Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. Insurance agent a legal representative of one or more insurers for which the representative has a contractual agreement to sell insurance. Glossary of commercial insurance terms commercial insurance is divided into two main categories. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. Glossary of risk management terms this is a comprehensive. Insurance and indemnification requirements risk management division effective march 2007 1 d. We have covered you for all the az insurance words and their meanings. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Not all concepts or coverages identified in this list are found at chapman university.
Form of life insurance allowing the owner to change the face amount, premium amount. Insured the individual whose property or liability is covered by an insurance policy. Words associated with surety and bonds and title insurance are listed separately at the end of this list. Additionally, this informational sheet is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company. 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 insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. Health care services that help a person keep, learn or. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Some health insurance or plans dont coun t all of your copayments, deductibles, coinsurance payments, out ofnetwork payments or other expenses. A term, mostly used in automobile insurance, meaning physical injury as a result of a car collision. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. An individual plan can cover you andor any of your eligible family members. Glossary of risk management terms this is a comprehensive list of insurance terms.
Glossary of health coverage and medical terms page 1 of 4 glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. Community rating a way of pricing insurance, where every policyholder pays the same premium, regardless of health status, age or other factors. Glossary of insurance terms cobra consolidated omnibus reconciliation act is federal legislation that requires employers to offer individuals leaving their workforce continued health insurance coverage, at the individuals expense, under the employers group plan. Most of the definitions below are provided courtesy of the insurance institute of canada. Insurance definitions, dictionary, glossary and terms. Insurance terminology north american training group, inc.
These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. When making decisions about health coverage, consumers should know the specific meanings of terms used to discuss health insurance. Glossary of insurance terms accident an unforeseen, unintended, and unexpected event, which occurs suddenly and at a definite place. Auto insurance, what follows are terms specific to au to coverage.
The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Other insurance clause property and casualty insurance the provision which states that if the insured has more than one policy, the policies will share in the loss usually on a prorated basis. Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. The term refers to the fact that the company carries or assumes certain risks for the policyholder. Insurance glossary india a to z terms of insurance. Health insurance glossary texas department of insurance. A person responsible for investigating and settling a claim. Gatekeeper under some health insurance arrangements, a gatekeeper is responsible for the administration of the patients treatment. Term used in universal life policies to describe the total of all premiums and earnings credited to the account before deductions for any expenses, loans, and surrenders. This concept applies to property, casualty, and health insurance but does not apply to life insurance. The term property insurance includes many lines of available insurance. Insurance the transfer of risk from a customer to the insurance company. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. Glossary of terms general insurance prepared by david forfar, ma, ffa with the assistance of david raymont, librarian of institute of actuaries, london.
Claims made a method of providing liability insurance in which the insurer agrees to cover all claims asserted against the insured during a specified date period regardless of when the claim occurred. Below are definitions for some of the more commonly used terms and how. A complaint that you communicate to your health insurer or plan. Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. Glossary of health coverage and medical terms omb control numbers 15452229, 12100147, and 09381146 page 1 of 6 glossary of health coverage and medical terms this glossary defines many commonly used terms, but isnt a full list. The insurance contracts act allows an insurer to avoid. A professional trained in the mathematics of insurance and risk management, including the calculations of premiums.
Disclosures a list of a health plans terms, including its benefits, exclusions, costsharing, service area, and preferred provider network. Indemnity basis or reinstatement basis see definitions in glossary. Insurance a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Package policy a combination of two or more individual policies or coverage in a single policy e. Agent the insurance company representative who sells policies on behalf of the insurer. Consumer glossary national association of insurance. Ashare variable annuity a form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge.
Insurance companies will sometimes retroactively cancel your entire policy if you made a mistake on your initial application when you buy an individual market insurance policy. Policythe legal document issued by an insurance company to a policyholder, which outlines the conditions and terms of the insurance, also called the policy contract or the contract. A health insurance policy you buy directly from a health insurance company or broker rather than through an employer. Definitions provided by insurance bureau of canada are indicated with an asterisk. Liability arising from extremely dangerous operations.
Health care services that your health insurance or plan doesnt pay for or cover. The formal request by a policy holder or claimant to be paid under the terms of the insurance policy. Under the affordable care act, rescission is illegal except in cases of fraud or intentional misrepresentation of material fact as prohibited by the terms of the plan or. This limit never includes your premium, balance billed charges or health care your health insurance or plan doesnt cover. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan or health insurance policy. This document is for informational purposes only and is not intended to alter or replace the insurance policy. The disclosures are part of your policy or evidence of coverage. Glossary of health coverage and medical terms this glossary defines many commonly used terms, butisnt a full list. An independent agent represents more than one company. Term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year. 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. Insurance glossary understanding common insurance terms.
An entity or person, other than the one in whose name coverage is written, protected against loss by an insurance policy or. Insurance is also simply defined as the transfer of risk. The current commercial time element coverage forms are. 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. Insurance company that actually underwrites and issues the insurance policy. Coop plan a health insurance plan that will be sold by memberowned and operated nonprofit organizations through. Request by an insured for the insurance company to cover an incurred loss. Acquisition costs all expenses directly related to acquiring insurance or reinsurance. This coverage is subject to the terms, limits and conditions. All are extremely important but on this first page, we have tried to explain in plain english what the most important and common terms mean. Accelerated death benefits a life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. A claimant is a person making a claim for unemployment insurance benefits under any state or federal unemployment compensation program.
If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned. We provide quick answers and easytounderstand auto and homeowners definitions written with you in mind. A form of corporation, allowed by the irs for most companies with 35 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership. You can ask an insurance company or health maintenance organization for a copy of a plans disclosures before buying the plan. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. Motor package policy, householders package, office package. Insured the persons protected by an insurance policy. Glossary ibc public assets insurance bureau of canada. Coverage excludes shortterm medical insurance, the federal employees health benefit program and noncomprehensive coverage such as basic hospital only. Glossary of insurance terms this list is not meant to be all inclusive, but should help with your understanding some insurance terms used in our website. An asset in insurance terms is something with monetary value that is covered by an insurance policy, such as a car or a property.
Convertible term insurance policy an insurance policy that can be converted into permanent insurance without a medical assessment. The hartford s glossary of terms can help you better understand auto and homeowners insurance terminology as you research the right coverage for you. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you. Comprehensive loss underwriting exchange clue report. Glossary of common auto insurance terms glossary of common. Under that policy, the insurer must compensate the policyholder in accordance with the policys terms and conditions if the asset is damaged or destroyed and the policyholder makes a claim.
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