Funeral BenefitThis coverage pays, up to a certain dollar amount, money for funeral expenses if you or a family member dies as a result of an auto accident.
Gap InsuranceInsurance coverage that pays the difference between what you owe on your auto loan and your totaled car’s actual cash value.
Good Driver PlanA rating program offered by some insurance companies that reduces your premium if you have had no accidents or traffic violations within a specified time…
Grace PeriodA time period after the due date that you may pay a premium without penalty. The policy remains in force during this time.
GrandfatheringAn exemption based on circumstances previously existing. Under the NFIP, buildings located in Emergency Program communities and Pre-Flood Insurance Rate…
Group of companiesSeveral insurance companies under common ownership and often common management.
Guaranteed InsurabilityAn option that permits the policyholder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.
Guaranteed Replacement Cost CoverageEndorsement that lets you replace your home without subtracting for depreciation, even if it costs more than the policy limit.
HO FormsHomeowners insurance polices are sometimes referred to by the kind of form used and the specific perils they cover.
Home InventoryA detailed list of personal possessions and any information, including pictures or videos, that could help identify lost or destroyed items.
Illinois Insurance Guaranty FundA fund that pays an insurer’s claims when the company is insolvent. All Illinois-licensed insurance companies belong to the Illinois Guaranty Fund.
Income LossPays a portion of your wages when injuries sustained in an auto accident keep you from working.
Increased Cost of Compliance (ICC)(ICC)Coverage for expenses a property owner must incur, above and beyond the cost to repair the physical damage the structure actually sustained from a…
Independent adjusterA person who charges a fee to an insurance company to adjust the company’s claim.
Inflation guard endorsementAn endorsement to a homeowner policy that automatically increases the amount of insurance every three months.
Inflation protectionAutomatically adjusts your home insurance policy limits to account for increases in the costs to repair or rebuild a property.
Inspection ReportA report filed by an individual employed by the insurance company or credit agency, giving general information on the physical condition of the property.
Insurable interestAny financial interest a person has in the property or person insured. In life insurance, a person´s or party´s interest - financial or emotional - in…
Insurance to valueAn amount of insurance at, or close to, the value of the property insured.
InsuredThe policyholder or person(s) protected in case of a loss/claim.
Justified complaintA complaint that exposes an apparent violation of a policy provision, contract provision, rule, or statute; or which indicates a practice or service that…
LapseTermination of a policy due to non-payment of premiums.
Lapsed PolicyA policy that has terminated for non-payment of premiums.
Level Premium InsuranceInsurance for which the cost is distributed evenly over the premium payment period.
LiabilityA legally enforceable financial obligation caused by negligence.
Liability CoverageInsurance protection that pays for claims or judgments brought against the insured.
Liability insuranceInsurance that pays when you are liable for injuries to other persons or damage to their property.
Liability limitsThe maximum amount your liability policy will pay. Your policy must pay at least $25,000 for each injured person, up to a total of $50,000 per accident…
Limited TortLimited Tort offers you a savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses; however, you are not able…
LimitsThe maximum amount of benefits the insurance company agrees to pay under an insurance policy in the event of a loss.
LossThe amount an insurance company pays on a claim.
Loss historyRefers to the number of insurance claims previously filed by a policyholder. A company will consider loss history when underwriting a new policy or…
Loss of useA provision in homeowners and renters insurance policies that reimburses policyholders for the additional costs (housing, food, and other essentials) of…
Lowest FloorThe lowest floor of the lowest enclosed area (including a basement). An unfinished or flood-resistant enclosure, usable solely for parking of vehicles…
Mandatory PurchaseUnder the provisions of the Flood Disaster Protection Act of 1973, individuals, businesses, and others buying, building, or improving property located in…
Manufactured (Mobile) HomeA structure, built on a permanent chassis, transported to a site in one or more sections, and affixed to a permanent foundation.
Market ValueThe price that the market - any market - sets at a particular time as the price at which an asset can be bought or sold.
Material misrepresentationA significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not…
Medical BenefitsThis pays medical bills for you and others covered on your policy regardless of fault. The minimum limit is $5,000 of coverage.
Medical PaymentCoverage that pays for limited medical expenses if you, a member of your family, or a passenger in your car is hurt in a car accident.
Mitigation DivisionA division under FEMA that manages the NFIP and oversees FEMA’s mitigation programs.
Mobile homeTo be eligible for coverage under the National Flood Insurance Program, a mobile home must be on a permanent foundation and meet specific anchoring…
Mortality TableA statistical table showing the death rate (probability of death) at each age.
Mutual Life Insurance CompanyA life insurance company owned by policyholders who share in the company's surplus earnings.
Named driver exclusionAn endorsement that provides that a policy does not cover accidents when a specifically named person is the driver.
Named driver policyAn automobile insurance policy that doesn't provide coverage for an individual residing in a named insured ’s household specifically unless the…
Named perilsSpecific events covered by a policy, such as fire, windstorm, and theft.
National Flood Insurance Program (NFIP)(NFIP)The program of flood insurance coverage and floodplain management administered under the Flood Disaster Protection Act (FDPA or Act) and applicable…
National Flood Insurance Reform Act (NFIRA)(NFIRA)The purpose of the National Flood Insurance Reform Act of 1994 is to improve the financial condition of the NFIP and reduce federal expenditures for…
NegligenceFailure to exercise a generally acceptable level of care and caution resulting in injury or damage to a third party.
Negligence/NegligentA determination of fault in an accident caused by your inattention or carelessness.
No-fault insuranceA form of insurance available in many states under which each driver in an accident files claims for losses, such as medical expenses, with their own…
Non-Bound ApplicationThere is no coverage involved and you pay no money. The insurance agent submits the application to the company to find out whether or not you will be…
Non-forfeiture ValuesThe value of the policy if cancelled, either in cash or in another form of insurance.
Non-owners policyInsurance coverage that offers liability, uninsured motorist, and medical payments to a named insured who does not own a vehicle.
Non-renewalA notice of the insurance company’s refusal to renew your policy prior to the end of the policy term.
Non-ResidentialIncludes, but is not limited to: small business concerns, churches, schools, farm buildings (including grain bins and silos), pool houses, clubhouses…
Non-Special Flood Hazard Area (NSFHA)(NSFHA)An area in a low to moderate risk flood zone (Zones B, C, X) that is not in any immediate danger from flooding caused by overflowing rivers or hard rains.
North Dakota Insurance Guaranty FundA fund that pays an insurer's claims when the company is insolvent. All North Dakota licensed automobile insurance companies belong to the North Dakota…
OccurrenceAn event that results in an insured loss.
Other ResidentialHotels and motels where the normal occupancy of a guest is 6 months or more; a tourist home or rooming house which has more than four roomers.
Paid-up InsuranceInsurance on which all required premiums have been paid.
Participating CommunityA community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program…
Participating InsuranceInsurance on which the policyholder is entitled to share in the surplus earnings of the company through policy dividends that reflect the difference…
PerilA specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft.
Personal Injury Protection (PIP)(PIP)This is a mandatory no fault coverage for automobile insurance providing benefits including, but not limited to, medical expenses, loss of income…
Personal propertyAll tangible property (other than land) that is either temporary or movable in some way, such as furniture, jewelry, electronics, etc.
PolicyThe contract form issued by the company to explain the coverage provided. It is a legal document.
Policy LoanUnder an insurance policy, the amount that can be borrowed at a specified rate of interest from the issuing company by the policyholder, who uses the…
Policy ownerThe person or party who owns an individual insurance policy. This person may be the insured, the beneficiary, or another person.
Policy periodThe amount of time an insurance contract or policy provides coverage.
Post-FIRM BuildingA building for which construction or substantial improvement occurred after December 31, 1974, or on or after the effective date of an initial Flood…
Pre-FIRM BuildingA building for which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial Flood…
Preferred Risk Policy (PRP)(PRP)A policy that offers fixed combinations of building/contents coverage or contents-only coverage at modest, fixed premiums.
Premium Finance CompanyA lending institution that finances automobile insurance premium for a fee.
Private Mortgage Insurance (PMI)(PMI)Insurance offered by a private insurance company that protects the bank against loss on a defaulted mortgage up to the limit of the policy (usually 20 to…
Pro rata cancellationRevocation of a policy by an insurance company that returns to the policyholder the unearned premium.
Probation Surcharge (Premium)A flat charge that the policyholder must pay on each new or renewal policy issued covering property in a community that the NFIP has placed on probation…
ProducerAn authorized representative of an insurance company who sells and services insurance contracts.
Producer (agent)A licensed individual or organization authorized to sell, solicit, negotiate and service insurance policies for an insurance company.
Proof of lossDocuments that you give the insurer to support your request for payment of losses.
Property Damage LiabilityPays for damage to another person’s car or property such as fences, buildings, utility poles, signs, and trees.
Public AdjusterA person you can hire to help settle a claim with an insurance company. A public adjuster may be hired to handle a complex or difficult loss negotiation.
Public insurance adjusterAn individual employed by a policyholder to negotiate a claim with the insurance company in exchange for a percentage of the claim settlement.
Quotation or QuoteAn estimate of the cost of insurance based on the information supplied to the insurance producer (agent) or company.
QuoteAn estimate of the premium charge, based upon the information provided for the coverage(s) requested.
Real propertyA dwelling or home is often referred to as real property.
RefundAn amount paid back because of an overpayment or because of the return of an item previously sold.
Regular ProgramThe final phase of a community's participation in the National Flood Insurance Program.