Glossary of Insurance Terms
Printed with permission from the Insurance Institute of Canada.
Please choose a letter to continue:
Accident
Accident and Health (Sickness) Insurance
Act of God
Actual Cash Value
Additional Living Expense Insurance
Agent
All Risk Policy
Amount of Insurance
Applicant
Application
Appraisal
Appraisal Clause
Appraiser
Appurtenances
Arbitration
Arson
Attest
Audit
Automatic Reinstatement
Automobile Insurance
Accident
1) An unusual, fortuitous, unexpected or unforeseen event
or occurrence.
2) A mishap that is not expected or designed.
Accident
and Health (Sickness) Insurance
A form of insurance compensating an individual for loss
as a result of an accident or illness. It may pay certain
or all expenses for medical and similar services and a
weekly or monthly indemnity for loss of income. The
amounts and items covered vary from policy to policy and
depend to some extent on what coverage is purchased by
the insured.
Act of God
A direct, violent sudden act of nature that could not
have been foreseen, or if foreseen, its effect could not
have been prevented, e.g., flood, earthquake.
Actual Cash Value
The fair market value of property taking into account
factors that might augment or reduce the value of the
property in question.
Additional
Living Expense Insurance
Coverage applicable when an insured's dwelling is damaged
by an insured peril to such an extent that one cannot
live in it until repaired. This insurance pays the extra
amount it costs to live elsewhere until repairs are made,
such as the cost of living in a hotel.
Agent
1) A person who is employed to act on behalf of another.
2) An insurance agent is one who contracts with one or
more insurance companies to sell their insurance policies
to the public and is paid a commission on or receives
compensation for such business. See also Broker.
All Risk Policy
A name given to an insurance policy which covers against
the loss caused by all perils except those which are
specifically excluded by the terms of the policy.
Frequently, a policy of insurance is written to insure
damage to property caused by specific "named
perils," which are listed on the policy. However,
policies may be issued in certain cases to insure against
"all risks of loss or damage" and are then
called "all risks" policies. The term excludes
insurance against certain hazards.
Amount of
Insurance
The limit of payment for which an insurer is liable under
a policy.
Applicant
The person or firm requesting insurance.
Application
A request for insurance. This may be done verbally, in
writing or by using a printed form.
Appraisal
A valuation or an estimation of the value of property
usually done by an expert in that field who has no
personal interest in the property.
Appraisal Clause
A clause in an insurance policy that gives the insurer
the right to demand an appraisal on the damaged property.
It gives both the insurer and insured a means of settling
disputes over the value of lost or damaged property.
Appraiser
Person who because of special knowledge is vested with
authority in determining the real value of property or
damage.
Appurtenances
That which belongs to something else, e.g., appurtenances
of automobile. The term "appurtenances" means
that one thing belongs to another thing, that the two
will remain in relationship, and will pass with the
ownership.
Arbitration
Reference of a dispute to one or more impartial persons
chosen by the parties to the dispute to determine their
rights and/or obligations. The parties agree in advance
to abide by the arbitrament. Each party has a chance to
be heard.
Arson
At common law, the deliberate and intentional burning of
property by its owner or by another person.
Attest
1) The witnessing of signatures. Where a document is
signed a witness who has seen the document signed before
him may "attest" that the signatures on the
document are genuine.
2) Audited financial statements are said to be
"Attested," i.e. the auditor attests the
corporation's representations.
Audit
1) An examination of evidential matters to determine the
reliability of a record or assertion.
2) In connection with financial statements a review of
the accounting records and other supporting evidence of
an individual or an organization to assess the
reasonableness of the statements as presented (not a
guarantee of accuracy).
Automatic
Reinstatement
After a claim has been paid or the property restored,
most policies automatically return the stated limit of
insurance to its original amount.
Automobile
Insurance
Insurance coverage that provides indemnity and/or
compensation for injury or physical damage which ensues
from the ownership, use or operation of an automobile.
