Property and Casualty Vocabulary

Possibly studying for license

Property

Your stuff; tangible items that you can possess. (ex. your house, car, dog…)

Property Insurance

A contract whereby an insurance company agrees to pay for the loss of or damage to your stuff

• Considered a two-party contract (you and your insurance company)

Casuality or liability

Your legal responsibility for damage that you do to the other guy’s body or property.

• Bodily Injury (BF) or Property Damage (PD) liability.

Considered to be a third-party contract (you, the person you hurt, and your insurance company)

Personal Lines Insurance

Property and Casualty (P&C) policies written to cover the needs of an individual or family. (ex. Auto, home, boat, camper, and RV)

Commercial Lines Insurance

Contracts designed to provide for the insurance needs of a business.

Insurance

A contract which allows for the transfer of your individual risk to a company, which will secure against losses suffered by the insured to a predetermined limit unless excluded by the policy language.

Insured

• Personal lines contracts: you and your family members.

• Commercial Lines Contracts: you and your stockholders or partners, your executives (everybody working in company)

Named Insureds

Owners of the insurance policy.

First Named Insureds

Owners of a commercial insurance policy.