An acronym for Anti-lock Braking System.
Accelerated Benefits
A rider on a life insurance policy that allows you to receive early payment if the insured suffers form a terminal illness or injury.
Accidental Death and Dismemberment
A type of insurance policy that pays if the insured dies as a result of an accident or severs a limb above the ankle or wrist. Some policies pay if the insured permanently losses their eyesight.
Accidental Death Benefit
A rider on a life insurance policy that pays an additional sum in addition to the policy’s face value in the event the insured dies as the result of an accident. Sometimes referred to as double indemnity.
Actual Cash Value
A valuation method where the value of the amount of loss is set by the current replacement cost of the property, less depreciation.
ACV
An acronym for Actual Cash Value (see Actual Cash Value)
Agent
A person who is licensed by the state to represent an insurance company.
Amendment
A document that outlines changes in an insurance policy. Sometime referred to as an endorsement.
Annuity
A contract from an insurance company that guarantees you a series of regular payments for the rest of your life. An annuity has two distinct phases: The growth phase is the accumulation phase, while the payout phase is the annuity phase.
Application
A form you must complete when applying for insurance coverage.
Assets
Anything that is owned.
Appraisal
A valuation of property by the estimate of an authorized person.
The person or organization that receives the money from your life insurance policy when you die.
Benefits
The amount of money issued from an insurance company to a beneficiary of claimant.
BI
An acronym for Bodily Injury and an abbreviation for Bodily Injury Liability (see Bodily Injury Liability).
Bi-level
A bi-level house is a house where the front entrance is located between the flight of stairs leading to the top and bottom levels of the house. The bottom level is usually four feet below grade and the top level is four feet above grade. Bi-level homes are sometimes referred to as raised-ranch or split-foyer homes.
Binders
An agreement issued, usually in writing but may be oral, by an agent, broker or insurer to provide temporary coverage until a policy can be issued. A binder should include the name of the insurer, a specific effective time, the amount of coverage and the perils insured against.
Bodily Injury Liability
Legal liability arising from physical trauma to a person, or death arising from the negligent or purposeful acts and omissions by an insured. This coverage is required in the state of Colorado with a minimum limit of $25,000 per person, $50,000 per occurrence, abbreviated 25/50. See also Underinsured Motorist Bodily Injury and Uninsured Motorist Bodily Injury.
Broker
A state-licensed person who negotiates insurance contracts on behalf of the insured and can represent multiple insurance companies. The representatives of Elkstone Insurance Group are Brokers not Agents.
The insurance company.
Child Rider
Adds term life insurance coverage for each child upon birth or adoption to the insured’s life insurance policy.
Claim
When you file a claim with an insurance company, it means that you have had a loss and are requesting payment from the insurance company under the terms of your policy.
Claimant
The person filing the claim with the insurance company.
Collision Coverage
Pays for damage to an insured vehicle caused by upsetting or colliding with another vehicle or object. (Lenders require collision and comprehensive coverage if there is a lien on the insured vehicle.)
Comprehensive Coverage
Pays for damage to your automobile from perils such as fire, theft, vandalism, hail and falling objects. This does not include coverage for wear, tear, freezing, mechanical failure or breakdown, or road damage to tires. (Comprehensive and collision coverage are required by lenders if there is a lien on the insured vehicle.)
Coverage
The type or amount of protection provided by your insurance policy.
Coverage Period
The longest time period a disabled insured can collect on a disability insurance policy. The longer the period, the higher the premium.
The amount of an insured loss for which the insured is financially responsible before an insurance policy provides coverage. The higher the deductible, the lower the cost for the insurance policy for which the deductible applies.
Declarations
The section of an insurance policy containing basic underwriting information such as the insured’s name, address, coverage, coverage amount and description of the insured location or vehicles.
Depreciation
A decrease in the value of property that occurs over time.
DI
An acronym for Disability Insurance (see Disability Insurance)
Disability Benefit
The amount of money paid by an insurance company in the event the insured becomes disabled.
Disability Insurance
An insurance policy that pays the insured in the event the insured becomes injured or sick and is unable to work and earn an income.
Double Indemnity
A rider on a life insurance policy that pays twice the normal benefit for a special circumstance outlined in the policy, such as accidental death.
The amount of money you are paid for working at your job or occupation.
Earthquake Coverage
Earthquake coverage is added to a homeowner’s policy for an extra fee to cover damages that result from an earthquake. (Damage to a house as a result of an earthquake is not covered under a standard homeowner’s policy.)
Elimination Period
The period of time from when the person becomes disabled and the beginning of disability insurance income. The longer the period, the smaller the premium. This is also sometimes referred to as the waiting period.
Endorsement
An attachment to an insurance policy that changes provisions and adds or excludes coverage in the policy.
Equity
Assets less liabilities equals Equity. (Example: If the market value of your house is $150,000 and your mortgage balance is $110,000, you have $40,000 worth of Equity in you house. 150,000 – 110,000 = 40,000.)
Exclusion
A provision within an insurance policy or bond that denies (excludes) coverage for specific perils, persons, property or locations.
Extended Replacement
Coverage on a homeowner’s insurance policy where the dwelling coverage is extended by ten to twenty-five percent of the dwelling’s current coverage.
The amount of life insurance provided by the policy by the terms of the contract.
Flood Insurance
A separate insurance policy that covers damages to a house and/or personal property caused by flooding that occurred outside the house, e.g. rain storms or a dam brake (This coverage is not available on a standard homeowner’s policy). Flooding caused from within a house are typically covered on a standard homeowner’s policy, e.g. a water pipe brake.
Free Look
A period of time (usually 10 days) an insured has to look over a life or health policy and, if dissatisfied for any reason, return it for a full refund.
An acronym for Guaranteed Insurability Option (see Guaranteed Insurability Rider)
GIR
An acronym for Guaranteed Insurability Rider (see Guaranteed Insurability Rider)
GPO
An acronym for Guaranteed Purchase Option (see Guaranteed Insurability Rider)
Group Insurance
A single insurance policy that is written to include a large number of people. These policies are offered by insurance companies through employers for health and life insurance.
Guaranteed Insurability Option
Sometimes referred to as GIO (see Guaranteed Insurability Rider)
Guaranteed Insurability Rider
Guarantees that on specified dates, ages or occurrences (e.g., marriage or newborn child) the insured may purchase additional monthly benefits (if income justifies it) in a disability policy or additional death benefits in a life insurance policy, without proof of insurability. The rate is based on attained age.
Guaranteed Purchase Option
Sometimes referred to as GPO (see Guaranteed Insurability Rider)
Guaranteed Replacement Coverage
Coverage on a homeowner’s insurance policy where there is no limit on the amount of coverage for the dwelling.
Precipitation in small lumps of ice.
Hail and Wind Deductible
See Wind and Hail Deductible.
Compensation for an incurred injury, loss or damage. Most insurance contracts agree to restore the insured in whole or in part, by payment, repair or replacement of property damaged by a covered peril. In the case of liability insurance, most policies agree to pay those sums the insured becomes legally obligated to pay as damages to others.
Independent Insurance Agency
An insurance agency that is staffed with one or more insurance brokers that can represent and sell from more than one insurance company. Elkstone Insurance Group is an Independent Insurance Agency.
Insurance
A contract where one party agrees to indemnify or guarantee another party against loss by a specified future contingency or peril in return for the present payment of premium.
Insured
The person whose life, health or property is insured.
Insurer
The insurance company. Sometimes referred to as the carrier.
An accounting term signifying money owed or expected to be owed to another party. In law, a legal term signifying a legal obligation.
Limits of Liability
The maximum amount an insured may collect, or for which an insured is protected under the terms of a policy.
Loss
The unexpected reduction, decrease or disappearance of economic value.
Medical Payments on a homeowner’s, renter’s or condominium policy pays for medical payments of a third party injured at the insured’s covered residence.
Mysterious Disappearance
A disappearance of property without knowledge as to the location, time or how the property was lost. Mysterious disappearances are excluded from coverage in most open peril property policies.
Motor Vehicle Report
A report form the state’s department of motor vehicles that shows a licensed driver’s driving class, restrictions and violation history.
MVR
An acronym for Motor Vehicle Report (see Motor Vehicle Report)
The value of all owned assets, less outstanding loans.
Negligence
The failure to use the care that a reasonable, prudent person would have taken under the same or similar circumstances.
An acronym for Property Damage and an abbreviation for Property Damage Liability (see Property Damage Liability).
Peril
An event that causes a loss (Perils include such things as fire, wind, legal liability, errors and omissions, bodily injury and collision, etc.).
Personal Injury Protection
Covers up to $50,000 for medical, $50,000 for rehabilitation, $25 a day for loss of use and a small death benefit of $1,000 for each occupant of an insured vehicle involved in an accident. This coverage, and the amounts above, are specific to the state of Colorado and is one of the required coverages for auto insurance in the state. This is no fault coverage and the insurance company for each auto pays for coverage no matter who is at fault. Sometimes referred to as PIP.
PIP
An acronym for Personal Injury Protection (see Personal Injury Protection).
Policy
A contract between the insured and the insurance company for insurance.
PPO
Preferred Provider Organization (see Preferred Provider Organization)
Preferred Provider Organization
A health insurance plan that offers a discount to the insured when they choose a hospital or physician from their plan. Sometimes referred to as a PPO.
Premium
The money paid by the insured to the insurance company for insurance. (The cost for insurance.)
Property Damage Liability
Covers your legal liability incurred because of physical damage to the tangible property of others, including the loss of property use. This coverage is required in the state of Colorado. (Example: If you were in an at-fault accident, this coverage would pay for the damage to the other car and their rental car.)
See Bi-level
Rental-car Coverage
Pays for the cost of a rental car while an insured vehicle cannot be operated and is being repaired for damage payable under collision or comprehensive coverage (only available on vehicles with collision and comprehensive coverage).
Replacement Cost
A property valuation method where the value of the amount of loss is set by the current cost to replace damaged property with property of like kind and quality and current prices without deduction for depreciation. In order for an insured to receive replacement cost coverage, he or she must agree to be insured to at least 80% of the replacement cost value at the time of loss.
Rider
An amendment or attached clause to an insurance policy that adds or takes away certain provisions or coverages of the policy.
Risk
The possibility of loss or injury to the subject matter of an insurance contract by perils insured against.
See Bi-level
Spousal Rider
Adds term life insurance coverage for the spouse on an insured’s life insurance policy.
Subrogate
The acquisition by an insurer of an insured’s rights against other parties for indemnification of loss or other payments to the extent that the insurer pays the loss. (Example: An uninsured driver damages your vehicle and you and your insurance company end up paying for the damages via your collision and its deductible. The insurance company could collect from the uninsured driver. Based on the amount collected, the insured could receive a prorated refund on their deductible paid.)
A life insurance policy where the payments and death benefits are fixed for a specified term. After each term the payment increases as the insured life expectancy decreases. If the policyholder lives past the specified amount of time, the policy expires with no cash value. These policies have no cash value.
Theft
An act or instance of stealing. Theft coverage is the most comprehensive of the crime coverages because it covers loss to insured property from a known location or time, encompassing both burglary and robbery.
Tri-level
A tri-level house is a house with three staggered levels excluding the basement. (A tri-level house with a basement would have four staggered levels including the basement.) It usually has one level four feet below grade, one level at grade and one level four feet above grade.
Underinsured Motorist Bodily Injury (see Underinsured Motorist Bodily Injury)
UMPD
An acronym for Uninsured Motorist Property Damage (see Uninsured Motorist Property Damage)
UM
Uninsured Motorist Bodily Injury (see Uninsured Motorist Bodily Injury)
Umbrella Coverage
Umbrella coverage is a separate policy that extends liability coverage from the homeowner’s, condominium or renter’s policies and the auto policy. (There are minimum liability limits required on both the auto and home policies to qualify for an umbrella policy.) Umbrella policies are inexpensive and are highly recommended for insured people with a high net worth.
Underinsured Motorist Bodily Injury
Pays for bodily injury which you are entitled to collect from an underinsured owner or driver who is at fault for the accident.
Underwriter
A home office person who performs the underwriting process to accept or reject risk on behalf of the insurance company.
Uninsured Motorist Bodily Injury
Pays for bodily injury which you are entitled to collect from a hit-and-run or uninsured driver who is at fault for the accident and unable to pay for your loss.
Uninsured Motorist Property Damage
Pays for property damage to your auto which you are entitled to collect from a hit-and-run or uninsured driver who is at fault for the accident and unable to pay for your loss. Because collision coverage covers this, this coverage is only available to auto without collision coverage. Unlike collision coverage, this does not cover damage to your auto when you are at-fault.
Universal Life
A life insurance policy where both payment and the face amount are flexible within limits. These policies have a cash value that earn interest.
A life insurance policy where the payments are fixed. These policies have a cash value that are invested in securities.
Variable Universal Life
A life insurance policy where the payment is flexible within limits. These policies have a cash value that are invested in securities.
Vehicle Identification Number
The vehicle’s serial number, sometimes referred to as the VIN. The best place to get the VIN is off the driver’s-side dashboard viewed through the windshield from the outside of the vehicle. The VIN can also be found on the vehicle’s registration or the declarations page of your insurance policy. The proof of insurance card sometimes only includes the last part of the VIN. All autos since 1981 have a VIN with 17 letters and numbers (excluding the letters I & O–these letters were omitted to prevent confusion with the numbers one and zero).
VIN
An acronym for Vehicle Identification Number (see Vehicle Identification Number).
The time period on a disability insurance policy that a disabled insured must wait before disability coverage starts. The longer the period, the smaller the premium. This is also sometimes referred to as the elimination period.
Waiver of Premium
If the insured is totally disabled, the insurance company pays the premiums for the duration of the disability.
Whole Life
A life insurance policy where the payments are fixed for life. These policies have a guaranteed cash value.
Wind and Hail Deductible
A separate deductible on a homeowner’s insurance policy for damage caused by wind or hail.
