Insurance Claim Glossary
Accidental Death Benefit – In a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, if death should occur due to an accident. There can be certain exclusions as well as age limits and time.
Additional Insured – Other than the named covered or insured individual, someone who is protected under the named insured’s auto policy.
Deductible – An amount of money that the insured individual is required to pay before the insurance company pays the remainder of each covered loss, up to the policy limits.
Co-payment – A flat fee that is predetermined when an insured individual pays for health care services.
Collision Insurance – Insurance that takes care of any physical damage to the policy holder’s vehicle resulting from contact with another inanimate object.
Death Benefit – The limit of the amount of benefits or insurance that will be paid in the event of the death of a covered individual.
Earned Premium – The amount of the premium that has been paid for in advance and that has been “earned” by virtue of the fact that time has passed without claim. A 3 policy that has been paid in advance and is 1 year old wouldhave only partially earned the premium.
Inflation Protection – An optional property coverage endorsement offered by some insurers that increases the policy’s limits of insurance during the policy term to keep pace with inflation.
Insurable Interest – Interest in property such that destruction or loss of the property could cause a financial loss.
Liability – Generally, a legally, enforceable obligation.