insurance
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
deductible
1. The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.
2. An amount subtracted from an individual's adjusted gross income to reduce the amount of taxable income.
benefit
An employer-sponsored retirement plan where employee benefits are sorted out based on a formula using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There
shared risk
risk shred between a company and their client (guess)
replacement cost
The cost to replace the assets of a company or a property of the same or equal value. The replacement cost asset of a company could be a building, stocks, accounts receivable or liens. This cost can change depending on changes in market value.
bodily injury
If you are at fault for an automobile accident, bodily injury coverage on an auto insurance policy pays the medical expenses and additional damages for which you are liable for other individuals injured in the accident.
medical payments
Any cost incurred in the prevention or treatment of injury or disease. Medical expenses include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches and wheelcha
professional liability insurance
Insurance that protects professionals such as accountants, lawyers and physicians against negligence and other claims initiated by their clients. It is required by professionals who have expertise in a specific area because general liability insurance pol
liability insurance
Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal pay
insurer
a person or company that underwrites an insurance risk; the party in an insurance contract undertaking to pay compensation.
insured risk
The likelihood that an insured event will occur, requiring the insurer to pay a claim. For example, in life insurance, the insurance risk is the possibility that the insured party will die before his/her premiums equal or exceed the death benefit. Insuran
premium
1. The total cost of an option.
2. The difference between the higher price paid for a fixed-income security and the security's face amount at issue.
3. The specified amount of payment required periodically by an insurer to provide coverage under a given i
claim
A formal request to an insurance company asking for a payment based on the terms of the insurance policy. Insurance claims are reviewed by the company for their validity and then paid out to the insured or requesting party (on behalf of the insured) once
coverage
(Ratio)A measure of a company's ability to meet its financial obligations. In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. The trend of coverage ratios over time is also st
face value
the value printed or depicted on a coin, banknote, postage stamp, ticket, etc., especially when less than the actual or intrinsic value.
negligence
failure to use reasonable care, resulting in damage or injury to another.
risk pool
A separate account established to hold income and expenses and is used when insurance groups come together to combine their premiums and paying out losses, typically used during disasters like floods, hurricanes, and other disasters.
policy holder
a person or group in whose name an insurance policy is held.
peril
exposure to injury, loss, or destruction
rating territory
A geographical grouping in which like hazards tend to equalize and permit the establishment of an equitable rate for the territory.
return of premium
An amount, equal to a fraction of the premium, which is given back to the insured in the case of a cancellation, an adjustment to the rate, or an overpayment of an advance premium.
floaters
A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates). Also known as "floating-rate debt.
renters insurance
A form of property insurance that provides coverage for a policy holder's belongings and liability within a rental property. Renter's insurance applies to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft or townho
health insurance
A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Health insurance i
property insurance
A policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft. Property insurance can include homeowners insurance, renters insurance, flood insurance and earthquake insurance. Perso
property damage
is damage to or the destruction of public or private property, caused either by a person who is not its owner or by natural phenomena.
homeowners insurance
A form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
In the U.S. t
life insurance
A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
term life insurance
A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanen
whole life insurance
A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withd
variable life insurance
A form of permanent life insurance, Variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the most expensive type of cash-value insurance because it allows you to
universal life insurance
A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance) which is invested to provide a cash value buildup. The death benefit, savings element and premiums
permanent life insurance
An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with a savings portion. This savings portion can build a cash value - against which the policy owner can borrow funds, or in some instanc
umbrella policy
Extra liability insurance coverage that goes beyond the limits of the insured's home, auto or watercraft insurance. It provides an additional layer of security to those who are at risk for being sued for damages to other people's property or injuries caus
death benefits
The amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away.
Also known as "survivor benefit.
beneficiaries
Anybody who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone who is eligible to receive distributions from a trust, will or life insurance policy. Beneficiaries are either named specifical
actuaries
A professional statistician working for an insurance company. They evaluate your application and medical records to project how long you will live.
actual cash value
The amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss. It is the actual value for which the property could be sold, which is always less than what it would cost to replace it.
disability insurance
A program managed by the Social Security Administration that insures a worker in case of a mishap. Disability insurance offers income protection to individuals who become disabled for a long period of time, and as a result can no longer work during that t
automobile insurance
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the cos
collision
A type of auto insurance coverage. Collision Insurance will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. This type of insurance is often added as an extension of a basic policy
comprehensive
The change in a company's net assets from nonowner sources over a specified period of time. Comprehensive income is a statement of all income and expenses recognized during that period. The statement includes revenue, finance costs, tax expenses, disconti
medical insurance
A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly.
uninsured motorist
An addition to a standard automobile insurance policy that provides coverage in the event the other driver is both legally responsible for the accident and is not insured. Uninsured motorist coverage is required in some states, and optional in most others
underinsured motorist
An auto insurance policy provision that extends coverage to include property and bodily damage caused by a motorist with insufficient insurance. Underinsured motorist coverage is designed to provide the injured party with compensation above what is allote
no-fault insurance
Also called no-fault insurance. a form of automobile insurance designed to enable the policyholder in case of an accident to collect a certain basic compensation promptly for economic loss from his or her own insurance company without determination of lia
long term care
Long-term care" means helping people of any age with their medical needs or daily activities over a long period of time. Long-term care can be provided at home, in the community, or in various types of facilities.
medicaid
A US federal health program that subsidizes people who meet the criteria for welfare
medicare
A U.S. federal health program that subsidizes people who meet one of the following criteria:
1. An individual over the age of 65 who has been a U.S. citizen or permanent legal resident for five years.
2. An individual who is disabled and has collected Soc
managed care
a healthcare plan or system that seeks to control medical costs by contracting with a network of providers and by requiring preauthorization for visits to specialists.