Provisions addressed in an insurance policy that eliminate or limit coverage for particular situations, risks, persons, locations or types of property. Exclusions/limits are common perils not covered under an insurance policy, either because they present too great a risk to your insurer or they’re items you could cover yourself without much difficulty. Some examples might … Read more
Anything that affects, limits, interrupts or obstructs an insurance policy and its provisions. Encumbrances may include previous or outstanding claims for which funds have already been set aside, restricting their use for other purposes. « insurance glossary
One part of a workers compensation policy that provides employers with coverage for lawsuits filed by injured employees. Employers’ liability insurance kicks in when a worker files a compensation suit under common law for the damages he or she suffered. Because employers are responsible for the health and safety of their employees while at work, … Read more
A period of time at the beginning of new insurance coverage during which an illness or injury is not yet covered. The elimination period is most often associated with disability insurance. An elimination period is also known as a “waiting period.” During this time, you may not file claims for a particular type of coverage. … Read more
Provides protection from shaking and cracking that can destroy buildings and personal possessions during an earthquake. Not covered by standard homeowners, renters or most business insurance plans, earthquake insurance protects buildings and their contents against extensive damage. However, it doesn’t protect the policyholder from other types of earthquake peril, such as fire or water casualty. … Read more
The portion of an insurance premium, paid in advance, that represents the expired part of the policy period. The insurance company has “earned” this portion of the premium, as it provided protection during a particular coverage period, yet no insurance claims were filed against that amount. This is why it is known as an earned … Read more
Premium refunds given policyholders by their insurance companies, based on earnings. Dividends are generated when premiums charged exceed actual losses, enabling the insurer to share the proceeds with those they insure tax-free. The more the company earns, the higher the dividend. Many life insurance policies pay their owners dividends, and are known as ‘participating policies.’ … Read more
The process of coordinating and managing a person’s health in a way that helps improve quality of life, while preventing or minimizing a disease’s effect in the most cost-efficient manner. Concerned with common, chronic illnesses, disease management focuses on providing quality of life, integrative care, and the reduction of future complications. Most health maintenance organizations … Read more
Insurers that sell products to the public using either their own captive agents or the direct selling system via the Internet, mail or telephone. Since large insurance companies are becoming more diversified in their sales efforts, becoming a direct writer is advantageous for them, as it cuts out the middleman and leaves more money for … Read more
The amount of risk you assume when opting for certain policy deductibles. The more deductible risk you’re willing to assume on your own, the less your insurer has to take on—and the lower your insurance premiums will be. That is because, from the insurance company’s point of view, when you assume more risk, you’re less … Read more
