Insurance 101 Terminology

Question 1

Property & Casualty Insurance (P&C)

Answer 1

are types of coverage that help protect you and the property you own.

Question 2

Insurance Claim

Answer 2

a request for your insurance company to pay for something your insurance covers

Question 3

Policy

Answer 3

legal contract between policy holder and insurer

Question 4

Premium

Answer 4

$ paid to secure coverage

Question 5

Aggregate limit

Answer 5

Insurance $ limit total payout

Question 6

Per Occurrence Limit

Answer 6

insurance payout for individual incidents

Question 7

Risk Pool

Answer 7

allows higher cost of those who will suffer a covered loss to be offset by the relatively lower cost of those that will not

Question 8

Underwriting Appetite

Answer 8

Types of businesses an insurer is willing to cover

Question 9

Underwriting

Answer 9

They gather the data & #’s. professionals who evaluate and analyaze risks involved in insuring people and assets. Establish the pricing for accepted insurable risks.

Question 10

Carriers

Answer 10

Create the insurance policy

Question 11

Insurance Exchange

Answer 11

an entity providing a marketplace for insurance coverage that is generally unavailable elsewhere, for unusual or nonstandard risks. Neither being a broker or carrier

Question 12

Agencies/Brokers

Answer 12

Sells the policy

Question 13

Binder

Answer 13

Temporary insurance pending issuing a formal policy

Question 14

Personal Lines

Answer 14

Coverages for individuals, vehicles and household insurance

Question 15

Commercial

Answer 15

Insurance products designed for businesses