Insurance Glossary

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).

Policy cancellations are the termination of an insurance policy by the company or insured before the policy’s renewal date.

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.

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. 

An insurance claim is the reporting of theft, damage, or destruction of property, possessions, and dwellings which are covered by the insured’s policy.

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.

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.

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.

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).

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.

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.

Insurance coverage is a financial tool designed to help the insured financially recover from sudden, unexpected, and accidental things that may happen.

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.

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.

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).

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.

Policy Jackets are also known as Skeleton Policies.

Also referred to as Policy Period).