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Home Dictionary I Insurance Coverage Insurance coverage refers to the amount of risk or liability that is covered for an individual or entity through insurance services. The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance. Insurance coverage helps consumers recover financially from unexpected events such as car accidents or the loss of an income-generating adult supporting the family. In exchange for insurance coverage, the insured person is responsible for paying premiums to the insurance company. Aleatory Contract
September 25, 2022 an aleatory contract is an agreement under which the parties are not required to perform certain actions until a certain event occurs. Experience Rating (Insurance)
September 25, 2022 insurance experience ratings are the losses of the insured person in relation to similar insured persons. Guaranteed Renewable Policy
September 25, 2022 Guaranteed Revolving Policy is a feature of an insurance policy that ensures that the insurer is obligated to continue coverage for as long as premiums are paid on the policy. Guideline Premium and Corridor Test (GPT)
September 25, 2022 The Regulatory Premium and Band Test (GPT) is a test used to determine whether an insurance product is taxed as insurance or as an investment. Loss Adjustment Expense (LAE)
September 25, 2022 Loss adjustment costs are the costs of insurance companies for the investigation and settlement of insured events. Lost Policy Release (LPR)
September 25, 2022 Loss of Policy Statement (LPR) is a statement that releases the insurance company from its obligations. Net Premium
September 25, 2022 Net premium is an accounting term in the insurance industry. Occurrence Policy
September 25, 2022 Accident insurance covers claims for injuries sustained during the term of the insurance policy, even if they are filed after the cancellation of the policy. Transfer of Risk
September 25, 2022 Transfer of risk shifts liability for losses from one party to another in exchange for payment. Valuation Premium
September 25, 2022 Valuation premium is a rate set by a life insurance company based on the value of the company’s insurance reserves. Vanishing Premium
September 25, 2022 A vanishing premium allows a permanent life insurance holder to use dividends received from the policy to pay the required premium. Waiting Period
September 25, 2022 The waiting period, also known as the qualifying period, is the time before coverage begins. Waiver of Coinsurance Clause
September 25, 2022 A co-insurance waiver clause refers to language in an insurance policy that sets out conditions under which policyholders must not pay part of a claim. Wanton Disregard
September 25, 2022 Unreasonable neglect is a legal term for gross negligence. War Risk Insurance
September 25, 2022 War risk insurance is coverage for losses resulting from events such as war, invasion, insurrection, riots, strikes and terrorism. Warehouse Bond
September 25, 2022 A warehouse bond provides financial protection for individuals or businesses that store goods in a warehouse. Wear and Tear Exclusion
September 25, 2022 Exclusion of depreciation in the insurance contract states that losses from natural wear and tear of the insured property are not covered. Weather Insurance
September 25, 2022 Weather insurance offers financial protection against losses that may be incurred as a result of adverse, measurable weather conditions. Workers' Compensation
September 25, 2022 Workers’ compensation is a form of employers’ insurance coverage that pays benefits to workers who are injured or disabled as a result of their work. Workers' Compensation Coverage A
September 25, 2022 Workers’ Compensation A protects workers under state law. Accidental Death Benefits
September 25, 2022 An accidental death benefit is paid to the beneficiary of the accident insurance policy. Accidental Death and Dismemberment Insurance (AD&D)
September 25, 2022 Accidental death and dismemberment (AD&D) insurance is usually added as an add-on to a life insurance policy. Actuarial Life Table
September 25, 2022 The statistics in the actuarial life table calculate, among other things, the probability of surviving to a certain age. Actuarial Science
September 25, 2022 Actuarial science assesses financial risks in insurance and finance using mathematical and statistical methods. Adjustable Life Insurance
September 25, 2022 Regulated life insurance allows policyholders to make adjustments to their cash value, premiums and death benefits.