A layman can find common insurance words confusing.
Moreover, not knowing the meaning of these terms may not be helpful to potential clients.
Whilst an insurance firm and an insurance broker know these words, a client may not be as aware.
However, knowing common insurance words and their definition help to keep customers informed.
Accident (as Common Insurance Words)
An accident is an unforeseen and usually, sudden occurrence that interrupts a person’s schedule or situation.
An adjuster is one who inspects a loss and negotiates settlement with the claimant.
This refers to any physical harm sustained in the event of an accident.
A broker is person or company who liaises on behalf of the insured with the insurance company.
Also, broker’s responsibilities include advising insured, placing business with insurance firm and collection of premiums.
This is the termination of an existing coverage by either the insurance company or the insured.
However, this is based on signed contract by both parties.
A claim is an official notice about the occurrence of a loss to an insurer so that the loss can be compensated.
This refers to specific situations that increase or decrease the occurrence of a loss.
However, a peril is responsible for the loss in this case.
This is the act of partly or fully restoring the victim of a loss with replacement, repair or payment.
A policy is a document that is issued to the insured that contains the terms of the insurance contract.
This is the amount of money charged by an insurance company for insurance coverage.
A quote is the estimation of insurance coverage. An insurance company or insurance brokering firm gives a quote.
In conclusion, valuation is the estimation of the value of an asset or item.