Insurance Terms - Including Health And Auto Insurance Terms

Here is a glossary of insurance terms -

Auto Insurance Terms

Additional Interest Insured: Another person or company who may be liable for an accident involving an insured or an insured vehicle and who has been named as an Additional Interest Insured under the policy.

Antitheft Device: Recovery device that is capable of tracking (homing) and recovering the vehicle. These systems must automatically contact a response center where the process of vehicle recovery begins.

Collision Coverage: Pays for loss to your covered vehicle when it collides with another object or overturns.

Common Exclusions: No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee; (2) resulting from intentional acts, racing or preparing for a race or stunting activity; or (3) customs parts or equipment, including electronic equipment, in excess of the value declared in the application

Driver Status - Provides information concerning whether the driver has been rated or listed or excluded on the policy.

Occasional Driver - The person who is not the primary or principal driver of the vehicle.

Principal Driver - The person who drives the car most often.

Roadside Assistance - Provides services such as towing, flat tire change, locksmith service and battery jump-start to customers, who may elect the service for an additional premium if it is not already included with their policy. Learn More.

Salvage Titles - State laws determine if a vehicle requires a salvage title

Loan/Lease Payoff Coverage - Auto Loan/Car lease payoff coverage, sometimes called "gap" coverage, pays the difference between what you owe on your vehicle and what your insurance pays if your vehicle is damaged beyond repair (totaled) or stolen and not recovered.

Property Damage Liability Coverage - Pays when an insured person is legally liable for damage to the property of others caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense costs if you are sued.

Uninsured Motorist Coverage - Protects you, your resident relatives, and occupants of a covered vehicle if any of these insured people sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance.

VIN - The Vehicle Identification Number (VIN) on your vehicle. This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of 17 letters and numbers that can be used to identify the make, model and year of your car.

SR-22 -  A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility.

Health Insurance Terms

Accident And Health Insurance - Coverage for accidental injury, accidental death, and related health expenses. Benefits will pay for preventative services, medical expenses, and catastrophic care, with limits.

Life Insurance Terms

Accelerated Death Benefits - A life insurance policy option that provides policy proceeds to insured individuals over their lifetimes, in the event of a terminal illness. This is in lieu of a traditional policy that pays beneficiaries after the insured’s death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries.

Long-Term Care Insuarance -  Long-term care (LTC) insurance pays for services to help individuals who are unable to perform certain activities of daily living without assistance, or require supervision due to a cognitive impairment such as Alzheimer’s disease. LTC is available as individual insurance or through an employer-sponsored or association plan.

Miscellanous Insurance Glossary Of Terms

Assigned Risk Plans - Facilities through which drivers can obtain auto insurance if they are unable to buy it in the regular or voluntary market. These are the most well-known type of residual auto insurance market, which exist in every state. In an assigned risk plan, all insurers selling auto insurance in the state are assigned these drivers to insure, based on the amount of insurance they sell in the regular market.

A-Share Variable Annuity - This is a form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge.

Annuity Contract -  An agreement similar to an insurance policy for other insurance products such as auto insurance.

Comprehensive Coverage- Pays for loss or damage to your covered vehicle caused by any event other than collision. This includes damages due to events such as fire, theft, windstorm, flood and vandalism. 

Continuously Insured - Insurance coverage was in effect from an insurer or more than one insurer at all times, without a break or lapse in coverage for any reason.

Declarations Page - This is the report from your insurance company listing. It incudes the types of coverage you have elected, the limit for each coverage, the cost for each coverage, the specified vehicles covered by the policy, the types of coverage for each vehicle covered by the policy, and other information applicable to the policy.

Deductible: The amount of each loss you agree to pay. Generally, choosing a higher deductible will lower your premium.


Limits - The most an insurance company will pay for a specific insurance coverage. You choose the limits that meet your needs. 

Loss Costs - The portion of an insurance rate used to cover claims and the costs of adjusting claims. Insurance companies typically determine their rates by estimating their future loss costs and adding a provision for expenses, profit, and contingencies.

Loss Of Use - A provision in homeowners insurance ( and renters ) policies that reimburses policyholders for any extra living expenses due to having to live elsewhere while their home is being restored following a disaster.


Named Insured - The first person in whose name the insurance policy is issued.

Medical Payments - Optional insurance that pays for reasonable and necessary medical and funeral expenses for covered persons. 


Second Named Insured - The named insured or listed agent/broker on a policy may request to designate any other person listed on the policy as a "second named insured."

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