Insurance jargon can be confusing to those who don’t use it everyday (just like in ANY industry). But, with insurance, it’s important that YOU understand what the words on your policies mean so you can make informed and confident decisions about your coverage and know what questions to ask your agent.
This week we’re starting a list of some common insurance terms that we think are important to have in your vocabulary. The second part of the list will be shared next week, so stay tuned. Print the list or bookmark it for future reference. And as always, contact Schwartz Insurance Group any time if you have other questions or need further explanation.
- Accidental Death Benefit – In a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. There can be certain exclusions as well as time and age limits.
- Adjuster – A representative of the insurer who seeks to determine the extent of the insurer’s liability for loss when a claim is submitted.
- Assets – All the available properties of every kind or possession of an insurance company that might be used to pay its debts.
- Invested Assets – Things such as bonds, stocks, cash and income-producing real estate.
- All Other Assets – Non-income producing possessions such as the building the company occupies, office furniture, and debts owed, usually in the form of deferred and unpaid premiums.
- Total Admitted Assets – Everything a company owns. All other plus invested assets equals total admitted assets.
- Benefit Period – In health or disability insurance, the number of days for which benefits are paid to the named insured and his or her dependents.
- Casualty Insurance – That type of insurance that is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others.
- Coinsurance – In property insurance, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. For health insurance, it is a percentage of each claim after the deductible paid by the policyholder.