Deeley Insurance Group is celebrating National Insurance Awareness Day! Insurance has its own terms that can be difficult to understand. Let us help you gain a greater knowledge of the insurance world with these terms!
Benefits – A sum of money or services provided to the insured according to the terms of the contract.
Claim – A formal request by the insured for payment for a covered expense.
Coverage – The specific protection provided by a policy against the results of the hazards insured against.
Deductible – The amount of money that the insured individual is required to pay before the insurance company pays its own share of the expense.
Exclusions – Expenses or services that are not covered under the terms of an insurance policy and must be paid by the insured.
Peril – The specific event causing a loss, such as fire, windstorm or accidental death.
Policy – The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.
Pre-existing Condition – A medical condition that existed before the plan was purchased. The company does not normally cover expenses related to this condition.
Premium – Payment made periodically (monthly, quarterly or semi-annually) to the insurer to ensure coverage.
Quote – The rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. A quote is an approximation of the premium for a given policy.
Replacement Cost – The cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.
Risk – The hazard or chance of loss on any particular item of insurance. The term “risk” usually is used in a general way to designate the entire subject matter of insurance covered under a policy or upon which an application for insurance has been received. Risk is also sometimes used to designate a policyholder.
For a full glossary of insurance terms, visit http://www.naic.org/consumer_glossary.htm. Contact us today to review your coverages – 410-213-5600!