Glossary Of Insurance Terms Page 2Data Processing or EDP Coverage: All risk property insurance for electronic data processing equipment (computers), computer programs and data including mechanical breakdown, electrical injury and changes in temperature and humidity Death Benefit: The amount of money paid to the beneficiary when the insured person dies. Decreasing Term Insurance: Term life insurance on which the face value slowly decreases in scheduled steps from the date the policy comes into force to the date the policy expires, while the premium remains level. The intervals between decreases are usually monthly or annually. Debris Removal: The cost of removal of debris from covered property damaged by an insured peril Deductible: The amount of loss which is paid or absorbed by the insured prior to determining the insurance company's liability Deposit Premium: The amount of premium required at the beginning of a policy prior to the actual premium being determined Depreciation: The reduction in value of property over a period of time. Usually as a result of age, wear and tear, or economic obsolescence Direct Damage: Causes of loss that produce direct and straightforward property damage (without interruption in time or deviation in space) from the cause of the event to the damaged property Double Indemnity: Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances. Driver Other Car Endorsement: An endorsement that can be added to an automobile policy that gives protection while the insured designated in the endorsement is driving a car other than the one named in the policy Drop Down Provision: A clause used in Umbrella policies providing that the Umbrella will 'drop-down' over underlying policy aggregate limits when they have been reduced or exhausted
Earth Movement or Earthquake Exclusion: An exclusion found in most property insurance policies eliminating coverage for earth movement or earthquake, except ensuing fire Effective Date: The date on which an insurance binder or policy goes into effect Electrical Damage or Injury Exclusion: An exclusion usually contained in property insurance policies eliminating coverage for damage to electrical appliances caused by artificially generated currents, except for ensuing fire or explosion Employee Dishonesty Coverage: Coverage for theft of money, securities or property by an employee Employee Leasing: A staffing method which an employee leasing company provides all or most of its client's employees Employers Excess Indemnity Insurance: Insurance coverage purchased by employers that do not subscribe to the Texas Workers' Compensation law Employers Liability Coverage: Part 2 of the Workers' Compensation policy which pays on behalf of the employer all sums that the employer becomes legally obligated to pay because of bodily injury by accident or disease sustained by any employee of the insured arising out of and in the course of his employment by the insured Employment Practices Liability Insurance: A form of liability insurance covering wrongful acts arising from employment practices such as wrongful termination, discrimination and sexual harassment Endorsement: A document attached to an insurance policy that changes the original policy provisions Equipment Floater: A property insurance coverage for equipment that is often moved from place to place Estimated Premium: A preliminary premium amount that could be adjusted based on a variance in exposures Evidence of Insurability: Any statement or proof of a person's physical condition, occupation, etc., affecting acceptance of the applicant for insurance. Excess and Surplus Lines Insurance: Coverage that is provided by insurers not licensed in the states where the risk is located Excess Liability Policy: A policy that provides additional limits in excess of an underlying liability policy Exclusions: Specified hazards listed in a policy for which benefits will not be paid. Expected or Intended: An exclusion for injury or damage that is expected or intended Expediting Expense Coverage: Coverage providing reimbursement of expenses for temporary repairs and costs incurred to speed up the permanent repair or replacement of covered property or equipment Expense Constant: A small flat expense charged to Workers' Compensation policies Experience Modifier: A debit or credit factor developed by measuring the difference between the insured's actual past experience and the expected or actual experience of the class of business Expiration: The ending date of an insurance policy Exposure Base: The basis of rates that are applied to determine premium. Some exposures may be measured by payroll, receipts, sales, square footage, area, man-hours or per unit Extra Expense Coverage: Coverage for reimbursement of expenses in excess of normal operating expenses that are incurred to continue operations after a direct damage loss Extraterritorial Coverage: The coverage for extending workers' compensation law to provide benefits for workers hired in one state but injured while working in another state
Fiduciary Liability: The liability placed on trustees, employers, fiduciaries and professional administrators with respect to errors and omissions in the administration of employee benefit programs Final Expenses: Expenses incurred at the time of a person's death. These include but are not limited to:funeral costs, court expenses, current bills or debt, mortgages, loans and taxes. Fine Arts Coverage: Property insurance for works of art Fire Department Service Charge Coverage: Coverage in a property insurance policy for charges incurred by the insured from a fire department for their services in fighting a fire Fire Legal Liability Coverage: Liability coverage for the insured's legal liability for fire damage to premises rented by the insured Fire Wall: A wall designed to prevent the spread of fire from one part of a building to another Firewall: A computer that protects a company's private network from outside internet users Fixed Benefit: A death benefit, the dollar amount of which does not vary. Flat Cancellation: The full cancellation of a policy as of the effective date of coverage which requires the return of paid premium in full Flood Coverage: Coverage for damage to property caused by flood Flood Exclusion: A provision in most all property insurance policies eliminating coverage for damage by flood and possibly other types of water damage, such as seepage and sewer backup Follow Form: An umbrella policy provision that follows the underlying policy for coverages and policy provisions Forgery or Alteration Coverage: Covers loss due to the dishonesty of writing, signing or altering of checks and bank drafts Fortuitous Event: An event that is subject to chance without the implication of suddenness Free Look: Trial period required in most states where policy owners have up to 20 days to examine their new policies with no obligation. Frequency: The number of times that a loss will occur within any given period of time Full Coverage: Any form of insurance that provides payment in full of all losses caused by the perils insured against without applying a deductible or depreciation Funeral Expenses: Expenses including casket, vault, grave plot, headstone and funeral director. For Farm & Equine Insurance Click Here |