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 These are certain items or conditions not covered by your insurance policy.
Liability Insurance To compensate the victim (policy holder) for incurred loss.
Limits The insurance company that issues the legally binding 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.