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NALC
PO Box 50053
Sarasota,
Florida 34232
Telephone:
941-379-6100
Fax: 941-379-6112
2008 Fall Conference
September 10 - 13, 2008
Westin
Bay Shore
Vancouver, BC
 The NALC held its 2007
Fall Conference September
12-15, 2007,
at The Coeur d’Alene, Coeur D’Alene, Idaho
CLICK HERE for highlights of other
NALC conferences
NALC Members
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Use this glossary to become familiar with general terms relating to
insurance.
Click on the terms below to read a definition. Use your
browser's "Back" button to return to the list of terms.
An amount equivalent to the fair market value of the stolen or damaged
property immediately preceding the loss. For real property, this amount can be
based on a determination of the fair market value of the property before and
after the loss. For vehicles, this amount can be determined by local area
private party sales and dealer quotations for comparable vehicles.
An insurance company authorized to do business in a particular state.
A licensed person or organization authorized to sell insurance by or on
behalf of an insurance company.
Coverage on the risks associated with driving or owning an automobile. It
can include collision, liability, comprehensive, medical, and uninsured motorist
coverages.
A temporary or preliminary agreement which provides coverage until a policy
can be written or delivered.
A licensed person or organization paid by you to look for insurance on your
behalf.
The termination of insurance coverage during the policy period. Flat
cancellation is the cancellation of a policy as of its effective date, without
any premium charge.
Notice to an insurer that under the terms of a policy, a loss maybe covered.
The first or third party. That is any person who asserts right of recovery.
The company refuses to accept the request for insurance coverage.
The amount of the loss which the insured is responsible to pay before
benefits from the insurance company are payable. You may choose a higher
deductible to lower your premium.
A decrease in value due to age, wear and tear, etc.
Amendment to the policy used to add or delete coverage. Also referred to as
a "rider."
Certain causes and conditions, listed in the policy, which are not covered.
The date on which the policy ends.
The dollar amount to be paid to the beneficiary when the insured dies. It
does not include other amounts that may be paid from insurance purchased with
dividends or any policy riders.
Coverage for loss of or damage to a building and/or contents due to fire.
A period (usually 31 days) after the premium due date, during which an
overdue premium may be paid without penalty. The policy remains in force
throughout this period.
An option that permits the policy holder to buy additional stated amounts of
life insurance at stated times in the future without evidence of insurability.
A policy that will pay specifies sums for medical expenses or treatments.
Health policies can offer many options and vary in their approaches to coverage.
An elective combination of coverages for the risks of owning a home. Can
include losses due to fire, burglary, vandalism, earthquake, and other perils.
A policy provision in which the company agrees not to contest the validity
of the contract after it has been in force for a certain period of time, usually
two years.
The policyholder - the person(s) protected in case of a loss or claim.
The insurance company.
A policy that will pay a specified sum to beneficiaries upon the death of
the insured.
Maximum amount a policy will pay either overall or under a particular
coverage.
The amount which can be borrowed at a specified rate of interest from the
issuing company by the policyholder, using the value of the policy as
collateral. In the event the policyholder dies with the debt partially or fully
unpaid, then the amount borrowed plus any interest is deducted from the amount
payable.
The policyholder / applicant makes a false statement of any material
(important) fact on his/her application. For instance, the policyholder provides
false information regarding the location where the vehicle is garaged.
An incorrect estimate of the insurance premium.
The cause of a possible loss. For example, fire, theft, or hail.
The written contract of insurance.
The maximum amount a policy will pay, either overall or under a particular
coverage.
The amount of money an insurance company charges for insurance coverage.
A a policyholder contracts with a lender to pay the insurance premium on
his/her behalf. The policyholder agrees to repay the lender for the cost of the
premium, plus interest and fees.
When the policy is terminated midterm by the insurance company, the earned
premium is calculated only for the period coverage was provided. For example: an
annual policy with premium of $1,000 is cancelled after 40 days of coverage at
the company's election. The earned premium would be calculated as follows:
40/365 days X $1,000=.110 X $1,000=$110.
An estimate of the cost of insurance, based on information supplied to the
insurance company by the applicant.
The cost to repair or replace an insured item. Some insurance only pays the
actual cash or market value of the item at the time of the loss, not what it
would cost to fix or replace it. If you have personal property replacement cost
coverage, your insurance will pay the full cost to repair an item or buy a new
one once the repairs or purchases have been made.
The full cost to repair or replace the damaged property with no deduction
for depreciation, subject to policy limits and contract provisions.
The restoring of a lapsed policy to full force and effect. The reinstatement
may be effective after the cancellation date, creating a lapse of coverage. Some
companies require evidence of insurability and payment of past due premiums plus
interest.
Usually known as an endorsement, a rider is an amendment to the policy used
to add or delete coverage.
When the policy is terminated prior to the expiration date at the
policyholder's request. Earned premium charged would be more than the pro-rata
earned premium. Generally, the return premium would be approximately 90 percent
of the pro-rata return premium. However, the company may also establish its own
short-rate schedule.
A licensed employee of a fire and casualty agent or broker who may act for
the agent or broker in some circumstances.
An extra charge applied by the insurer. For automobile insurance, a
surcharge is usually for accidents or moving violations.
To terminate or cancel a life insurance policy before the maturity date. In
the case of a cash value policy, the policyholder may exercise one of the
nonforfeiture options at the time of surrender.
The process of selecting applicants for insurance and classifying them
according to their degrees of insurability so that the appropriate premium rates
may be charged. The process includes rejection of unacceptable risks.
A period of time set forth in a policy which must pass before some or all
coverages begin.
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