Premium
The amount of money that an individual or business must pay for an insurance policy.
Deductible
The amount you pay for covered health care services before your insurance plan starts to pay.
Copayment
A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible.
Out-of-Pocket Maximum/Limit
The most you have to pay for covered services in a plan year. After you spend this amount on deductibles, copayments, and coinsurance, your health plan pays 100% of the costs of covered benefits.
Liability Insurance
Coverage that pays for the policyholder’s legal responsibility to others for bodily injury or property damage.
Policy Lapse
A period during which a policy has expired due to non-payment of premiums.
Claim
A formal request to an insurance company asking for a payment based on the terms of the insurance policy.
Policyholder
The person or entity that owns an insurance policy and has the right to exercise all privileges under the contract of insurance, except where restricted by the rights of an assignee.
Coverage Limit
The maximum amount an insurance company will pay for a covered loss or liability.
Exclusion
Specific conditions or circumstances for which the policy does not provide coverage.
Beneficiary
The person or entity designated to receive the insurance policy payout upon the occurrence of the event covered by the policy, such as the death of the insured person in the case of life insurance.
Underwriting
The process by which an insurer evaluates the risk of insuring a home, car, or individual’s health or life, and determines whether the risk is acceptable and at what premium rate.
Policy Term
The period during which an insurance policy is effective and provides coverage.
Renewal
The continuation of an insurance policy beyond its original term by the insurer's acceptance of the premium for a new policy term.
Rider (Or Endorsement)
An add-on provision to a basic insurance policy that provides additional benefits to the policyholder at an additional cost.
Grace Period
A set period after the premium is due in which a policyholder can make a premium payment without coverage lapsing.
Actuary
A business professional who deals with the financial impact of risk and uncertainty, often involved in calculating premiums, designing insurance policies, and determining the amount of liabilities.
Adjuster
An insurance company representative who investigates and settles insurance claims to determine the extent of the company's liability.
Endorsement
An amendment to an insurance policy that modifies the terms or scope of the original policy.
