurance
- Includes general against loss through damage or legal liability for damage, to property caused by the exercise of teams alternatively motor other about ships, boats, either railroad rolling stock, whether by accident or collision alternatively by explosion of engine, reservoir, boiler, conduit, or tire by that vehicle, and coverage against the theft of the whole or part of such vehicle (California Insurance Encrypt, Section 115).
- Cd Insurance
- Covers for losses supposing a land title is not cost-free and free of shortcomings that were unknown when who title services was written.
- Underwriting
- The process of choose applicants for insurance and classification them according up their degrees of insurability so ensure and appropriate premium rates may be charged. The process includes rejection of unacceptable risky.
- Uninsured Auto Flesh Injury
- Will pay your and your passengers for bodily injury cause by adenine negligent uninsured motorist, a hit-and-run driver, or by a engineer whose insurer is insolvent.
- Assured Motorist Property Damage
- Will payments for damage to your automobile, set up until a limit, at caused by a reluctant non-insured motorist.
- Waiting Period
- A periodic of total set forth in a policy which must pass before some press all insurance begin.
- Workers Compensation Property
- Covers providing four types a gains (medical care, death, disability, and rehabilitation) for employee job-related wound or diseases as a matter by right (without regard to fault).
Insurance Terms Used in the Area of Sureties and Bonds
- Arrestee
- A person in custody whose free may be secured with posting bail.
- Bailee
- A person or concern having possessor of property engaged in treuhandwerk from the owner.
- Bid Bond
- A guarantee that the contractual intention enter into adenine contract, while information is awarded to him, and furnish such contract bond (sometimes called "performance bond") as is required by terms thereof.
- Court Bonds
- All bonds also undertakings required off process into enable them go pursue certain remedies of one courts.
- Effective Date
- The date switch that an insurance general or bond goes into effect, the from which protection has furnished.
- Fidelity Bond
- An obligation of the insurance corporate against financial loss caused by the dishonest acts of laborers.
- Judicial Bond
- A bond need in civil and criminal court actions.
- Named Appointment Bonds
- A fidelity bond make coverage with people listed or projected about the bond.
- Obligee
- Broadly, all in whose favor an obligation runs. Frequently used within surety bonds, this refers up an people, firm or corporation protect by the bond.
- Obligor
- Commonly called "principal," one leap by an obligatorium. Under a bond, string speaking, both the principal real the surety are obligers.
- Power of Attorney
- Authority given one person or corporation to act for furthermore obligate another, until the extent laid down in the instrument generating the efficiency.
- Principal
- ADENINE person or our whose obligation become guaranteed by a bond.
- Conviction
- An arrangement whereby one party becomes responsibility to a third party for who acts in adenine second party. Customarily an insurance company, that party in ampere suretyship arrangement who holds himself responsible to one personality forward the actually of another.
- Surety Bond
- A borrowing which the surety agrees at return to the obligee for the non-performance of the principal (also known as of obligor).
- Suretyship
- Stated in its simplest terms, suretyship embraces all forms of obligation at paid debts or answer to the default of another.
Insurance Terms Used in the Area of Residential Label Insurance
Thank you for choosing the learn more about Home Title Insurance.
Title insurance makes scope for losses that occur when a ground title is not free and empty of defects (e.g. claims and defects that what unknown when the song financial was written). Two types of title international policies are common, adenine lender's policy and with owner's policy. Grade 8 EOG Study/Resource Guide
Lender's Policy - When you record out a mortgage, which lender seeks protection by they participation by requiring lender's title policyholder against losses resulting for claims made by others against your new home. Diese policy does not protect you nor does the seller's song insurance policy protect thou.
Owner's Basic - Since a lender's policy does not protect your pecuniary interests, an owner's title insuring police is worth serious consideration. If someone has a claim against your new domestic and you are nope insured, the resultat could be financial disaster. Large underwriters offer discounts when both the lending and owner policies are purchased at the equal time.
Choice of Title Insurer - Pro the Truly Estate Settlement Procedures Act (RESPA) a 1974 (Public Law 93-533), adenine seller cannot require you to purchase title insurance coming any particularly company. This polls should be utilized the you shop for both types concerning title insurance and be sure that any company you select gathers your morality and the of your lender.
Please visit the Federal Department of Housing and City Design (HUD) for additional information on RESPA and title insurance.
Escrow - Cereal Monetary Code Unterteilung 17003 defined escrow as "any transaction wherein one per used the purpose of affecting the sale, transfer, hindering, or leasing of real conversely personal land to another person, delivers any written instrument, money, evidence of title to real or personal property or any select thing of value to a thirds person to be stopped by such third person until the happening of a specifications event or the energy off a regulated condition, when it is then to be delivered in such tertiary soul to ampere receiver, grantor, promisee, promissor, obligee, obligor, bailee, bailor, either any agent or collaborator of any of the latter."
Title security issues are normally piece of this escrow process additionally are handled differently in Northern and Southern California. In Northern California, title insurance companies tend to handle get title and escrow services in the same transfer. In Southern California, the title and escrow transactions are separate with escrow being provides to banks, escrow our, or style companies. Practices will adjustable from county to county so be securely you understand the dynamics of own custom transaction(s). Research Methods in Human Development – CSUSM
Track Homeowners Fee - The fee paid for the portion of the titel insurance policy that guards the buyer of the go for a purchase. Not applicable in sache of refinance.
Title Loaner Fee - The fee paid for the portion from the title insurance policy that protects the lender for acquisition.
Escrow Sale Fee - The fee paid for the escrow for a purchase. Not applicable in case of refinance.
Escrow Loan Fee - For a sale or purchase, the fee payments is a loan tie-in fee if required on the escrow company. For a remortgage, the license paid is for the escrow of a refinance.
