Insurance Vocabulary BY: BARRETT CAMERON

Insurance Vocabulary BY: BARRETT CAMERON

Claim A formal request to an insurance company asking for a payment based on the terms of the insurance policy. Insurance claims are reviewed by the company for their validity and then paid out to the insured or requesting party

Liability Liability Insurance' Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence.

Coverage The amount of risk or liability covered for an individual or entity by way of insurance services. Insurance coverage is issued by an insurer in the event of an unforeseen or unwanted occurrences.

Policy a document detailing the terms and conditions of a contract of insurance.

Deductible In an insurance policy, the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses.

Policyholder In insurance, the insurance policy is a contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.

Insured a person or organization covered by insurance.

Premium Premium is an amount paid periodically to the insurer by the insured for covering his risk.

Insurer A person or company that underwrites an insurance risk; the party in an insurance contract undertaking to pay compensation. Even switching the amount of the shortfall predicted by your insurer to a repayment mortgage will help.

Probability Probability can most easily be described as making a conclusion based upon deductive reasoning rather than research or calculation. The largest drawback to this method of defining probabilities is that it can only be applied to a finite set of events.

Insurance a thing providing protection against a possible eventuality.

Risk A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.