The amount of money an insured person must pay out of pocket before the insurance company begins paying on a claim. Once the insured has “met the deductible” by paying the portion of the claim he or she is responsible for, the remaining charges can be submitted to the insurance company for payment. Deductibles usually … Read more
The part of a property or liability policy that lists personal information relating to the policyholder and his or her insurance policy. This includes the insured’s name; address; property details, like location and description, and the policy’s period and premiums. Often called the “Dec page,” insurance companies use the information on the declaration page to … Read more
The amount of money your beneficiaries receive when you die and your life insurance policy expires. The death benefit represents the face value of the insurance policy minus any unpaid loans or other claims held against the policy. Though the death benefit is payable immediately, it usually takes some time for the insurance company to … Read more
Health insurance coverage you had before enrolling in your present health plan that can be used to offset or shorten a pre-existing condition exclusion period under a new policy. For creditable coverage, your new health policy cannot hold you to a pre-existing condition exclusion again as long as you: • Maintained at least a full … Read more
The geographical area in which you may seek treatment or repairs covered by your insurance policy following an incident of loss. Depending on where a covered event occurs and the specifics of your plan, you’re normally required to pay a lesser deductible and/or co-pay inside your coverage area than you’d pay outside that general area. … Read more
Usually related to life insurance, cost indices reveal the true cost of insurance. They’re what a policyholder gets from a policy versus what he or she pays in over time. The most common insurance factors that come into play when examining cost indices are premiums, cash value and dividends. Cost indices like these allow the … Read more
A prearranged, specific amount of money a policyholder pays for healthcare services such as doctor visits and prescription drugs when treatment is received. In exchange for payment of premiums, the insurance company pays the remainder of the costs involved, often easing the financial burden on the insured considerably. In this day of managed healthcare, most … Read more
Pays for automobile damage resulting from anything but collision with another vehicle or object. Covers common situations like fire, severe weather, floods, vandalism and theft, and more uncommon occurrences like shopping cart and hail or wind damage that occurs to vehicles. If something flies up and hits the car’s windshield, causing it to shatter, comprehensive … Read more
An insurance company which either provides protection for a particular risk, or transports people or goods covered by an insurance policy for a fee. Whereas a private carrier transports only its owner’s goods, a common carrier is available to the public for the transport of any goods. Most leading insurance companies are common carriers within their coverage … Read more
Insurance products designed specifically to protect businesses, professionals and commercial establishments from catastrophic loss. Some major commercial lines of insurance include boiler and machinery, commercial auto, fire and allied lines, medical malpractice liability, product liability, workers compensation, business income, and surety and fidelity. Most of these coverages may be purchased separately; except business insurance, which … Read more