For your convenience we are happy to provide this Insurance glossary.  Although we specialize in life insurance online, we have provided here a broad spectrum of terms to help you in your insurance purchase decisions.

A-B ,   C-D,   E-F ,  G-I,   J-L,   M-N,   O-P,  Q-R,   S-T,   U-Z

Actual Cash Value – The fair market value of property; technically, replacement cost less depreciation.

Actuary – A statistician who computes insurance risks and premiums.

Adjuster – A person responsible for investigating and settling a claim.

Adverse Carrier – Term used to refer to the other party’s insurance company.

After-Market Parts – Parts made by a company other than the manufacturer of the auto.

Agent – An individual who acts as a representative for an insurance company and sells insurance. This individual could be an ‘exclusive’ or ‘non-exclusive’ agent.

Agreed Price – The price or cost of repairs agreed to by the AD (auto damage) adjuster or independent appraiser and the body shop representative.

Amendment – A change to the basic policy contract. An amendment alters the policy; an endorsement adds to it.

Anti-lock Braking System (ABS) – A computer-controlled high pressure system that assists the vehicle’s normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.

Anti-Theft Device – A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums offered by some companies.

Appraisal – Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.

Arbitration – A process of settling a dispute through an impartial party. It is used as an alternative to litigation.

Assigned Risk (AIP) – A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.

Assured – Means the same as an insured, policyholder, or someone who has an insurance policy.

At-Fault – The party that is legally liable for the damages in an accident.

Auto Damage Adjuster – The auto damage adjuster is responsible for writing the repair estimate for your vehicle.

Auto Insurance – Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured’s property and losses for which the insured is liable as a result of owning or operating an auto.

Auto Theft – The theft of an auto is a type of loss that is covered under comprehensive coverage.

Binder – A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Bodily Injury – An injury sustained by a person.

Bodily Injury Liability Coverage – Pays damages for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.