A

Accident – An unforeseen and unintentional event resulting in injury, loss, or damage.
Act of God – A natural event (such as floods, earthquakes, or storms) that is beyond human control and not caused by negligence.
Actual Cash Value (ACV) – The value of an insured item at the time of loss, taking depreciation into account.
Adjuster (Claims Adjuster) – A professional who assesses insurance claims to determine the amount the insurer should pay.
Agent – A person or company authorized to sell insurance policies on behalf of an insurer.
Annuitant – The person who receives payments from an annuity contract.
Annual Limit – The maximum amount an insurance policy will pay for covered claims in a given year.
Applicant – The person or entity applying for an insurance policy.
Assessor – A professional who evaluates property damage and loss for insurance purposes.
Asset – Any valuable property or resource that an individual or business owns and can insure.
Assurance – A term often used interchangeably with “insurance,” particularly in life insurance.
Auto Insurance – Coverage that protects against financial loss from vehicle-related accidents or damages.

B

Beneficiary – The person or entity designated to receive benefits from an insurance policy.
Binder – A temporary insurance contract providing coverage until the final policy is issued.
Bodily Injury Liability – Coverage that pays for injuries caused to others in an accident where the insured is at fault.
Broker – An independent professional who helps clients find and purchase insurance policies from various insurers.
Burglary Insurance – Coverage that protects against losses resulting from theft or burglary.
Business Interruption Insurance – Coverage that compensates businesses for lost income due to unexpected disruptions like fires or natural disasters.

Cancellation – The termination of an insurance policy before its expiration date.
Capitation – A payment model where a healthcare provider is paid a fixed amount per patient rather than per service.
Claim – A formal request by an insured person for compensation due to a covered loss.
Co-insurance – The percentage of costs the insured must pay after meeting the deductible.
Comprehensive Coverage – Insurance that covers damages to an insured vehicle from non-collision events (theft, fire, natural disasters, etc.).
Coverage – The specific protection provided by an insurance policy.
Critical Illness Insurance – A policy that pays a lump sum if the insured is diagnosed with a serious illness like cancer or heart disease.

Deductible – The amount an insured must pay out of pocket before the insurer covers a claim.
Depreciation – The decrease in the value of an insured asset over time.
Disability Insurance – Coverage that provides income if the insured becomes unable to work due to illness or injury.
Double Indemnity – A life insurance clause that pays twice the policy amount if death occurs under specific circumstances, such as an accident.

Endorsement (Rider) – An amendment to an insurance policy that modifies its coverage.
Exclusion – A specific condition or circumstance that is not covered by an insurance policy.
Excess (Deductible) – The amount an insured must pay before the insurer covers the rest of the claim.
Expiration Date – The date an insurance policy ends unless renewed.

Face Value – The amount payable upon the maturity of a life insurance policy or upon the insured’s death.
First-Party Coverage – Insurance that covers the policyholder’s own losses, rather than third-party claims.
Flood Insurance – A policy that covers damages caused by flooding, typically not included in standard homeowner’s insurance.

Grace Period – A period after a missed payment during which an insurance policy remains active.
Group Insurance – A single insurance policy covering a group of people, such as employees of a company.

Hazard – Any condition that increases the likelihood of an insurance loss.
Health Insurance – Coverage that pays for medical expenses incurred by the insured.
Homeowners Insurance – A policy that protects a home and its contents from risks such as fire, theft, and liability.
Hospital Cash Plan – A type of health insurance that provides a daily cash benefit for hospital stays.

Indemnity – Compensation paid to restore an insured party to their financial position before a loss.
Insurable Interest – A financial or personal interest in the insured item or person that would cause financial loss if damaged or deceased.
Insurance Policy – A contract between the insurer and the insured detailing coverage, terms, and conditions.
Insured – The person or entity covered by an insurance policy.
Insurer – The insurance company that provides coverage and pays claims.
Joint Life Insurance – A life insurance policy covering two people, usually spouses.
Key Person Insurance – A policy covering a crucial employee whose loss would financially impact a business.

Liability – Legal responsibility for damages or injuries to others.
Life Insurance – A policy that provides financial compensation upon the insured’s death.
Lapse – Termination of a policy due to non-payment of premiums.
Long-Term Care Insurance – Coverage for extended medical and personal care needs.

Marine Insurance – Coverage for ships, cargo, and marine liabilities.
Maturity Date – The date when an insurance policy’s benefits become payable.
Moral Hazard – The increased likelihood of risky behavior due to having insurance coverage.
Named Insured – The primary person covered under a policy.
No-Claim Bonus – A discount for not making claims during a policy period.
Occupational Hazard – Workplace risks that can impact insurance coverage and premiums.

Policyholder – The person who owns an insurance policy.
Premium – The amount paid for an insurance policy.
Public Liability Insurance – Coverage for injuries or damages caused to third parties.
Reinsurance – When an insurer transfers part of its risk to another insurance company.
Subrogation – The insurer’s right to recover claim costs from a third party responsible for the loss.

Term Insurance – A life insurance policy that provides coverage for a fixed period.
Third-Party Insurance – Coverage that pays for damages to others but not the insured’s own losses.
Underwriting – The process of evaluating risks and determining insurance terms.
Waiting Period – The time before certain policy benefits take effect.