Accident: Any sudden event which is unintended.

Accident Insurance: Insurance coverage against loss by accidental bodily injury.

Accidental Bodily Injury: Injury to a person from the result of an accident.

Accidental Death Benefit: An additional paid death benefit in addition to the face amount value of a life insurance policy.

Accounts Receivable Coverage Form: An inland marine coverage form that insures against loss the insured suffers when not able to collect account receivables from customers.

Accumulation Period: A specific time period that the insured must establish before benefits begin or are paid out.

Activities of Daily Living: Activities that are considered an everyday part of normal life. Some of these are: dressing, bathing, toileting, transferring (example: moving from and into a chair), and eating. These activities are used to measure the degree of impairment and can effect the eligibility for certain types of insurance benefits.

Actual Cash Value (ACV): The cost to replace an item or property at the time of loss, less any allowance for depreciation.

Actuarial Cost Method: A method used for determining contributions to be made under a retirement plan. Usually applied to the level of benefits when the contributions are fixed.

Actuary: A professional in the insurance business, usually working for the insurance company, that can estimate how a certain sum of money can be contributed to a pension plan, insurance, or other related area to fund that plan for years to come.

Additional insured: An individual or entity that is not included as an insured under the insurance policy of another, but may be added to provide a certain degree of insurance protection.

Adhesion (Contract of): Parties are of unequal bargaining power, and one party (the insured) cannot negotiate any terms, having to accept the offer of the other party.

Adjustable Life Insurance: A type of life insurance that allows the owner of a policy to change the plan of insurance, raise or lower the face amount, increase or decrease the premium, and lengthen or shorten the protection period.

Adjusted Gross Estate: Approximate net worth of a deceased, known as the beginning point for the computation of estate taxes.

Adjuster: A person who investigates and settles losses for an insurance company, or may be hired independently to resolve any issues (leverage) between the insurance company adjuster and the insured.

Adjusting: The investigation process of settling claims by an insurance company.

Administrative Services Only (AS0) Plan: An arrangement under which an insurance company or an independent agent will, for a fee, handle the administration of claims, benefits and other administrative functions for a self-insured group. This is very popular with larger corporations.

Advance Funding: Pension funding method in which an employer sets aside funds prior to the employee's retirement.

Age Limits: Stipulated minimum and maximum ages below and above which the company will not accept applications or may not renew a policy. Read your policy.

Agent: An insurance company representative licensed by the state who solicits, markets, negotiates, binds, and administers contracts of insurance while providing a valuable service to a policyholder for the insurer.

Aggregate Deductible: A deductible in some property and health insurance contracts which all covered losses during a year are figured together and an insurer pays only when the aggregate deductible amount is exceeded.

Aggregate Indemnity: A maximum dollar amount that can be collected for any disability or period of disability under an insurance policy .

Alien Insurer: An insurance company domiciled in another country.

Allocated Benefits: Benefits for which the maximum amount payable for specific services is itemized in your insurance contract.

All-Risk Policies: Coverage through an insurance contract that promises to cover all losses except those losses specifically excluded in your policy.

Alternate Delivery Systems: This system of care is designed to provide needed services in a cost-effective manner. This provides an insured with health services other than an in-patient, acute-care hospital, or other type of facility.Some examples include: skilled and intermediary nursing facilities, hospice programs, and home health care.

Ambulatory Care: These are medical services that are provided as an outpatient (nonhospitalized). Services could include diagnosis, treatment, and rehabilitation.

Amendment: A formal document revising the provisions of an insurance policy. Usually, signed jointly by an insurance company officer and the policy owner or his authorized representative.

Annual Statement: An annual report of an insurance company to a state insurance department, showing financial data relating to the operation of the insurance company.

Annuitant: The person that will receive annuity benefits for a period of time.

Annuity: Considered to be the opposite of life insurance where a death benefit is paid, an annuity provides a benefit while the insured is alive. This is a contract that provides an income for a specified period of time.

Annuity Certain: A contract that provides an income for a specified number of years, regardless whether living or deceased.

Annuity Consideration: A payment, or one of the regular periodic payments, an annuitant makes for their annuity.

Application: A signed statement of facts made by a person applying for insurance. The application is used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.

Arson: The willful and malicious act of burning, or attempt to burn, any structure or property, usually with with criminal or fraudulent intent.

Assets: Any funds, goods , property, rights of actions, securities, or resources of any kind owned by an insurance company.

Assignment: A legal transfer of one person's interest in an insurance policy to another person.

Association Captive: A type of captive insurer owned by the members of a sponsoring organization or group, such as a trade association.

Association Group: Group formed from members of a trade or a professional association for group insurance under one master health insurance contract.

Association Group Plan: A health insurance plan designed for the members of a professional association or trade association. A members may be protected under a group health insurance policy or by individual franchise policy through this plan.

Assumptions: The many conditions and rules underlying the calculation of a pension benefit.

Attractive Nuisance: Condition that can attract and injure children. The occupants of land on which such a condition exists are liable for injuries to children. In Florida, pool owners are required to fence the area around the pool.

Automatic Premium Loan: The cash borrowed from a life insurance policy's cash value(to pay an overdue premium).

Automobile Liability Insurance: Protection for an insured against financial loss because of legal liability act that has car related injuries to others or damage to their property.

Automobile Physical Damage Insurance: Coverage to pay for damage to, or loss, of an insured automobile resulting from covered perils.

Automobile Shared Market: A program in which all automobile insurers in each state make coverage available to car owners who are unable to obtain auto insurance in the voluntary market.

Aviation Insurance: Aircraft insurance including coverage of aircraft or their contents. The owner's liability, and accident insurance on the passengers can be covered.

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Bailee: Person or concern having the possession of personal property entrusted to him by the owner of said property.

Bailees Customers Insurance: Policy that covers the loss or damage to personal property of customers.

Beneficiary: The designation by the owner of a life insurance policy that indicates who will receive the proceeds upon the insured's death or when a policy endowment matures.

Benefit Period: The period of time which an insurance company pays benefits to the named insured or dependents.

Benefits: Monetary sum payable by the insurance company to a claimant, assignee, or beneficiary.

Binder: A written or oral contract issued temporarily to place insurance in force until a permanent policy is issued. When an oral binder is issued, you should request a written one to follow.

Binding Receipt: The (evidence or) receipt given for a premium payment accompanying an application for insurance.

Blanket Contract: A policy that covers an insured's property at several different locations.

Boiler and Machinery Insurance: Coverage for loss arising out of malfunction, the operation of pressure, mechanical, and electrical equipment. Most property insurance policies exclude these types of risks.

Bond: A three party contract that guaranteeing that if the principal fails to perform as obligated to, the obligee (person whom duty would be owed), will be financially protected by the issuer of the bond. We can assist you with your bond needs.

Broker: One who represents an insured and who may render solicitation, negotiation, or services that deal with a contract of insurance on behalf of the insured.

Broker of Record: Also known as Agent of Record, this is a broker who is designated to handle certain insurance contracts for the named insured.

Burglary and Theft Insurance: Coverage against property losses due to burglary, robbery, or larceny.

Business Income Insurance: Provides protection for a business owner against losses resulting from a temporary shutdown of an insured peril. This provides reimbursement for lost profits and necessary continuing expenses. A common exposure that most people have added in Florida, thanks to Hurricane Andrew.

Business Insurance: A commercial insurance policy which provides coverage to a business. Many forms of business insurance are available and depend on your specific needs.

Builders Risk: A contract that will insure building contractors for damage to property under construction. Once erected, the Builders Risk policy may usually be converted to a specific type of homeowners or commercial property form.

Business Personal Property: Known as "contents," this refers to furniture, fixtures, equipment, machinery, merchandise, and all other personal property owned by the insured and used in the insured's business.

Buy Sell Agreement: An agreement made by the part-owners of a business to purchase the interest of a disabled or deceased owner. Values of the owner's share of the business and the terms of the buying and selling are established before death or at the beginning of a disability.

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Cafeteria Benefit Plan: arrangement which employees may select their own employee benefit structure.

Cancelable: A contract of insurance that may be terminated during the policy term by the insurer or insured at any time.

Cancellation: Termination of a policy in force by a voluntary act of the insured or insurer.

Cancellation Clause: A provision in an insurance contract that permits an insurance company or insured to cancel a policy at any time before its expiration date.

Capacity: The largest amount of insurance or reinsurance available from a company.

Capital Retention Approach: A method used to estimate the amount of life insurance to own. Under this method, the insurance proceeds are retained and are not liquidated.

Capital Sum: The maximum lump sum payment payable in the event of an accidental death or dismemberment.

Capitation: A method of payment for health services in which a physician or hospital is paid a fixed, per capita amount for each person served regardless of the actual number of services provided to each person.

Captive Agent: A licensed agent who sells insurance for only one company.

Captive Insurance Company: A company formed to insure the risks of a parent company. This is usually done when business insurance for a certain commercial risk cannot be obtained through markets.

Cargo Insurance: An insurance policy protecting cargo being transported by carrier.

Cash Surrender Value: The amount of money received when the policyowner surrenders a life insurance policy with cash value.

Casualty Insurance: The type of insurance concerned with the legal liability for losses caused by injury to others or damage to property of others.

Catastrophe: An event which loss is of extraordinary magnitude, such as a hurricane or tornado.

Causes of Loss Form: Commercial property forms stating the perils insured against, additional coverage's, and exclusions that may apply to your policy. It is important to read your policy.

Cede: The transfer of all or part of a risk written by an insurer to a reinsurer.

Certificate of Insurance: A document issued to a member of a group insurance plan, outlining the insurance benefits and principal provisions of the policy.

Claim: A request by the insured for indemnification by the insurance company for a loss that is a covered peril.

Claims Made Policy: A liability insurance policy under which a written claim is made during the policy period or any extended reporting period..

Class Rating: A rate applied to those risks that are similar.

Clause: In an insurance policy, sentences and paragraphs describing coverage's, exclusions, duties of an insured, and termination of coverage, and other such parts of the insurance policy.

Coinsurance: Two meanings here: (1) In property insurance, a clause that states the insured will share in losses to the extent that he is underinsured at the time of loss, (2) In medical insurance, the insured person and the insurer share the covered procedures under a policy in a specified ratio (80 percent by the insurer and 20 percent by the insured).

Collision Insurance: A form of automobile insurance, provides protection against loss resulting from any damage to the policyowner's car caused by collision with another vehicle or object, (or by upset of the insured car), whether it was the insured's fault or not.

Combined Ratio: A measure of the dollars spent for claims and expenses and premium dollars taken in.

Commercial General Liability Policy (CGL): Provides separate limits of general liability, fire legal liability, medical payments, products and completed operations, and advertising and personal liability.

Commercial Lines: Insurance for businesses, professionals, and commercial establishments.

Commercial Package Policy (CPP): A commercial insurance policy that is designed to meet specific insurance needs of businesses.

Completed Operations Insurance: A type of insurance that cover's a contractor's liability for accidents arising out of jobs or operations that was completed by the contractor.

Comprehensive Major Medical Insurance: A health insurance policy that has a low deductible, high maximum benefits, a coinsurance feature, and may feature a copayment.

Comprehensive Personal Liability Insurance: Provides individuals and family members with protection from legal liability for most accidents caused by them in their personal lives. Note that any legal liability claims submitted while in the course of business activities are not covered.

Compulsory Insurance: Any form of insurance which is required by law.

Concealment: Failure of an applicant for insurance to reveal a material fact to the insurance company.

Conditional Binding Receipt: A receipt given for premium payments accompanying an application for insurance.

Conditionally Renewable: Provision in a health insurance policy which the company cannot cancel the policy during its term, but may refuse to renew under certain conditions stated in the policy.

Conditions: Provisions stated in an insurance contract that state the rights and duties of the insured, or the rights and duties of the insurer. Typical duties have to do with the insured's duties after a loss, cancellation provisions, the insurance companies right to inspect damaged property.

Condominium Unit Owners Coverage Form: A commercial property form designed to cover the needs of commercial condominium unit owners.

Confining: A disability or sickness that confines an insured indoors.

Consideration: One of the elements that make up an insurance contract, consideration is the offer made by the insurance company to the insured for payment of the premium and the statements made by the prospective policyholder on their application.

Consequential Loss: A financial loss occurring as the result of some other loss. Also known as an indirect loss.

Construction Bond: This bond will protect the owner of a building or other structure should the contractor be unable to fulfill his contractual duty to the insured. In such a case, the insurer is obligated to see that the work is completed.

Contingent Annuity: An annuity that is payable upon a contingent occurrence or event, such as death of a person (spouse) to the annuitant.

Contingent Beneficiary: A person designated to receive policy benefits if the primary beneficiary is deceased at time benefits are payable..

Contingent Liability: Any liability arising out of work done by independent contractors for a firm. The firm could be liable for the work done by an independent contractor if the activity is illegal, the situation did not permit delegation of authority, or the work is inherently dangerous.

Contract: An agreement between the insurer and the insurance company that provides a legally enforceable obligation to provide benefit payments for all premium amounts received.

Contract Bond: A bond used to guarantee the performance of a construction contract and the payment of all materials and labor bills.

Contractual Liability Insurance: Provides protection to the insured in the event a loss occurs for which liability is assumed, express or implied, under a written contract.

Contributory: A general term used with group health insurance plans in which the employee pays a portion of the premium.

Contributory Negligence: A "law" of principle that states a person may have contributed to their own injury.

Conversion Privilege: A privilege granted in a group life or group health insurance policy to convert to a different plan of insurance without providing evidence of insurability and a medical exam.

Conversion Privilege: A right given to an insured person who can change insurance without evidence of medical insurability, usually to an individual policy upon termination of coverage, under a group contract.

Convertible Term Insurance: Term insurance which can be exchanged into a permanent policy without evidence of insurability or a medical exam.

Coordination of Benefits (COB): Used in group health insurance, this distinguishes the order that two or more insurance companies will pay benefits for the same claim.

Copay: An arrangement where the insured pays a specified amount for various services and the health carrier pays the remaining charges.

Cost Basis: An amount of money that has already been taxed, used in taxation of investment money.

Cost of Living Rider: Adjusts life insurance policy benefits in relation to changes in the Consumer Price Index (CPI).

Crop-Hail Insurance: Protection against damage to growing crops as a result of named perils.

Cross Purchase Agreement: Agreement that specifies the terms and conditions for the surviving partners or shareholders to buy a deceased's share of a business's ownership.

Currently Insured Status: A Social Security provision under which the family of a deceased worker may receive survivor benefits.

Custodial Care: Care that is needed for a person that cannot dress, eat, or perform other personal needs that requires someone to assist them.

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Data Processing Insurance: Coverage for electronic media, computers, and other electronic data processing equipment. No coinsurance is applied to this type of coverage.

Death Benefit: A life insurance payment made to a designated beneficiary upon the death of the insured.

Declarations: Information such as name, description, and location of insured property, premiums payable, coverage amounts, are placed on what agents call the Declarations Page.

Declination: The insurer's rejection of an insurance application.

Deductible: The amount which a policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss.

Deferred Annuity: An annuity deferring income payments to begin at some specified future date.

Deferred Compensation: Arrangements by which compensation to employees for past or current services is postponed until some future date.

Defined Contribution Plan: A plan which the contribution rate is fixed and benefits to be received by employees after retirement depend upon the contributions and their earnings.

Dental Insurance: An individual or group insurance plan that will pay for costs of normal dental care as well as damage to teeth from an accident.

Dependent: An individual, usually a spouse or child, who depends on another for financial support and maintenance.

Deposit Premium: The premium deposit paid when an application is made for an insurance policy. It is usually equal to the first month of estimated premium and is applied toward the total premium when billed.

Depreciation: The decrease of value in property over a period of time due to wear and tear or obsolescence.

Direct Loss: Any financial loss that results directly from an insured peril.

Direct Writer: An insurance industry term for which an insurance company uses their own sales employees to write insurance policies.

Directors' and Officers' Liability Insurance: The protection of corporate directors and officers from liability arising out of errors in judgement, duty breachments, and any wrongful acts related to their organizations.

Disability: A physical or mental impairment that limits major life activities of an individual.

Disability Benefit: The payment, made usually monthly, payable to participants under a Disability Income policy or a provision of some other policy.

Disability Income Insurance: A type of health insurance that provides a periodic payment to replace income when the insured is unable to work as a result of illness, injury, or disease.

Disappearing Deductible: A deductible in an insurance contract that provides for a decreasing deductible amount as the size of the loss increases.

Dismemberment: Loss of a body member (limbs), or use thereof, or loss of sight due to injury.

Dismemberment Insurance: A type of health insurance that provides payment in case of loss by bodily injury of one or more body members (such as: hands or feet) or sight of one or both eyes.

Disposable Personal Income: Personal income minus personal tax and nontax payments. This is the income available to people for spending and saving.

Dividend: An amount returned to a policyholder by an insurance company out of its earnings.

Dividend Additions: An option to where an insured can pay-up insurance purchased with a policy dividend and add to the face amount of the policy.

Dollar Threshold: In Florida, and other no-fault auto insurance states with the dollar threshold, this prevents individuals from suing in tort to recover for pain and suffering unless their medical expenses exceed a certain dollar amount.

Domestic Insurer: An insurance company is considered a domestic company in the state in which it is incorporated.

Double Indemnity: An insurance policy provision usually associated with death, which doubles payment of a designated benefit when specified causes or under specific circumstances occur.

Driver Education Credit: A student discount or reduction in premium amount for which younger drivers become eligible on completion of a driver education course. These courses are available in most public school systems.

Duplication of Benefits: A situation where identical or overlapping coverage of the same type exists between two or more health insurance plans.

Dwelling Forms: An insurance policy designed to cover a dwelling and the personal property that is in it plus some additional coverage's. There are several forms available, check with us for your dwelling insurance needs.

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Earned Income: An employment income earned while working at some occupation.

Earned Premium: An amount of "used up" policy premium during the term of an insurance policy.

Economic Loss: An estimated total cost, insured and uninsured, of mishaps (such as: vehicle accidents, work accidents, and fires); including such factors as property damage, funeral expenses, wage loss, insurance administration costs, and medical, hospital and legal costs.

Effective Date: The date on which the insurance under a policy will begin.

Eligibility Date: The date which an individual is eligible for benefits.

Eligibility Period: A specified period of time during which an individual member of a particular group may enroll without evidence of insurability.

Eligibility Requirements: This term could be defined as either: (1) conditions which an employee must satisfy to participate in a retirement plan, or (2) conditions which an employee must satisfy to obtain a retirement benefit.

Eligible Dependent: A dependent of an insured that is eligible for benefits.

Eligible Employee: A member of a group who has met the eligibility requirements under a group life or health insurance plan.

Elimination Period: Two definitions: A period of time between the period of disability and the start of disability income insurance benefits, during which no benefits are payable.

Employee Dishonesty Coverage Form: A commercial crime insurance form that covers the loss of money, securities, and other covered property because of a dishonest act of a covered employee.

Endorsements: An additional piece of paper, not a part of the original insurance policy, in which certain terms and conditions, when attached to the original insurance policy, becomes a legal part of that contract.

Endorsement: An amendment of an insurance policy that alters the provisions of the contract.

Enrollment Card: A document signed by an employee as notice of their participation in the benefits of a group health insurance plan.

Entire Contract Clause: A provision in insurance policy stating that the life insurance policy and attached application constitute the entire contract between the parties.

Entity Purchase Agreement: Specifies the terms and conditions which the business will buy back a deceased's share of the business's ownership.

Errors and Omissions Insurance: A liability insurance policy that provides protection against loss incurred by a client because of some negligent act, error, oversight, or omission by the insured.

Estate: The assets and liabilities of a person left at death.

Estate Planning: Developing a plan to transfer all of your property from one generation to the next or within a generation .

Estoppel: Legal doctrine that prevents a person from denying the truth of a previous representation of fact, especially when such representation has been relied on by the one to whom the statement was made.

Errors and Omissions Insurance: A form of insurance that indemnifies the insured for any loss sustained because of an error or oversight on his or her part.

Evidence of Insurability: Any statement of proof of a person's physical condition and/or other factual information affecting his/her acceptance for insurance.

Excess and Surplus Insurance: (1) Insurance to cover losses above a certain amount, with losses below that amount usually covered by a regular policy. (2) Insurance to cover an unusual or one-time risk, e.g., damage to a musician's hands or the multiple perils of a convention, for which coverage is unavailable in the normal market. (See also "Umbrella liability" and "surplus lines.")

Exclusions: The specific conditions or circumstances listed in the policy for which the policy will not provide benefit payments.

Exclusive Agent: An agent who is employed by one and only one insurance company and who solicits business exclusively for that company.

Exclusion ratio: Portion of an annuity payment that is not subject to income tax when received.

Expense Ratio: The ratio of a operating expenses to premiums.

Experience Modification Factor: Used in workers compensation rating to reflect the degree to which a particular employer has experience that is better or worse that expected for that industry.

Experience Rating: Process of determining the premium rate for a group risk, wholly or partially on the basis of that group's experience.

Experience Refund: A provision in some group policies for the return of premium to the policyholder because of lower than anticipated claims.

Extended Nonowned Coverage: Endorsement that can be added to an automobile insurance policy that covers the insured while driving any nonowned automobile on a regular basis.

Extended Reporting Period: An additional period of time after policy expiration during which valid reported claims will be paid under a claims-made policy of liability insurance

Extended Term Insurance: A form of insurance available as a nonforfeiture option. This provides the original amount of insurance for a limited period of time, normally 5, 10, 15, or 20 years.

Extra Expense Insurance: Type of business income insurance that provides reimbursement to an insured for the extra expense incurred to continue a business operation when property had been damaged or destroyed by a covered peril.

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