Insurance Terms
Actuary
A specialist in the mathematics of insurance who computes insurance risks and premiums.
Amendment
In Insurance, a change to an insurance policy.
Annuitization
To receive income from a converted annuity investment.
Annuity
An agreement by an insurer to provide income in a series of regular payments from a capitol investment.
Benefit Period
The length of time in which a benefit is paid.
Binder
This is temporary insurance coverage until an official policy is prepared.
Broker
An Insurance agent that searches the entire marketplace for the policy that is best suited to serve their client.
Captive Agent
An insurance agent who works exclusively for a for one insurance provider and is only allowed to offer services provided by that one insurer.
Casualty Insurance
Insurance that protects a business, organization or person against loss of property, damage, and other liabilities.
Claim
A request submitted for compensation after damage or loss for anything covered in an insurance policy.
Collision Insurance
Provides for repair or replacement of the policy holders vehicle after a car accident.
Commercial Lines
Refers to insurance for businesses, professionals and commercial establishments
Coverage
The scope of protection provided to the insured under an insurance policy
Declaration
A summary of your policy containing the insured’s name, address, amount of the insurance coverage, description of property being insured, and the cost.
Deductible
The amount the insured party pays out of pocket before the insurance coverage begins.
Depreciation
The decrease in value of any property due to time and usage.
Endorsement
This is an addition to your existing homeowners policy. For example, when you add a rider to your coverage, you make an “endorsement” to your policy.
Exclusions
Floater
This is additional coverage to your homeowners policy that insures prized possessions that are “moveable property” such as expensive jewelry, fine art, musical instruments, and furs.
General Liability Insurance
Insurance designed to protect business owners and operators from a wide variety of liability exposures.
Guaranteed replacement cost coverage
This coverage pays for the full cost to replace or rebuild your home, even if it costs more than your policy limits.
Health Savings Account
Plan that allows you to contribute pre-tax money to be used for qualified medical expenses.
Homeowner’s insurance
This protects the homeowner from any potential losses or damage to their homes, personal property, or injury to others. All homeowners’ insurance is different and is subject to the terms, limits, and conditions of the signed policy.
Indemnity
This is compensation made to the victim of a loss either by payment, repair, or replacement. Under liability insurance, indemnity is an obligation by the insurer to defend and pay third party claims.
Insured
Someone who is covered by an insurance policy.
Insurer
A company or organization that provides insurance to the insured.
IOA
Insurance Office of America. An independent insurance agency headquarted in Longwood Florida.
Liability
Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.
Loss
The dollar amount of damage, or loss, sustained to property or a person.
Movable property
Anything that is insured that is portable, or can be moved out of the home (e.g., jewelry, musical instruments, artwork).
Mortgage Insurance Policy
In life and health insurance, a policy covering a mortgagor with benefits intended to pay off the balance due on a mortgage upon the insured’s death
Policy
The insurance contract between you and the insurance company.
Premium
A specific payment made periodically by the insured to the insurer for insurance coverage for a defined period of time.
Rider
This is separate coverage that is added to your existing homeowners insurance policy and usually requires a separate premium.
Umbrella policy
This provides additional liability coverage for your home and automobile.