Insurance Glossary
L.A. Insurance provides an insurance glossary to help you better understand your insurance. If you feel stuck on insurance terms check out our insurance glossary! Ask a QuestionWhat does “Actual Cash Value” mean?
Actual Cash Value refers to the value of your property, based on the current cost to replace it minus any deductions.
What is an “Additional Insured”?
An “Additional Insured” is an owner of a vehicle (and generally not a financial institution); a person or an organization, other than the Named Insured or covered person, who is protected under the Named Insured’s auto policy.
What is a “Binder”?
An [Insurance] Binder is an oral or written statement that provides immediate insurance protection for a specified period; designed to provide temporary coverage until a policy is formally issued or denied.
What is a “Bodily Injury”?
“Bodily Injury” describes physical harm to others caused by the insured or anyone else covered on their policy.
What is an Insurance Claim?
The reporting of theft, damage, or destruction of property, possessions, and dwellings which are covered by the insured’s policy.
What is a C.L.U.E. Report?
A C.L.U.E. Report is a report detailing a driver’s claim history (not to be confused with an MVR, or Motor Vehicle Record, which is a report of a driver’s driving history). These reports are generated from The Comprehensive Loss Underwriting Exchange (C.L.U.E.). Underwriters use the information about drivers and their history in CLUE Reports to rate insurance policies.
What does “Comparative Negligence” mean?
“Comparative Negligence” refers to a partial legal defense that reduces the amount of damages a plantiff can recover in a negligence-based claim, based upon the degree to which the plaintiff’s own negligence contributed to injuries caused.
What are “Additional Coverages” for car insurance?
Additional (sometimes called ‘Supplemental’) insurance coverages are coverages that apply only in certain circumstances, have reduced or separate limits or liability, or require the insured to meet certain requirements before they are applicable.
What is Collision Coverage?
Collision Coverage is coverage which applies to damages to your vehicle as the result of a crash.
What is Comprehensive Coverage?
Frequently referred to as “Full Coverage”, Comprehensive Automotive Coverage is a broad physical damage coverage that covers all property losses except collision and those perils or property that are specifically excluded.
What is an “Additional Interest” on an auto insurance policy?
An “Additional Interest” on a car insurance policy is an individual or company — in addition to the insured — listed on the declarations (e.g. a lien-holder who has an insurable interest in the property insured).
What does it mean to cancel an insurance policy?
Policy cancellations are the termination of an insurance policy by the company or insured before the policy’s renewal date.
What is a “Carrier”?
An insurance carrier is a company to which insurance payments are sent and who pays the insured when a covered claim is filed. L.A. Insurance is not an insurance carrier.
Did you know?
L.A. Insurance is one of the nation’s largest independant insurance brokerages and has partnerships with dozens of carriers. In fact, we’ve been one of the largest — if not the largest — independant brokers of Progressive Insurance by volume nationwide.
What is an Insurance Certificate (a.k.a. ‘Certificate of Insurance’)?
An insurance certificate is a written document that verifies a policy has been written; it provides a summary of the coverage provided under the policy. Most states require drivers to have both an active insurance policy and proof of insurance present in the vehicle in order to legally operate them. Typically, when drivers are asked for Proof of Insurance, this is the document best suited to serve as that proof.
What is an Insurance Claim?
An insurance claim is the reporting of theft, damage, or destruction of property, possessions, and dwellings which are covered by the insured’s policy.
What is a C.L.U.E. report?
A C.L.U.E. Report is a report detailing a driver’s claim history. These reports are generate from the Comprehensive Loss Underwriting Exchange (C.L.U.E.). Underwriters use the information contained in C.L.U.E. reports to rate insurance policies.
What does ‘Comparative Negligence’ mean?
Comparative Negligence refers to a partial legal defense that reduces the amount of damages a plantiff can recover in a negligence-based claim, based upon the degree to which the plantiff’s own negligence contributed to the injuries caused.
What is Comprehensive Coverage?
Frequently referred to as ‘Full Coverage’, Comprehensive Automotive Coverage is broad physical damage coverage that covers all property losses except collision and those perils or property that are specifcally excluded.
What is HO6 Insurance?
Condo (HO6) Insurance — also referred to as ‘Condominium Insurance’ — is a type of insurance policy that protects the insured, their belongings, and the conominium unit (everything from the outermost walls inward).
What is Contents Insurance?
Contents Insurance refers to coverage for the insured’s belongings (e.g. bikes, laptops, TVs, etc.). Also known as Coverage C on Renters’ and Homeowners’ insurance policies.
What is Co-Op Insurance?
Co-op Insurance refers to coverage protection for the insured, their belongings, and their dwelling; but not the rest of their building, facilities, or grounds in/on which the dwelling resides.
What is Insurance Coverage?
Insurance coverage is a financial tool designed to help the insured financially recover from sudden, unexpected, and accidental things that may happen.
What is the ‘Date of Issue’ on an insurance policy?
The Date of Issue refers to the actual date a policy is created. The Date of Issue is not when the policy ‘kicks in’ and becomes active.
What is the Declaration(s) page on an insurance policy?
The Declaration Page in your insurance policy is a document showing the insured’s coverage limits of liability, covered automobiles, premium, and other policy-related information.
What is an Insurance Deductible?
The amount of money the insured must pay towards repairs before the insurance policy covers the remainder. For example, if an insured person is in a car accident which causes $3000 worth of damage to their vehicle and the policy’s deductible is $500, the insured pays $500 towards the policy covers the remaining $2,500.
Who or What is DIFS?
DIFS stands for the Department of Insurance and Financial Services, the state regulatory body that governs the insurance industry in the state of Michigan. All insurance agents and agencies are required to maintain a current license with the Michigan Department of Insurance and Financial Services.
What is a DRLP?
DRLP stands for “Designated Responsible Licensed Producer” and refers to the agent held responsible for improper or illegal activities engaged in by an agency or its’ agents. The DRLP can be thought of as the ‘Managing Agent’ for a given agency. The Michigan Department of Insurance and Financial Services require all insurance agencies to have a DRLP listed on their licenses in order to operate legally.
What is Dwelling Coverage?
What does Earned Premium mean?
The portion of a policy premium that has been used to actually purchase coverage, or that the insurance company has “earned”.
What is the Effective Date on an insurance policy?
The date on which the insurance policy goes into effect and the coverage is active. This is not the date the policy is signed (see Date of Issue).
What does EFT stand for?
EFT stands for Electronic Funds Transfer. EFT is a payment method whereby a customer provides their bank account information and funds are typically auto-withdrawn when the billing cycle renews. EFT payments are typically more convienient than credit or debit card auto-payment programs as there are no expiration dates and customers do not need to worry about billing issues due to lost or stolen cards being deactivated.
What is an Endorsement?
What is an “Excluded Driver”?
Did you know?
L.A. Insurance is one of the nation’s largest independant insurance brokerages and has partnerships with dozens of carriers. In fact, we’ve been one of the largest — if not the largest — independant brokers of Progressive Insurance by volume nationwide.
What is an Exclusion?
What is Fire Insurance?
What does it mean to “Flat Cancel” a policy?
What is Flood Insurance?
What is Forced Protection Coverage?
What is Forced Protection Coverage?
What is the ‘Future Effective Date’ on an insurance policy?
What is Gap Insurance?
What is a Grace Period?
What is an IA?
What is the Inception Date on an insurance policy?
What is an Installment Fee?
Who or What is “The Insured” on an insurance policy?
Who or what is “The Insured” on an insurance policy?
Who or what is The Insurer on an insurance policy?
What is Landlord Insurance?
What does a Coverage Lapse mean for a car insurance policy?
What is Liability Insurance?
What is “Loss of Use” coverage?
What does “Market Value” mean?
Did you know?
L.A. Insurance is one of the nation’s largest independant insurance brokerages and has partnerships with dozens of carriers. In fact, we’ve been one of the largest — if not the largest — independant brokers of Progressive Insurance by volume nationwide.
What is an MGA?
What is an MVR?
Who or What is the Named Insured an insurance policy?
What are ‘Named Perils’ on an insurance policy?
What is No-Fault Insurance (and why do I need it)?
What is a Non-Owner’s Policy?
What is a ‘Non-Renewal Decision’?
What is an NPN?
What is an NSF fee?
What is an “Occurance”?
What does P&C stand for?
What does PIF stand for?
What does PLPD stand for and what does it mean?
What does POGA stand for and what does it mean?
Who or what is the ‘Policyholder’ on an insurance policy?
What is a Policy Jacket?
Policy Jackets are also known as Skeleton Policies.
What is the Premium of an insurance policy?
What is Proof of Ownership?
What is Property Damage?
What is an Insurance Quote?
Did you know?
L.A. Insurance is one of the nation’s largest independant insurance brokerages and has partnerships with dozens of carriers. In fact, we’ve been one of the largest — if not the largest — independant brokers of Progressive Insurance by volume nationwide.
What does “Real Property” mean?
What is a Reinstatement?
What is ‘Re-insurance’?
What is a Renewal?
What does “Replacement Cost” refer to?
What is a “Schedule”?
What is “Self-Insurance”?
What is an SR-22?
What does ‘Subrogation’ mean?
Subrogation refers to the process by which an insurance company steps in to get money back from a third party (or their insurer) who caused damages or losses to an insured’s covered property.
What are the Supporting Documents for an insurance policy?
What is a Surcharge?
What is the Policy Term?
Also referred to as Policy Period).