Insurance Policy

Definition

• A contract between an insurer and an insured entity that outlines the range of liabilities the insurer agrees to cover and what benefits the policyholder is entitled to receive under the terms of the contract. The policy details the circumstances in which the insured party is entitled to file claims to receive benefits. The policy will include all riders, clauses and other matters as it pertains to the policy.

Synonyms
indemnity contract, insurance contract

Related Terms and Acronyms

• Abandonment Clause — Definition,
  • A clause that allows the insured to abandon damaged or lost property without losing insurance benefits.
• Accidental Death Benefit (ADB) — Acronym, Very Important,
  • An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
  ➥ A life insurance policy rider.
• Addendum — Definition,
  • A change made to a contract.
• 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.
• Co-insurance — Definition,
  • Insurance where both the insurer and the insured share costs in a set ratio when an insured event occurs.
• Commercial Forgery Policy — Definition,
  • Insurance that protects businesses from losses due to them unknowingly accepting forged or counterfeit checks as payment.
• Concurrent Insurance — Definition,
  • Multiple insurance policies that cover the same exposure.
• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Coverage — Definition,
  • The type or amount of protection afforded by an insurance policy.
• Exclusions — Definition,
  • Situations, as listed in an insurance policy, where insurance companies are allowed to deny coverage to policyholders.
• Exposure — Definition,
  • How much liability an insurer takes on when they write an insurance policy.
• Financing Entity — Definition,
  • An entity that purchases an insurance policy or settlement contract.
• First Loss Insurance Policy — Definition,
  • An insurance policy where the policyholder under-insures their assets and will only receive partial coverage in the event of a loss.
• Guaranteed Renewable — Definition,
  • An insurance policy that gives the insured the option to renew the policy at the end of the its term, however the insurer has no restrictions on raising premiums.
• Health Insurance (HI) — Acronym,
  • Insurance that covers the costs of medical expenses for insured persons.
• Impaired Insurer — Definition,
  • An insurance company that is financially insolvent or illiquid and in risk of being unable to pay insurance claims.
• Insurable Interest — Definition,
  • Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
• Insurable Value — Definition,
  • The total amount that an asset can be insured for.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• 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 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.
• Lapse Ratio — Definition,
  • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
• Lapsed Policy — Definition,
  • A policy that is no long in effect due to missed payments, inaction or its term ending.
• 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.
• Multiline Insurance Policy — Definition,
  • A combination of different insurance policies that are rolled into a single insurance policy.
• Named Perils Insurance Policy — Definition,
  • Insurance that only provides coverage in the event of a loss from a peril specifically named in the insurance policy.
• Non-Forfeiture Clause — Definition,
  • A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.
• 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.
• Policy Illustration — Definition,
  • An outline of how a policy will perform under various conditions over a period of time.
• Policy Loan — Definition,
  • A loan where a life insurance policyholder's death benefit is used as collateral.
• Policyholder Dividend Ratio — Definition,
  • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
• Policyholder Surplus — Definition,
  • A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
• Pre-paid Insurance — Definition,
  • A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
• Premium — Definition,
  • A payment made to an insurance company for insurance coverage.
• Premiums Written — Definition,
  • A sum of the premiums from all the policies that a company has written in a given period of time.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Reinstatement — Definition,
  • Resuming an insurance policy that has either lapsed or been terminated.
• Rider — Definition,
  • Additional insurance coverage that can added onto another insurance policy.
• Transferable Insurance Policy — Definition,
  • A life insurance policy that can be sold to another party through a viatical settlement.
• 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.
• Unfair Claims Practice — Definition,
  • The act of an insurance company avoiding or reducing valid insurance claims.
• Universal Life Insurance — Definition,
  • A form of life insurance that offers flexible investment options and tax efficiency for estate management.
• Utilization — Definition,
  • How frequently a policyholder makes use of their insurance policy.
• Vanishing Premium Policy — Definition,
  • A life insurance policy where policy dividends are used to pay the policy's premiums.
• Wear and Tear Exclusion — Definition,
  • A provision that absolves an insurer from paying for damages resulting from an asset's normal wear and tear.
• With-Profits Policy — Definition,
  • Insurance that pays the policyholder a portion of the insurer's profits.