All Other Peril Deductible (AOP Deductible)
In Florida, most policies have a separate hurricane deductible and an Abandonment: As used in property insurance, prohibits the insured from abandoning damaged property to the insurance company for repair or disposal

Accelerated Benefits Rider
An adjustment (rider) to a life insurance policy that allows for the early payment of some portion of the policy’s face amount should the insured suffer from a terminal illness or injury.

Accidental Death Benefit Rider
An adjustment (rider) to a life insurance policy that provides for payment of an additional cash benefit when death occurs by accidental means. This amount depends on the value of the policy.

Accidental Death Insurance
An Insurance policy that provides payment if the insured’s death occurs as a result of an accident.

Accounts Receivable Coverage
Covers loss of sums owed to the insured by its customers that are uncollectible due to damage by an insured peril to accounts receivable records.

Actual Cash Value
The present-day value of property measured in cash, arrived at by taking replacement cost and deducting for depreciation brought about by physical wear and tear and obsolescence.

Additional Insured
A person or organization for whom insured status is arranged by endorsement.

Advertising Injury
General liability coverage that insures against libel, slander, invasion of privacy, copyright infringement and misappropriation of advertising in connection with the insured’s advertising of its goods or services.

An authorized representative of an insurance company.

The maximum amount an insurance company will pay during the policy.

All Risk Coverage
Property insurance covering loss arising from all causes of loss except those that are specifically excluded.

Annually Renewable Term
Term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year.

The transfer of ownership of a Life Insurance policy from one person to another.

Attained Age
Your current age. Your attained age is a factors life insurance companies use to determine premiums.

Return to Top


Making the effective date of a policy earlier than the date of application. Backdating is often used to make the age of the applicant lower than it actually was at the time of application so that he/she can get a lower premium. State laws often set limits to this.

Bailee Coverage
Coverage on property left in the care of the insured for storage, repair or servicing. Basic Cause of Loss Form: Property coverage for named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse and Volcanic Action.

Basic Limits
The minimum limits of liability that can be carried by an insured.

The designated person set to receive the death benefit if the insured should die.

Best’s Rating
A rating system by A.M. Best Company giving the financial condition of insurance companies.

Temporary authorization of coverage issued by an agent prior to receiving the actual insurance policy.

Bodily Injury by Accident Limit
The most an insurer will pay under Part Two of a Workers’ Compensation Policy for claims arising out of any one accident, regardless of how many employee claims arise out of the accident.

Bodily Injury by Disease, Each Employee
The most an insurer will pay under Part Two of a Workers’ Compensation Policy for damages due to bodily injury by disease to any one employee.

Bodily Injury by Disease-Policy Limit
The most an insurer will pay under Part Two of a Workers’ Compensation Policy employee bodily injury by disease claims during the policy period regardless of the number of employees who make such claims.

Bodily Injury Liability Limit
The insured is legally liable for damages due to bodily injury, sickness, or disease, including resulting death.

Boiler & Machinery Insurance
Coverage for loss caused by mechanical or electrical equipment breakdown, including damage to the equipment.

A written agreement in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed.

Brands and Labels Endorsement
Property insurance coverage that allows the insured to remove labels from damaged goods or mark the items as ‘salvage,’ provided the goods are not damaged in the process.

Broad Causes of Loss Form
Property coverage for the named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse, Volcanic Action, Breakage of Building Glass, Falling Objects, Weight of Snow, Ice or Sleet, Water Damage (in the form of leakage from appliances) and Collapse from Specified Causes.

Building Ordinance Coverage
Covers against loss caused by enforcement or ordinances or laws regulating construction and repair of damaged buildings.

Theft of property by forcible entry, which is evidenced by visible signs, in a premises, by a person.

Business Auto Policy
Auto Policy for businesses that includes auto liability and auto physical damage coverages.

Business Income Coverage
Insurance covering loss of income by a business when operations are interrupted due to property loss that is a covered cause of loss.

Business Interruption Coverage
See Business Income Coverage (above).

Business Owners Policy (BOP)
A policy that combines property and liability coverages for special types of small businesses.

Return to Top


The termination of an insurance policy usually before its expiration.

Care, Custody or Control
An exclusion of liability insurance which eliminates coverage for damage to property in the insured’s care, custody or control.

The insurance company which provides coverage.

Cash Benefits
The Money that is paid to the policy holder upon settlement of a covered claim.

Cash Value
The equity amount or “savings” accumulation in a whole life insurance policy.

Casualty Insurance
Insurance that covers loss caused by injuries to persons and the legal liability imposed on t


0 Comments Post your own or leave a trackback: Trackback URL

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s