Direct loss a loss which is a direct consequence of a peril. Insurance glossary understanding common insurance terms. Pdf this chapter examines the characteristics of insurance contracts. Understanding insurance terminology 101 insurance terminology 101.
Glossary of common insurance terms texas department of. Additionally, this informational sheet is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company. After all, this is a business thats primarily about services and agreements taking the form of contracts, policy endorsements, noloss statements, claims, and more. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Basic descriptive statistics a brief introduction by chuck easttom introduction statistics is a branch of mathematics designed to allow people to accomplish two goals. To gain insight into your companys insurance policy, its helpful to have a grasp of basic business insurance terms. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Different types of insurance oklahoma state department of. Basic insurance terms and definitions, life insurance terms and definitions, basic insurance terminology, insurance glossary pdf, important insurance terms, insurance terms and concepts, health insurance terminology and insurance terms for dummies. These plans are ideal for policy holders looking for life insurance cover with benefits for a specified time period that can be availed by paying a small amount of premium. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well. Understanding health insurance terms, medical insurance terminology in usa, understand health care terms, a glossary for understanding health insurance terms.
The term property insurance includes many lines of available insurance. The first is to accurately describe data and trends in data. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. Glossary of health coverage and medical terms this glossary defines many commonly used terms, butisnt a full list. This wealthhow article presents to you a glossary of banking terms and definitions that might help resolve your doubts. Health insurance basics what is the role of health insurance. How insurance is transacted as a business and how the insurance market operates are also explained. Basics of insurance lets begin introduction insurance is an important part of our economy. The insurance industry and pdf foxit pdf blog foxit. Basic insurance terminology global education office.
The insurance act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. One of three basic types of life insurance whole life. Agent the insurance company representative who sells policies on behalf of the insurer. Glossary of commercial insurance terms commercial insurance is divided into two main categories. Basic named peril relates specifically to property coverage and named causes of loss. Health insurance protects you from the high cost of medical care by providing coverage for specific health care services. The legal principle that allows an individual or organization to represent another individual or organization. An independent agent represents more than one company.
The az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Coinsurance a form of medical cost sharing in a health insurance plan that. Do you have a spouse or children who you want to provide for in life and in death. Nicb insurance acronym, organization and term list index. Insurance pdf types of insurance, scope of insurance. Technical terms that appear elsewhere in this glossary are marked in green. Premiums the monthly or annual amount that you must pay in order to have the insurance coverage. While many of us are aware of basic banking terms, there is a plethora of confusing technical terminology associated with banking and finance. Ab initio a term used to describe avoidance of a contract from its inception or its beginning. A contractual means of transferring the payment of a loss to a third party by means of a contract and the pooling of similar risks.
This basic insurance terminology guide below should help you better comprehend your health insurance policy. Declaration part of the insurance policy that identifies the named insured, policy period and limit of insurance. A glossary section contains over 500 entries, including over 100 life insurance definitions provided by. Important insurance terms finding an affordable student health insurance plan can be difficult, especially if there are insurance terms you dont understand. The insurers refusal to insure an individual after careful evaluation of the application for insurance and any other pertinent factors. A statement of coverage issued to an individual insured under a group insurance contract, outlining the insurance benefits and principal provisions applicable to the member. Different types of insurance oklahoma state department. The substitution of a small certain expense for a large uncertain loss. Click the letter that the word begins with or use the search bar. Gerber life insurance offers adult and childrens life insurance to help you protect your familys future. A generic term used to encompass the variety of crime coverage forms available to protect.
Under the system of threeyear accounting an underwriting year is closed at the end of three years from the start of. A professional trained in the mathematics of insurance and risk management, including the. The insurance handbook reflects this diversity of subjects and issues. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references.
Consumer glossary national association of insurance. The basic risk management tools indicate that risks that could bring financial losses and whose severity cannot be reduced should be transferred. Disability insurance covers wage loss for the disabled person. Once the insurance has been accepted and is in place, it is called bound.
National insurance crime bureau october 12, 2015 1 nicb insurance acronym, organization and term list the following is a list of insurance related acronyms, organizations, and terms that may be encountered during an investigation. This paper provides a stochastic ordering of the risk exchange devices commonly found in direct insurance contracts thereby extending the work of borch, arrow and raviv. Basic named peril policies cover 11 specific perils. Understanding business insurance terminology trusted choice. Here is some of the basic terminology for life insurance. The type of vehicle, the purpose of its use, its age model, cubic capacity and the fact that the driver has a consistently bad driving record. The insurance contracts act allows an insurer to avoid. Insurance policy over and above a basic liability policy.
In health insurance, the term copayment is also used to define a fixed. The replacement cost of the item minus depreciation. Insured the persons covered by the insurance policy. Association health plans this term is sometimes used loosely to refer to any. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan or health insurance policy. These definitions represent a common or general use of the term. Basic insurance terminology global education office the. Defining the basics at preferred mutual insurance company, we believe in giving you the tools and resources you need to make confident decisions and live assured. It explains the concept of insurance and how it is used to cover risk. The second is to make predictions on future behavior, based on current data. While purchasing an insurance policy is the firststep to protecting yourself and your property against potential. Life insurance contracts include qualified accelerated death benefit riders, other than riders that are longterm care insurance contracts under section 7702b, under section 818g.
Glossary of health insurance terms december 12, 2008 broker a salesperson who has obtained a state license to sell and service contracts of multiple health plans or insurers, and who is considered to be an agent of the buyer, not of the health plan or insurer. Generalinsurancedefinitions institute and faculty of. Listed below are a few key terms to know before discussing insurance. Learn more in the cambridge englisharabic dictionary.
Life insurance is protection against financial loss resulting from insured individuals death. This document is for informational purposes only and is not intended to alter or replace the insurance policy. An amount which a policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss. In realistic terms, life insurance provides you and your family the financial security and certainty. Term insurance that provides coverage for one year. Face amount the dollar amount that the insurance policy would pay out upon the death of the insured. Basic insurance terms and definitions, life insurance terms and definitions, basic insurance terminology, insurance glossary pdf, important insurance terms, insurance terms and concepts, health insurance terminology and insurance terms for. Glossary of banking terms and definitions wealth how. Its an understatement to say that the insurance industry relies on a lot of documents. Basic insurance terminology this basic insurance terminology guide below should help you better comprehend your health insurance policy. Different types of insurance jermaine to make his him to city hospital, but lesson objectives examine the different types of insurance available. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan.
Simply having the basic understanding of insurance definitions can make the difference between having a plan that will cover you for the majority of your medical expenses and one that. A term interchangeable with insurance but generally used in connection with life cover as assurance implies. This list is in no way comprehensive, but serves as an informational tool for our members. Insurance terminology north american training group.
Glossary of health coverage and medical terms page 1 of 4 glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. A similar coverage, automobile medical payments insurance, is. It transfers the risk, protects against uncertainty, shares the loss, and reduces anxiety. Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. If you are eligible and want to carry basic insurance in retirement, you must mark yes in item 7. A glossary section contains over 500 entries, including over 100 life insurance definitions provided by loma, a. Form of life insurance that provides a death benefit which. Community rating a way of pricing insurance, where every policyholder pays the same premium, regardless of health status, age or other factors. If you have had a lot of experience dealing with insurance in other contexts, these will likely be familiar to you. Glossary of insurance terms national insurance brokers association. Clear explanations of natural written and spoken english.
Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. Deductible the amount of money the policyholder must pay on a loss. The fundamental requirement for the existence of insurance contracts is the. Glossary of medical insurance terminology page 1 annual deductible is the amount you must pay each year for medical and mental health expenses before your medical plan begins to pay benefits. Coverage excludes shortterm medical insurance, the federal employees health benefit program and noncomprehensive coverage such as basic hospital.
Guide to understanding insurance terminology 101 defining. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. Coop plan a health insurance plan that will be sold by memberowned and operated nonprofit organizations through. Start here and learn about the basic terminologies involved in life insurance. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. The terms listed below introduce our members to basic insurance terminology used throughout the industry.
You should also consider the relationship between the cost of risk transfer and the value of transferring that risk. Type of packing, mode of carriage, name of carrier, nature of goods, the route. Although you generally pay a monthly premium and either co. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non disclosed or fraudulently misrepresented information when applying for insurance. Web most states require that excess line insurers submit financial information, articles of incorporation, a list. Understanding health insurance terms, medical insurance usa. If your insurance needs are specific and timebound, term insurance plans are perfect for you. Basic insurance terminology and definitions about life, health, automobile and home insurance to help you understand basic concepts and buy. An insurance company that is wholly owned by one or more entities, the main purpose of which is to insure the risks of its parent companies. Module 2 principles of insurance notes 59 principles of general insurance diploma in insurance services f. The legal principle that allows an individual or organization to. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well business terminology shouldnt be reserved for insurance agents. The minimum limits of liability that can be carried by an insured. The book begins with basic information on the various types of insurance, including auto, home, life, annuities and longterm care.