Glossary Of Insurance Terms Page 4
Lapse: Termination of a policy due to the policy owner's failure to pay the premium within the grace period. Leasehold Interest: Property insurance covering the loss suffered by a tenant due to termination of a lease because of damage to the leased premises by a covered loss Lessee: The person to whom a lease is granted Lessor: The person granting the lease Liability: The legal obligation to pay a monetary award for injury or damage caused by one's negligent or statutorily prohibited action Liberalization Clause: A provision within an insurance policy that broadens the coverage if the insurance company offers a broader coverage form within the first 45 days of coverage Lien: An obligation that can be held by an individual who has an interest in a particular matter or property Life Expectancy: The average number of years a person is expected to live based on a national average per age group, and other factors. Life Insurance: Insurance coverage that pays out a set amount of money to specified beneficiaries upon the death of the individual who is insured. Limit of Liability: The most an insurance company agrees to pay in the case of loss Limited Pay Policy: A type of whole life insurance designed to let the policyholder pay higher premiums over a specific time period such as 10 or 20 years so that they won't have to pay any premiums for the rest of his or her life. Longshore and Harbor Workers' Compensation Act: A federal law that provides workers' compensation benefits to employees of a vessel injured in maritime employment - usually in loading, unloading, repairing or building a vessel - but not applicable to crew members Loss: The amount an insurance company pays for damages under the terms of a policy Loss Adjustment Expense: The cost assessed to a particular claim for investigating and adjusting that claim Loss Constant: A flat charge added to the premium of small workers' compensation policies to offset higher loss ratios Loss Control: A technique that is put in place to reduce the possibility that a loss will occur or reduce the severity of those that do occur Loss Payable Clause: An insurance clause that authorizes loss payments to a person or entity having an insurable interest in the covered property Loss Ratio: Percentage of losses incurred against earned premiums Loss Report: A form showing reported claims which provides information such as the date of occurrence, type of claim, amount paid and amount reserved for each loss Loss Reserve: An estimated amount set aside for a particular claim that has not yet been paid Lost Policy Release: A signed statement by the named when the insured wishes to cancel the policy, but has lost or mislaid the policy, which releases the insurance company from all liability or losses
Medical: A document completed by a physician or another approved examiner and submitted to an insurer (insurance company) in order to provide medical information. This is usually done to determine insurability (or lack of insurability) or is sometimes done in relation to a claim.
Medical Payments, Auto: Coverage, which is optional, under an auto policy to pay for medical expenses for bodily injury caused by an auto accident, regardless of fault. Coverage for persons other than the named insured and his or her family members is typically restricted to circumstances when they are occupants of the insured auto Medical Payments, General Liability: A general liability coverage that reimburses others, regardless of fault, for medical or funeral expenses incurred as a result of bodily injury or death sustained by an accident Mexico Coverage: Coverage which is sometimes provided under automobile policies for the operation of an insured motor vehicle within Mexico, usually limited to a stated number of miles from the U.S. border Minimum Premium: The lowest amount of premium to be charged for providing a particular insurance coverage Misrepresentation: The act of knowingly presenting false information. Mobile Equipment: Equipment such as earthmovers, tractors, diggers, farm machinery, forklifts, etc., that even when self-propelled, are not considered as automobiles for insurance purposes Monopolistic State Funds: States or Jurisdictions where an employer must obtain workers' compensation insurance from a state fund or qualify as a self-insurer, as is allowed in five of the states: North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico and the U.S. Virgin Islands Mortality Rate: The number of deaths in a group of people, usually expressed as deaths per thousand. Mortality Table: A table showing the incidence of death at specified age groups. Mortgage Clause: Property insurance provisions granting protection for the mortgagee named in the policy. It establishes that loss to mortgaged property is payable to the insured and to the mortgagee named in the policy
National Flood Insurance Program: A federally funded program established to make flood insurance available to properties located in participating communities National Flood Insurance Program: A federally funded program established to make flood insurance available to properties located in participating communities Nonadmitted Insurer: An insurance company that is not licensed to do business in a specific state. The insurers may write coverage through an excess and surplus lines broker that is licensed in these jurisdictions Nonowned Automobile: In commercial auto policies, coverage for autos that are used in connection with the named insured's business but are neither owned, leased, hired, rented or borrowed by the named insured. The term specifically applies to vehicles owned by employees and used for company business Nonsubscription: A Workers' Compensation term used in Texas that refers to employers who choose to be out of the workers' compensation system. Firms that are proven negligent in causing a worker's injury, can be held liable in tort, since nonsubscribing employers waive the traditional common law defenses available to employers subject to workers' compensation laws
Other Insured Rider: The temporary addition to an insurance policy, usually a member of the direct family. Ownership: All rights, benefits and privileges under life insurance policies are controlled by their owners. Policy owners may or may not be the insured. Ownership may be assigned or transferred by written request of current owner. Occupational Hazard: A condition in the workkplace that increases the chances of the an accident, sickness, or death. It usually will mean higher premiums. Occurrence: A continual, gradual or repeated exposure to substantially the same general harmful conditions. General liability policies insure liability for bodily injury or property damage that is caused by an occurrence
Payroll Limitation: A limit on the amount of payroll for certain classifications used for the development of premium Peril: Cause of loss such as fire, windstorm, collision, etc. Personal Auto Policy (PAP): A policy insuring private-passenger autos owned by individuals Personal Injury: A General Liability coverage for insurable offenses that cause harm, other than bodily injury, such as false arrest, detention or imprisonment, malicious prosecution, wrongful eviction, slander, libel and invasion of privacy Personal Injury Protection (PIP): An automobile insurance coverage mandated by law in some states. The statutes typically require insurers to provide or offer to provide first-party benefits for medical expenses, loss of income, funeral expenses and similar expenses without regard to fault Personal Property: All tangible property not classified as real property such as contents Policy: The printed document given to the insured, outlining the terms and conditions of the Insurance coverage. Policy Fee: A one-time charge per policy that does not change with the size of the premium Policy Holder: The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation. Policy Period: The term or duration of a policy including the effective and expiration dates Pollutant: An irritant or contaminant, whether in solid, liquid, or gaseous form, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste Preferred Risk: A positive characterisic of someone seeking to be insured. Usually means a better likely hood for long life, and usually means a lower premium. Premises: The location where coverage applies Premises-Operations: A category of hazard ordinarily insured by a general liability policy which is composed of those exposures to loss that fall outside the defined 'products-completed operations hazard,' including liability for injury or damage arising out of the insured's premises or out of the insured's business operations while such operations are in progress Premium: The agreed upon, payment made to keep an insurance policy in force, usually a monthly payment. Premium
Flexibility: The policy holder's right to vary the amount
of premium paid each Primary Beneficiary: In life insurance, the beneficiary designated by the insured as the first to receive policy benefits. Primary Policy: The insurance policy that pays first when you have a loss that's covered by more than one policy. Pro Rata Cancellation: The cancellation of an insurance policy with the return premium being the full proportion of premium for the unexpired term of the policy, without penalty for early cancellation Product: Items manufactured, sold, handled, distributed or disposed of by the named insured or others involved with the named insured in the course of their business. Includes containers, parts and equipment, product warranties and provision of or failure to provide instructions and warnings Product Liability: The liability for bodily injury or property damage a merchant or manufacturer may incur as a consequence of some defect in the product sold or manufactured Products-Completed Operations: General Liability coverage for liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed Professional Liability: Coverage designed to protect professionals such as physicians and real estate brokers, against liability incurred as a result of errors and omissions in performing professional services Property Damage: In the general liability policy, a physical injury to property, resulting in the loss of use Property Insurance: First-party insurance for real and personal property against physical loss or damage Provisions: Details of an insurance policy which explain the benefits, conditions and other features of the insurance contract. For Farm & Equine Insurance Click Here |