Jim Gaudiosi Insurance Agency
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Insurance Glossary of Terms
Frequently Used Insurance Words & Terms
Actual Cash Value
Replacement cost less depreciation, considering the age and condition of your property.
Additional Living Expenses
Pays expenses over and above your normal living costs (motel rooms, restaurant meals, and laundry service) while your home is being repaired or rebuilt after damage from an insured loss.
Agent
A licensed person or organization authorized to sell insurance by or on behalf of an insurance. company.
Beneficiary
A person who receives the benefits from an insurance policy other than the insured.
Bodily Injury
Bodily harm, sickness or disease, including death. This does not include communicable diseases such as HIV/AIDS.
Cash Value
In a life insurance policy, the amount of money, before adjustments for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels the coverage and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance, such as whole or universal life.
Collision Coverage
Coverage that insures against damage to your vehicle as a result of hitting another vehicle or object (i.e. a tree).
Comprehensive Coverage
Coverage that insures against damage to your vehicle as a result of a loss caused by something other than collision. Some examples are theft, vandalism or falling objects. This coverage is sometimes referred to as "Other-than-Collision".
Co-Payment
An amount the insured must pay, after any deductible.
Deductible
The portion of a claim you pay out of pocket before the insurance company pays. A higher deductible will lower your premium and you do not have to carry the same deductible for comprehensive and collision coverages.
Exclusions
Exceptions stated in a policy that limit the company’s obligation to pay.
Face Amount
In a life insurance policy in which the benefit is not variable, the amount stated as the amount the beneficiary will receive at the death of the insured. It is generally shown on the first page of the policy. Also known as the face value.
Health Maintenance Organization (HMO)
An organization that provides a wide range of comprehensive health care services through a designated group or network of doctors, hospitals, labs and or providers. To receive benefits, you must see the doctor you select as your primary care physician first, for care or a referral, except in the case of an emergency. Your choice of doctors is restricted to those in the network.
Insurability
The sum total of factors about an applicant that would lead an insurance company to assume the risk.
Insurance
A device for transferring risk of loss from individuals to an insurer. The insurer agrees for a valuable consideration (premium) to indemnify or pay a certain amount for losses incurred by the insured.
Insurer
The insurance company.
Liability Coverage
Coverage that insures against damages (to other party) for bodily injury or property damage when you are legally responsible for an auto accident.
Med Pay Coverage
Coverage that pays for minor medical expenses (to you or your passengers) resulting from an accident, regardless of fault.
Permanent Life Insurance
Life insurance that provides coverage throughout the insured's lifetime and includes a savings element that builds a cash value.
Pre-existing Condition
A health problem that existed before a policy was issued.
Preferred Provider Organization (PPO)
A selected group of hospitals and doctors and other medical providers who are contracted to perform services at a discount.
Replacement Cost
A determination of the cost to replace contents, rebuild your home, or repair damages with materials of like kind and quality, without subtracting for depreciation.
Rider
An amendment attached to a policy that changes benefits or excludes certain conditions from coverage.
Term Insurance
Life insurance under which the benefit is payable only if the insured dies during a specified time period as defined by the policy.
Umbrella Liability Insurance
A policy that "floats" above your other coverages. You must carry a certain amount of underlying liability coverage before you may buy an umbrella policy. This coverage kicks in if you are sued for an amount greater than the limits of liability of your homeowners policy.
Uninsured/Underinsured Motorist Coverage
Coverage that insures against damages (to you or your passengers) for bodily injury when the responsible party has no insurance or insufficient insurance to pay for damages. This coverage includes hit-and-run accidents.
Universal Life Insurance
A form of permanent life insurance that is characterized by its flexible premiums, cash values, face amounts, and unbundled pricing factors.
Whole Life Insurance
Life insurance that remains in force during the insured’s entire lifetime, provided all premiums are paid as specified in the policy. Whole life insurance also builds a savings element (also known as the cash value).
Thank you for choosing The Jim Gaudiosi Insurance Agency for your insurance needs.
