Accident
Activities of Daily Living
Actual Charge
Adhesion
A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
Admitted (Authorized) Insurer
Adult Day Care
Adverse Selection
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
Agent
An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer.
Aleatory
Alien Insurer
An insurance company that is incorporated outside the United States.
Alzheimer's Disease
Apparent Authority
The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Approved Amount
Assignment
Attained Age
Attending Physician's Statement (APS)
Avoidance
Beneficiary
Benefit Period
Boycott
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
Buyer's Guide
Cafeteria Plan
Carriers
Cease and Desist Order
A demand of a person to stop committing an action that is in violation of a provision.
Certificate of Authority
Certificate of Insurance
Claim
Coercion
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Coinsurance
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
Coinsurance Clause
Commissioner
Concealment
The withholding of known facts which, if material, can void a contract.
Conditional Contract
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Consideration
The binding force in a contract that requires something of value to be exchanged for the transfer of risk. The consideration on the part of the insured is the representations made in the application and the payment of premium; the consideration on the par
Consideration Clause
Consumer Report
Contract
An agreement between two or more parties enforceable by law.
Coordination of Benefits
Copayment
Custodial Care
Death Benefit
The amount payable upon the death of the person whose life is insured.
Deductible
Defamation
An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation.
Director
Disability
A physical or mental impairment, either congenital or resulting from an injury or sickness.
Disability Income Insurance
Disclosure
An act of identifying the name of the producer, representative or firm, limited insurance representative, or temporary insurance producer on any policy solicitation.
Domestic Insurer
An insurance company that is incorporated in the state.
Domicile of Insurer
Insurer's location of incorporation and the legal ability to write business in a state.
Elimination Period
Emergency
Enrollment Period
Estoppel
A legal impediment to denying a fact or restoring a right that has been previously waived.
Excess Charge
Expiration
Exposure
A unit of measure used to determine rates charged for insurance coverage.
Express Authority
The authority granted to an agent by means of the agent's written contract.
Fair Credit Reporting Act
Fiduciary
An agent/broker who handles insurer's funds in a trust capacity.
Foreign Insurer
An insurance company that is incorporated in another state.
Fraternal Benefit Societies
Fraud
Free Look
Grace Period
Group Health Insurance
Hazard
A circumstance that increases the likelihood of a loss.
Hazard, Moral
The effect of a person's reputation, character, living habits, etc. on his/her insurability.
Hazard, Morale
The effect a person's indifference concerning loss has on the risk to be insured.
Hazard, Physical
A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth.
Health Insurance
Health Maintenance Organization (HMO)
Health Reimbursement Accounts (HRAs)
Health Savings Accounts (HSAs)
Hospice
A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare.
Implied Authority
Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.
Indemnify
Insurability
Insurance
A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured) against a loss by a specified future contingency or peril in return for payment of a premium.
Insured
The person or organization that is protected by insurance; the party to be indemnified.
Insurer
Insuring Clause
Intermediaries
Intermediate Care
Lapse
Law of Large Numbers
A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss.
Limited Policies
Limiting Charge
Lloyd's Associations
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Long
Long Term Disability Insurance
Loss
The reduction, decrease, or disappearance of value of the person or property insured in a policy, by a peril insured against.
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Medicaid
Medical Information Bureau (MIB)
Medicare
Medigap
Misrepresentation
A false statement or lie that can render the contract void.
Morbidity Rate
Multiple
Mutual Companies
Insurance organizations that have no capital stock, but are owned by the policyholders.
Noncancelable
Nonrenewal
A termination of a policy by an insurer on the anniversary or renewal date.
Nonresident Agent
Notice of Claim
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
Omnibus Budget Reconciliation Act
Out
Payment of Claims
Peril
The cause of a possible loss.
Personal Contract
Policyholder
Policyowner
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
Preferred Provider Organization (PPO)
Premium
A periodic payment to the insurance company to keep the policy in force.
Primary Policy
A basic, fundamental insurance policy which pays first with respect to other outstanding policies.
Private Insurance
Insurance furnished by nongovernmental insuring organizations.
Producer
Proof of Loss
Provider
Pure Risk
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Rebating
Any inducement offered in the sale of insurance products that is not specified in the policy.
Reciprocity
Reduction
Lessening the possibility or severity of a loss.
Reinsurance
A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.
Representations
Statements made by the applicant on the insurance application that are believed to be true, but are not guaranteed to be true.
Rescission
Reserve
Respite Care
Rider
Risk
Uncertainty as to the outcome of an event when two or more possibilities exist.
Risk, Pure
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Risk, Speculative
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Short
Short
Sickness
Stock Companies
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
Subrogation
Substandard Risk
Superintendent (Commissioner, Director)
The head of the state department of insurance.
Terminally Ill
Twisting
A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage.
Underwriter
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Underwriting
The process of reviewing, accepting or rejecting applications for insurance.
Unilateral Contract
A contract that legally binds only one party to contractual obligations after the premium is paid.
Utmost Good Faith
The fair and equal bargaining by both parties in forming the contract, where the applicant must make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk.
Waiting Period
Time between the beginning of a disability and the start of disability insurance benefits.
Waiver
The voluntary abandonment of a known or legal right or advantage.
Warranty
A material stipulation in the policy that if breached may void coverage.
Workers Compensation
Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as the result of an on-the-job hazard.