Insurance Glossary

Term means that benefits provided by other drug plans are at least as good as those provided by the new Medicare Part D program. This may be important to people eligible for Medicare Part D but who do not sign up at their first opportunity because if the other plans provide creditable coverage, plan members can later convert to Medicare Part D without paying higher premiums than those in effect during their open enrollment period.

The limit of insurance or the amount of benefit that will be paid in the event of the death of a covered person.

Amount of loss that the insured pays before the insurance kicks in.

The aggregate amount of recorded originated premiums, other than reinsurance, written during the year, whether collected or not, at the close of the year, plus retrospective audit premium collections, after deducting all return premiums.

An insurer whose distribution mechanism is either the direct selling system or the exclusive agency system.

A system of coordinated health-care interventions and communications for patients with certain illnesses.

The return of part of the policy's premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.

The amount of the premium that as been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.

The time which must pass after filing a claim before policyholder can collect insurance benefits. Also known as "waiting period."

Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers' compensation law.

Items or conditions that are not covered by the general insurance contract.

The ratio of underwriting expenses (including commissions) to net premiums written. This ratio measures the company's operational efficiency in underwriting its book of business.

Measure of vulnerability to loss, usually expressed in dollars or units.

This option extends replacement cost loss settlement to personal property and to outdoor antennas, carpeting, domestic appliances, cloth awnings, and outdoor equipment, subject to limitations on certain kinds of personal property; includes inflation protection coverage.

A separate policy available to cover the value of goods beyond the coverage of a standard renters insurance policy including movable property such as jewelry or sports equipment.