A

Accident: An unexpected event resulting in loss or damage.

Actual Cash Value (ACV): The value of property, taking depreciation into account.

Adjuster: A person who investigates and settles insurance claims.

Agent: A person authorized to sell and service insurance policies.

B

Beneficiary: The person designated to receive benefits from an insurance policy.

Binder: A temporary insurance contract that provides coverage until a permanent policy is issued.

Broker: An insurance intermediary who represents the insured, not the insurer.

C

Claim: A request made by the insured for payment of benefits provided by the policy.

Coverage: The protection provided by an insurance policy.

Co-Payment (Co-Pay): A fixed amount paid by the insured for covered services, typically at the time of service.

D

Deductible: The amount the insured must pay out-of-pocket before the insurer pays a claim.

Depreciation: The decrease in the value of property over time.

Discount: A reduction in premium for certain conditions or behaviors, such as a good driving record.

E

Endorsement: A written amendment to an insurance policy.

Exclusion: Specific conditions or circumstances for which the policy does not provide coverage.

Expiration Date: The date on which an insurance policy ends.

F

Face Value: The amount stated on the face of a life insurance policy that will be paid upon death or policy maturity.

Flood Insurance: Insurance coverage for damage caused by floods, typically not covered under standard homeowners policies.

Fraud: Intentional deception to secure unfair or unlawful gain.

G

Grace Period: The period after the premium due date during which a policy remains in force without penalty, even if the premium has not been paid.

Group Insurance: Insurance coverage provided to a group of individuals under a single policy.

H

Hazard: A condition that increases the likelihood or severity of a loss.

Homeowners Insurance: A policy providing coverage for damage to a home and its contents, as well as liability coverage.

I

Indemnity: Compensation for a loss, putting the insured in the same financial position they were in before the loss occurred.

Insured: The person or entity covered by an insurance policy.

Insurer: The company providing insurance coverage.

L

Liability: Legal responsibility for injury or damage to another person or property.

Life Insurance: Insurance that pays out a sum of money on the death of the insured or after a set period.

Loss: The basis for a claim under an insurance policy.

M

Market Value: The amount for which property can be sold on the open market.

Maturity Date: The date on which the face amount of a life insurance policy becomes payable.

N

No-Fault Insurance: A type of auto insurance where each party's own insurance pays for their losses, regardless of fault.

Named Insured: The individual(s) whose name(s) appear on the policy's declarations page.

P

Peril: A specific risk or cause of loss covered by an insurance policy.

Policyholder: The person who owns the insurance policy.

Premium: The amount paid for insurance coverage.

R

Reinsurance: Insurance purchased by an insurance company from another insurance company to spread risk.

Rider: An add-on provision to a basic insurance policy.

S

Settlement: The amount paid by the insurance company to the insured or claimant to resolve a claim.

Subrogation: The process by which an insurance company seeks reimbursement from the responsible party for a claim it has already paid.

T

Term Insurance: Life insurance coverage for a specified period, typically without cash value.

Third-Party Insurance: Insurance that covers claims from third parties (people other than the insured or the insurer).

U

Underwriting: The process of evaluating the risk and exposures of potential clients.

Uninsured Motorist Coverage: Coverage that protects you if you're involved in an accident with a driver who does not have insurance.

W

Waiver: The voluntary relinquishment of a known right.

Workers' Compensation Insurance: Coverage for employees' work-related injuries and illnesses.