There are probably a lot of words in the insurance industry that make you stop and scratch your head. And to be honest, it does sometimes seem like we are speaking a different language. That is why we here at Texan Insurance are taking the opportunity to use this week’s blog post to help you learn to speak insurance. Follow along with us as we introduce and explain to you some of the most commonly used insurance words!
Learn to speak insurance A-Z
A - Adjuster: The person employed by your insurer assigned to evaluate loss and settle claims.
B – Binder: A temporary insurance contract that provides proof of insurance until a permanent policy can be issued.
C – Claim: A demand made by the insured for the payment of benefits as outlined by the insurance policy.
D – Deductible: How much you pay before your insurance company starts to pay.
E – Endorsement: An extenuation of your current policy.
F – First Party Claim: A claim filed by the insured against their own policy.
G – Gap Insurance: Insurance that pay the difference between the value of your vehicle and what you still owe on your loan.
H – HMO: A managed care plan that provides health insurance to its members through networks of doctors, clinics and hospitals.
I – Insured: The individual or organization covered by an insurance policy.
J – Justified Complaint: A complaint that exposes a violation of a policy provision or contract.
K – Sorry, we got nothing.
L – Liability: The responsibility of one party to another one for any negligence on the part of the insured that results in injury or damage.
M – Market Value: An items current value.
N – Non-Renewal: A decision by the insurer not to renew a policy.
O – Out-Of-Pocket Maximum: The most you will have to pay during a policy period before you no longer have to pay your share of coinsurance for covered health services.
P – Peril: A specific risk or cause of loss that is covered by your Property Insurance.
Q – Nothing to see here, move along.
R - Rider: See “Endorsement” above
S – Subrogation: The right of an insurance company to pursue a third party that caused an insurance loss to the insured.
T – Third-Party Claim: A claim that is filed against another person’s insurance policy.
U – Underwriter: The individual who reviews insurance application to determine coverage and deductibles.
V – We’re almost to the end!
W – Whole Life Insurance: Life insurance policies that covers your whole life so long as you continue to pay your premiums.
X – That’s…
Y – All…
Z – Folks!
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