Insurance Terminology

Question 1

Rate of occurrence of accidents; e.g. a number of accidents per million man-hours worked

Answer 1

Accident Frequency

Question 2

An event that is caused by the forces of nature, without human intervention, and that could not have been prevented by reasonable care e.g., flood, lightning, earthquake, and hurricane

Answer 2

Act of God

Question 3

A person trained in mathematics whose job is to apply the theory of probability to the business of insurance, and to advise in situations involving questions of probability

Answer 3

Actuary

Question 4

Increased expense of providing a home due to damage to the property insured, e.g. extra cost of living in a hotel

Answer 4

Additional Living Expense

Question 5

Usually one who represents the insurer in settling claims with insureds or with third party claimants
Sometimes a representative of the insured

Answer 5

Adjuster

Question 6

The process of determining the amount payable or service to be rendered by one or more insurers to an insured or other claimant under an insurance contract, and the rights and obligations incident thereto

Answer 6

Adjustment

Question 7

Insurance that covers loss caused by all perils except those specifically excluded in the contract

Answer 7

All Risk Injury

Question 8

The system of selling insurance through agents compensated by commissions, the agents having the sole right to solicit insureds on expiration of their policies

Answer 8

American Agency System

Question 9

Determination of the value of property, or of the extent of damage, usually by impartial experts

Answer 9

Appraisal

Question 10

A dangerous place of instrumentality attractive to children, the owner of which has the legal duty of taking unusual care to guard them from it

Answer 10

Attractive Nuisance

Question 11

One to whom goods are delivered to be held in trust in accordance with a contract, express or implied

Answer 11

Bailee

Question 12

Amounts to be paid by the insurer under an insurance contract

Answer 12

Benefits

Question 13

A temporary insurance contract pending execution of the policy contract Except for specific difference, the terms of the binder are by implication those of the contract which is intended to replace it

Answer 13

Binder

Question 14

An arrangement under which the insured shares in losses in the proportion that his insurance is less than a specific percentage of value of the property insured

Answer 14

Coinsurance

Question 15

A loss not directly caused by a peril insured against but arising indirectly

Answer 15

Consequential Loss

Question 16

The extent of the insurance afforded under an insurance contract
Often used to mean insurance or insurance contract

Answer 16

Coverage

Question 17

A clause in an insurance contract providing that the insurer will pay only that amount of any loss that is in excess o a specified amount

Answer 17

Deductible Clause

Question 18

An amendment in writing (including print or stamping), added to and made a part of the insurance contract

Answer 18

Endorsement

Question 19

A provision in an insurance contract stating situation in which, perils against which, or persons or things upon which, insurance is not afforded under the contract

Answer 19

Exclusion

Question 20

The state of being exposed to the chance of loss

Answer 20

Exposure

Question 21

A clause in an automobile-liability-insurance contract subjecting the contract to the requirements of any financial responsibility law and requiring the insured to reimburse the insurer for disbursements it would not be required to make except for this clause

Answer 21

Financial-Responsibility Clause

Question 22

An agent that produces heat and a flame or glow

Answer 22

Fire

Question 23

A fire which is not outside the place where it was intended to be

Answer 23

Fire Friendly

Question 24

A fire outside the place where is was intended to be

Answer 24

Fire Hostile

Question 25

An insurance contract that covers property in any location within a specified territory

Answer 25

Floater Policy

Question 26

A period following the premium due date during which payment of the premium may be made without penalty or suspension of coverage

Answer 26

Grace Period

Question 27

A clause in a contract proving that the insurer may not, after a specified time from the inception of the contract, contest the validity of the contract

Answer 27

Incontestable Clause

Question 28

To make good a loss

Answer 28

Indemify

Question 29

Replacement, repair or payment of value of a loss

Answer 29

Indemnity

Question 30

A pooling of hazards in order to indemnify those who experience losses

Answer 30

Insurance

Question 31

The contractual relationship between the insured and the insurer who agrees, in return for a premium, to indemnify the insured for losses due to specified causes; in some cases, includes specified services

Answer 31

Insurance

Question 32

Injury or damage sustained by an insured

Answer 32

Loss

Question 33

The amount for which the insurer becomes liable on occurrence of the event insured against

Answer 33

Loss

Question 34

A clause in an insurance contract making the proceeds payable to named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee

Answer 34

Mortgagee Clause

Question 35

The cause of possible loss

Answer 35

Peril

Question 36

Particular location or portion thereof as defined by the policy insurance

Answer 36

Premises

Question 37

The amount charged for insurance

Answer 37

Premium

Question 38

A formal written statement of a claim for payment of a loss, with supporting data

Answer 38

Proof of Loss

Question 39

A promise of payment of indemnity or of a specified sum or sums by an insurer

Answer 39

Protection

Question 40

Guarding persons or things against loss

Answer 40

Protection

Question 41

The subject of insurance whether a person or thing

Answer 41

Risk

Question 42

Chance of loss

Answer 42

Risk

Question 43

The unlawful taking of property by violence, force, or intimidation

Answer 43

Robbery

Question 44

Property taken over by the insurer on payment of loss

Answer 44

Salvage

Question 45

In maritime law, the award to persons who voluntarily render services to maritime property in peril, with resulting benefit thereto

Answer 45

Salvage

Question 46

An insurance policy that covers, under separate insuring agreements, several enumerated causes of loss

Answer 46

Schedule Policy

Question 47

A contract form in general use by insurers, adopted by a group of insurers, approved by a state insurance department or prescribed by statute

Answer 47

Standard Form

Question 48

The corporation or individual guaranteeing performance or faithfulness under a bond

Answer 48

Surety

Question 49

A person whose duty is to select risks for insurance and to determine in what amounts and on what terms they will be accepted by an insurer

Answer 49

Underwriter

Question 50

At the inception of disability, a period in respect of which benefits are not payable

Answer 50

Waiting Period

Question 51

A statute imposing liability on employers to pay benefits and furnish care to employees injured, and to pay benefits to dependents of employees killed, in the course of an because of their employment
Employer is generally relieved of liability for common-law damages

Answer 51

Workmen’s Compensation Law