Claim – a request for transfer of payment from the insured due to the damage suffered by the insurer. Risk assessment is an important factor for the party, as it takes a higher risk when considering entering into a random contract. Life insurance policies are considered random contracts because they only benefit the policyholder when the event itself (death) occurs. Only then does the policy allow the agreed amount of money or the services specified in the random contract. The death of a person is an uncertain event, as no one can predict in advance with certainty when the insured will die. However, the amount that the insured`s beneficiary receives is certainly much higher than what the insured paid as a premium. In the United States, property and casualty insurers typically use similar or even identical language in their standard insurance policies, which are designed by advisory bodies such as the Insurance Services Office and the American Association of Insurance Services. [31] This reduces the regulatory burden on insurers, as insurance forms must be approved by states; It also makes it easier for consumers to compare policies, but at the expense of consumer choice. [31] As policy forms are reviewed by the courts, interpretations become more predictable as the courts develop the interpretation of the same clauses in the same forms of insurance rather than different policies from different insurers. [32] For investors considering leaving their pension funds to a beneficiary, it is important to note that in 2019, the U.S. Congress passed the SECURE Act, which made changes to the rules for pension plan beneficiaries. Starting in 2020, non-marital beneficiaries of retirement accounts must withdraw all funds from the inherited account within ten years of the owner`s death. In the past, beneficiaries could extend distributions – or withdrawals – over their lifetime.

The new decision removes the stretching provision, which means that all funds, including pension contracts in the retirement account, must be withdrawn under the ten-year rule. Obligations – a form of obligation in which the creditor holds a creditor`s stake in the company. bonds issued by business units, government entities and certain not-for-profit entities with a fixed schedule for one or more future monetary payments; includes commercial paper, negotiable certificates of deposit, repurchase agreements and equipment trust certificates. Broker – a person who receives commissions from the sale and service of insurance policies. These people work on behalf of the client and are not limited to the sales policies of a particular company, but commissions are paid by the company with which the sale was made. Variable annuity – a retirement contract in which premium payments are used to purchase shares and the value of each unit is relative to the value of the investment portfolio. Home Ownership / Personal Liability – a special form of flat-rate policy including home fires and/or related lines and personal liability insurance. Agent – a person who sells, serves or negotiates insurance policies on behalf of a business or independently. Fraternity Insurance – a form of group coverage or disability insurance available to members of a brotherhood.

Insurance period – The period during which insurance coverage exists. Benefit Coordination (COB) – Provide the elimination of superinsurance and the establishment of an immediate and appropriate claims payment system when a person is covered by more than one group insurance and/or group services plan. Which statement best describes the agreement with respect to insurance contracts) for the other party (also known as a “waiver” contract). For any other person or group of persons referred to as “Insureds” in this type of agreement, the agreement is referred to as “Billing for Benefits”. And any insurance provider that offers an insurance plan covered by life, accident, sickness and accident insurance of a company or entity operating under the insurance policy of a state, agency or other group of companies or groups. These conditions specify the terminology used therein. Joint Underwriting Association (JUA) – a loss-sharing mechanism that combines multiple insurance companies to provide additional capacity due to the nature or magnitude of the risk. Pet Insurance Plans – A veterinary insurance policy that provides for the care of a pet (p.B. dog or cat) of the insured owner in the event of illness or accident. Involuntary Unemployment Credit – Credit insurance that provides a monthly or lump sum benefit during an unpaid leave for certain reasons such as dismissal, closure of a factory, strike, illness of a close relative, and adoption or birth of a child. This insurance is sometimes called family credit leave.

A random contract is an agreement in which the parties involved do not have to perform a certain action until a certain triggering event occurs. Events are those that cannot be controlled by either party, such as natural disasters and death. Random contracts are often used in insurance policies. For example, the insurer only has to pay the insured in the event of an event, such as a . B a fire, which results in property damage. Random contracts – also known as random insurance – are useful because they usually help the buyer reduce financial risk. Capitation arrangement – a compensation plan used in conjunction with certain managed care contracts where a physician or other medical provider receives a lump sum, usually on a monthly basis, for each subscriber who has chosen to use that physician or medical provider. Capitation payments are sometimes expressed as a “per member/per month” payment. The capitulated provider is generally responsible, in accordance with the terms of the contract, for the provision or organization of the provision of all contractual health services required by the insured.

This page contains a glossary of insurance terms and definitions commonly used in the insurance industry. Over time, new terms are added to the glossary. NFIP – National Flood Insurance Program – Flood insurance and floodplain management for personal and commercial property managed under the National Flood Act of 1968. Promotes the participation of private insurers through a flood insurance fund. Actuary – A businessman who analyzes risk probabilities and risk management, including the calculation of premiums, dividends and other applicable insurance industry standards. Lloyd`s of London – an association that offers membership in various syndicates of high net worth individuals organized for the purpose of taking out insurance for a particular risk. Early Warning System – a system developed by insurance regulators to identify risk practices and trends that contribute to systemic risk by measuring the insurer`s financial stability. Captive agent – a person who sells or serves insurance contracts for a particular insurer or fleet of insurers.

Premium – Money calculated for insurance coverage and reflecting the expectation of loss. Value insurance – The amount of insurance taken out in relation to the actual replacement cost of the insured property, expressed as a ratio. Special income guarantee – any guarantee or other instrument under which a payment obligation is created issued by or on behalf of a State entity to finance a project that serves an important public purpose and is not payable from sources related to the payment of municipal debt securities. An insurance policy is a legal contract between the insurance company (the insurer) and the insured person(s), company or entity (the insured). By reading your policy, you can verify that the policy meets your needs and that you understand your responsibilities and those of the insurance company in the event of a loss. Many policyholders purchase a policy without understanding what is covered, what exclusions remove the coverage, and the conditions that must be met for coverage to be applied in the event of a loss. The SCDOI wants to remind consumers that reading and understanding your entire policy can help you avoid problems and disagreements with your insurance company in the event of a loss. Statutory accounting – The method of accounting standards and principles used by government regulators to measure the financial position of regulated companies and other insurance companies. This method tends to be more conservative than the generally accepted accounting principles used by most companies. .