As Insurance can be a very unfamiliar topic to many people. We have put together a basic glossary of the most common insurance technical terms in the field. I hope this can be helpful!
Adjuster - A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted.
Blanket Policy - An insurance policy that coverts two or more properties or the same property at two o more locations.
For example, a blanket insurance policy may provide coverage for both a house and the furniture inside it.
Alternatively, a policy may cover a person's furniture both at his/her house and in his/her storage unit in another town
Claim - A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy.
Coinsurance – A small percentage of the claim that the policy holder agrees to pay. It is an additional deductible.
Coverage - A risk that the insurance company agrees to assume.
Credit Note – When cancelling certain policies this is a document that credits the pending amount of money spent that can be applied for a same kind of policy.
Deductible - Portion of the insured loss paid by the policy holder.
Endorsement - A modified/corrected version of the same policy issued by the insurance company.
Exclusions - Items or conditions that are not covered by the general insurance contract.
Hydro-meteorological Phenoma – Natural disaster that can damage property and persons such as floods, tropical cyclones, drought, hurricanes and desertification.
Indemnity - The legal term for repairing a loss or damage. In most cases this means the insurance company paying the corresponding sum of money to the affected person.
Insurance Agency, Agent, Broker – The person that sells clients the insurance company’s policy and attends the client directly.
Insurance Company – The company that assumes the economical risk of the insurance policy.
Liability – The state of being responsible for something.
Market Value – This is the value of a specific property in the current market. Many times the insurance company agrees to cover the expenses based on the market value.
Medical Tourism Insurance – This insurance is designed to cover the risk of a medical complication when going abroad for a specific medical treatment.
Policy - The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.
Policy Fee – Additional premium for the issue of the policy.
Replacement Value – This is the cost to replace a damage of a property including material and the labor costs.
Reimbursement - When the insurance company pays the insured the expenses made for a claim.
Third Part Liability - A product that offers mainly medical coverage during a trip as well as others
Total Premium – The total cost of a policy.
Travel Insurance - A product that offers mainly medical coverage during a trip as well as others
Waiting Period – In health insurance mostly, it is the period that when concluded, the coverage begins to be effective.