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.

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Malicious Mischief – Intentional damage of personal property with malice of forethought.

Material Damage – All property-related damage losses covered by a policy. This includes the following: property damage, comprehensive damage, collision damage, Fire/Theft Combined Additional Coverage, rental reimbursement, or uninsured motorist property damage.

Mechanical Breakdown Insurance – Covers repairs to all mechanical parts of the car, protecting you from expensive repair bills.

Medical Adjuster – The medical adjuster is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Payments Coverage – Pays medical expenses related to an automobile accident.

Misrepresentation – To make written or verbal statements that are untrue or misleading.

Motorcycle Insurance – Protection from losses resulting from owning and operating motorcycles.

Motorcycle Safety Foundation (MSF) – An international non-profit organization dedicated to motorcycle safety training, research and awareness.

Motor Vehicle Report (MVR) – A report from the agency that issues a driver’s license, listing accidents and violations that appear on a driving record. This report is used to verify information provided by insurance applicants and policyholders.

Multi-Car Discount – A discount offered by most companies for those who insure more than one vehicle at the same location.

Named Insured – The person or entity listed on the policy declarations page.

National Insurance Crime Bureau (NICB)

A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

Negligence – The failure to exercise the care that is expected of a reasonable person in similar circumstances.

No-fault Insurance – May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is not available in all states.

Non-Renewal – When an insurer decides not to renew a policy at the end of its policy period.

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.

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Leased Vehicle – A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on the insurance policy as an insured.

Legal Liability – Liability imposed by law, as opposed to liability arising from an agreement or contract.

Liability – Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Liability Adjuster – The liability adjuster handles the investigation of the accident. These adjusters’ responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of a claim.

Liability Insurance – Insurance that provides protection from claims arising from injuries or damage to other people or property.

Liability Investigation – The process of gathering information to determine the cause of an accident.

Lien – A claim, charge, or encumbrance on property as a security for the payment of a debt.

Lienholder – A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Limit – The maximum amount of protection purchased by the insured for a specific coverage.

Limits of Liability – The amount specified in a policy up to which the insurance company will protect you.

Loss – Any measurable dollar cost of damage and/or injury suffered by a person.

Loss of Use – Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

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.

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Gap Insurance – An automobile insurance option that comes into play when a vehicle is stolen or totaled. Gap insurance covers the “gap” or difference, if any, between a car’s actual cash value and what you still owe on it.

Good Student Discount – A discount awarded to full-time students who maintain a  above average grade offered by some companies.

Hazard – Anything that increases the chance of an accident occurring.

Homeowners Insurance – Protects homeowners from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable.

Indemnification – The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Indemnity – Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Independent Adjuster – An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Inspection – Verification of a vehicle’s physical condition.

Insurable Interest – Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Insurance – Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together.  In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insurance Card – See Insurance ID Card.

Insurance Fraud -The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance ID Card – Also known as an Insurance Card, this card is issued by the insurer and contains basic information about an insurance policy. Some states require individuals to keep an insurance ID card in their vehicle.

Insurance Score – Used in the underwriting process in some states. An individual’s insurance score is frequently based, in part, on a person’s credit history.

Insured – A person or organization covered by an insurance policy.

Insurer – An organization that provides insurance.

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.

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Electronic Funds Transfer (EFT) – EFT is an electronic payment method that lets you pay your premiums with automatic deductions from a checking account which is available by some insurance companies.

Emergency Road Service Coverage – Protection for problems that are not typically handled by auto insurance, such as:

being locked out of your car

towing not related to an accident

having a dead battery re-charged

inflating a flat tire

filling an empty gas tank.

Endorsement – An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it.

Estimate – An assessment of the cost to repair damaged property.

Exclusion – Restriction in a insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.

Expiration Date – This date, found on the declarations page, indicates when the policy coverage runs out.  The renewal policy will start on this date.

Field Adjuster – An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations, and damage inspections.

Financed Car – A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.

First Party – Term used to refer to an insured.

First Party Claims – A claim for damage, loss or injury made by an insured.

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.

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Cancellation – Termination of an insurance contract before the end of the policy period, by the insured or insurer.

Carrier – The insurance company or insurer.

Catastrophe – A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.

Certificate of Financial Responsibility (CFR) – See SR-22

Certificate of Satisfaction – A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.

Claim – Any request or demand for payment under the terms of the insurance policy.

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

Claimant – Individual or entity presenting a claim.

Collision Coverage – Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns.

Comparative Negligence – A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party’s negligence is compared to the other’s and a claimant’s recovery can be reduced by the percentage of his or her own negligence.

Competitive Auto Repair Parts – Parts made by a company other than the manufacturer of the auto.

Competitive Estimate – A term used when an insurance company requests that you submit multiple repair estimates for consideration.

Comprehensive Physical Damage Coverage – Pays for damage to your car from theft, vandalism, flood, fire or other covered perils.

Condition – The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.

Condo Insurance – A type of homeowners insurance that meets the special needs of condominium owners.

Contributory Negligence – A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.

Coverage – Protection and benefits provided in an insurance contract.

Customized Vehicle – A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.

Damage – Loss or harm to a person or property.

Damages – Money that one party becomes legally obligated to pay to another party.

Declarations – The part of a policy that includes a name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.

Deductible – The portion of a claim you pay out of pocket. Choosing a higher deductible will lower insurance premiums.

Defensive Driver Discount – Certain drivers who have voluntarily taken a defensive driving course qualify for this discount on their auto insurance premiums.

Depreciation – The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.

Direct Pay – EFT is an electronic payment method that lets you pay your premiums with automatic deductions from a checking account which is available by some insurance companies.

Discount – A premium reduction if you or your car meet certain conditions that are likely to reduce the insurer’s losses or expenses. For example, some companies offer auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.

Driver Training Discount – Some companies offer a discount for people who have taken an approved driver training course.

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.

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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.

By far the fastest and easiest way to purchase insurance is get a quote on line.  An on line service like isfp-fd.org connects you with insurance companies who offer you competitive quotes with in days and some times within hours or even minutes.  You don’t have to clear your calendar for a time to meet an agent, spend the time making an appointment, to spend the time and gas to go to his or her office.  And of course there is the inevitable and dreaded phone tag when you and the agent can’t seem to connect over the phone.  You don’t even have to clean your house to have some one come to your home to make their presentation and possibly try to sell you more than you bargained for.  This saves not only the ware and tear on your car but on your nerves especially when they want you to write a check right then and there.

For no charge you keep the benefits  of having a personal agent call you to understand your insurance needs.  He or she will work with you on things like how much insurance do you need and what type of insurance do you need without any of the hassles and pressures of an in person visit.

Many people prefer the more time consuming appointment method but for quick, easy and competitive insurance quotes you can’t beat the convenience of shopping for insurance on line.   Visit isfp-fd.org and click on the Get Quote! button to take advantage of all of these benefits.

There are so many ways to buy insurance.  There are likely as many ways to find an insurer as there are insurers.  Some like very much the old fashion way way of picking up the phone, making an appointment and going to a building or even having some one come to our home where they can talk to them face to face.  This is very comforting to many people.  In our society we have lost a lot of the personal interaction that has defined our society in past generations.  By calling an insurance agent, making an appointment and sitting down face to face we get an understanding of who we are dealing with and his/her level of trust worthyness.  We also have built in to this method an allotment of time to be more relaxed and complete in the give and take of discovering which insurance is best for our particular situation.  As we talk about our needs with an agent ideas for how she can customize particular products can be explored with our input.  We will often hear the presentation and ideas of an insurance agent and recognize needs and wants that we would not have even considered had we just filled out the form and executed the documents via the internet or over a fax line.  We do sacrifice the convenience and time savings of using the internet or even purchasing insurance with only phone interaction.  But many people find this the best way for them to have the best experience and have the highest level of confidence that they have made the right decision.

Regardless of the type of insurance you need acquiring insurance can be complicated.  There are many professionals who will be willing to help you with the decisions you need to make.  The will be familiar with the laws and other requirements when purchasing Insurance.  To assist you to better understand insurance and to help you be a more educated and independent customer we are pleased to provide the following list of books on insurance.  I found some of these books in the local library so check them out!

Life Insurance

• Questions and Answers on Life Insurance by Anthony Steuer  – This book is very thorough and may be the only book you need to read to understand life insurance.
• New Life Insurance Investment Advisor: Achieving Financial Security for You and your Family Through Today’s Insurance Products by Ben G. Baldwin
• Tools and Techniques of Life Insurance Planning by Stephan R. Leimberg, Jr. Doyle, and Robert J.

Health Insurance

• The New Health Insurance Solution by Paul Zane Pilzer – This book helps understand that you can get cheaper and better health care coverage without a traditional employer plan.
• Health Insurance by Michael A. Morrisey

Home Owners Insurance

The complete homeowners and renters insurance manual: How to interpret the policy and settle your claim by Jack Quinn

Car Insurance

• What You Don’t Know About Buying Car Insurance Can Hurt You by Michael A. Schafer
• Car Insurance Secrets by Ron Alford

We hope you find these books useful and informative.  Feel free to contact us if you come across another book that you have found particularly helpful in your search for insurance.