File Name: life insurance terminology and definitions .zip
- Life Insurance Terms You Should Know
- Insurance Premium
- Glossary of Insurance Terms
- Life Insurance Terms
As you experience changing events in life and take on greater responsibilities, you may need to manage different kinds of life, health, automobile or home insurance.
Life Insurance Terms You Should Know
In insurance , the insurance policy is a contract generally a standard form contract between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language. Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts.
Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies. The insurance policy is generally an integrated contract, meaning that it includes all forms associated with the agreement between the insured and insurer. Advertising materials and circulars are typically not part of a policy. The insurance contract or agreement is a contract whereby the insurer promises to pay benefits to the insured or on their behalf to a third party if certain defined events occur.
Subject to the "fortuity principle", the event must be uncertain. The uncertainty can be either as to when the event will happen e. Insurance contracts were traditionally written on the basis of every single type of risk where risks were defined extremely narrowly , and a separate premium was calculated and charged for each. Only those individual risks expressly described or "scheduled" in the policy were covered; hence, those policies are now described as "individual" or "schedule" policies.
For example, in , an insurance industry spokesman noted that a bakery would have to buy a separate policy for each of the following risks: manufacturing operations, elevators, teamsters , product liability, contractual liability for a spur track connecting the bakery to a nearby railroad , premises liability for a retail store , and owners' protective liability for negligence of contractors hired to make any building modifications.
In , the insurance industry began to shift to the current system where covered risks are initially defined broadly in an "all risk"  or "all sums"  insuring agreement on a general policy form e.
Insurers have been criticized in some quarters for the development of complex policies with layers of interactions between coverage clauses, conditions, exclusions, and exceptions to exclusions. In a case interpreting one ancestor of the modern "products-completed operations hazard" clause,  the Supreme Court of California complained:.
The instant case presents yet another illustration of the dangers of the present complex structuring of insurance policies. Unfortunately the insurance industry has become addicted to the practice of building into policies one condition or exception upon another in the shape of a linguistic Tower of Babel. We join other courts in decrying a trend which both plunges the insured into a state of uncertainty and burdens the judiciary with the task of resolving it.
We reiterate our plea for clarity and simplicity in policies that fulfill so important a public service. In the United States, property and casualty insurers typically use similar or even identical language in their standard insurance policies, which are drafted by advisory organizations such as the Insurance Services Office and the American Association of Insurance Services.
In recent years, however, insurers have increasingly modified the standard forms in company-specific ways or declined to adopt changes  to standard forms. For example, a review of home insurance policies found substantial differences in various provisions. For the vast majority of insurance policies, the only page that is heavily custom-written to the insured's needs is the declarations page. All other pages are standard forms that refer back to terms defined in the declarations as needed.
However, certain types of insurance, such as media insurance, are written as manuscript policies , which are either custom-drafted from scratch or written from a mix of standard and nonstandard forms.
From Wikipedia, the free encyclopedia. Contract between the insurer and the insured. New York: McGraw-Hill. Available through HeinOnline. How to Draft and Interpret Insurance Policies. Reasonable Expectations Revisited. Law Journal. NN Investors Life Ins. However, what constitutes a conspicuous, plain, and clear exclusion from coverage was later interpreted narrowly in favor of the insured by MacKinnon v.
Truck Ins. Exchange , 31 Cal. Albany County School District No. American Empire Ins. Chicago: American Bar Association. New York: Wolters Kluwer. Retrieved 10 April United Services Auto. Ass'n , 20 So. Philadelphia Indem. Insurance Co. Allstate Ins. New York: Aspen Publishers.
National Interstate Ins. This case explains how the modern clause more clearly excludes both the "products" and "completed operations" hazards as separate things i.
Electronic Purification Co. Insurance Coverage Disputes. New York: Law Journal Press. Retrieved 8 March Retrieved 1 September Michigan Law Review.
Reevaluating Standardized Insurance Policies. The University of Chicago Law Review. New York Times.
Insurance Journal. Commercial Union Insurance Co. Accidental death and dismemberment Dental Disability Total permanent disability Income protection Long-term care National health Payment protection.
History of insurance Unitised insurance fund. Category List of topics. Categories : Insurance Contract law. Hidden categories: Webarchive template wayback links Articles with short description Short description is different from Wikidata. Namespaces Article Talk. Views Read Edit View history. Help Learn to edit Community portal Recent changes Upload file. Download as PDF Printable version. Health Accidental death and dismemberment Dental Disability Total permanent disability Income protection Long-term care National health Payment protection.
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Glossary of Insurance Terms
No worries! Start here and learn about the basic terminologies involved in life insurance. The policyholder is the one who proposes the purchase of the life insurance policy and pays the premium see 7 Premium. Life assured is the insured person.
Use this glossary to become familiar with terms to make your family protection and retirement planning just a little easier. Accelerated death benefit: Benefit paid, under clearly defined health-related circumstances, to a policyholder prior to his or her death. Accelerated death benefits are also known as living benefits.
Life Insurance Terms
Life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime. Ready to buy life insurance? Read our reviews of the best life insurance companies:. Life insurance provides financial support to surviving dependents or other beneficiaries after the death of an insured.
A type of insurance that makes a payment if you die from an accident. You can buy accidental death insurance on its own or add it to a life insurance policy. If you add it to a life insurance policy and die from an accident, your insurance company pays both the life insurance amount and the accidental death insurance amount. When the amount of the accidental death insurance is equal to the amount of the life insurance, the amount payable is double the original amount of the life insurance policy, and is known as "double indemnity". A type of insurance policy that allows the insurance company to make changes to the policy under certain conditions.
This list is not meant to be all inclusive, but should help with your understanding some insurance terms used in our website. Words associated with Surety and Bonds and Title Insurance are listed separately at the end of this list. Title insurance provides coverage for losses that occur when a land title is not free and clear of defects e. Two types of title insurance policies are common, a lender's policy and an owner's policy. Lender's Policy - When you take out a mortgage, the lender seeks protection for their investment by requiring lender's title insurance against losses resulting from claims made by others against your new home. This policy does not protect you nor does the seller's title insurance policy protect you. Owner's Policy - Since a lender's policy does not protect your financial interests, an owner's title insurance policy is worth serious consideration.
glossary will help you understand the basic types of coverage along with the terms included in your. Understanding Life Insurance Terms. Like many industries.