This chapter also introduces the fundamental insurance equation, a key concept that is referenced frequently in other chapters. Learn insurance industry vocabulary that will help you better understand your insurance policies. A person licensed by the state insurance authority to sell insurance products. Agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Basic insurance terms and definitions flashcards quizlet. Structured settlement a monetary legal agreement often paid out as an annuity rather than in a lump sum. If there is any conflict between these definitions and the provisions of the.
Start studying basic insurance terms and definitions. The amount of outofpocket expenses that you or your business must pay before the payment is made by an insurer. All are extremely important but on this first page, we have tried to explain in plain english what the most important and. Jul 31, 2014 below are some of the basic health insurance terms and dont miss the handy dandy chart showing how theyre used. Insurance insurance is a contract in which an insurance company promises to compensate an insured. This list is in no way comprehensive, but serves as an informational tool for our members. Agent the insurance company representative who sells policies on behalf of the insurer. An insurance policy describes the rights and obligations of both parties.
The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Foreword adult basic education, the organisations are working together to help tackle financial literacy and to address the issue of access to financial products and services for those with literacy and numeracy difficulties. Premium the amount you pay monthly for your health insurance plan. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies. The basic causes of loss form cp 10 10 provides coverage for the following named perils. The agent represents the insurance company in all transactions. The terms of an insurance contract are embodied in a w ritten document called the insurance policy. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. With the help of our easy to follow basic terminology guide, youll be able to start comparing quotes from multiple national providers online in just minutes. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Agent a person or a group of people selling insurance on behalf of an insurance company.
Consumer glossary national association of insurance. We intend to add more definitions as we find more terms that might useful to our users and insurance consumers. Insurance helps individuals, through the sharing of loss, to sustain a normal standard of living and at the same time helps the overall economy in the event of loss. Understanding of basic insurance terms is particularly low among the currently uninsured. Insuredthe term insured refers to the person who has taken insurance against various risks and who pays a premium. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data.
It is critical that you know and understand the public liability insurance definition as many large and small companies will depend on your expertise when choosing a policy. Insureris the company which accepts risks after receiving premiums and pays claims. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. The dental services, procedures, and prescription drugs your plan covers. Insurance professionals with whom you may come into contact should be prepared to. Such property must be used by the business operation. Allowable charge sometimes known as the allowed amount, maximum allowable, and usual, customary, and reasonable ucr charge, this is the dollar amount considered by a health insurance company to be a reasonable charge for. Basic insurance terms posted on june 3, 2015 august 11, 2015 by agentinsure sometimes the insurance buying process can be a bit confusing, especially when you shop for coverage online. A statement of coverage issued to an individual insured under a group insurance contract, outlining the insurance benefits and principal provisions applicable to the member. Notification to the insurance company that a loss has occurred and a demand of payment for the loss, as provided by the terms of the insurance policy.
Insurance handbook insurance information institute. These definitions do not alter or modify the terms of any insurance contract. Insurance terminology north american training group. Principles of general insurance principles of insurance 58 b in motor insurance.
On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. The defined terms and coverage provisions in your policy or certificate of insurance, such as reasonable and customary, may be different from the general information provided below, and the policy or certificate language will prevail. Mar 25, 2020 insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. Print and pdf formats, and quantity discounts are available for most. To gain insight into your companys insurance policy, its helpful to have a grasp of basic business insurance terms. Sometimes the insurance buying process can be a bit confusing, especially when you shop for coverage online.
This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. This should be equivalent to paid premiums, in most instances. Insurance bureau of canada are indicated with an asterisk. Basic causes of loss form insurance glossary definition. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Causes of loss forms establish and define the causes of loss or perils for which coverage is provided. Simply having the basic understanding of insurance definitions can make the difference between having a plan that will cover you for the majority of your medical expenses and one that. The difference reflects the insurers expenses for operating the plan. You buy an insurance policy on the name of your wife for an insurance cover of rs. Iec, developed the general insurance code of practice the code. Actuary a professional trained in the mathematics of insurance and risk management, including the calculations of.
Type of packing, mode of carriage, name of carrier, nature of goods, the route. A fee or percentage of the premium paid to an insurance broker or agent. Insurance terminology north american training group, inc. Confidence in understanding these terms is much higher among those in the marketplace target population who are currently purchasing nongroup coverage 53. If you run an insurance brokerage, you will need to know about a wide variety of policy types that are available to both business and the general public. Even if a service is covered, you may still need to pay a deductible, copayment or coinsurance. The type of vehicle, the purpose of its use, its age model, cubic capacity and the fact that the driver has a consistently bad driving record. When making decisions about health coverage, consumers should know the specific meanings of terms used to. Many of the terms you encounter when dealing with health insurance are not familiar. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well. An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without adjustment to. The current commercial time element coverage forms are. Notification to an insurance company that you believe a payment is due to you or your company under the terms of the policy.
Conventional indemnity plan an indemnity that allows the participant the choice of any provider without effect on reimbursement. This can be a deductible, copayments, or coinsurance see separate definitions of these terms. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Important insurance terms finding an affordable student health insurance plan can be difficult, especially if there are insurance terms you dont understand.
Understanding business insurance terminology trusted choice. The az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Weve curated a list of advanced and basic insurance terms and their definitions to better help you understand the often confusing world of insurance. Every industry has its own jargon, and the property and casualty insurance business is. The written application is considered part of the policy if. A person who investigates and settles losses for an insurance carrier. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. No insurance website could be complete without offering and index of insurance terms and definitions. The insurance council of australia, as a response to the needs of the insurance industry and with the assistance of the insurance enquiries and complaints ltd. The terms listed below introduce our members to basic insurance terminology used throughout the industry.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Glossary of life insurance terms department of financial. Insurance represents many benefits to society such as recovery from unexpected loss at an affordable cost for most people. Common health insurance terms and definitions wps health. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Please read your official policy for full details about coverages.
It also places restrictions on the amount of costsharing that patients must pay for these services. This can be a deductible, copayments, or co insurance see separate definitions of these terms. Actuary someone who uses statistics and mathematical models to calculate insurance risks and premiums. Insured the individual whose property or liability is covered by an insurance policy. Insurer is the company which accepts risks after receiving premiums and pays claims. A contract of insurance is that whereby one party, the insurer, undertakes, for a premium or an assessment, to make a payment to another party, the policyholder or a third party, if an event that is the object of a risk occurs. These include basic activities such as eating, bathing, dressing, walking.
Where the property insured is completely destroyed or so badly damaged that it. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. As weve said, an insurance policy is a legally binding contract between two parties. While these terms can be confusing, the better you understand them, the better you will be prepared to successfully gain coverage and access to the treatments that are right for you. Below are some commonly used insurance terms and their meanings. Insurance a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Public understanding of basic health insurance concepts on. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only. Insurance policy over and above a basic liability policy.
Get a free online adult life insurance quote or call us at 18007042180 to get started. Can be liable for an accident that involves an insured person vehicle 3. Policy forms vary i n complexity depending upon the type of. Coverage excludes shortterm medical insurance, the federal employees health benefit program and noncomprehensive coverage such as basic hospital. Below are some of the basic health insurance terms and dont miss the handy dandy chart showing how theyre used. Represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. The language of insurance can be quite complex and confusing. Oct 14, 2014 for example, gerber life customer service representatives can help you to understand basic insurance terminology, decide how much life insurance you need and can afford, find out how to choose the best kind of policy for you, and assist you in other ways. A company person whos named as an additional interest on a policy 2. A legal definition of insurance that appears in many insurance laws is the. There may be certain risks regarding the basic honesty and integrity of a person. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. Basic limits the minimum amounts of insurance for which it is the practice to quote premiums in liability insurance. Property and casualty insurance glossary the bottom line we hope this article on property and casualty insurance glossary was informative.
Insurance agent a legal representative of one or more insurers for which the representative has a contractual agreement to sell insurance. Insuranceinsurance is a contract in which an insurance company promises to compensate an insured. One party is the insured person or organization and the other is the insurance company. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well business terminology shouldnt be reserved for insurance agents. Liability for damages even though fault or negligence cannot be proven. This page provides an index of insurance terms and. Allowable charge sometimes known as the allowed amount, maximum allowable, and usual, customary, and reasonable ucr charge, this is the dollar amount considered by a health insurance company to be a reasonable charge for medical services or supplies based on the rates in your area. It is important to understand the following legal terms that relate to insurance. Make sure you know the basics before you buy your next insurance policy.
Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. Dictionary of insurance terms a absolute liability. Surcharge additional cost added to the basic premium, usually due to atfault claims or legal action. For example, gerber life customer service representatives can help you to understand basic insurance terminology, decide how much life insurance you need and can afford, find out how to choose the best kind of policy for you, and assist you in other ways. Even if a service is covered, you may still need to pay a deductible, copayment or co insurance. Iso, commercial property insurance causes of loss forms. The term property insurance includes many lines of available insurance. Before you go through the below terms lets take an example of an insurance policy which will help you to better understand the below terms.
1367 1254 839 1052 657 1511 514 144 1631 558 511 136 1610 1442 591 1114 1532 887 1657 346 1218 90 926 1218 1269 1485 1392 1669 797 1515 1528 476 388 145 206 6 425 1437 1377 1122 241 81 86 578 1140 1035 769 1289 135