Insurance

Definition

• A financial agreement and contract where an entity (insurance company) agrees to provide financial protection or compensation to an individual or entity (policyholder) in the event of a specified loss.

Synonyms
safeguard, guarantee, safety, coverage, indemnity, backing, provision, assurance, policy, protection

Acronyms
insur

Related Terms and Acronyms

• Aggregate Limit of Liability — Definition,
  • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
• Broad Form Insurance — Definition,
  • Insurance that covers rare events not normally covered in an existing insurance policy.
• Business Insurance — Definition,
  • An umbrella term for insurance that covers various losses that may arise due to the operation of a business.
• Captive Agent — Definition,
  • An insurance agent who uses a limited number of insurance companies, or a single insurance company, when finding products for their clients.
• Casualty Insurance — Definition,
  • Insurance that covers losses and liability from injuries to others and/or damage to the property of others.
• Catastrophe Insurance — Definition,
  • Insurance that covers losses due to catastrophe hazards such as hurricanes, earthquakes and terrorist attacks.
• Completed Operations Insurance — Definition,
  • Insurance that provides protection against liability after contractual obligations have ended.
• Concurrent Insurance — Definition,
  • Multiple insurance policies that cover the same exposure.
• Conditional Sales Floater — Definition,
  • Insurance that covers losses on property sold conditionally or on an instalment plan.
• Consignment Insurance — Definition,
  • Insurance for assets on loan, consignment, in transfer of ownership, or up for auction.
• Coverage — Definition,
  • The type or amount of protection afforded by an insurance policy.
• Coverage Area — Definition,
  • A geographical area where travel insurance coverage applies.
• Credit Insurance — Definition,
  • Insurance that covers borrowers and/or lenders if one is unable to repay debts.
  • A policy that pays off the card debt should the borrower lose his job, die or become disabled. The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle.
• Declining Life Insurance — Definition,
  • Life insurance with a decreasing death benefit, often used to insure mortgage debt.
• Demolition Insurance — Definition,
  • Insurance that covers demolition costs for an irreparably damaged building.
• Deposit Insurance — Definition,
  • The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered.
• Direct Writer — Definition,
  • An individual who writes insurance policies directly for an insurer.
• Disability Insurance (DI) — Acronym, Important,
  • Insurance that covers individuals who develop a condition that hinders their ability to work.
• Employment Insurance (EI) — Acronym, Canada,
  • A Service Canada program where premiums are paid by taxpayers and benefits are provided for the unemployed.
  ➥ Formerly known as Unemployment Insurance (UI).
• Errors and Omissions Insurance — Definition,
  • Insurance that protects architects, home inspectors and contractors from claims by clients for professional mistakes.
• Exposure — Definition,
  • How much liability an insurer takes on when they write an insurance policy.
• Face Value — Definition,
  • The value of an asset, or the size of an insurance benefit.
• Fixed Premium — Definition,
  • Insurance or annuity premiums that stay level for a specific period of time.
• Floater Insurance — Definition,
  • Insurance that covers assets not commonly covered by an existing policy such as electronics or jewelry.
• Four Pillars — Definition,
  • Refers to the main types of financial institutions: banking, trust, insurance, and securities.
• Gap Insurance — Definition,
  • A type of insurance offered to auto lease customers. This type of insurance covers the difference in value between a vehicle's book value and the amount remaining on a vehicles financing or lease, if such a difference exists.
• Hazard Insurance — Definition,
  • Insurance that covers hazards that are considered risky enough not to be covered by a standard insurance policy.
• Health Insurance (HI) — Acronym,
  • Insurance that covers the costs of medical expenses for insured persons.
• Homeowners Insurance — Definition,
  • A policy that includes hazard coverage, covering loss or damage to property and/or assets located within, as well as coverage for personal liability and theft.
• Impaired Insurer — Definition,
  • An insurance company that is financially insolvent or illiquid and in risk of being unable to pay insurance claims.
• Indemnity Insurance — Definition,
  • A class of insurance that covers liability for damages, which includes insurance types such as malpractice insurance and errors and omissions insurance.
• Insurable Value — Definition,
  • The total amount that an asset can be insured for.
• Insurance Attorney — Definition,
  • An attorney who works with insurance law.
• Insurance Broker — Definition,
  • An agent who sells insurance policies.
• Insurance Claim — Definition,
  • An application for benefits made by an insurance policyholder after an insured event.
• Insurance Cycle — Definition,
  • A cycle of soft and hard market conditions observed in the insurance and underwriting industry.
• Insurance Fraud — Definition,
  • An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
• Insurance Policy — Definition,
  • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• Insurance Proceeds — Definition,
  • The benefits received by an individual after a claim has been verified.
• Insurance Renewal — Definition,
  • Extending the term length on an insurance policy.
• Insurance Score — Definition,
  • A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
• Insured Value — Definition,
  • What an insurer will pay to replace an insured asset.
• Kidnap and Ransom Insurance — Definition,
  • Insurance that covers expenses involved if an individual is kidnapped and ransom payments are made.
• Liability Insurance — Definition,
  • Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Lloyd's of London — Company,
  • A market for insurance and reinsurance based in London, England where Lloyd's members, underwriters and financial backers can spread and share risk.
• Lloyd's Syndicates — Definition,
  • A group of Lloyd's of London underwriters.
• Long Term Care Insurance (LTC) — Acronym, Important,
  • Insurance that covers health care costs for individuals with chronic or disabling conditions.
• Loss Payee — Definition,
  • An entity that is legally entitled to the benefits of an insurance claim.
• Mortgage Insurance — Definition, Very Important,
  • Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
  • A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
  ➥ CanEquity offers mortgage insurance.
• Mortgage Life Insurance — Definition, Very Important,
  • Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
• Policy — Definition,
  • A set of rules or guidelines.
  • An insurance contract.
• Policy Declarations — Definition,
  • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
• Premium — Definition,
  • A payment made to an insurance company for insurance coverage.
• Principal, Interest, Taxes, and Insurance (PITI) — Acronym,
  • Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Reciprocal Insurance Exchange — Definition,
  • A group of individuals, firms and corporations that mutually insure each other.
• Renewal — Definition,
  • Signing on again with the same lender once a term is up.
• Renter's Insurance — Definition,
  • Insurance that covers renters for liabilities or damages occurring to or within insured property.
• Second-To-Die Insurance — Definition,
  • Life insurance that only pays a death benefit when both spouses have died, commonly used in estate planning.
• Self Insurance — Definition,
  • Setting aside money or assets for a potential future loss.
• Self-Build Insurance — Definition,
  • Insurance that covers a homeowner for problems involved in a construction project.
• Settlement — Definition,
  • An agreement between the parties of a legal case.
• Settlement Statement — Definition,
  • A document that details who has paid how much to whom.
• Single Interest Insurance — Definition,
  • Insurance that covers a single party when more than one party has a stake in a property.
• Standard Automotive Insurance — Definition,
  • Auto insurance that covers those with average driving records.
• Stock Insurance Company — Definition,
  • An insurance company with multiple stockholders each owning shares in the corporation.
• Stop Loss Insurance — Definition,
  • A low premium, high deductible insurance policy with an upper limit on coverage.
• Substandard Insurance — Definition,
  • Insurance for those who are ineligible for standard insurance due to higher risk profiles.
• Travel Insurance — Definition, Very Important,
  • Insurance that covers a number of events that can occur when an individual is travelling out of the province or country.
• Tuition Insurance — Definition,
  • Insurance that covers tuition costs if a student is required to leave school in the middle of a semester.
• Ultimate Net Loss (UNL) — Acronym,
  • The final sum that an insurer is required to pay a policyholder after they have filed a valid claim.
• Umbrella Insurance — Definition,
  • Insurance used to cover different types of property in a single policy.
• Unauthorized Insurance — Definition,
  • A fraud where a scammer sells a victim an insurance policy that doesn't exist.
• Underlying Retention — Definition,
  • The liability an insurance company still retains after ceding liability to a reinsurer.
• Unisex Legislation — Definition,
  • Laws that prevent insurers from using gender as a factor when calculating premiums.
• Valuable Papers Insurance — Definition,
  • Insurance that covers damages to valuable papers such as property deeds or wills.
• Wholesale Insurance — Definition,
  • A form of insurance used by small businesses to provide benefits for employees.
• World Insurance — Definition,
  • Insurance that provides coverage worldwide.