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Insurancee
insurance questions
| Term | Definition |
|---|---|
| Actual Cash Value | Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation. |
| Adjustable Rate | An interest rate that changes, based on changes in a published market-rate index. |
| Adjuster | A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted. |
| Aggregate Limit | Usually refers to liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents might occur. |
| Annuitization | Process by which you convert part or all of the money in a qualified retirement plan or nonqualified annuity contract into a stream of regular income payments, either for your lifetime or the lifetimes of you and your joint annuitant. Once you choose to a |
| Annuity | An agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period. |
| Balance Sheet | An accounting term referring to a listing of a company's assets, liabilities and surplus as of a specific date. |
| Broker | insurance salesperson that searches the marketplace in the interest of clients, not insurance companies. |
| Broker-Agent | Independent insurance salesperson who represents particular insurers but also might function as a broker by searching the entire insurance market to place an applicant's coverage to maximize protection and minimize cost. This person is licensed as an agen |
| Capital | Equity of shareholders of a stock insurance company. The company's capital and surplus are measured by the difference between its assets minus its liabilities. This value protects the interests of the company's policyowners in the event it develops financ |
| HO1 | A basic policy includes perils- fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption |
| HO2 | Broad form- A more advanced form that provides coverage on a home against 17 listed perils (including all 11 on the HO1). The coverage is usually a "named perils" policy, which lists the events that would be covered. |
| HO3 | Special form- The typical, most comprehensive form used for single-family homes. The policy provides "all risk" coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. |
| HO4 | Renter's Insurance- It covers personal property against the same perils as the contents portion of the HO2 or HO3.[8] An HO4 generally also includes liability coverage for personal injury or property damage inflicted on others. |
| H05 | Premier policy-Covers the same as HO3 plus more. On this policy the contents are covered on an open peril basis, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for that cause of loss. |
| HO6 | Condominium Policy- The form for condominium owners. |
| HO8 | Older Houses- The "Modified Coverage" form is for the owner-occupied older home whose replacement cost far exceeds the property's market value. |
| Coverage A | Dwelling covers the value of the dwelling itself (not including the land). Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, losses will be adjusted at replacement cost, up to the policy limits. |
| Coverage B | Other Structures-Covers other structure around the property that are not used for business, except as a private garage. Typically limited at 10% to 20% of the Coverage A, with additional amounts available by endorsement. |
| Coverage C | Personal property, with limits for the theft and loss of particular classes of items (e.g., $200 for money, banknotes, bullion, coins, medals, etc.). Typically 50 to 70% of coverage A is required for contents, which means that consumers may pay for much m |
| Coverage D | Additional living-coverage if the home is damaged or destroyed and the insured must seek temporary lodging. |
Created by:
samchevalier
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