An independent agent represents more than one company. These definitions represent a common or general insurance andor legal use of the term. To start and run a business, you often need to understand business terms that may not be well defined in a standard dictionary. Brokers typically search the market for coverage appropriate to their clients. Actuary a specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics. Learn the correct way of expressing yourself related to business.
Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. This page provides a glossary of insurance terms and definitions that are. Consumer glossary national association of insurance. Dictionary of insurance terms barrons business dictionaries paperback april 1, 20 by harvey w. This page provides an index of insurance terms and definitions that are commonly used in the insurance business.
Defining the basics at preferred mutual insurance company, we believe in giving you the tools and resources you need to make confident decisions and live assured. Some mewas are sponsored by associations that are local, specific to a trade or industry, and exist for business purposes other than providing health insurance. Wysong contended that he had a separate oral agreement with kolberg, whereby he purchased the book of business according to the terms of kolbergs handwritten fact sheet listing the income earned from the books policies and the amount that plaintiff would be required to pay kolberg to take custody of it. Book of business financial definition of book of business. If a broker, agent, or underwriter has agreed to give a client insurance, they are said to write that business into their book of business. Capital gains loss excess deficiency of the sales price of an asset over its book value.
Glossary of insurance terms customized business insurance. See all 2 formats and editions hide other formats and editions. A package policy, such as a homeowners or business insurance policy, that provides coverage against several different perils. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.
What you will gain from reading this book gain a deeper understanding of insurance theories. Insurance terminology from insurance experts kratzer insurance. Independent agents in the trusted choice network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage. The definitions are short and to the point and cover all types of insurance, including auto, homeowners, workers compensation and life. The complete dictionary of insurance terms explained simply. The az for insurance practitioners terms generally associated with reinsurance. Insured the policyholder protected in case of a loss or claim. Book of business is an industry term that refers to a salespersons or professionals list of accounts or clients. Here youll find explanations for the most commonly used terms related to business insurance. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies.
While sometimes the term is used loosely, the title actuary really belongs to those who meet the requirements of one of the actuarial societies, the casualty actuarial society cas, for property and casualty insurance, or. Our glossary of business terms provides definitions for common terminology and acronyms in business plans, accounting, finance, and other aspects of small business. Inforce business the total dollar amount of paidup and current insurance policies that a life or health insurer carries on its books. The guide is an important resource that will help to create a much greater understanding of the dense and obscure jargon which is used on a daily basis in relation to all aspects of the money business. As a client relations management tool, it helps insurers keep track of all of their policyholders, their subsequent coverage obligations, and make relevant business decisions. The agreement is a contract also known as an insurance policy. Learn insurance industry vocabulary that will help you better understand your insurance policies. This glossary provides business insurance definitions for terms you might encounter while researching policies for your business and maintaining existing coverage. This best insurance book with interest you with topics such as mechanisms and processes by which insurance is sold, identification of various distribution methods, definition of the industry terminology, internal working of the insurance company, discussing various responsibilities of different insurance company departments, facts that affect. A marketing specialist who represents buyers of property. A transportation company that owns its own equipment, usually trucks or containers. An independent agent in our network who specializes in commercial insurance can help with this process, and can manage a companys complete business insurance portfolio through one office. Glossary of business terms a to z handy definitions of financial and economic jargon from libor and quantitave easing to black swans and dead cat bounces tue 26 nov 20 18.
These articles are designed to inform the reader of not only the definition and the associated variations but the proper use based on the context of the conversation. Also see the health and life insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The costs of business insurance can be reduced with effective risk management practices, and by comparing costs from several different insurance carriers. Compiled from the academys five insurance and risk management book plus many other sources, this extensive glossary defines, describes and details 282 insurance and risk management terms and concepts from a posteriori data to zone of danger. Notification to an insurance company that you believe a payment is due to you or your company under the terms of the policy. A person licensed by the state insurance authority to sell insurance products. Financial advisers are most commonly associated with books of business, but certain other producers might have this terminology applied to their own client lists as well, including insurance sales agents, private bankers, investment bankers, and financial planners.
Making a list of all your insurance policies makes sense to help you keep track and for your loved ones if the day comes that your life insurance policy is activated. While sometimes the term is used loosely, the title actuary really belongs to those who meet the requirements of one of the actuarial societies, the casualty actuarial society cas, for property and casualty. Accounting terminology guide over 1,000 accounting and. Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. Broker an intermediary between a customer and an insurance company. Financial advisers are most commonly associated with books of business, but certain other producers might have this terminology applied to their own client lists as well, including insurance sales agents, private bankers, investment bankers, and. The definitions are based on various insurance references. Insurance glossary understanding common insurance terms. This handy text defines over 2,000 insurance terms in a simple, jargon free manner. Such an agent is referred to as an authorised representative.
Alternative risk mechanism a method of financing primary property andor casualty losses without using traditional insurers to assume risk in the primary layer. Every industry has its own jargon, and the property and casualty insurance business is no exception. Definitions and types of insurance 2012 book archive. Click one of the letters above to advance the page to terms beginning with that letter. Also included is a rather extensive glossary of insurance and insurancerelated terms. The group insurance contract provides benefits to a group of individuals who have a specific relationship to the policy owner. Name and describe the various kinds of business insurance. Agent the insurance company representative who sells policies on behalf of the insurer. A marketing specialist who represents buyers of property and liability insurance and who deals with either agents or companies in arranging for the coverage required by the customer. This resource will also give guidance to management and staff who work in the. Weve curated additional glossaries of insurance terms and definitions to help you better understand the often confusing legal language of insurance.
Glossary of business insurance terms for small businesses. Have a look at the insurance terminology that has been listed below. Insurer the party who pays for losses in an insurance arrangement. Words and phrases used in insurance, with definitions free for students of business english who need to learn business vocabulary. A book of business, in the context of insurance, is a database or book that lists all of the insurance policies the insurance company has written. Book of business refers to a professionals list of accounts or clients. The code is a selfregulatory form of regulation, that is, the insurance industry, not the government, is. Health insurance, car insurance, and life insurance are a part of everyday life. Book of business total amount of insurance on an insurers books at a particular point in time.
Getting acquainted with insurance terms knowing the common insurance terms will help you understand your policy better. Here is an enlightening and accessible business guide that deserves a place on every home bookshelf. Learn medical terminology sidebyside with insurance and coding principles using this unique book. Guide to understanding insurance terminology 101 defining. Insurance terminology north american training group, inc. A transportation document that acts as a contract between a shipper and receiver and. This is the maximum amount of money that an insurer is contracted to provide the policy holder in a specific policy period. A book published by an insurance or bonding company or a rating association or bureau that gives rates, classifications, and underwriting rules. Insurance terminology north american training group. Learn business insurance 101 with these faqs trusted choice. Wysong contended that he had a separate oral agreement with kolberg, whereby he purchased the book of business according to the terms of kolbergs handwritten fact sheet listing the income earned from the book s policies and the amount that plaintiff would be required to pay kolberg to take custody of it. In some industries such as insurance, law or financial investment, a book of business may be sold when the books owner retires or closes a practice. Insurance economic device whereby the individual or business pays a cost premium in exchange for protection against financial loss.
For example, a bank might have customers who provide a large stream of revenue, and another set of customers who do not provide the bank with a large stream of revenue. Nov 24, 2019 book of business is an industry term that refers to a salespersons or professionals list of accounts or clients. For more information or if you are interested in getting a quote please call us on 091563518. Understandably, cannabis operations first insurance pri. Glossary terms business insurance uses many terms, acronyms, and jargon. Commercial property insurance can be sold separately as an individual line policy referred to as a monoline policy, or it can be sold as part of a commercial package. The amount of out of pocket expenses that you or your business must pay before the payment is made by an insurer. An extra fee charged by carriers for additional services rendered, which can include detention and fuel surcharges. Independent agents in our network believe that knowledge is power, and they are dedicated to not only providing consumers with competitive rates and coverage, but education and answers as well business terminology shouldnt be reserved for insurance agents.
There are numerous sources for definitions related to business terminology. Insurance terminology from insurance experts kratzer. Property and casualty insurance concepts simplified the. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references.
Understanding business insurance terminology trusted choice. Glossary of business terms a to z business the guardian. While purchasing an insurance policy is the firststep to protecting yourself and your property against potential risks, it is only the beginning. Convertible term insurance policy an insurance policy that can be converted into permanent insurance without a medical assessment. Understanding business insurance terminology guide. Iec, developed the general insurance code of practice the code. A form of insurance coverage that replaces business income lost as a result of an event that interrupts the operations of the business, such as fire or a natural. Also see the health and life insurance glossary, property and casualty insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings. The insurer is required to renew the policy regardless of the health of the insured subject to policy conditions. Also included is a rather extensive glossary of insurance and insurance related terms. Insurance terminology for brokers insurance terms and definitions group insurance contracts provide coverage to a number of persons under a single contract that is issued to someone other than the persons insured. Read our guide to understand business insurance terminology. Admitted company an insurance company licensed to do business in a. Understand what is being asked when in dialogue related to business.
Insurance definitions, dictionary, glossary and terms. To gain insight into your companys insurance policy, its helpful to have a grasp of basic business insurance terms. Following is the property and casualty insurance glossary of basic insurance terms and definitions that are commonly used in the insurance industry. The australian competition consumer commission promotes competition and fair trade in the market place to benefit consumers, business and the community. A fee or percentage of the premium paid to an insurance broker or agent. By understanding the relevant terms, you can make informed decisions about protecting your business. Medical terminology for insurance and coding marie a. Glossary of commercial insurance terms commercial insurance is divided into two main categories. Insurance companies who retain attorneys to defend them against law suits may hire staff attorneys to work for them inhouse or they may retain attorneys on an asneeded basis, a. Bests directory of recommended attorneys and adjusters lists insurance defense attorneys who concentrate their practice in insurance defense such as coverage. Irmi offers the most exhaustive resource of definitions and other help to insurance professionals found. Accounting terminology guide over 1,000 accounting and finance terms. Use this informative property and casualty insurance glossary to better understand basic insurance terms and definitions. Employee benefit plan authorized by internal revenue code section 401 k, whereby an employer establishes an account for each participating employee and each participant elects to deposit a portion of his or her salary into the account.
The insurance council of australia, as a response to the needs of the insurance industry and with the assistance of the insurance enquiries and complaints ltd. Dictionary of insurance terms barrons business guides. Its insurance technology services chris belle is president of its, a consulting company that helps carriers and solution providers implement new systems with a suite of services and tools for project management, business analysis, testing, and data conversion that are specific to the insurance industry. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. The term property insurance includes many lines of available insurance. The complete dictionary of insurance terms explained. Notification to the insurance company that a loss has occurred and a demand of payment for the loss, as provided by the terms of the insurance policy. The amount of outofpocket expenses that you or your business must pay before the payment is made by an insurer. To gain insight into your company s insurance policy, its helpful to have a grasp of basic business insurance terms. The agent represents the insurance company in all transactions. Nov 26, 20 glossary of business terms a to z handy definitions of financial and economic jargon from libor and quantitave easing to black swans and dead cat bounces tue 26 nov 20 18.
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