Insurance Glossary
Understanding insurance terms made simple - Woodstock
General
Accidental Death Benefit
Accidental Death BenefitDefinitionAn Accidental Death Benefit is an additional feature within a life insurance policy th...
Act of God
Act of GodDefinitionAn Act of God refers to a natural event that occurs without human intervention and cannot be prevent...
Actual Cash Value (ACV)
Actual Cash Value (ACV)DefinitionActual Cash Value (ACV) refers to an important aspect of an insurance policy. It repres...
Aggregate Limit
Aggregate LimitDefinitionAn Aggregate Limit is the maximum total amount that an insurance policy will pay for all covere...
All-Risk Policy
All-Risk PolicyDefinitionAn All-Risk Policy is a comprehensive form of insurance coverage that protects against a wide r...
Base Flood Elevation (BFE)
Base Flood Elevation (BFE)DefinitionBase Flood Elevation (BFE) refers to the computed elevation at which floodwaters are...
Beneficiary
BeneficiaryDefinitionA beneficiary is the person, trust, or organization designated to receive the benefits from an insu...
Bodily Injury Liability
Bodily Injury LiabilityDefinitionBodily Injury Liability refers to an important aspect of an insurance policy that cover...
Business Interruption Insurance
Business Interruption InsuranceDefinitionBusiness Interruption Insurance refers to an important aspect of an insurance p...
Business Owner’s Policy (BOP)
Business Owner’s Policy (BOP)DefinitionA Business Owner’s Policy (BOP) is an essential type of insurance coverage design...
Claim
ClaimDefinitionA claim refers to a formal request made by a policyholder to an insurance company for coverage or compens...
Coinsurance
Coinsurance Definition Coinsurance refers to an important aspect of an insurance policy. It represents the percentage of...
Collision Coverage
Collision CoverageDefinitionCollision Coverage refers to an important aspect of an auto insurance policy that helps pay ...
Commercial Auto Insurance
Commercial Auto InsuranceDefinitionCommercial Auto Insurance is a specific type of insurance policy designed to cover ve...
Commercial Property Insurance
Commercial Property InsuranceDefinitionCommercial Property Insurance refers to an important aspect of an insurance polic...
Commercial Umbrella Policy
Commercial Umbrella PolicyDefinitionA Commercial Umbrella Policy is a specialized type of insurance coverage designed to...
Comprehensive Coverage
Comprehensive CoverageDefinitionComprehensive Coverage refers to an important aspect of an insurance policy that protect...
Comprehensive Deductible
Comprehensive DeductibleDefinitionA Comprehensive Deductible refers to an important aspect of an insurance policy. Speci...
Copayment (Copay)
Copayment (Copay)DefinitionA Copayment (Copay) is a fixed amount that an insured individual pays out-of-pocket when rece...
Coverage Period
Coverage Period Definition The Coverage Period refers to the specific span of time during which an insurance policy prov...
Cyber Liability Insurance
Cyber Liability InsuranceDefinitionCyber Liability Insurance refers to an important aspect of an insurance policy that p...
Deductible
DeductibleDefinitionA deductible refers to the amount an insured individual must pay out of pocket before their insuranc...
Depreciation
DepreciationDefinitionDepreciation refers to an important aspect of an insurance policy. It represents the reduction in ...
Dwelling Coverage
Dwelling CoverageDefinitionDwelling Coverage refers to an important aspect of an insurance policy. It provides protectio...
Elevation Certificate
Elevation CertificateDefinitionAn Elevation Certificate is an official document prepared by a licensed surveyor, enginee...
Endorsement
Endorsement Definition An endorsement refers to an important aspect of an insurance policy that modifies, adds, or remov...
Excess Coverage
Excess CoverageDefinitionExcess Coverage refers to an important aspect of an insurance policy that provides additional p...
Exclusion
ExclusionDefinitionIn the context of insurance, an Exclusion refers to a specific condition, circumstance, or type of lo...
Extended Replacement Cost
Extended Replacement CostDefinitionExtended Replacement Cost refers to an important aspect of an insurance policy that p...
Flood Proofing
Flood ProofingDefinitionFlood Proofing refers to protective measures taken to reduce the risk of damage to property caus...
Flood Zone
Flood ZoneDefinitionA Flood Zone refers to a specific geographic area identified by the Federal Emergency Management Age...
Gap Insurance
Gap InsuranceDefinitionGap Insurance refers to an important aspect of an insurance policy that covers the difference—or ...
General Liability Insurance
General Liability Insurance DefinitionGeneral Liability Insurance refers to an important aspect of an insurance policy d...
Grace Period
Grace PeriodDefinitionThe Grace Period refers to a specific length of time allowed after your insurance premium due date...
Hazard Insurance
Hazard InsuranceDefinitionHazard Insurance refers to an important aspect of an insurance policy designed to protect prop...
Health Insurance Deductible
Health Insurance DeductibleDefinitionA Health Insurance Deductible is the amount you must pay out-of-pocket for covered ...
Hurricane Deductible
Hurricane Deductible DefinitionHurricane Deductible refers to an important aspect of an insurance policy. It is a specif...
Indemnity
IndemnityDefinitionIndemnity refers to an important concept within an insurance policy that ensures a policyholder is co...
Liability Coverage
Liability CoverageDefinitionLiability Coverage refers to an important aspect of an insurance policy that provides financ...
Loss of Use Coverage
Loss of Use CoverageDefinitionLoss of Use Coverage refers to an important aspect of an insurance policy that provides fi...
Marine Insurance
Marine InsuranceDefinitionMarine Insurance refers to an important aspect of an insurance policy that provides financial ...
Mitigation Discount
Mitigation DiscountDefinitionMitigation Discount refers to an important aspect of an insurance policy that rewards prope...
Named Perils Policy
Named Perils PolicyDefinitionA Named Perils Policy refers to an important aspect of an insurance policy where coverage i...
Named Storm Exclusion
Named Storm ExclusionDefinitionNamed Storm Exclusion refers to an important aspect of an insurance policy that limits or...
National Flood Insurance Program (NFIP)
National Flood Insurance Program (NFIP)DefinitionThe National Flood Insurance Program (NFIP) is a federal initiative man...
Ordinance or Law Coverage
Ordinance or Law CoverageDefinitionOrdinance or Law Coverage refers to a specific part of many property insurance polici...
Out-of-Pocket Maximum
Out-of-Pocket MaximumDefinitionThe Out-of-Pocket Maximum is a critical component of an insurance policy that defines the...
Peril
Peril Definition In the insurance world, a peril is an event or situation that can cause damage, loss, or injury and may...
Personal Injury Protection (PIP)
Personal Injury Protection (PIP)DefinitionPersonal Injury Protection (PIP) refers to an important aspect of an insurance...
Personal Property Coverage
Personal Property Coverage DefinitionPersonal Property Coverage refers to an important aspect of an insurance policy tha...
Policy Limit
Policy LimitDefinitionA Policy Limit is the maximum amount an insurance company will pay for a covered loss under a spec...
Policyholder
PolicyholderDefinitionA policyholder is the individual or entity that owns an insurance policy. This person or organizat...
Pre-Existing Condition
Pre-Existing ConditionDefinitionA pre-existing condition refers to a medical or physical condition that existed before t...
Premium
PremiumDefinitionPremium refers to an important aspect of an insurance policy. It is the amount of money paid by an indi...
Product Liability Insurance
Product Liability InsuranceDefinitionProduct Liability Insurance is a specialized form of coverage designed to protect b...
Professional Liability (E&O)
DefinitionProfessional Liability (E&O) refers to a specialized insurance policy designed to protect professionals and bu...
Property Damage Liability
Property Damage LiabilityDefinitionProperty Damage Liability refers to an important aspect of an insurance policy design...
Replacement Cost Value (RCV)
Replacement Cost Value (RCV)DefinitionReplacement Cost Value (RCV) refers to the amount it would cost to replace damaged...
Rider
RiderDefinitionA rider is an important provision or addition to an existing insurance policy that modifies its terms, ei...
Risk Assessment
Risk AssessmentDefinitionRisk Assessment refers to an important aspect of an insurance policy. It is the process insurer...
Salvage Title
Salvage TitleDefinitionA Salvage Title is a designation given to a vehicle that has been declared a total loss by an ins...
Scheduled Personal Property
Scheduled Personal Property DefinitionScheduled Personal Property refers to an important aspect of an insurance policy t...
SR-22 Insurance
DefinitionSR-22 Insurance refers to an important aspect of an insurance policy that serves as a certificate proving a dr...
Storm Surge
Storm SurgeDefinitionStorm Surge refers to a rise in sea level that occurs during intense storms, such as hurricanes or ...
Subrogation
SubrogationDefinitionSubrogation refers to an important aspect of an insurance policy. It’s the legal right of an insura...
Term Life Insurance
Term Life InsuranceDefinitionTerm Life Insurance refers to an important aspect of an insurance policy that provides fina...
TWIA ({state} Windstorm Insurance Association)
DefinitionTWIA (GA Windstorm Insurance Association) refers to an important aspect of an insurance policy specifically de...
Umbrella Policy
Umbrella PolicyDefinitionAn Umbrella Policy is a type of liability insurance designed to provide additional protection b...
Underinsured Motorist Coverage (UIM)
Underinsured Motorist Coverage (UIM)DefinitionUnderinsured Motorist Coverage (UIM) refers to an important aspect of an i...
Underwriting
UnderwritingDefinitionUnderwriting refers to an important aspect of an insurance policy. It is the process through which...
Uninsured Motorist Coverage (UM)
Uninsured Motorist Coverage (UM)DefinitionUninsured Motorist Coverage (UM) refers to an important aspect of an auto insu...
Universal Life Insurance
Universal Life InsuranceDefinitionUniversal Life Insurance refers to an important aspect of an insurance policy that com...
Whole Life Insurance
Whole Life InsuranceDefinitionWhole Life Insurance is a type of permanent life insurance policy that provides coverage f...
Windstorm Deductible
Windstorm DeductibleDefinitionWindstorm Deductible refers to an important aspect of an insurance policy that determines ...
Workers’ Compensation
Workers’ CompensationDefinitionWorkers’ Compensation refers to an essential form of employer-sponsored insurance that pr...
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