Video Glossary

All Insurance

• Act of God

  An act of God is a sudden act of nature like a flood or earthquake, which could not have been prevented. Contrary to...

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• Actual Cash Value (ACV)

  This refers to the current cost of replacing a lost or damaged item with a similar one in the same...

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• Additional Interest Insured

  This is a term for another person or company who may be liable if an accident takes...

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• Adjuster

  An adjuster is a person who investigates and settles losses, usually for an insurance...

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• Agent

  An insurance agent is an individual who sells insurance products for only one insurance company, as opposed to a...

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• All Perils Policy

  This optional coverage provides the broadest possible coverage to protect yourself from loss or damage to your...

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• All Risks Policy

  This optional coverage protects against loss or damage from all perils with the exception of those specifically...

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• Automobile Liability Insurance

  This coverage provides protection against financial loss when you are at-fault in car-related injuries or damage to...

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• Automobile Physical Damage Insurance

  This coverage pays for automobile damage or loss resulting from collision, fire, theft, or other covered...

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• Bailee

  A bailee is a trustworthy person or business that takes the public’s goods under its...

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• Broker

  Unlike an Agent, a broker is someone who sells insurance products for many different insurance companies, allowing him...

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• Business Interruption

  This covers you for business expenses and loss of income after a fire or other...

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• C.L.E.A.R. Rating

  This is a popular car insurance rating system, which groups cars based on their claims experiences, such as repair...

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• Co-Insurance

  Co-insurance refers to a penalty you incur when you under-insure your property, requiring you to share a percentage of...

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• Collision Coverage

  In a vehicle collision, this optional coverage goes beyond basic liability insurance to cover damage to your own...

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• Comprehensive Insurance

  This optional coverage protects you when vehicle damage is unrelated to collision. It covers things like hail, flood,...

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• Deductible

  A deductible is the portion of a loss that you are required to pay yourself before your insurance coverage will...

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• Driving Record

  Your driving record is used to describe your driving history, including any accidents or traffic...

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• Endorsements

  This is an amendment to a policy used to add, delete or change...

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• Errors and Omissions Insurance

  This coverage, normally needed by professionals and consultants, provides protection against loss from some negligent...

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• Exclusion

  Exclusions are causes and conditions that are NOT covered. They are listed in your...

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• Facility

  A facility is a pooling method for people unable to get car insurance in the voluntary market. Insurers issue...

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• Fair Market Value

  This is the price that a willing buyer would pay a willing seller, when neither are compelled to sell or...

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• Group Discount or Rate

  This is a rate provided to a member of an eligible group, such as employees of the same employer, members of the same...

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• Hazard

  Hazards are situations that make loss more likely, such as slippery floors, unsanitary conditions, shingled roofs,...

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• Improvements and Betterments

  These are additions made by a tenant, at his own cost, to a building that he is occupying. These become part of the...

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• Indemnity

  When you indemnify someone, you absolve them of responsibility for any damages they incur. An insurance policy...

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• Lapse

  A lapse refers to the termination of a policy when you fail to pay your...

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• Liability Insurance

  Liability insurance pays other people if you’ve injured them or damaged their property. It also covers your...

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• Misrepresentation

  When you try to secure a lower insurance rate by misrepresenting your level of risk, this is misrepresentation. This...

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• Moral Hazard

  This term refers to morals or habits that increase the probability of a loss from a peril. The attitude of,...

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• Named Insured

  This refers to the person or company named in an insurance policy that is protected under that policy. In some cases,...

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• Named Perils Policies

  These are policies that specifically state which perils are protected against, and protect against no...

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• Negligence

  Negligence means failure to use the degree of care that an ordinary person of reasonable judgment would use under a...

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• No Fault Insurance

  This means a person’s own insurance company pays for financial losses after an accident, regardless of who...

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• Partial Loss

  As opposed to a total loss, a partial loss is one that neither totally destroys the insured property, nor exhausts the...

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• Peril

  A peril is a specific event causing loss or damage, such as the damage to buildings caused by fire or windstorm, or...

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• Physical Damage

  This is a generic term indicating actual damage to...

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• Premium

  Your premium is the amount you are required to pay to your insurer periodically in exchange for...

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• Professional Liability Insurance

  This coverage indemnifies professionals for any losses resulting from malpractice, errors or mistakes on their part in...

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• Proof of Loss

  This is a formal statement you make to an insurance company regarding a loss, in order to give them sufficient...

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• Renewal

  A renewal is an extension of an insurance policy for an additional period, as the current policy is about to...

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• Replacement Cost

  As opposed to Actual Cash Value, this refers to the cost of replacing property without accounting for...

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• Specified Perils Policy

  This covers your automobile against losses caused by fire, theft, lightning, windstorm, hail or rising water,...

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• Subrogation

  After you are compensated for a loss caused by a third party, this is the legal process by which your insurer seeks to...

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• Third Party Insurance

  This coverage protects you against liability for damage to or destruction of the bodies or property of...

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• Umbrella Liability Policy

  This is a policy that pays for liability losses in excess of those covered in your homeowners’ insurance and...

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• Underwriter

  This is a term for an insurance company or group that underwrites or insures a particular...

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• Valued Policy

  Under this kind of policy, the parties agree on the insured property’s value at the time of...

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