Insurance Glossary

Like other industries, the insurance sector has a set of terminologies commonly used in this business. We have created and defined a list of insurance terms. These definitions are just general definitions, these terms could be defined differently by individual carriers.

Insurance Key Words

Insurance Glossary

 

Term

Definition

Accident An unexpected event or circumstance that happens without deliberate intent
Adjuster A person who examines claims and recommends options for settlement based on damage assessments and insurance policies maintained.
Agent A person who, independently or as a representative of a company, sells, facilities, or negotiates insurance policies.
Asset
Annuity An agreement by insurer to provide income for a specified period, or during the life of the annuitant(s).
Appraisal Determining the value of an asset
Asset Risk The Measure of default potential or market changes market an asset.
Application The forms used to initially apply for insurance.
Arson The act of deliberately setting fire
Benefits The payments made by the insurance company when the insurance claim is approved.
Blanket Coverage Coverage for one or several properties and liabilities
Broker The intermediary between the insured/potential insured and the insurance company. The broker acts on behalf of the insured.
Business Owner Policy A policy that combines the required basic coverages like property, liability and business interruption. This policy is targeted at small- to medium-sized businesses.
Captive Agent An agent who works for one or specific insurer exclusively.
Claim A request made to an insurer for compensation for a loss occurred.
Conditions The insurance contract requirements that the insured must maintain in order to qualify for compensation.
Commercial Lines Lines of insurance that cover businesses, professionals and commercial entities.
Clause A term used to refer to a particular part of a policy or endorsement.
Declarations The policy statements about applicant and the property covered like occupation and property details.
Deductible Part of the insured loss reimbursed by the policy holder.
Embezzlement The inappropriate use of money or property placed at one’s care.
Endorsement An amendment or addition to a policy to enhance or restrain its coverage.
Expiration The date on which the policy will terminate.
Hazard A situation that increases the likelihood of losses from a risk or can affect the severity of the loss.
Exposure The risk of a potential loss.
Foreign Insurer An insurance company selling policies in a state other than their resident state.
Homeowners Insurance A combination of coverage for the risks of owning a home including losses due to fire, burglary, earthquake, and other perils.
Insurance A device transferring the risk from an individual to take on the losses suffered by the insured to a certain extent.
Insured The party covered by an insurance policy. Sometimes referred to as the ‘policyholder’.
Insurer The insurance company or the party in an insurance contract that provides the insurance policy.
Lapse The termination of an insurance policy due to the failure to pay the premiums on time.
Liability
Loss Bodily injury or a physical damage to Physical damage to property
Market Value The price one can get from the asset’s current sale.
Moral Hazard Personality characteristics that elevate the likelihood of losses. Includes not being careful about the insured property knowing that the insurer will replace the property if damaged or stolen.
Morale Hazard Negligence of the insured that might cause probable loss.
Named Insured The person defined as the insured in the policy contract.
Named Perils Perils covered on the property that has been insured.
Negligence Failure to use the extent of caution resulting in loss or damage to oneself or others.

 

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