Glossary

Mostly used insurance terms


Accident – an unexpected event or circumstance without deliberate intent.

Claim – a request made by the insured for insurer remittance of payment due to loss incurred and covered under the policy agreement.

Actual Cash Value – repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation

All-Risk – also known as open peril, this type of policy covers a broad range of losses. The policy covers risks not explicitly excluded in the policy contract.

Annuity – a contract providing income for a specified period of time, or duration of life for a person or persons.

Beneficiary – an individual who may become eligible to receive payment due to will, life insurance policy, retirement plan, annuity, trust, or other contract.

Conditions – requirements specified in the insurance contract that must be upheld by the insured to qualify for indemnification.

Date of Issue – date when an insurance company issues a policy.

Direct Loss – Damage to covered real or personal property caused by a covered peril.

Endorsement – an amendment or rider to a policy adjusting the coverages and taking precedence over the general contract.