Agent - A person or a group of people selling insurance on behalf of an insurance company. All Rights Reserved. Commission-This is the money that is paid to agents or brokers who sell an insurance product on behalf of an insurance company. Business Insurance. How can you purchase a general insurance policy?You can choose to purchase a general insurance policy directly from a general insurance company or through an insurance broker or an insurance agent.If you decide to purchase an insurance policy through an agent, before doing any business with an agent, you must be satisfied with the agent's reputation and qualification.All agents who sell insurance must pass the Certificate of Proficiency examination administered by the College of Insurance. Coinsurance - A clause contained in most property insurance policies to encourage policy holders to carry a reasonable amount of insurance. It is the price of the insurance cover. Your Business. Starting a Business. There are certain common terms which are used very often in insurance. Indemnity period (applies to Business Interruption Insurance): A term used in Business Interruption insurance. Moral Hazard is a term used in insurance to describe the phenomena where the customer may seek an undue advantage, as a result of buying insurance or where the … Physical hazard; an objective characteristic, increasing the chance of loss such as the age or health of an insured or the location, use and construction of insured property, the production of gun powder in a building; b. loss of the income from the use of that article until it can be replaced; additional expenses that arise due to loss of property. claims and defects that were unknown when the title insurance … Those agents who are undergoing training are required to have provisional certificates. Risk in an Insurance contract refers to uncertainty concerning loss and not the loss itself or the cause of loss or the chance of loss. 10 Common Insurance Terms Watch any insurance TV commercial and you’re likely hear terms like ‘deductible’ and ‘premium’. Insurance Terms Used in the Area of Residential Title Insurance. Claims Ratio: see LOSS RATIO: Co-Insurance: the division of a risk between two or more insurers where each is individually liable to … Common Terms used in General Insurance Insurance- Insurance is a contract in which an insurance company promises to compensate an insured. Typical perils are: fire, windstorm, explosion, collision, flood, etc. Here you'll find explanations for the most commonly used terms related to business insurance. Least Expensive Alternative Treatment (LEAT): A clause in an insurance policy that indicates that the insurer will only cover the least expensive option for treatment, repair, or … It means the period beginning with the occurrence of damage and ending not … Automobile Insurance Terminology. Term used to indicate the existence of fire-fighting facilities in an area known as a "protected" area. People are subject to loss or damage &om many perils. The duty of utmost good faith is an implied term in all contracts of insurance. Terminologies Used In Insurance And Their Meanings A. Abandonment - Surrendering the insured property to the insurer for repair or disposal after a covered loss event has... B. Bailee - A person or business in lawful, temporary possession of the personal property entrusted to them by others. The judge decides whether to sustain, overrule, or modify an initial determination of benefits. https://mymbaguide.com/10-common-terms-used-insurance-meaning Forms. The person who seeks protection from the insurer against risk by paying premium is called insured. For example, in fire insurance, fire is the contingency on which the payment of insured money depends. Common Terms and provisions in a life insurance policy document, Integrated Motor Insurance Data System (IMIDS). Authorized insurer - Company that meets a state insurance department's standards and is authorized to do business in that state; also called an admitted insurer. A claim for damage, loss or injury made by an insured. VIS MAJOR (ACT OF GOD) AKI is in the process of implementing a system that will centralise motor insurance data to facilitate the detection of fraudulent claims and assist i... Sign up to our monthly newsletter and receive news, tips, offers etc. Life assured is the one for whom the life insurance plan is... 3. Term used to refer to an insured. Those words are part of basic insurance terminology used by both businesses and consumers. Hospital Miscellaneous Services Services other than room and board and general nursing services provided by a hospital during hospital confinement. Glossary of insurance terms meant as a resource for our readers, including a list of terms that are common in insurance policies and “lingo” and their definitions as follows: Actual Cash Value: This is the value of replacing an item of personal property minus the depreciation. First Party Claims. A Public Loss Assessor is an insurance professional who acts on behalf of you, the policyholder, for a fee. Contingency is the actual happening of an event or not happening of an event on which the loss depends. Face Amount: The face amount is the amount assured on the face of the insurance policy. Glossary of Terms Used in the Political Risk Insurance Industry NOTE: Definitions of political risk terms vary among political risk providers. Liability. A company or person who has been named as an additional interest insured on a policy can be liable for an accident that involves an insured person or vehicle. Adjuster: Representative of the insurance company who attempts to determine the… It is the amount that insurance companies use to describe the limit on how much they will pay for covered expenses. Commissions are paid by insurersExcess-This is the amount the insured is expected to make when making acclaim. It is of two types: a. For example, while traveling in the motor bike, there is a risk of accident. If the insured fails to maintain the amount specified in the clause (Usually at least 80%), the insured shares a higher proportion of the loss. They work on the policy holders behalf and negotiate the best settlement and best terms following an insured peril. Automatic increase - In Insurance Endorsement Dwelling policy endorsement that provides an annual increase in the Coverage A amount of 4%, 6%, or 8%. Title insurance provides coverage for losses that occur when a land title is not free and clear of defects (e.g. DECLARATIONS (DEC SHEET) – A term used in insurance for the portion of the contract which contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured. A loss assessor must be regulated by the Central Bank and must hold an insurance qualification. Copyright © 2021 Akinsure. Loss of property may be of three types: Hazard refers to a condition that may create, or increase the chance of loss from a given peril. Peril in Insurance refers to an event that causes a personal or property loss. Prior authorization is a term used by health insurance companies to convey a process for obtaining certain healthcare services. The broker operates as your agent, and not that of any insurance company. Policy is the stamped document which contains the terms and conditions of the insurance contract. Liability - Your responsibilities for the adverse effects of your actions, or lack of actions on others.Third Party-Any other person who may be affected by your actions – for example, in a car accident, it would relate to damage to their car. For example, your insurance provider might pay 80% of your claim leaving you responsible for paying the remaining 20%. This amount is paid when the policy matures or in the event of the unforeseen demise of the policyholder. These terms used in Marine Insurance are Assailing thieves, Jettison, Barratry, All other Perils and Perils of the Sea. The official standard form used by physicians and other providers when submitting bills or claims for reimbursement to Medicare, Medicaid and private insurers. Hospital Medical Insurance A term used to indicate protection which provides benefits for the cost of any or all of the numerous health care services normally covered under various health care plans. Terms Used in Unemployment Insurance Hearings and Appeals . But car insurance terms can be baffling. Terms Commercial insurance is divided into two main categories: property insurance and casualty insurance. Find the meanings of the most commonly -used terms in our glossary. For example, a … Find 16 ways to say insurance, along with antonyms, related words, and example sentences at Thesaurus.com, the world's most trusted free thesaurus. [Q] Business insurance uses many terms, acronyms, and jargon. Guide to Small Business Insurance. Commercial Auto. Indemnity insurance: Type of insurance that restores the individual as close as possible to the financial position that they enjoyed before the loss. Affirmed: Premium is the amount which is paid by the insured to the insurer. Thank you for choosing to learn more about Residential Title Insurance. The Insured claims and receives money as compensation in the event of the happening of the stated contingency. Life assured: Life assured is the insured person. In this context, it is well to recognize that the first party in an insurance policy is you, and the second is your insurance company and the third is the other person or vehicle in the accident.Proposal- This is the application form which you have to fill in when you apply for insurance cover.Sum insured-It relates to the value of goods at risk and this is the basis upon which the premium is calculated. Insurer- Is the company which accepts risks after receiving premiums and pays claims. Insurance terms can be difficult to understand, and when it comes to protecting your business, it’s vital that you have a clear view of what your coverage entails. It is an acknowledgement of the liability. Insurance- Insurance is a contract in which an insurance company promises to compensate an insured.Agent - A person or a group of people selling insurance on behalf of an insurance company. Requirements regarding auto insurance vary state by state, but the following definitions can be helpful for understanding the basics when shopping for auto insurance: Different Terms Used in Marine Insurance In this article, I introduce some technical terms used in Marine Insurance. The UB92/UB04 form is required by Medicare and Medicaid and used by some private insurance companies and managed care plans for billing inpatient and outpatient hospital or facility charges. Insurer- Is the company which accepts risks after receiving premiums and pays claims.Insured- The term ‘insured’ refers to the person who has taken insurance against various risks and who pays a premium for the insurance. the term used in motor insurance to indicate into which of the rating groups a policyholder will fall according to his claims record. Important Terms in Insurance Actuary: An actuary is a business professional who deals with the financial impact of risk and uncertainty. For more information on each provider's definition of terms, consult the provider's website. PROTECTION - Term used interchangeably with the word "coverage" to denote the insurance provided under the terms of a policy. Adjournment: The hearing cannot finish in the time allowed and is rescheduled for another day. Actuaries assemble and examine data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disability, or loss of property. Before a health insurance company will agree to cover some services, it may require patients to seek approval or permission. The agents are all registered with the Insurance Regulatory Authority where you can check to verify.Applying for insurance policy is a very straightforward matter. The party who agrees to pay money on the happening of a contingency is known as the insurer. The term is generally used in commerce in reference to certain duties, called ad valorem duties, which are levied at certain rates per … Factors to be considered for Cargo Rating, 7 Important Functions or Benefits of Insurance, Concepts of Personal Selling in Insurance | Steps in Selling Process, Material Fact | Meaning | To be & Not to be disclosed | Examples, Meaning & Essential Features of Economic Planning, Audit of Shares – Issued for Cash | Issued for Consideration other than Cash, Single Storey Industrial Building | Merits, Demerits, Suitability, Production Planning | Characteristics | Importance | Phases | Pre-Requisites, Localization of Industries | Meaning | Causes | Advantages | Disadvantages, Special Privileges of Private Company over Public Company in India. DECLARATIONS (DEC SHEET) – A term used in insurance for the portion of the contract that contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured.