Some companies specialize in one or other of these areas, but others. Agent the insurance company representative who sells policies on behalf of the insurer. General insurance definition and meaning collins english. The four main classes of insurance are accident, life, fire, and marine insurance insurance is the only major financial service regulated by states, rather than the federal government.
These definitions provide a brief description of the coverages progressive offers and some of the terms and phrases used in connection with homeowners insurance. Insurance policies contain many common words that have special meaning within the context of insurance. An unexpected, unintended event that caused bodily injury or property. Also see the health and life insurance glossary, property and casualty insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings. Improve your vocabulary with english vocabulary in use from cambridge. Insurance meaning in the cambridge english dictionary. An independent agent represents more than one company.
For insurance purposes the word disability will have a special and particular meaning which will be defined in the policy concerned. Explain the purpose and importance of different types of insurance protection as a risk management strategy e. Definition of insurance contract1 european commission. Here are definitions of the most common terms and phrases youll find in a policy. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. The different forms of general insurance are fire, marine, motor, accident and other miscellaneous nonlife insurance. A legal definition of insurance that appears in many insurance laws is the.
Social insurance is one of the devices to prevent an individual from falling to the depths of poverty and misery and to help him in times of emergencies. Insurance is appropriate if the loss will cause you or your loved ones a significant financial loss or. Insurance company financial definition of insurance company. Insurance, definition of insurance, characteristics of. A beneficiaryof a life insurance policy can exclude proceeds of the policy if the contract qualifiesas life insurance and 1 section 816aflush language. Insurance definition, the act, system, or business of insuring property, life, ones person, etc. Generalinsurancedefinitions institute and faculty of. We offer insurance by phone, online and through independent agents. The risk must involve potential economic damage therefore meaning that the. Liability for damages even though fault or negligence cannot be proven. If they fall within the legal definition of insurance, protection may be. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. Heshe attempts to extract the maximum value for the.
Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in. Weve curated additional glossaries of insurance terms and definitions to help you better understand the often confusing legal language of insurance. Insurance definition of insurance by merriamwebster. Insurance contract definition of insurance contract by. The a systematic process of observing, tracking, and recording activities or data for the purpose of measuring program or project implementation and its progress towards achieving objectives.
Insurance policies are used to hedge against the risk. Definition of insurance contract european commission. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. The meaning, types, and terms involved in the world of insurance.
Insurance agent the insurance company representative and adviser who sells insurance policies. Histories of social policy have a tendency to lay stress on episodes of political conflict. Insurance pdf types of insurance, scope of insurance, classification definition. Insurance agent a person licensed by a state and generally employed by an insurance company to sell insurance policies on the companys behalf. This is a contract between an insurer and the insured. Insurance is a contract between the insurer and insured whereby the insurer undertakes to pay the insured a fixed amount, in exchange for a fixed sum premium, on the happening of a certain event like at a certain age or on death, or compensate the actual loss when it takes place, due to the risk insured. A person or entity who buys insurance is known as an insured or as a policyholder.
The agent generally receives a commission for this service. Insurance market meaning in the cambridge english dictionary. They aim to stabilize the insurance market and increase competition so that insurance premiums can be lowered. The term property insurance includes many lines of available insurance. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril.
Assurance definition is the state of being assured. Insurance agent financial definition of insurance agent. See your policy for an exact definition of the meaning of the term in your policy. In simple words risk is danger, peril, hazard, chance of loss, amount covered by insurance, person or object insured. The tangible assets are susceptible to damages and a need to protect the economic value of. Alien insurance company an insurance company incorporated under the laws of a foreign country, as opposed to a foreign insurance company that does business in states outside its own. Insurance pdf types of insurance, scope of insurance. The company has indicated that the proposals governing health insurance will protect them against rising costs. Liability insurance is any 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.
Premium costs are a primary driver of revenue for insurance providers. The definition of insurance company under section 816a is addressed on pages 6768. This glossary provides insurance terms definition and explanation commonly used in insurance business world. The insurance covers you against injury to visitors while on your. He did not mean to hit the identify key terms associated with insurance and risks.
Dictionary grammar blog school scrabble thesaurus translator quiz more resources more from collins. Ab initio a term used to describe avoidance of a contract from its inception or its beginning. Few insurance companies have suffered financial setback. The company pools clients risks to make payments more affordable for the insured. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. An event or occurrence which is unforeseen and unintended. Insurance glossary understanding common insurance terms. A promise of compensation for specific potential future losses in exchange for a periodic payment.
Insurance is a means of protection from financial loss. Dictionary of insurance terms a absolute liability. A contract of insurance is that whereby one party, the insurer, undertakes, for a premium or an assessment, to make a payment to another party, the policyholder or a third party, if an event that is the object of a risk occurs. At least we have crop insurance which is good protection against decisions that turn out bad. The insurance policy is generally an integrated contract, meaning that it includes all forms associated with the agreement between the insured and insurer.
The risk is an event or happening which is not planned but eventually happens with financial consequences resulting in loss. Insurance contract synonyms, insurance contract pronunciation, insurance contract translation, english dictionary definition of insurance contract. Insurance definition is coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril. A financial risk management tool in which the insured transfers a risk of potential financial loss to the insurance company that mitigates it in exchange for monetary compensation known as the premium. Insurance is a device for indentifying an individual against loss and in the recent past due to natural calamities. These definitions are not applicable in all states or for all products. Definition of insurance working group white paper naic. Assurance definition of assurance by merriamwebster. Glossary of commercial insurance terms commercial insurance is divided into two main categories.
If you were to go by the dictionary definition, life insurance is a financial product that pays you or your dependants a sum of money either after a set period or upon your death as the case may be. Insurance definition and meaning collins english dictionary. Not sure where to start when it comes to learning about and shopping for life insurance. For example, it reimburses for losses from specified. In a wider context casualty insurance may cover all nonlife insurances. These general definitions are provided for educational purposes.
Insurance involves the setting aside of sums of money in order to provide compensation against loss. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. Glossary of reinsurance terminology term definition accident year experience reinsurance experience calculated by matching the total value of all losses occurring during a 12month period with premiums earned for the same period. Allied lines property insurance that is usually bought in conjunction with fire insurance. This definition is exactly the same as one might use for regular insurance except for the clearly prescribed target market.
Name and describe the various kinds of business insurance. Insurance is an arrangement in which you pay money to a company, and they pay money to. Insurance contracts that do not come under the ambit of life insurance are called general insurance. Insurance definitions, dictionary, glossary and terms. For risks that involve a high severity of loss and a low frequency of loss, then risk transference ie. Customers who rarely use their insurance benefits are profitable to insurers and help cover the losses created by higherrisk customers. Definition of insurance in subsection 302c of glba.
Premiums of few insurance policies have suddenly gone uphill as plenty of insurance providers have become. Gatekeeper under some health insurance arrangements, a gatekeeper is responsible for the administration of the patients treatment. Definition of insurance contract1 member state austria 1 versvg. Versicherungsvertragsgesetz, insurance contract law act in the case of indemnity insurance, the insurer is obliged to compensate the policyholder the financial damage suffered. Lesson 18 insurance national institute of open schooling. Insurers collect monthly premiums from a large number of customers to help offset the cost of payouts on insurance claims. Insurance, definition of insurance, characteristics of insurance, nature of insurance, functions of insurance insurance. Acquisition costs all expenses directly related to acquiring insurance or reinsurance. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss an entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. Examine the different types of insurance available.
Information gathered through monitoring is used to analyze, evaluate the all of the components of a project or a department in order to. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non disclosed or fraudulently misrepresented information when applying for insurance. Life insurance terminology doesnt have to be confusing. Pdf this chapter examines the characteristics of insurance contracts.
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