Glossary

Actual Cash Value – (also known as market value) is a standard payment that insurance companies make to reimburse policyholders for their losses.

Agent – a person that represents a certain insurance company.

Auto Insurance– a contract for a vehicle in which an insurance company agrees to pay for insured person’s financial loss resulting from such events as collision, theft or damage.

Benefit Period – the number of days for which benefits are paid to the insured person.

Broker– an individual or firm who arranges and sells insurance as their job

Claim – an official demand to receive benefits from an insurance company as stated in the policy.

Comprehensive Insurance – a type of auto insurance policy that pays for the damage or loss of a vehicle caused by perils other than collision.

Coverage – the protection an insurance company gives you, so that it pays you money if you are injured, something is stolen etc.

Exclusions – items or conditions that are excluded from the insurance contract.

Employment Disability Insurance– an insurance coverage that provides a monthly income in the event an insured person is not able to work due to injury or illness.

Policy – a contract with an insurance company or an official written statement giving all the details of such a contract.

Premium – the money that you pay regularly to an insurance company.

Term Life Insurance – a life insurance policy issued for a fixed period of time and guarantees to provide a payment insured only if the life assured dies within the period of the policy.

Whole Life Insurance is regarded to be a permanent insurance product according to which an insured person agrees to pay a defined sum of money called insurance premium monthly/annually during the lifetime.

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