Insurance Glossary

Insured - Person/Persons covered in insurance policy

Insurer - insurance company

Insured property - Property covered in insurance policy in case of property insurance

Agent - Individual who sells and services insurance policies in either of two classifications:

•    Independent agent represents at least two insurance companies

•    Direct or career agent represents only one company and sells only its policies.

Broker - Insurance salesperson that searches the marketplace in the interest of clients, not insurance companies.

Casualty Insurance - That type of insurance that is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others. It also includes such diverse forms as plate glass, insurance against crime, such as robbery, burglary and forgery, boiler and machinery insurance and Aviation insurance. Many casualty companies also write surety business

Claim - A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy

Coverage - The scope of protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, living and death benefits are listed.

Personal Lines - Insurance for individuals and families, such as private-passenger auto and homeowners insurance.

Policy - The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.

Premium - The price of insurance protection for a specified risk for a specified period of time.

Renewal - The automatic re-establishment of in-force status effected by the payment of another premium.

Subrogation - The right of an insurer who has taken over another's loss also to take over the other person's right to pursue remedies against a third party.

Underwriter - The individual trained in evaluating risks and determining rates and coverages for them. Also, an insurer. This process of accept with or without modification or rejecting the risk is called as Underwriting.

Deductible-  The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

Endorsement- A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions. Sometimes called a rider.

Effective date- The date from which policy is active.

Expiration date- The date at which policy is expired.

Policy Term- Duration in which the policy is effective.

Insurance score- It is used in underwriting decisions and to partially determine charges for premiums.

Actuary - A person highly trained in mathematics and statistics who calculates rates and dividends, and provides other statistical information for an insurance company.

Producers (Agents/Brokers) - Sells insurance for the company

Claims Adjusters - A person who may act either on behalf of the insurance company or the insured in settling a claim. Employee adjusters work for an insurer;independent adjusters represent the insurance company on a fee basis; and public adjusters represent the insured on a fee basis.

Regulators - Provides a framework for the operations of insurance business.

Rating - Pricing/Calculating Premium for all individual policies.