Insurance Terms Glossary
Insurance. A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Indemnification: The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.
Policy Limits. This term describes the amount of coverage that is available for any particular type of claim. Your limits are the maximum amount that the insurance company will pay out in any situation.
Insured: A person or organization covered by an insurance policy.
Carrier: The insurance company or insurer.
Insurer: An organization that provides insurance.
Limit: The maximum amount of protection purchased by the insured for a specific coverage.
Application: A signed statement by a prospective insured requested insurance. This can be signed electronically.
Binder: A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.
Policy: The written documents of a contract for insurance between the insurance company and the insured. Such documents include forms, endorsements, riders and attachments.
Policy Period: The period of time in which a policy is in effect. (For example, six months or one year).
Premium: The price of insurance an insured person pays for a specified risk for a specified period of time.
Policy Lapse: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
Declaration Page: That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.
Liability: Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.
Minimum Limits of Liability: The least amount of liability coverage that can be purchased, which is generally equivalent to the minimum amount required by state law. In determining rates, a carrier will use the basic limits to develop the base rates. If an insured person wants higher limits, the carrier applies an increased limits factor to the base rate in calculating the new premium for the increased coverage.
Homeowners Insurance: Protects homeowner's from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowner's insurance is subject to the terms, limits and conditions of your policy contract.
Flood. An overflowing of a large amount of water beyond its normal confines, especially over what is normally dry land.
Forced Placed Insurance: Insurance purchased by a bank or creditor on an uninsured debtor's behalf to cover the property, so that the creditor receives payment if the property is damaged or destroyed.
Act of God: Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods.
Peril: A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.
Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.
Replacement Cost. This will pay the full cost to repair an item or buy a new one to replace the damaged item
Actual Cash Value: The fair market value of property; technically, replacement cost less depreciation.
Agreed Value: A type of policy available for collectible, antique or custom vehicles that do not depreciate in value as the average car does.At the inception of your policy, you and your insurance company come to an "agreed value" for your vehicle and that is what will be paid out in the event of a total loss instead of actual cash value.
Negligence: The failure to exercise the care that is expected of a reasonable person in similar circumstances.
Appraisal: Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.
Umbrella Insurance: Provides high limits of additional liability coverage above the limits of your homeowner's and auto policy. In addition, it provides coverage that may be excluded by other liability policies.
Workers Compensation: A form of insurance required from employers that provides money as compensation for workers who are injured at work or contract an occupational disease.
The General Liability Insurance definition refers to a plan that insures your business against lawsuits due to bodily injury, personal injury, property loss or advertising injury. If a complaint goes to court, your insurance benefits would pay for your legal fees and for damages awarded to the plaintiff. General liability insurance secures your business's financial assets when you are involved in litigation due to an accident or mishap.
PROFESSIONAL LIABILITY INSURANCE Covers professionals for negligence and errors or omissions that injure their clients.
BLANKET INSURANCE Coverage for more than one type of property at one location or one type of property at more than one location.
COMMERCIAL LINES Products designed for and bought by businesses. Among the major coverages are boiler and machinery, business income, commercial auto, comprehensive general liability, directors and officers liability, fire and allied lines, inland marine, medical malpractice liability, product liability, professional liability, surety and fidelity, and workers compensation.
OCEAN MARINE INSURANCE Coverage of all types of vessels and watercraft, for property damage to the vessel and cargo, including such risks as piracy and the jettisoning of cargo to save the property of others. Coverage for marine-related liabilities. War is excluded from basic policies, but can be bought back.
Liability Investigation: The process of gathering information to determine the cause of an accident.
Combined Single Limit: Bodily Injury and Property Damage coverage expressed as one single amount of coverage.
Split Limit: Any insurance coverage with separately stated limits for different types of coverage.
Example: an automobile liability policy of 100/300/50 provides a maximum of $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and a property damage limit of $50,000 per accident.
Per Occurrence Limit: This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence)
Car Insurance: A form of insurance that protects against losses involving cars. Car insurance provides protection from losses resulting from owning and operating a car or vehicle. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating a car.
Bodily Injury. Means bodily harm, sickness or disease , including death that results.
Property Damage Liability Coverage: Pays for damage to someone else's property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.
Personal Injury Protection: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract.
Uninsured Motorist. The auto policy provision pays the policyholder in the event an accident is caused by a driver who has no liability insurance.
Medical Payments Coverage: Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.
Collision (COLL) covers your insured vehicle for physical damage that your car sustains when it hits, or is hit by, another vehicle, or another object. Collision also covers the upset of your vehicle, such as the unintentionally rolling or flipping of your vehicle.
Comprehensive or Other Than Collision insurance covers damage to your car from incidents other than collisions. This normally includes coverage for: Theft, Glass damage (such as a broken windshield),vandalism, fire,flood, Damage from falling objects or missiles, Damage sustained from hitting an animal or bird, Damage sustained due to severe weather such as hurricane, tornado, hail, etc.
Towing and Labor Costs: This endorsement, which is added to the physical damage coverage, provides reimbursement up to a specified limit to tow your vehicle or pay for on-site labor costs.
Rental Reimbursement: Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.
Agent and Broker. These are two different types of people who can help you to obtain auto insurance coverage. An agent generally works for only one insurance company, while a broker represents several.
No-fault Insurance. This term refers to the method of claims settlement used in certain provinces wherein no matter who is at fault in an accident, each insured has their claim paid by their own insurance company.
At-Fault: The party that is legally liable for the damages in an accident.
Hit and Run: An accident caused by someone who does not stop to assist or provide information
Principal Driver: The person who drives the car most often.
Private Passenger Automobile: A four-wheeled motor vehicle that is subject to motor vehicle registration and used for private personal use.
Motor Vehicle Record (MVR): A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.
Named driver exclusion: Endorsement on your auto policy that excludes a particular driver who has access to your car from coverage.
Named Non-Owner Policy: A policy endorsement for one who operates any non-owned automobile on a regular basis, such as driving a car provided by one's employer.
Inspection: Verification of a vehicle's physical condition.
Leased Vehicle: A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured
Lien holder: A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.
Garage Location: The zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.
Gap Insurance: If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.
Customized Equipment/Special Equipment: Items not included in standard insurance options available for cars. These may include extra electronic equipment, special paint or exterior items, or amenities added to the inside of a van or truck.
Passive Restraint System: A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.
Automobile Insurance Premium Discounts: Discounts offered to drivers for such safeguards as air bags, seat belts, good driving record, anti-theft devices, multiple vehicles, training courses, good grades, group membership, employment or degrees, pre-purchasing, low mileage, and renewal or prior insurance.
Insurable Interest: Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.
Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually charged for items like accidents, moving violations, or specific risks not handled by normal rating factors.
Total Loss: The condition of an automobile or other property when damage is so extensive that repair costs would exceed the value of the vehicle or property
Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.
Endorsement. This is something that is added to the standard terms of a policy in order to provide extra or specific coverage. You might add an endorsement to your auto insurance policy to cover expensive rims or other equipment.
Accident: A sudden, fortuitous event or an unexpected, unforeseen event, not under the control of an insured and resulting in a loss. Often used to refer to a collision or insurance event.
Salvage Title: A title of ownership on a car that was once deemed a total loss by an insurance company, but has since been repaired and allowed back on the roadways.
Accident Forgiveness: In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that some insurance carriers won't add a surcharge to your premium after your next at-fault accident.
SR-22: An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.
Material Misrepresentation: The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged or fails to disclose all the residents in a household.
Personal Property: Property that is not land or connected to land (real estate), such as furniture or jewelry.
No-Loss Form: A statement that is a signed form telling the insurance company there have not been any losses since a certain date.
Arbitration: A process of settling a dispute through an impartial party. It is used as an alternative to litigation.
Auto Repair/Claim Repairs: Insurance carriers have programs that maximize convenience when you have an auto insurance claim. It allows you to complete your vehicle's repair process at one location. Some CarInsurance.com carrier's claims adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through a rental car agency.
Underwriting: The process an insurer goes through to determine whether or not it will provide coverage for an applicant.
Tort: A private wrong or harm (other than a breach of contract) committed against another, resulting in legal liability. A tort is either intentional or accidental (negligent). Automobile liability insurance is purchased to protect one from suits arising from unintentional torts.
Reinstatement: The restoring of a cancelled policy to full force and effect.
Renewal: The process of keeping an active policy in force through the issuance of a renewal policy.
Renewal Date: The date that your insurance policy expires and the date that your renewed policy will begin.
Cancellation: Termination of an insurance contract before the end of the policy period, by the insured or insurer.
Expiration Date: The date your coverage ends. There is usually a time of day associated with this date, for example, an expiration date of 5/1/2002 at 12:01am. This means your coverage ends one minute after midnight on the date listed.
Deductible: Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.
Commercial Lines: Products designed for and bought by businesses.
Defensive Driver Discount: Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.
E-Bill: An electronic version of your bill that you can review online.
Financed Car: A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.
Renter's Insurance: Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured's property, not to losses that occur as a result of owning a home.
Risk: The chance of suffering a loss
Usage: This refers to the primary function or purpose in which you intend to operate your vehicle.
Subrogation: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.
Special Investigation Units: Your insurance carrier helps fight fraud through its special investigation unit, staffed with experts in fraud detection and investigation.
Joint Underwriting Association/JUA: Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice
Indemnification: The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.
Policy Limits. This term describes the amount of coverage that is available for any particular type of claim. Your limits are the maximum amount that the insurance company will pay out in any situation.
Insured: A person or organization covered by an insurance policy.
Carrier: The insurance company or insurer.
Insurer: An organization that provides insurance.
Limit: The maximum amount of protection purchased by the insured for a specific coverage.
Application: A signed statement by a prospective insured requested insurance. This can be signed electronically.
Binder: A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.
Policy: The written documents of a contract for insurance between the insurance company and the insured. Such documents include forms, endorsements, riders and attachments.
Policy Period: The period of time in which a policy is in effect. (For example, six months or one year).
Premium: The price of insurance an insured person pays for a specified risk for a specified period of time.
Policy Lapse: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
Declaration Page: That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.
Liability: Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.
Minimum Limits of Liability: The least amount of liability coverage that can be purchased, which is generally equivalent to the minimum amount required by state law. In determining rates, a carrier will use the basic limits to develop the base rates. If an insured person wants higher limits, the carrier applies an increased limits factor to the base rate in calculating the new premium for the increased coverage.
Homeowners Insurance: Protects homeowner's from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowner's insurance is subject to the terms, limits and conditions of your policy contract.
Flood. An overflowing of a large amount of water beyond its normal confines, especially over what is normally dry land.
Forced Placed Insurance: Insurance purchased by a bank or creditor on an uninsured debtor's behalf to cover the property, so that the creditor receives payment if the property is damaged or destroyed.
Act of God: Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods.
Peril: A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.
Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.
Replacement Cost. This will pay the full cost to repair an item or buy a new one to replace the damaged item
Actual Cash Value: The fair market value of property; technically, replacement cost less depreciation.
Agreed Value: A type of policy available for collectible, antique or custom vehicles that do not depreciate in value as the average car does.At the inception of your policy, you and your insurance company come to an "agreed value" for your vehicle and that is what will be paid out in the event of a total loss instead of actual cash value.
Negligence: The failure to exercise the care that is expected of a reasonable person in similar circumstances.
Appraisal: Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.
Umbrella Insurance: Provides high limits of additional liability coverage above the limits of your homeowner's and auto policy. In addition, it provides coverage that may be excluded by other liability policies.
Workers Compensation: A form of insurance required from employers that provides money as compensation for workers who are injured at work or contract an occupational disease.
The General Liability Insurance definition refers to a plan that insures your business against lawsuits due to bodily injury, personal injury, property loss or advertising injury. If a complaint goes to court, your insurance benefits would pay for your legal fees and for damages awarded to the plaintiff. General liability insurance secures your business's financial assets when you are involved in litigation due to an accident or mishap.
PROFESSIONAL LIABILITY INSURANCE Covers professionals for negligence and errors or omissions that injure their clients.
BLANKET INSURANCE Coverage for more than one type of property at one location or one type of property at more than one location.
COMMERCIAL LINES Products designed for and bought by businesses. Among the major coverages are boiler and machinery, business income, commercial auto, comprehensive general liability, directors and officers liability, fire and allied lines, inland marine, medical malpractice liability, product liability, professional liability, surety and fidelity, and workers compensation.
OCEAN MARINE INSURANCE Coverage of all types of vessels and watercraft, for property damage to the vessel and cargo, including such risks as piracy and the jettisoning of cargo to save the property of others. Coverage for marine-related liabilities. War is excluded from basic policies, but can be bought back.
Liability Investigation: The process of gathering information to determine the cause of an accident.
Combined Single Limit: Bodily Injury and Property Damage coverage expressed as one single amount of coverage.
Split Limit: Any insurance coverage with separately stated limits for different types of coverage.
Example: an automobile liability policy of 100/300/50 provides a maximum of $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and a property damage limit of $50,000 per accident.
Per Occurrence Limit: This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence)
Car Insurance: A form of insurance that protects against losses involving cars. Car insurance provides protection from losses resulting from owning and operating a car or vehicle. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating a car.
Bodily Injury. Means bodily harm, sickness or disease , including death that results.
Property Damage Liability Coverage: Pays for damage to someone else's property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.
Personal Injury Protection: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract.
Uninsured Motorist. The auto policy provision pays the policyholder in the event an accident is caused by a driver who has no liability insurance.
Medical Payments Coverage: Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.
Collision (COLL) covers your insured vehicle for physical damage that your car sustains when it hits, or is hit by, another vehicle, or another object. Collision also covers the upset of your vehicle, such as the unintentionally rolling or flipping of your vehicle.
Comprehensive or Other Than Collision insurance covers damage to your car from incidents other than collisions. This normally includes coverage for: Theft, Glass damage (such as a broken windshield),vandalism, fire,flood, Damage from falling objects or missiles, Damage sustained from hitting an animal or bird, Damage sustained due to severe weather such as hurricane, tornado, hail, etc.
Towing and Labor Costs: This endorsement, which is added to the physical damage coverage, provides reimbursement up to a specified limit to tow your vehicle or pay for on-site labor costs.
Rental Reimbursement: Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.
Agent and Broker. These are two different types of people who can help you to obtain auto insurance coverage. An agent generally works for only one insurance company, while a broker represents several.
No-fault Insurance. This term refers to the method of claims settlement used in certain provinces wherein no matter who is at fault in an accident, each insured has their claim paid by their own insurance company.
At-Fault: The party that is legally liable for the damages in an accident.
Hit and Run: An accident caused by someone who does not stop to assist or provide information
Principal Driver: The person who drives the car most often.
Private Passenger Automobile: A four-wheeled motor vehicle that is subject to motor vehicle registration and used for private personal use.
Motor Vehicle Record (MVR): A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.
Named driver exclusion: Endorsement on your auto policy that excludes a particular driver who has access to your car from coverage.
Named Non-Owner Policy: A policy endorsement for one who operates any non-owned automobile on a regular basis, such as driving a car provided by one's employer.
Inspection: Verification of a vehicle's physical condition.
Leased Vehicle: A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured
Lien holder: A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.
Garage Location: The zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.
Gap Insurance: If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.
Customized Equipment/Special Equipment: Items not included in standard insurance options available for cars. These may include extra electronic equipment, special paint or exterior items, or amenities added to the inside of a van or truck.
Passive Restraint System: A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.
Automobile Insurance Premium Discounts: Discounts offered to drivers for such safeguards as air bags, seat belts, good driving record, anti-theft devices, multiple vehicles, training courses, good grades, group membership, employment or degrees, pre-purchasing, low mileage, and renewal or prior insurance.
Insurable Interest: Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.
Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually charged for items like accidents, moving violations, or specific risks not handled by normal rating factors.
Total Loss: The condition of an automobile or other property when damage is so extensive that repair costs would exceed the value of the vehicle or property
Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.
Endorsement. This is something that is added to the standard terms of a policy in order to provide extra or specific coverage. You might add an endorsement to your auto insurance policy to cover expensive rims or other equipment.
Accident: A sudden, fortuitous event or an unexpected, unforeseen event, not under the control of an insured and resulting in a loss. Often used to refer to a collision or insurance event.
Salvage Title: A title of ownership on a car that was once deemed a total loss by an insurance company, but has since been repaired and allowed back on the roadways.
Accident Forgiveness: In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that some insurance carriers won't add a surcharge to your premium after your next at-fault accident.
SR-22: An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.
Material Misrepresentation: The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged or fails to disclose all the residents in a household.
Personal Property: Property that is not land or connected to land (real estate), such as furniture or jewelry.
No-Loss Form: A statement that is a signed form telling the insurance company there have not been any losses since a certain date.
Arbitration: A process of settling a dispute through an impartial party. It is used as an alternative to litigation.
Auto Repair/Claim Repairs: Insurance carriers have programs that maximize convenience when you have an auto insurance claim. It allows you to complete your vehicle's repair process at one location. Some CarInsurance.com carrier's claims adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through a rental car agency.
Underwriting: The process an insurer goes through to determine whether or not it will provide coverage for an applicant.
Tort: A private wrong or harm (other than a breach of contract) committed against another, resulting in legal liability. A tort is either intentional or accidental (negligent). Automobile liability insurance is purchased to protect one from suits arising from unintentional torts.
Reinstatement: The restoring of a cancelled policy to full force and effect.
Renewal: The process of keeping an active policy in force through the issuance of a renewal policy.
Renewal Date: The date that your insurance policy expires and the date that your renewed policy will begin.
Cancellation: Termination of an insurance contract before the end of the policy period, by the insured or insurer.
Expiration Date: The date your coverage ends. There is usually a time of day associated with this date, for example, an expiration date of 5/1/2002 at 12:01am. This means your coverage ends one minute after midnight on the date listed.
Deductible: Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.
Commercial Lines: Products designed for and bought by businesses.
Defensive Driver Discount: Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.
E-Bill: An electronic version of your bill that you can review online.
Financed Car: A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.
Renter's Insurance: Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured's property, not to losses that occur as a result of owning a home.
Risk: The chance of suffering a loss
Usage: This refers to the primary function or purpose in which you intend to operate your vehicle.
Subrogation: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.
Special Investigation Units: Your insurance carrier helps fight fraud through its special investigation unit, staffed with experts in fraud detection and investigation.
Joint Underwriting Association/JUA: Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice
