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Insurance Glossary

Find Definitions to Common Insurance Terms

Dyck Insurance Agency (Wetaskiwin) Ltd. has included this insurance glossary to serve as a reference for you. We hope you find these definitions helpful and invite you to call if you need more information. Our brokers are fully capable of explaining all aspects of your personal, commercial or group insurance policy. We also encourage you to check out our FAQ.

Adjuster
Representative of the insurance company who seeks to determine the extent of the insurer’s liability when a claim is submitted.

Broker
A broker is an independent insurance salesperson that deals with a number of companies while trying to find you the best deal for your specific insurance needs. A broker is not tied to any specific insurers.

Claim
A submission made by the insured to the insurance company in order to receive benefits as provided by the policy.

Collision Insurance
Type of auto insurance that covers damage to the policy holder’s vehicle when it occurs due to a collision with another vehicle or object. This is an optional form of coverage.

Comprehensive Insurance
Type of auto insurance that covers damage to the policy holder’s vehicle when it occurs from causes other than collision. Your comprehensive coverage will provide benefits due to damages resulting from a variety of perils including fire, flood, theft, hail, vandalism, falling objects, etc.

Deductible
The portion of a loss that you are required to pay prior to receiving insurance benefits. Deductibles vary based on your needs and can be used to reduce your premiums.

Exclusions
These are certain items or conditions not covered by your insurance policy.

Indemnify
To compensate the victim (policy holder) for incurred loss.

Insurer
The insurance company that issues the legally binding policy.

Insured
The policy holder, whose risk of financial loss is covered through the legally binding terms of the policy.

Liability Insurance
Type of insurance that pays on your behalf for loss that is caused by you. This covers injuries or damage to other people or property and will pay for legal defence costs.

Limits
The maximum amount the insurer has agreed to pay as outlined by the specific terms of the policy.

Negligence
Failing to use a degree of care that is expected of a reasonably prudent person under similar circumstances. Negligence may include a specific act or failing to act.

Peril
The cause of a possible loss, e.g. fire, flood, hail, theft, etc.

Premium
Cost of insurance protection as paid by the insured for a specified risk and specified period of time.

Qualifying Event
An occurrence of loss that triggers the policy holder’s insurance coverage.

Settlement
Agreed upon policy benefit or claim payment issued to the insured from the insurer.

Total Loss
Loss incurred that is sufficient enough to determine that no value remains. This is the complete destruction of property and may trigger payment of the maximum amount as outlined in the policy.

Underwriter
Representative of insurance company skilled in evaluating risk and determining rates and coverage.

Valuation
Act of determining the current worth or estimated worth of an asset.

Transfer of Risk
Shifting risk to another party. Insurance policies are the most common form of risk transfer.

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