Have your recently applied for insurance, or are in the market for a new insurance company but can’t seem to wrap your head around all of the lingo? Don’t worry, a lot of people are in the same boat as you. That is why we here at Joyce, Jackman & Bell Insurors have put together a list of Insurance Vocab Basics to help you wade through some of that policy jargon. Check it out!
Insurance Vocab Basics
Insurer - Companies we represent are the insurers.
Insured – That’s you!
Agent – The individual who sells and manages your insurance policy
Independent Insurance Agency – An organization, like us here at JJB, who represent multiple insurance carriers so that the insured gets the best price and coverage for their budget
Underwriter – The person or company who reviews your insurance application and determines premiums and deductibles
Contract – Your insurance policy (Home, Auto, Life, etc.)
Premium – The amount go money you pay to obtain and maintain an insurance policy
Deductible - The amount that you are responsible for paying before the insurance company starts to pitch in
Claim – A request by the insured to be reimbursed for damages associated with a covered loss in line with policy doctrine
Loss – Physical damage to property or bodily injury, including loss of use or loss of income
Accident – An unexpected event that causes damage or loss (not deliberate)
Adjuster – The individual who investigates a claim and recommends settlement options
Market Value – Current price or fair value that could be received from the sale of an asset
Actual Cash Value – Repayment for the loss or damage to a covered entity: Depreciated value
Replacement Cost – Repayment for the loss of damage to a covered entity: Full cost of replacement
Can you think of any words we missed? Let us know and we’ll help get you straightened out!
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