Monday, November 26, 2018

26 Key Insurance Terms & Their Definitions

Co-insurance - is spreading of risk among multiple organizations.

Co-payment - is a fixed amount of pocket paid by insurer for covered items.
Deductible - is an amount paid out of pocket by the policy holder before an insurer paying to any expenses.
Actual cash value - is the amount equal to the replacement cost minus deprecation of stolen or damaged material.. 
Adverse selection - when seller have information that buyers don't on specific aspects of product quality.
Clash value - is a cash amount offered to the policy-owner by issuing life carrier upon call out of the contract.
Claimis a request to insurance company for compensation of covered damage or loss.
Free lock - is a period that last for 10 or more days depending on the insurer..
the contract holder can decide whether or not to keep it and if the holder want's to cancel the owner can receive a full refund.
Grace Period - is amount of time after the premium is due in which a policyholder can make a premium payout without coverage lapsing.
Insurance score - is a score calculated from information on anyone's credit report
Insurer - is an insurance company
Key person insurance - or key employee insurance is an important form of business insurance.
Qoute - is an estimate of what your rate would be with potential insurance carrier.
Replacement value - is an amount of an entity that could have to pay to replace an asset according it's present worth..
Sub insured - is a limitation of insurance policy on the amount of compensate available to cover a damage or loss.
Under insured - is a level of insurance coverage against a particular form of losses.
Risk pool - is the form of risk management often practiced by an insurance companies.
Loss reserving - is an estimate of insurance company liability from the future claim.
Life assured - is a persons whose life is covered in the insurance contact..
Proof of insurance - is a document that a person can provide to another individual to prove that person has verified insurance with an insurance company..
Policy holder - also called policy-owner is a company or anyone that buy an insurance product from any insurance company..
Policy tenure - is an insurance plan period ranging from maximum 100 and minimum 1 years or whole life..
Premium - is the amount of money that a business or individual must pay for an insurance company.
Pre-existing condition - is a term used for health insurance and it's condition for a patient has already received medical advice to enroll in new medical insurance plan.
Subrogation - is pursue of a third party that causes an insurance loss to the insurer.

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