50 insurance terms in English you should know
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| 50 insurance terms in English you should know |
Insurance terms in the English language (the terminology of insurance). Insurance, in general, is a social system that seeks to save a reserve to deal with unexpected losses that may be exposed to institutions or individuals. The aim of this article is to identify some insurance terms in the English language (terminology). of insurance, but there are some points related to insurance that we want to list about the importance of insurance, its types, and the policies that insurance companies follow to confront these risks. Individuals may be exposed to them in their work or private property; even institutions and companies may be exposed to any type of risk that harms their interests and may cause... It may collapse or be completely destroyed if it suffers a major loss without insurance.
Here are 50 insurance terms you should know:
- Premium: The price you have to pay for your insurance policy.
- Policy: A contract that outlines the terms and conditions of your insurance coverage.
- Insured: the individual or organization that the insurance coverage covers.
- Insurer: The insurance company providing coverage.
- Claim: A request made by the insured for payment of benefits covered by the policy.
- Coverage: The scope of protection provided by the insurance policy.
- Liability: Legal responsibility for damages or injuries to others.
- Comprehensive Coverage: Insurance coverage for damage to your vehicle not caused by a collision, such as theft, vandalism, or natural disasters.
- Collision Coverage: Insurance coverage for damage to your vehicle caused by a collision with another vehicle or object.
- Underwriting: The process by which an insurance company evaluates the risk of insuring a person or entity.
- Endorsement: A modification to the insurance policy that changes the terms or coverage.
- Underinsured Motorist Coverage: Coverage that protects you if you are in an accident caused by a driver with insufficient insurance coverage.
- Uninsured Motorist Coverage: Coverage that protects you if you are in an accident caused by a driver with no insurance.
- Policyholder: The person who owns the insurance policy.
- Beneficiary: The person or entity designated to receive the benefits of an insurance policy.
- Term Life Insurance: Life insurance coverage for a specified period of time.
- Whole Life Insurance: Life insurance coverage that lasts for the insured's entire life.
- Premium Payment Period: The frequency at which premiums must be paid, such as monthly, quarterly, or annually.
- Grace Period: A period after the due date during which the insurance policy remains in force without penalty.
- Coverage Limit: The highest sum that an insurance provider will pay for a loss that is insured.
- Claimant: The person making a claim for insurance benefits.
- Peril: A specific event that may cause damage or loss, such as fire, theft, or natural disaster.
- Rider: An optional addition to an insurance policy that provides additional coverage or benefits.
- Salvage: Property that an insurance company takes ownership of after paying a claim, often to recoup losses through resale.
- Adjuster: An insurance company representative who assesses claims and determines the amount of compensation.
- Reinsurance: Insurance purchased by insurance companies to protect against large losses.
- Risk Management: The process of identifying, assessing, and mitigating risks to minimize the impact of potential losses.
- Excess Insurance: Additional coverage purchased to provide protection beyond the limits of a primary insurance policy.
- Actual Cash Value: The current market value of an asset, taking into account depreciation.
- Replacement Cost: The cost to replace an asset with a similar one at current market prices, without accounting for depreciation.
- Subrogation: The legal right of an insurer to pursue a third party responsible for a loss covered by insurance.
- Deductible Waiver: A provision in the insurance policy that waives the deductible under certain circumstances.
- Aggregate Limit: The maximum amount the insurance company will pay for all covered losses during a policy period.
- Risk Pooling: The practice of spreading risk among a group of policyholders to minimize the impact of individual losses.
- Loss Ratio: The ratio of incurred losses to earned premiums, used to assess the profitability of an insurance company.
- Insurable Interest: A financial interest in the insured property or person that justifies purchasing insurance.
- Fiduciary: A person or entity entrusted with managing assets for the benefit of another party.
- Policy Term: The length of time for which the insurance policy provides coverage.
- No-Fault Insurance: Insurance coverage that pays for medical expenses and other damages regardless of who is at fault in an accident.
- Excess and Surplus Lines Insurance: Insurance coverage for risks that traditional insurance companies are unwilling to insure.
- Loss Prevention: Measures taken to reduce the likelihood or severity of losses.
- Indemnity: Compensation paid by the insurance company to the insured for covered losses.
- Certificate of Insurance: A record demonstrating proof of insurance coverage.
- Occurrence: An event that triggers coverage under an insurance policy.
- Binder: Temporary proof of insurance coverage issued until a permanent policy is issued.
- Risk Assessment: The process of evaluating potential risks to determine the appropriate level of insurance coverage.
- Named Perils: Specific risks or events listed in the insurance policy for which coverage is provided.
- Incontestability Clause: A provision in the insurance policy that prevents the insurer from contesting the validity of the policy after a certain period of time.
- Residual Value: The value of an asset at the end of its useful life.
- Captive Insurance: Insurance provided by a company that is owned and controlled by the insured.
These terms cover various aspects of insurance, from types of coverage to key concepts in the insurance industry.