Flashcards-Insurance

ACORD Certificate

An ACORD 25 certificate is a document issued by Thimble to policyholders and Additional Insureds, providing standard information but not amending the terms of the insurance policy.

Actual Cash Value (ACV)

ACV is the dollar amount determined for lost, damaged or stolen property by starting with replacement cost and adjusting for depreciation.

Add-Ons

Activities not included under a general liability policy that can be purchased for an additional premium, available through the policy builder page.

Additional Insureds (AI)

Individuals or entities added to liability coverage to be protected against claims arising from the named insured's actions.

Advertising Injury

Coverage that protects against claims by a third party alleging harm due to advertising, such as copyright infringement.

Aggregate Limit

The maximum amount an insurance provider will reimburse a policyholder over a policy term for multiple claims.

Appraisal

A process to resolve disputes over the replacement value of damaged or lost items between a policyholder and an insurance provider.

Arbitration

A dispute resolution method involving a neutral third party to settle claims between a policyholder and an insurance provider.

Binder

A temporary insurance contract that provides coverage until a formal policy is issued.

Bodily Injury (BI)

Refers to any physical harm caused to a third-party by the insured, which may include illness or death.

Bodily Injury Liability Coverage

Coverage that protects against claims of bodily injury or death resulting from the insured's actions.

Business Equipment Protection

Insurance covering business equipment owned, rented, or borrowed while away from premises.

Business Interruption Insurance

Insurance that covers lost business income during periods when operations are halted.

Business Liability Insurance

Covers businesses against claims of bodily injury, third-party property damage, and personal or advertising injury.

Business Owners Policy (BOP)

A package insurance policy designed for business owners, typically including property and general liability coverage.

Business Personal Property (BPP)

Refers to movable items owned by a business, such as equipment and furniture.

Care, Custody, or Control Exclusion

Excludes coverage for damage to property in the care, custody or control of the insured, with options for limited coverage available.

Certificate of Insurance (COI)

A document proving that an individual or business has an active insurance policy, often issued by ACORD.

Claim

A request from a policyholder to an insurance company for compensation for a covered loss.

Claimant

An individual or entity that files a claim with an insurance company, not necessarily a policyholder.

Claims Made Policy

A type of policy that covers claims made during the policy period, regardless of when the incident occurred.

Coinsurance

A percentage of expenses that insureds pay after the deductible is applied.

Commercial Auto Insurance

Insurance covering liability and physical damage for vehicles used in business operations.

Commercial Property Insurance

Covers a business's property and items from accidental loss or damage.

Coverage Territory

The geographic area covered by an insurance policy, typically including the U.S., Puerto Rico, and Canada.

Crew Member

Someone engaged in cooperative work who is covered under the policy; distinct from Additional Insureds.

Customer Property Protection

Coverage for property belonging to customers that is in the insured's care or custody.

Cyber Insurance

Designed to protect businesses from financial consequences due to cybercrimes.

Damages

Monetary compensation awarded in civil court for injury or suffering.

Deductible

An amount the policyholder is responsible for paying out-of-pocket before insurance coverage kicks in.

Employment Practices Liability Insurance (EPLI)

Insurance covering businesses for liabilities arising during the employment process.

Endorsement

An amendment to an existing insurance policy that modifies coverage.

Equipment Breakdown Coverage

Covers loss of business income due to operational interruptions from equipment failures.

Errors and Omissions Insurance

Also known as professional liability insurance, it protects against claims of negligence in professional services.

Event Insurance

Liability coverage for short-term events, protecting against claims for property damage or bodily injury.

Exposure Period

Coverage extension beyond the policy period for completed work under certain conditions.

Extensions

Pricing alternative to extend coverage duration for policies.

General Liability Insurance

Protects a business against financial consequences arising from third-party claims of bodily injury, property damage, or personal injury.

Hired & Non-Owned Auto Coverage

Liability coverage for personal or rental vehicles used for business purposes.

Host Liquor Liability Insurance

Coverage for liability resulting from serving or providing alcohol.

Insurance Adjuster

A professional who investigates claims and determines insurance payouts.

Insurance Agent

A professional who sells insurance policies on behalf of an insurer.

Insurance Broker

An individual who represents consumers in the insurance market to find suitable policies.

Insurance Services Office (ISO)

A company providing insurance data, policy forms, and regulatory support services.

Loss Payee

The party entitled to receive payment from a loss claim.

Medical Expenses

Costs incurred from bodily injury treatment, covered under general liability policies.

Named Insured

The individual or entity specifically designated as the insured in an insurance policy.

Named Perils

Specific events covered by an insurance policy, as defined within the contract.

Negligence

Failure to exercise reasonable care, resulting in loss or damage to others.

Occurrence Policy

Covers incidents that happen during the policy period, regardless of when a claim is made.

Per Occurrence Limit

The maximum reimbursement amount for claims related to a single event.

Personal and Advertising Injury

Covers claims of non-physical injury like slander or copyright infringement in advertising.

Personal Injury

Covers claims of harm such as libel and slander by a third party.

Policy Period

Timeframe during which insurance coverage is active.

Prior Acts Coverage

Covers incidents that happened before the insurance policy start date.

Product Liability Insurance

Protects against claims of injury or damage caused by products sold.

Products-Completed Operations Hazard

Coverage for liabilities arising from completed products or services.

Professional Liability Insurance

Coverage for professionals protecting against claims of negligence in their services.

Proof of Loss

Documentation required in the claims filing process detailing the incident and loss sustained.

Property Damage

Destruction of personal property caused by the insured.

Property Damage Liability Coverage

Covers third-party property damage caused by the insured's actions.

Property Insurance

Any insurance policy that covers property from damages.

Quote

An estimate of insurance premiums from a provider.

Replacement Value

The amount needed to replace lost or damaged property without accounting for depreciation.

Retroactive Date

Defines the time frame covered by a policy for events leading to claims.

Sole Proprietorship

A business owned and operated by a single individual.

Stop Gap Coverage

Coverage for employers' liability in monopolistic workers’ compensation states.

Strict Liability

Legal responsibility for damages caused by products regardless of negligence.

Subrogation

The insurer’s right to pursue recovery from a third party responsible for a loss.

Tail Coverage

Extension of claims-made coverage for incidents occurring during the policy but reported later.

Third Party

An individual or entity involved in an insurance claim who is neither the policyholder nor the insurer.

Waiver of Subrogation

Contractual provision where the insured waives their insurer's right to recover costs from a third party.

Workers’ Compensation

Insurance providing benefits to employees injured in the course of their work.

Accident

An unexpected event or circumstance without deliberate intent.

Accident Insurance

Insurance for unforeseen bodily injury.

Accidental Death & Dismemberment

Insurance contract that pays benefits for death or dismemberment due to accident.

Actual Cash Value

Repayment value for loss or damage; typically replacement cost minus depreciation.

Actuary

A business professional analyzing risk probabilities in the insurance sector.

Adjuster

An individual who investigates claims and recommends settlement options.

Admitted Company

Insurance companies licensed to do business in specific states.

Advance Premiums

Premiums paid prior to the effective date of a policy.

Adverse Selection

When high-risk individuals seek greater insurance coverage than lower-risk individuals.

Agent

An individual selling or negotiating insurance policies for a company or independently.