| A | B |
|---|
| Peril | The cause of possible loss, such as fire, windstorm, theft, explosion, or riot. |
| claim | A request for payment of a loss which may come under the terms of an insurance contract. |
| social security | In the United States, a federal program that provides monthly income benefits to qualified workers who retire or become disabled and to the surviving spouses and dependent children of covered workers who have died. |
| underwriter | The person who evaluates requests for insurance, determining which applicants are accepted and which are rejected, as well as how much coerage the insurer is willing to provide and at what price. |
| Law of large numbers | The theory of probability which specifies that the greater the number os observatons mades of a particular event, the more likely it will be that the observed results will approximate the results anticipated by the mathematics of probability. |
| Binder | A written or oral agreement issued temporarily to place insurance in force when it is not possible to issue a new policy or endorse the existing policy immediately. |
| loss ration | The percentage of premiums that goes to pay claims. |
| premium | A periodic payment by the insured to the insurance company in exchange for insurance coverage. |
| Conditions | In an insurance policy, provisions that explain the dutires, rights, and options of the insured and the insurance company. |
| hazard | Anything that increases the chance of an accident or increeases the chance that any accident that happens will be severe. |
| catastrophe | Event which causes a loss of extraordinary magnitutde, such as a hurricane or tornado. |
| depreciation | A decrease in the value of property over a period of time due to wear and tear or obsolesence. |
| Comprehensive Automobile Insurance | Protection against loss resulting from damage to the insured auto, other than loss by collision or upset. |
| Fair Plan-Fair Acces to Insurance Requirements Plan | A facility operating under a government insurance industry cooperative program, to make fire insurance and other forms of property insurance available to persons who have difficulty obtaining such coverage. |
| Homeowner's Policy | Series of policies for homeowners combining insurance for dwelling and household contents with personal liability insurance. |
| Beneficiary | The person named on the policy to whom the insurance money is to be paid upon the death of the insured. |
| Term Insurance | Life or health insurance protection during a limited number of years but expiring without value if the insured survives the stated period. |
| Mortality Table | A chart that displays the incidence of death among a given group of people categorized by age. |
| Cafeteria Plan also Flexible Benefit Plan | An employee benefit plan that gives each employee several choices as to the types and/or amounts of group benefits. |
| Pre-existing Condition | For most group health insurance, a condition for which an individual received medical care during the three months immediately prior to the effective date of coverage. |
| Arson | The willful and malicious burning of property, sometimes with the intent of defrauding an insurance company. |
| proximate cause | The dominating cause of loss or damage. |
| tort | A civil wrong, other than a breach of contract, for which a court of law will afford legal relief, such as injuring someone by an act of negligence in driving an auto. |
| alien insurer | An insurer formed under the laws of a country other than the United States |
| Cease and Desist Order | An order of the State Insurance Commissioner or of a court requiring that a company or person stop engaging in a particular act or practice, usually involving insurance trade practices. |
