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Glossary of Insurance Terms

Need to learn more about an insurance term? Find an easily accessible list of insurance terms with definitions here at the Insurance Terms Glossary.

Coordination of Benefits
It is important to know how the coordination of benefits provision and the primary and secondary health plan works for those who are covered under more than one health insurance plan.

Health Insurance Provider Network
The health insurance provider network helps managed health care plans keep overall costs down. Understanding why managed health care plans use health insurance provider networks helps one see why it can cut health insurance premiums fees for the employee.

Insurance Claims Adjuster
How does an insurance claims adjuster process and insurance claim? What about a public claims adjuster? The insurance claims process can seem complicated but knowing more about who processes insurance claims and how they do their job can help one understand the insurance claims process better.

Annuity
An annuity can be a helpful tool for retirement. But, understanding the differences in annuities, such as a fixed annuity and variable annuity, along with the many other differences in annuities can complicate the process of choosing an annuity. Learn more about annuities and so you can decide if they will be a good addition to your retirement...

Homeowners Insurance Peril
Get to know more about what a peril is and what types of perils your homeowners insurance covers. Having a good understanding of your homeowners insurance perils is important in making sure you have adequate homeowners insurance coverage.

Absolute and Strict Liability
Being absolutely liable regardless of who is at fault is considered absolute liability or strict liability. Taking steps to reduce one's exposure to absolute liability is important to the insurance company.

Reasonable Repairs
After a loss to an insured property, the first step to take is to contact the insurance company to let them know about the loss. Next, one needs to protect their property further by making any reasonable repairs.

Insurance Endorsement
Insurance endorsements are important additions to an insurance policy. It is important to understand how the insurance endorsement can change the policy.

Vendor Insurance
Vendor insurance is a specialty insurance policy for those who sell goods at events such as fairs and trade shows. Vendor insurance is very important to have since it can include vendor liability insurance along with vendor product insurance.

Insurance Declaration Page
Most insurance policies have multiple pages. Filing through these pages to understand the basics of an insurance policy would be complicated. The insurance declaration page simplifies this process by giving the insurance policy holder a basic overview of their insurance policy.

Drivers License
A U.S. drivers license is a document that permits one to drive legally in the United States. Every state sets the rules as to what is required to obtain a drivers license. One must have a legal drivers license in order to purchase car insurance.

Emergency Medical Treatment and Labor Act
There is a federal law that prohibits hospitals from not accepting someone in need of emergency services just becasue they don't have insurance. The Emergency Medical Treatment and Labor Act, or EMTALA, provides protection for those that do not have insurance and are in need of hostipal emergency services.

Uninsured Motorists Coverage
If you get into an accident and the other driver was liable (it was there fault) and for various reasons the other driver could not pay for damages, uninsured motorists coverage would step in to protect you.

Vicarious Liability
In insurance, when one is negligent they may be liable for the result of their negligence. To be negligent one would fail to act or not act as a reasonable person would in the same situation. There are cases where someone can be negligent and liable for an act but another party would hold some responsibility to the negligence too. This is...

Interstate Insurance
Inerstate insurance, or otherwise known as selling insurance across state lines, would open up health care markets and lower costs for some. Still, many feel that selling insurance across state lines would lower the quality of care overall.

Beneficiary
The beneficiary, when related to insurance, is someone who receives the benefits of an insurance contract. This can refer to the person who receives the insurance proceeds from a life insurance policy or annuity.

Malpractice Insurance
Malpractice insurance is a form of professional liability insurance that most all state require that doctors have. Like other professions that purchase professional liability insurance to protect themselves, medical malpractice insurance will financially protect a doctor that may be sued by a patient for various reasons.

Government Affordability Credits
Government affordability credits are being used in the health insurance reform bill to help American citizens afford health care coverage in the health insurance exchange. Since part of the health insurance reform bill mandates insurance, these affordability credits are there to help low income households afford the mandated insurance requirement.

Fee for Service
Fee for service is the term for how doctors get paid. For each service the doctor performs they get paid a fee. The fee for service health care model has been criticized by health care reform advocates.

Public Option
Public option is the term being used for a proposed government choice for health care insurance. This is part of a larger bill proposed by President Obama in the first year of his presidency to overhaul the health care system with health care reform and insurance reform.

Pre-existing Conditions
Having a pre-existing condition when shopping for health insurance can a difficult task. Understanding the definition of a pre-existing condition can be a good first step in obtaining a good health insurance policy.

Mandated Health Insurance
Mandated health insurance is when one is mandated, or required to purchase health insurance. This is the term most often used in the new health insurance reform legislation by the Obama administration.

Insurance Exchange
A health insurance exchange is the proposed way under the Obama administration to help with health insurance competition and health insurance reform. This new program will be a key component in providing health insurance to millions of uninsured Americans.

STOLI
Could you be a target for a STOLI life insurance scam? Insurance investors are targeting the elderly in these transactions. Learn how to prevent yourself from the insurance investors STOLI life insurance scam.

Classic Insurance
Classic insurance is generally associated with insurance for a classic car. A car insurance policy for a classic car is sometimes different than a modern car. There are factors that the insurance company must evaluate differently for classic insurance.

Umbrella Liability Insurance
Umbrella liability insurance is becoming more popular as people are realizing how inexpensive an umbrella policy and umbrella coverage can be. See how umbrella liability protection can be a nice added cushion of insurance on top of your existing policies.

Health Insurance Coinsurance
When you look at your health insurance policy, usually you will find you have a coinsurance clause. Understanding what your coinsurance is will help you budget better for your health insurance costs.

Insurance Underwriting
The insurance underwriting process is different with every company. Learn more about insurance underwriting and how it can affect you.

Out of Network Charges
Out of network hospital costs or fees can sometimes be a surprise on your insurance bill. Make sure you know why you are being charged this fee and if you have to pay the out of network fee.

Insurance Grace Period
Worried about not being able to pay your car insurance payment or life insurance payment? Before you cancel your policies, don't forget to find out when your grace period is.

Liability Insurance Coverage
When do I use my liability insurance coverage and is it required?

Insured Person
Who is covered on my insurance policy and if someone lives with me will they be covered too?

Insurance Deductible
How much is my insurance deductible and when do I need to pay it?

Comprehensive Insurance Coverage
When is Comprehensive Insurance Coverage used and does my insurance deductible apply?

Collision or Accident Insurance Coverage
What is collision or accident insurance coverage and will it help me in a car accident?

Insurance Claim
What is an insurance claim and what happens after I file an insurance claim to the insurance company?

Casualty Insurance
Who needs Casualty Insurance? Are insurance agents licensed in casualty insurance?

Insurance Broker
Should I use an Insurance Broker? What's the difference between an insurance broker and an insurance agent?

Bodily Injury
What does bodily injury mean in insurance? Is death considered a bodily injury in insurance?

Blanket Insurance
When do I need a blanket insurance policy? How can I cover items at my home and apartment?

Insurance Binder
What is an insurance binder and why is it only temporary insurance coverage?

State Auto Insurance Plan
Does my state offer an auto insurance plan? What kind of insurance coverages are included in my state auto insurance plan?

Insurance Agent
What is an Insurance Agent? What type of education does an insurance agent have?

Adhesion Contract
What is an Adhesion Contract? Is an insurance policy an adhesion contract?

Accident
How is an accident in insurance defined? What does it mean to the insurance company to have an accident?

Actual Cash Value
What is Actual Cash Value? What does ACV mean?

Cadillac Health Insurance
A Cadillac health insurance plan is a high dollar health insurance plan that provides extra coverages and low out-of-pocket costs. Who pays when a tax is imposed on Cadillac health insurance plans?

Actual Loss
Actual loss, or sometimes known as actual loss sustained, in insurance means that the actual loss is covered but still usually up to a certain limit.

Co-Insurance
Co-insurance is the percentage amount that one is required to pay. Usually used with health insurance plans, co-insurance is a way for the insurance company to share the costs with the policy holder and to keep premium costs down.

Copayment
The copayment, is a fixed amount the insured is required to pay to the provider. Some call it the co-payment or copays since there can be different copayment amounts for different services.

Lifetime Maximum
Do you know your lifetime maximum benefit in your health insurance policy? Not having enough insurance available can be disastrous and everyone should look for a health insurance police with the highest, or even no lifetime maximum benefit.

Employer Waiting Period
Employers use waiting periods to attract long term employees or to save money when there is a job shortage. Regardless, an employer and set whatever time they choose for their insurance waiting period, but it is important to know that the employer waiting period cannot be in addition to a pre-existing condition waiting period.

Tuition Insurance
Tuition insurance can help a tuition payer obtain back tuition costs. Tuition insurance can be purchased for private elementary, middle, and high schools. College tuition insurance is also available.

Mechanical Breakdown Insurance
Insurance that helps protect a car owner against large auto repair bills is called mechanical breakdown insurance or MBI. Mechanical breakdown...

Out-of-Pocket
The health insurance definition of out-of-pocket costs is any amount of money that will have to come from you, hence the term "out of [your]pocket". Two main areas to understand out-of-pocket costs in insurance are the out-of-pocket costs for services not covered and the out-of-pocket costs you are expected to pay before your insurance will...

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