Insurance Policy

Definition

  • A contract between an insurer and an insured entity that outlines the range of liabilities the insurer agrees to cover and what benefits the policyholder is entitled to receive under the terms of the contract. The policy details the circumstances in which the insured party is entitled to file claims to receive benefits. The policy will include all riders, clauses and other matters as it pertains to the policy.

Synonyms
insurance contract, indemnity contract

Related Terms and Acronyms

  • Abandonment Clause Definition,
    • A clause that allows the insured to abandon damaged or lost property without losing insurance benefits.
  • Accidental Death Benefit (ADB) Acronym, Very Important,
    • An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
    A life insurance policy rider.
  • Addendum Definition,
    • A change made to a contract.
  • Aggregate Limit of Liability Definition,
    • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
  • Co-insurance Definition,
    • Insurance where both the insurer and the insured share costs in a set ratio when an insured event occurs.
  • Commercial Forgery Policy Definition,
    • Insurance that protects businesses from losses due to them unknowingly accepting forged or counterfeit checks as payment.
  • Concurrent Insurance Definition,
    • Multiple insurance policies that cover the same exposure.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • Coverage Definition,
    • The type or amount of protection afforded by an insurance policy.
  • Exclusions Definition,
    • Situations, as listed in an insurance policy, where insurance companies are allowed to deny coverage to policyholders.
  • Exposure Definition,
    • How much liability an insurer takes on when they write an insurance policy.
  • Financing Entity Definition,
    • An entity that purchases an insurance policy or settlement contract.
  • First Loss Insurance Policy Definition,
    • An insurance policy where the policyholder under-insures their assets and will only receive partial coverage in the event of a loss.
  • Guaranteed Renewable Definition,
    • An insurance policy that gives the insured the option to renew the policy at the end of the its term, however the insurer has no restrictions on raising premiums.
  • Health Insurance (HI) Acronym,
    • Insurance that covers the costs of medical expenses for insured persons.
  • Impaired Insurer Definition,
    • An insurance company that is financially insolvent or illiquid and in risk of being unable to pay insurance claims.
  • Insurable Interest Definition,
    • Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
  • Insurable Value Definition,
    • The total amount that an asset can be insured for.
  • Insurance (insur) Abbreviation,
    • An arrangement where one party provides financial protection to another party for specific damages or losses.
  • Insurance Attorney Definition,
    • An attorney who works with insurance law.
  • Insurance Broker Definition,
    • An agent who sells insurance policies.
  • Insurance Claim Definition,
    • An application for benefits made by an insurance policyholder after an insured event.
  • Insurance Cycle Definition,
    • A cycle of soft and hard market conditions observed in the insurance and underwriting industry.
  • Insurance Renewal Definition,
    • Extending the term length on an insurance policy.
  • Insurance Score Definition,
    • A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
  • Insured Value Definition,
    • What an insurer will pay to replace an insured asset.
  • Lapse Ratio Definition,
    • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
  • Lapsed Policy Definition,
    • A policy that is no long in effect due to missed payments, inaction or its term ending.
  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Multiline Insurance Policy Definition,
    • A combination of different insurance policies that are rolled into a single insurance policy.
  • Named Perils Insurance Policy Definition,
    • Insurance that only provides coverage in the event of a loss from a peril specifically named in the insurance policy.
  • Non-Forfeiture Clause Definition,
    • A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.
  • Policy Definition,
    • A set of rules or guidelines.
    • An insurance contract.
  • Policy Declarations Definition,
    • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
  • Policy Illustration Definition,
    • An outline of how a policy will perform under various conditions over a period of time.
  • Policy Loan Definition,
    • A loan where a life insurance policyholder's death benefit is used as collateral.
  • Policyholder Dividend Ratio Definition,
    • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • Policyholder Surplus Definition,
    • A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
  • Pre-paid Insurance Definition,
    • A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
  • Premium Definition,
    • A payment made to an insurance company for insurance coverage.
  • Premiums Written Definition,
    • A sum of the premiums from all the policies that a company has written in a given period of time.
  • Property Insurance Definition,
    • Insurance that provides coverage for damages to property from a number of perils.
  • Reinstatement Definition,
    • Resuming an insurance policy that has either lapsed or been terminated.
  • Rider Definition,
    • Additional insurance coverage that can added onto another insurance policy.
  • Transferable Insurance Policy Definition,
    • A life insurance policy that can be sold to another party through a viatical settlement.
  • Travel Insurance Definition, Very Important,
    • Insurance that covers a number of events that can occur when an individual is travelling out of the province or country.
  • Unfair Claims Practice Definition,
    • The act of an insurance company avoiding or reducing valid insurance claims.
  • Universal Life Insurance Definition,
    • A form of life insurance that offers flexible investment options and tax efficiency for estate management.
  • Utilization Definition,
    • How frequently a policyholder makes use of their insurance policy.
  • Vanishing Premium Policy Definition,
    • A life insurance policy where policy dividends are used to pay the policy's premiums.
  • Wear and Tear Exclusion Definition,
    • A provision that absolves an insurer from paying for damages resulting from an asset's normal wear and tear.
  • With-Profits Policy Definition,
    • Insurance that pays the policyholder a portion of the insurer's profits.
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