Our glossary of insurance terms is a helpful resource for understanding the terminology used in the insurance industry. Whether you're a seasoned insurance professional or just getting started with your insurance coverage, our glossary provides concise explanations of the key terms you need to know. From the basics of insurance policies and premiums to more advanced concepts like underwriting and actuarial science, our glossary is an invaluable tool for anyone seeking to deepen their understanding of insurance.
Claim - A formal request made by the policyholder to the insurance company for compensation or benefits in case of a covered loss.
Policy - The legal contract between the policyholder and the insurance company that outlines the terms and conditions of the coverage.
Deductible - The amount of money the policyholder must pay out of pocket before the insurance company pays for a covered loss.
Liability - The legal obligation to pay for damages or losses caused to another person or property.
Coverage - The scope of protection provided by an insurance policy against specific perils or events.
Underwriting - The process of assessing the risk associated with an insurance policy and determining the premium to be charged.
Insured - The person or entity covered by an insurance policy.
Exclusion - A provision in an insurance policy that limits or excludes coverage for certain perils or events.
Endorsement - An amendment or addition to an insurance policy that changes the terms or coverage of the policy.
Insurer - The company that provides insurance coverage and assumes the risk of losses.
Actuary - A professional who uses mathematical and statistical methods to analyze and manage risk for insurance companies.
Insurance Broker - An independent insurance professional who represents multiple insurance companies and helps clients find the best coverage for their needs.
Peril - A specific risk or cause of loss, such as fire, theft, or natural disasters.
Beneficiary - The person or entity named in an insurance policy to receive the benefits in case of a covered loss.
Renewal - The process of extending an insurance policy beyond its original term.
Insurance Policy Limits - The maximum amount an insurance company will pay for a covered loss as stated in the policy.
Insurance Adjuster - The person who investigates and evaluates a claim to determine the extent of the loss and the amount of compensation to be paid.
Health Insurance - Insurance that covers medical expenses and treatment for illness or injury.
Home Insurance - Insurance that protects homeowners against damage to their property, personal liability, and loss of personal possessions.