Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Insurance insurance is a contract in which an insurance company promises to compensate an insured. Insurance courses for agents, producers, adjusters. An independent agent represents more than one company. How insurance is transacted as a business and how the insurance market operates are also explained.
Insurance is, essentially, a contract by which one party gives a consideration, typically paid in money, in exchange for a promise from another party to make a return payment if a certain loss has occurred. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. Insurance helps provide financial protection for unforeseen losses for you and your family. Also includes either a property description or a schedule of coverage parts and a list of endorsements.
Insuranceinsurance is a contract in which an insurance company promises to compensate an insured. Why is it important to know about health insurance. General discussion of the fundamentals and principles of insurance will refer to an insurance company or companies. Insurance companies hugely rely upon software, which supports them in managing customer data, developing forms etc, hence software testing plays a vital role in the insurance sector. Banking law and regulation, bankercustomer relationship, modes of creating charge, securities for bank advances, contracts of guarantees and indemnity, capital adequacy and npas in banks. Association health plans this term is sometimes used loosely to refer to any. Mar 25, 2020 insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. General principles and concepts of insurance insurable interest indemnity uberrimae fidei proximate cause subrogation and contribution. Banking terms list of important banking terminology pdf.
Accident insurance insurance for unforeseen bodily injury. Print and pdf formats, and quantity discounts are available for most. Insurance pdf types of insurance, scope of insurance. Insurance terminology north american training group. Agent the insurance company representative who sells policies on behalf of the insurer.
Insurance handbook insurance information institute. The insurance company representative who sells policies on behalf of the insurer. Texas department of insurance glossary of common insurance terms. Trowbridge is the retired senior vice president and chief ac tuary of the principal financial group. Variable life policies are required to include a freelook provision. Develop a greater appreciation and understanding of the claims valuation process. The term aip approved insurance provider will be used in discussions of applicability to the federal crop insurance program. Property and casualty insurance concepts simplified the. Also included is a rather extensive glossary of insurance and insurancerelated terms. A fee or percentage of the premium paid to an insurance broker or agent.
A defined contribution plan established by taxexempt organizations such as public schools, educational or research organizations, and charities in which contributions are used to purchase annuities by employers for employees. Agent a person or a group of people selling insurance on behalf of an insurance company. The purpose of an insurance is to provide protection against the risk of any financial loss. However, since banking is a significant part of our business and personal life, it is useful for consumers to learn some common banking terms. Insurance is a contract between the insurer and the insured person or a group.
Insuredthe term insured refers to the person who has taken insurance against various risks and who pays a premium. All of the terms printed in green in this book are defined there. Not all concepts or coverages identified in this list are found at chapman university. Basis of a claim for indemnity under provisions of an insurance policy. The rentacaptive concept was introduced in bermuda 20 years ago and remains a. A contract of insurance is that whereby one party, the insurer, undertakes, for a premium or an assessment, to make a payment to another party, the policyholder or a third party, if an event that is the object of a risk occurs. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business.
Insureris the company which accepts risks after receiving premiums and pays claims. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Dictionary of insurance terms pdf free download epdf. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and. Insurance agent a legal representative of one or more insurers for which the representative has a contractual agreement to sell insurance. Be better prepared to explain insurance concepts to their clients.
Not all concepts or coverages identified in this list are found at. A company owned solely or in large part by one or more non insurance entities. Classification, types, life insurance policy scope terms and conditions, best policy. A section in an insurance policy that includes the identity and address of the named insured, policy term, amount of insurance or limits of liability, policy premium, and deductibles. Glossary of risk management terms this is a comprehensive. There are many different types of insurance including health and medical, auto, life, travel, homeowners, and rental insurance. Youve probably heard some common insurance words like claim, collision, and deductible, but you might only vaguely know what they mean. General insurance such as principles of utmost good faiths material fact principle of insurable insures and principle of indemnity. Property and casualty insurance concepts simplified. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. Also includes an extensive glossary of insurance and insurancerelated terms. Insurance lesson plans, teaching lessons, worksheets. Insurance a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. There are nine1 fundamental assumptions that will be the basis of this study.
The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Chapter 1 general principles of insurance 16 2011 edition typically does not contain an enforceable binder. Declaration part of the insurance policy that identifies the named insured, policy period and limit of insurance. In casualty insurance, insurable interest usually results from property rights, contract rights, and potential legal liability.
Liability arising from extremely dangerous operations. Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Your bad habits can cost you more insurance premium everything you need to know about term insurance policy basic insurance concepts for beginners 4 reasons why depending upon employer provided health insurance is a bad idea.
Nov 10, 2019 basics of insurance are explained clearly in this insurance domain knowledge tutorial. This document is for informational purposes only and is not intended to alter or replace the insurance policy. In property insurance, property ownership is evidence of insurable interest. This is a thin book that explains different kinds of insurance coverage and defines. Insurance is a cooperative device to spread the loss caused by a particular risk over a number.
Gatekeeper under some health insurance arrangements, a gatekeeper is responsible for the administration of the patients treatment. By spreading the risk, we are reducing the financial impact of an individual. What is a health insurance policy and how does it work. The general liability policy is designed to provide coverage legal defense and claims settlement for legal responsibility of the organization and its volunteers for bodily injury, property damage, personal injury and advertising injury to others due to an. Insurance holding company system consists of two or more affiliated persons, one or more of which is an insurer. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The concept of insurance the purpose of insurance insurance is a social device for spreading the chance of financial loss among a large number. Insurance the concept of insurance is really quite simple. There are both private and public health insurance plans, with different plans offering different benefits.
Insurance is a method for spreading the risk of a financial loss among a large number of people. That is why choosing a health insurance plan that is right for you, and understanding how it works, may seem confusing. General insurance comprises of insurance of property against fire, burglary etc, personal insurance such as accident and health insurance, and liability insurance which covers legal liabilities. Moreover, because federal crop insurance is a federal program, participants and aips. Direct loss a loss which is a direct consequence of a peril. Insurance licensing exam prep study tools kaplan financial. Crop adjuster profi ciency program capp 8900 indian creek pkwy, ste. The amount of outofpocket expenses that you or your business must pay before the payment is made by an insurer.
Take a break from the screen and use printed flashcards to practice insurance terms and concepts likely to be on the state licensing exam. Insurance glossary understanding common insurance terms. Ive used multiple study materials in the past and since then, kaplan is the only one i trust for professional education and preparation. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. A loss is measured in terms of the reduced value of the property, the amount of medical and other related expenses, or the amount of the claim made against an insured. Insurers are free to provide more than standard cover. And the sum undertaken to be paid becomes payable irrespective of the value of life or limb lost. Coinsurance a form of medical cost sharing in a health insurance plan that requires an insured person to.
Variable life policies are required to include a free look provision. Concept, nature and scope if a child, a spouse, a life partner, or a parent depends on you and your income, you need. Insurance company types and classifications 19 cards. Before we start, we need to have an appropriate vocabulary of nancial terms. Insured the individual whose property or liability is covered by an insurance policy. The insured must prove that there was an insurable interest at the time of loss in order to collect. Glossary of risk management terms this is a comprehensive list of insurance terms. General insurance terms, concepts, and federal regulations governing the federal crop insurance program. Pdf this chapter examines the characteristics of insurance contracts. Property, liability, life, health and risk management reavis iii, phd marshall wilson on. The replacement cost of the item minus depreciation. The defined terms and coverage provisions in your policy or certificate of insurance, such as reasonable and customary, may be different from the general information provided below, and the policy or certificate language will prevail. Also included is a rather extensive glossary of insurance and insurance related terms.
The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. The agent represents the insurance company in all transactions. Glossary of insurance terms national insurance brokers association. Basic insurance terms and definitions, life insurance terms and definitions, basic insurance terminology, insurance glossary pdf, important insurance terms, insurance terms and concepts, health insurance terminology and insurance.
A legal definition of insurance that appears in many insurance laws is the. Consumer glossary national association of insurance. In a normal competitive market, insurers are free to select from among people applying. A person licensed by the state insurance authority to sell insurance products. It explains the concept of insurance and how it is used to cover risk.
The concept of insurable interest stems from the idea that insurance is meant to protect and. Insurer is the company which accepts risks after receiving premiums and pays claims. Notification to the insurance company that a loss has occurred and a demand of payment for the loss, as provided by the terms of the insurance policy. Insured person means the person who is covered by the insurance policy or the one who avails the benefit of the policy and the insurer is the insurance company who sells the policies. Teach and learn basic insurance policy types, concepts, and principles. We intend to add more definitions as we find more terms that might useful to our users and insurance consumers. So, for example, if you are being cared for by a relative for free presumably, then. The insurance contracts act allows an insurer to avoid. If youre looking for a free download links of insurance.
Additionally, this informational sheet is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company. Property, liability, life, health and risk management. How profitable is the property and casualty insurance industry. Deductible the amount of money the policyholder must pay on a loss. Learn vocabulary, terms, and more with flashcards, games, and other study tools. In the first lecture of this course, the instructors introduce key terms and concepts related to financial products, markets, and quantitative analysis. Viii fundamental concepts of actuarial science a monograph and selected charles l. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.
Your health insurance company helps pay for some or all of your medical care, depending on the type of insurance plan you have. General liability insurance terms and concepts for nonprofits. Trowbridges other activities during his distinguished career include service as. The terms of an insurance contract are embodied in a w ritten document called the. Accident only an insurance contract that provides coverage, singly or in combination, for death. Insurance regulatory information system iris a baseline solvency screening system for the national association of insurance commissioners naic and state insurance regulators established in. Notification to an insurance company that you believe a payment is due to you or your company under the terms of the policy. Health insurance is a contract between you and your health insurer to cover your medical expenses. Advanced concepts in insurance, llc glossary of terms.
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