All about Insurance policies - terms

INSURANCE

Broker The insured person's representative in negotiating and securing insurance. Not ordinarily an agent for an insurance company but places orders with insurance companies.

Claim A demand submitted to an insurance company requesting payment of an amount due under the terms of a policy.

Commission A percentage of the premium paid to an agent or broker by the insurer.

Comprehensive Insurance A term used for a variety of policies providing broad protection.

Comprehensive Automobile Liability Insurance An insurance policy designed to provide cover for a variety of vehicle risk liabilities including bodily injury and property damage.

Comprehensive Personal Liability Insurance A policy that provides compensation if the insured injures others.

Insured Party that the insurer agrees to compensate for losses.

Lapsed Insurance Policy The cancellation of insurance due to the failure of the insured to pay premiums regulary. None of the money already paid will be reimbursed if the policy lapses before all costs, including commission to agents, are met.

Lump Sum A single cash payment.

Non-forfeiture Option Option which allows for the value of a policy to be paid out when the insured defaults on payments. The value of the policy is payable either in cash or some another form of insurance.

Self-insurance Individual strategy to provide for risks by compiling funds through investments for future losses, as opposed to purchasing insurance.