Adequacy of Coverage refers to the sufficiency of insurance protection to repay the insured in the event of a loss, ensuring they are adequately compensated and can recover without significant financial detriment.
All Risk or All Peril insurance covers each and every loss except for those specifically excluded, providing the broadest type of property protection available.
The insured's age at a specific point in time, often used to determine premiums and eligibility in insurance policies.
Blanket insurance is a single policy that covers multiple kinds or locations of property, providing comprehensive coverage ideal for businesses with assets spread across different locations.
Cash surrender value refers to the amount a policyowner is entitled to receive from an insurance company upon surrendering a life insurance policy with cash value. This sum is the cash value stated in the policy minus any surrender charges and outstanding loans with interest.
Cash Value Life Insurance provides a permanent life insurance option that includes a savings element, allowing policyholders to accumulate a cash reserve over time within their insurance policies.
A certificate giving abbreviated details of the cover provided by an insurance policy. In motor insurance or employers' liability policies, the required information must be shown on the certificate of insurance, and policy cover does not come into force until the certificate has been delivered to the policyholder.
A Claim Report is a document furnished by the adjuster to the insurance company (insurer) that details the amount of payment the insurer is legally obligated to provide to or on behalf of the insured under the terms of the policy.
In an insurance policy, sentences and paragraphs describing various coverages, exclusions, duties of the insured, locations covered, and conditions that suspend or terminate coverage.
Convertible Term Life Insurance is a type of life insurance coverage that can be converted into permanent insurance regardless of the insured's physical condition, and without a medical examination.
The date when an insurance company formally issues a policy. This date can differ from the actual effective date of the insurance coverage.
Definition, explanation, and discussion around the term 'Death Benefit,' including examples, FAQs, related terms, online resources, and suggested books for further readings.
Income provided under a disability policy, distinct from Workers' Compensation, usually expressed as a percentage of the insured's income prior to disability, with limits on the amount and duration of benefits.
Disability Income Insurance is a type of health insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of illness, sickness, or accident.
In life insurance, a dividend addition refers to the increase in the face value of the policy, which is purchased using the dividends earned on that policy.
An addition to the standard fire insurance policy that expands the scope of coverage to include additional perils such as riot, civil commotion, smoke, and more.
A Family Income Policy is an insurance policy that provides extra income during the period when children are growing up. This life insurance contract combines ordinary life and decreasing term insurance.
A fidelity bond is an insurance policy that provides coverage against specified losses arising from dishonest acts or defalcations by an employee.
A follow-up letter is a sales letter sent to someone who has made an inquiry, inviting them to make a purchase. It is part of the inquiry conversion process, often used for high-value items such as automobiles or insurance policies.
In the context of insurance, full coverage refers to an insurance policy that covers all insured losses in full, without leaving the policyholder responsible for any out-of-pocket expenses related to a covered event.
Guaranteed insurability refers to an insurance policy feature that allows an individual to purchase additional life insurance without undergoing a medical examination, under specific conditions, thereby ensuring continued coverage regardless of changes in health status.
An insurance policy designed specifically for homeowners, providing protection against losses caused by common disasters, hazards, theft, and liability. Coverage and costs of homeowner’s insurance policies can vary widely.
An incontestable clause is a provision within a life insurance policy that prevents the insurer from voiding the policy after a specified period, usually two years, due to misrepresentation or concealment by the insured.
An attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community.
Insurable interest refers to the legal right to insure arising out of a financial relationship, criminal liability, or a connection that warrants protection through an insurance policy for a person or entity.
Insurable risk refers to a risk that meets the criteria set by an insurance company, allowing it to be covered by an insurance policy. This type of risk must be measurable, accidental, standardly classified, and have a premium proportional to the potential loss.
An insurance claim is a formal request made by the insured to an insurance company for payment of a benefit related to an incident covered by their insurance policy.
An insurance company is a business entity that provides coverage, by contract, wherein the insurer agrees to compensate or indemnify another party (the insured) for specified loss or damage arising from certain risks.
An insurance policy is a contract between an insured person or entity and an insurance company, specifying the risks covered and the premiums that must be paid to maintain the policy. It serves as the reference document to determine coverage eligibility for claims.
An insurance settlement involves receiving proceeds from an insurance policy. The terms of the settlement are outlined in the policy and may include options like immediate lump sums or periodic payments.
An individual or entity whose interests are protected under an insurance policy designed to indemnify against loss of property, life, health, etc.
An insuring agreement in a liability insurance policy outlines the obligations of the insurer to provide coverage for specific risks or events that may result in a claim against the insured.
Life Assurance is an insurance policy that pays a specified amount of money on the death of the life assured or, in the case of an endowment assurance policy, on the death of the life assured or at the end of an agreed period, whichever is the earlier.
A provision in an insurance policy that precludes the insurer from disputing the validity of the policy on the basis of fraud or mistake after a specified period, typically two years.
An individual or entity that owns an insurance policy and has the right to exercise the policy's privileges.
Property Depreciation Insurance coverage ensures replacement of damaged or destroyed property on a new replacement cost basis without any deductions for depreciation. This coverage is equivalent to replacement cost property insurance.
A type of life insurance policy that allows the insured to renew the coverage without providing evidence of insurability, regardless of physical health.
An invitation from an insurer to continue an insurance policy that is about to expire by paying the renewal premium. The renewal premium is shown on the notice; it may differ from the previous premium, either because insurance rates have changed or because the insured value has changed.
An endorsement to an insurance policy that modifies clauses and provisions of the policy, adding or excluding coverage.
The savings element in cash value life insurance represents the portion of the policy that accumulates value over time, which policyholders can potentially access through withdrawals or surrenders. It functions both as a savings and investment vehicle.
A secondary beneficiary is an individual or entity designated to receive assets or benefits if the primary beneficiary is unable or unwilling to do so. Often used in insurance policies, estate planning, and retirement accounts.
An umbrella policy is an insurance policy providing additional liability coverage over and above the limits of a basic insurance liability policy. It is designed to provide extra protection.
A life insurance policy that combines the features of universal life insurance and variable life insurance, allowing policyholders to direct excess interest credited to the cash value account based on investment results in various separate accounts such as equities, bonds, and real estate.
A clause in an insurance policy providing that all policy premiums will be waived if the policyholder becomes seriously ill or disabled, either permanently or temporarily, and is therefore unable to pay the premiums.
Whole life insurance is a form of life insurance policy that offers both protection in the event of the insured’s death and builds cash surrender value at a guaranteed rate, which can be borrowed against. The policy remains in force for the lifetime of the insured, given that it is neither canceled nor lapses. The policyholder pays a fixed annual premium that does not increase with age.
