Tems

Actual cash value
The traditional measure of property insurance loss. Usually defined as the cost of replacing the destroyed property with new property, minus an allowance for depreciation.



All-risk insurance
A generic term for insurance that covers all risks that are not explicitly excluded.

Annuity
A contract that provides an income for a stated period or for a person's lifetime.

Auto collision coverage
The portion of an auto insurance policy that pays for collision damage to the insured auto.

Auto comprehensive coverage
The portion of an auto insurance policy that pays for loss or damage to the insured auto other than the loss or damage caused by collision.


Auto liability coverage
The portion of an auto insurance policy that protects against claims for legal liability arising out of auto accidents. Provides legal defense and pays sums necessary to settle claims against the insured person.

Automatic premium loan
A life insurance policy provision authorizing the insurer to use the policy's loan value to pay any premium not paid by the end of the grace period


Beneficiary
The person who receives the proceeds of a life insurance policy upon the death of the insured person.

Binder
A temporary insurance contract (written or oral) that remains in effect until replaced by a regular policy.


Cash surrender value
The amount of money payable to a policyholder who discontinues a life insurance policy.




Casualty Insurance
Insurance that covers losses caused by injury to others or damage to property of others. Casualty insurance policies may or may not require that policyowners determine legal liability (fault) in order to collect payments.

Coverage
The protection provided by insurance.

Credit life insurance
Term life insurance issued to cover repayment of a loan if the borrower dies.

Deductible clause
A policy provision defining the specific amount of loss that, if exceeded, will trigger insurance coverage.