Insurance Terms
Browse 27 insurance terms
Accounting Terms
Claims Terms
Subrogation
Subrogation is the legal right of an insurance company to pursue a third party that caused an insurance loss to the i...
Actual Cash Value
The replacement cost of property minus depreciation at the time of loss. Actual cash value represents the fair market...
Recovery
The process of collecting payment from a responsible party after settling a claim with the insured. Recovery efforts ...
Claim
A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss. The claim...
Adjuster
An insurance professional who investigates, evaluates, and settles insurance claims. Adjusters can be staff employees...
Loss
The reduction in value of an insured item or the amount of damage suffered. A loss triggers the insurance policy's co...
Replacement Cost
The cost to replace damaged property with new property of like kind and quality, without deduction for depreciation. ...
Legal Terms
Waiver of Subrogation
A contractual provision preventing the insurer from pursuing recovery from a third party after paying a claim. The in...
Indemnification
The act of compensating someone for harm or loss, restoring them to their pre-loss financial position. In insurance, ...
Made Whole Doctrine
Legal principle requiring the insured to be fully compensated before the insurer can pursue subrogation. The insured ...
Liability
Legal responsibility for damages or injuries caused to others. Liability insurance protects the insured from financia...
Underwriting Terms
Contribution
The right of an insurer to share costs with other insurers when multiple policies cover the same loss. Each insurer p...
Additional Coverage
Optional protection that extends beyond the base policy to cover specific risks or increase limits. Additional covera...
Endorsement
A written amendment to an insurance policy that modifies coverage, terms, or conditions. Endorsements can add, remove...
Deductible
The amount the policyholder must pay out of pocket before the insurance company begins to pay on a claim. Deductibles...
Premium
The amount paid to an insurance company for coverage. Premiums are typically paid annually, semi-annually, quarterly,...
Coverage
The protection provided by an insurance policy. Coverage defines what risks are insured, under what conditions, and u...
Exclusion
A policy provision that eliminates coverage for specific risks, perils, or circumstances. Exclusions narrow the scope...
Peril
A specific cause of loss or damage covered by an insurance policy. Perils can be named (specifically listed) or open ...
Policy Limits
The maximum amount an insurance company will pay for a covered loss. Limits can be stated per occurrence, per policy ...
Underwriting
The process of evaluating, selecting, and pricing insurance risks. Underwriters determine whether to accept or reject...
Risk
The possibility of loss or the uncertainty of outcome. In insurance, risk refers to the exposure to potential financi...
Hazard
A condition that increases the probability or severity of a loss. Hazards can be physical (poor maintenance), moral (...
Aggregate
The total maximum amount an insurer will pay for all claims during a policy period. Aggregate limits apply across all...
Sublimit
A limit within the overall policy limit that applies to a specific type of loss or category of property. Sublimits re...
Umbrella Policy
An excess liability policy that provides additional coverage above underlying policy limits. Umbrella policies typica...