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The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. Insurance professionals with whom you may come into contact should be prepared to explain these terms. If you don't understand, ask!
Jun 1, 2007 · In the case of an insurance contract, consideration is the premium the insured agrees to exchange for the promise of indemnity in the event a covered loss occurs. To make a contract binding...
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- Premiums. When you purchase an insurance policy, you'll be required to make regular payments, known as premiums. These payments are typically made monthly or annually and are the cost of maintaining your insurance coverage.
- Deductible. Think of a deductible as the money you have to shell out from your own pocket before your insurance kicks in to help cover your expenses. It's like the upfront cost you need to cover before your insurance really starts working for you.For example, if you have a $500 deductible and make a claim for $1,000, you'll need to pay $500, and your insurer will cover the remaining $500.
- Policyholder. The policyholder is the person who owns an insurance policy. This individual is responsible for paying premiums and making claims under the policy.
- Coverage Limit. Every insurance policy has a coverage limit, which is the maximum amount your insurer will pay out for a covered claim. It's crucial to understand your policy's limits to ensure you have adequate coverage.
Thankfully, there are resources to help consumers navigate the maze of unfamiliar terms. These often take the form of glossaries, or lists of specialized terms relating to a special subject – in this case, insurance – with accompanying definitions.
INSURANCE POLICY – Legal document issued to the insured setting out the terms of the contract of insurance. INSURANCE TO VALUE – Insurance written in an amount approximating the value of the property insured.
Oct 1, 2022 · A Q&A guide to insurance and reinsurance law in Canada. The Q&A gives a high-level overview of the market trends and regulatory framework in the insurance and reinsurance market; the definitions for a contract of insurance and a contract of reinsurance; the regulation of insurance and reinsurance contracts; the forms of corporate organisation ...
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NAIC’s consumer insurance glossary provides definitions of common insurance terms, helping consumers easily understand key concepts across health, auto, life, and home insurance. It is helpful for beginners and policyholders seeking explanations.
