Accident: Unintentional event, unforeseen and sudden incident in a definite place and time.

Accidental-Bodily Injury: An accident that has resulted in physical injury of 1 person or more.

Agent: One who acts for Insurance Company, has authority to bind coverage.

Agreed amount: An amount specified in the insurance policy which is agreed by the insured and insurance company.

Appurtenant Structures: Structures or a building except insured’s dwelling such as garage, etc.


Binder: A temporary proof of Insurance which confirms coverage along with effective of the policy.

Broker: One who represent insured to placing coverage on behalf of the client/ insured.

Builder’s Risk: Covers losses to structure or construction materials in course of construction.

Business Interruption: Covers insured for the loss of net income after a claim such as fire or any covered peril while business operation is shut down.


Collision: Covers the damage to your vehicle in case of an accident.

Comprehensive: Covers fire, theft, vandalism, earthquake, etc. often refers to “Other than collision” as well.


Deductible: Specified amount that insured pays for a covered loss regardless of total amount of loss.


Fire Insurance: Covers insured against any fire losses/claims.


Health Insurance: Covers insured against medical sickness or bodily injury from accidents.

Homeowner’s Insurance: A package homeowner coverage that covers insured against fire, theft and liability claims.

Hospitalization Insurance: Covers insured against hospital costs while in hospital only.


Lapse: Refers to termination of a policy which may be eligible for re-instatement.

Liability: Insured’s legal obligation to cover any damages (property or bodily injury) in case of accidents or occurrence.

Liability-combined single limit: Property damage and/or bodily injury total claims extends coverage to specified lump-sum listed in the policy.

Liability Split Limit: Covers separately property damage as stated in the policy and bodily injury limits per person and per accident according to limits state in the policy.


Named Insured: The primary party who is listed as policy holder and authorized individual to transact with insurance company.

Non-owned Auto: Covers up to the liability limits for operating any vehicles that are not owned by the named insured.


Physical Damage: Commonly refers to Comprehensive and/ or collision coverage.


Replacement Cost: Like kind and quality replacement cost of materials and services required without any appreciation consideration.


Term Life Insurance: Commonly refers to specified term period such as 5, 10, 15 , 20 or 30 years, In case of death in these pre-selected periods, the beneficiary will be paid. May be extended, renewed or converted to whole Life within specified term period.


Umbrella Insurance: An excess liability that covers over and above the underlying limits of primary liability policy. Personal umbrella commonly refers to umbrella policy that covers all personal cars, home(s), boat(s), and motorcycle and up to 4 unit’s rental properties.

Uninsured Motorist: Covers you, your car and passenger(s) of your car in case you are hit by an uninsured driver or operator.

W

Waiting period: Refers to a specified period in your policy that no benefits are covered until such period has passed.

Whole Life Insurance: Refers to a policy purchased for whole life of insured which beneficiary is paid whenever insured’ death occurs.

Worker’s Compensation: Liability coverage which protects employers against any bodily injury claims arising from employees while performing their duties at their jobs or assignments.