| Admitted Insurer (Licensed Insurer) |
An insurer authorized by the state insurance department to transact business within that state.
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| Annual Aggregate Limit |
The maximum amount the carrier will pay for all claims arising from incidents that occurred and were reported during a given policy year.
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| Arbitrate |
The decision to fight or not fight an incident or claim.
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| Beneficiary |
A person who receives money or benefits from a benefactor (Insured)
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| Coverage Period |
Length of the policy period dating from the effective date and time to the expiration date stated in the declarations page, and or extending beyond the expiration of the policy by endorsement and payment of additional premium.
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| Date of Incident |
The date on which a situation took place. Also called "date of occurrence."
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| Date of Reporting |
The date of reporting is the date on which the incident was reported to the insurance company.
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| Declarations Page |
This portion of the policy states information such as the name and address of the Insured, the policy period, the amount of insurance coverage, premiums due for the policy period, and any coverage restrictions.
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| Electronic Signature |
A computer data compilation of any symbol or series of symbols executed, adopted or authorized by an individual to be the legally binding equivalent of the individual’s handwritten signature.
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| Effective Date |
Date and time that the policy becomes effective and from which date and time coverage is effective.
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| Endorsement |
A document that amends an insurance policy by adding or deleting coverage or otherwise modifying the coverage.
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| Incident |
The situation which caused the disciplinary action.
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| Insured |
Person covered by insurance policy, “Customer”
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| Limit |
The maximum amount paid under the terms of a policy. Income Protection policy has two limits, a per-claim limit and an annual aggregate limit. (See Annual Aggregate Limit)
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| Non-assessable |
A condition under which an insurance company is sufficiently funded so that policyholders are not obligated to pay additional money for past losses.
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| Nonstandard Risk |
Those persons or entities that must pay higher premiums and be subject to special coverage restrictions based on underwriting standards.
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| Notice of Discipline |
A document provided by the department’s chief stating the type of suspension that will go in to effect.
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| Occurrence Insurance |
A type of policy in which the insured is covered for any incident that occurs (or occurred) while the policy is (or was) in force, regardless of when the incident is reported or when it becomes a claim.
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| Policy |
The contract between an insurance company and its Insured. The policy defines what the company agrees to cover for what period of time and describes the obligations and responsibilities of the Insured.
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| Policy Fee |
Fee assessed to cover application and processing fees.
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| Policy Term |
The length of time for which a policy is effective.
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| Premium |
The amount of money a policyholder pays for insurance protection.
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| Standard Risk |
A person, who, by the company's underwriting standards, is eligible for insurance without restrictions or surcharges.
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| Statement of Loss |
A statement made by the Insured that a loss was incurred, the type of disciplinary action taken and that a Statement of Loss will be reported.
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| Underwriting |
The process by which the company evaluates new customers and/or re-evaluates existing policyholders and, as necessary, imposes surcharges, deductibles, or non-renewal in cases where the policyholder's claims history or other experience presents a consistent pattern that creates an unfavorable liability risk.
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