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Insurance 101

We’re serious about helping new leaders get up to speed. Use this resource to better understand insurance and technology terms.

Find concise explanations of insurance industry terms.

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  • Back-up Sewers or Drain Coverage - Back-up Sewers or Drain Coverage pays for the reasonable and necessary cost to repair or replace property due to loss or damage caused by back up or overflow of a sewer, drain, sump pump, and sump pump well or any other system located off the premises which is designed to remove subsurface water from the foundation area.
  • Background Investigation - Some states may require a check of federal, state, and/or local governments' records to determine an agent's or agency's officers' criminal history prior to issuing a license or processing an appointment.
  • Banker's Blanket Bond (BBB) - Banker's Blanket Bond is a type of employee Dishonesty liaiblity insurance designed specifically for banks. It protect from financial losses arising from employee dishonesty. This typically covers the illegal trading, theft, and forgery of money, securities or other assets by employees.
  • Basic Life Plan  - Employer pays premium for basic life plan. It has no cost to employee, but benefit amount is lower than voluntary life plan. 
  • Beneficiary  - A Beneficiary is the person or entity whom the employee names in a life/AD&D insurance plan to receive the death benefit. Employee can name spouse, children, another family member, a friend or a charity as a beneficiary. If more than one beneficiary, the employee will assign to a certain percentage of benefits to each beneficiary, e.g., 50% to spouse, 50% to child.  
  • Benefit Amount  - Benefit Amount is the maximum amount an insurance company agrees to pay for a specific covered benefit. 
  • Benefits Effective Date  - Benefits effective date is calculated based on the trigger of enrollment.  Different triggers have different eligibility rules. 
  • Benefits End Date  - Benefits End Date (also known as Termination Date) is the date when employer terminates employee from group insurance plans.  
  • Bid Bond - A bid bond is a financial guarentee issued by a surety company ensuring that the contractor will enter into a contract to perform the work at the price quoted.
  • Binder - A Binder is a statement that coverage is in force. Its purpose is to provide temporary coverage until an actual insurance policy can be issued. A binder need not be in writing. How agencies can reduce EO risk across the policy lifecycle DEC pages & surplus lines filings
  • Boiler and Machinery - Boiler and Machinery Coverage is designed specifically for equipment to provide financial protection against breakdown, physical damages, and subsequent lost income.
  • Bond - In order to obtain certain types of insurance licenses, you may be required to obtain a bond. A bond is an insurance agreement pledging responsibility for financial loss caused to a state by the act or default of an agent or agency. What is an MGA
  • Bond Cancellation - A bond cancellation is a written request to a bond underwriter to terminate a bond that is no longer needed.
  • Bond Renewal - Bond Renewal refers to the payment of a premium, usually on an annual basis, to continue a required bond.
  • Bond Rider  - Bond Rider refers to all amendments to a bond, name change, extension of the expiration date must be executed on a bond rider by the bonding company.
  • Broker Type License - This license type indicates an agency that will "shop around" for the best deal for their client.  They aren't locked into specific carriers and can shop multiple carriers until they find the deal that will best suit their client's needs.   No contract between agency and carrier are needed, and therefore no appointments needed.
  • Broker  - An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of an employer for compensation. Use Case: broker enhances commercial account servicing New digital solutions are transforming insurance distribution
  • Builders Risk - Builders Risk is a property insurance policy designed to protect property under construction.
  • Building Coverage - Building Coverage pays for direct physical loss to the covered building or buildings including completed additions, fixtures, permanently installed machinery and equipment. Is your insurance organization prepared for disaster?
  • Building Ordinance or Law Coverage - Building ordinance or law coverage is a specific type of insurance that provides protection in the event of needing to rebuild or repair property caused by enforcement of ordinances or laws. Top underinsurance risks agents need to talk about in 2021
  • Business Income - Business income coverage is a type of commercial property coverage that covers from financial losses due to unexpected events that disrupt regular operations. Getting the most out of contingent commissions?
  • Business owners policy - A Businessowners Policy (BOP) is a comprehensive insurance package that combines property and liability coverage for small businesses. These policies are tailored to suit the needs of eligible businesses, offering unique advantages. BOP programs are available through organizations like the American Association of Insurance Services (AAIS) and the Insurance Services Office, Inc. (ISO), as well as through various insurers who offer their own BOP programs. Insurance agency compliance requires full-time focus Knowledge management for the new economy
  • Business Personal Property Coverage - Business Personal Property Coverage is designed to pay for direct physical loss to property the insured owns that is used in the business (including products for sale).
  • Business Registration  - A business registration at the Department of Revenue is a business tax account application. A business registration at the Secretary of State is the process of registering an entity for a certificate of authority to transact business in that state. Newspaper publication requirements Certificates of authority & secretary of state
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  • Damage to Premises Rented by You - In general liability, "Damage to Premises Rented by You" is a coverage that applies to damage by fire or damages to premises(and contents) rented to the insured, and occupied by the insured for 7 days or less. Basic limits start at $100,000.
  • Damage to Rented Premise Coverage - An insurance policy which protects the insured against liability incurred when the insured's negligent actions result in the destruction of property which is in the insured's care, custody or control.
  • Data Compromise - Data compromise coverage is an innovative product designed to help small and midsize businesses respond to data breaches and offers identity theft recovery for designated executives of an insured organization. Data Compromise can help reimburse your company for expenses related to a data breach. Data security: the NAIC model laws
  • Data Form (DF) - A Data Form (DF) is an online form completed by each individual and each agency that is enrolled in ILSA services.  The client completes the online secure form to submit their personal information to ILSA so that Intake personnel can build the record in the system for use in the licensing process. DEC pages & surplus lines filings
  • Date of Hire  - Date of Hire (DOH) (also known as hire date) is the first day an employee officially joins the employer. The real cost of employee turnover Pre-employment testing" how to help your company
  • DBA/Fictitious Name Filing Renewal  - DBA/Fictitious names may need to be renewed and appropriate fees paid in order to maintain the name for use in that state. Annual returns: what and when to file Newspaper publication requirements    
  • DBA/Fictitious Name Filing  - DBA/Fictitious Name Filing is the process for registering names of a business entity, other than that listed on the entity's Articles of Incorporation/Partnership, with various state offices.
  • Debris Removal - Debris Removal is a coverage that pays to remove debris and costs associated with damages covered by the insured commercial property insurance.
  • Deductible - A portion of a covered loss that is not paid by insurance. The deductible is subtracted from the amount the insurer would otherwise be obligated to pay.
  • Dental Plan  - A Dental Plan is an insurance plan that covers an employee's dental costs.
  • Department of Insurance (DOI)  - Department of Insurance (DOI) is the state office responsible for issuing insurance licenses and monitoring the activities of insurance agents and agencies doing business in the state. What causes consent orders 5 pro tips for surplus lines compliance
  • Department of Revenue (DOR)  - The regulatory authority that sets up tax accounts, receives taxes and provides tax clearance letters for business entities that are approved by that state's Secretary of State office to do business in that state.
  • Dependent Child(ren)  - Dependent Child(ren) is either a biological child or non-biological child.
  • Dependent  - Dependent refers to someone added to an insurance policy who coverage can be extended to. This mainly includes spouse, domestic partner, dependent child(ren) and other relationships. What are the fiduciary risks of self-funded health plans?
  • Designated Responsible Licensed Producer (DRLP or DP)  - Designated Responsible Licensed Producer (DRLP or DP) is the main person in charge of and responsible for the agency license. They maintain a license for the same lines of authority that the agency holds. The designated responsible licensed producer  
  • Direct Billing - Direct Billing is a process through which the insurance company sends bills directly to the policyholder and the policyholder makes payments directly to the insurance company. The insurance company pays to the producer commissions or other compensation for producer new business and servicing renewal business. The need for proactive digital engagement in insurance
  • Directors and Officers Liability - Directors and Officers (D&O) liaibility insurance is a type of insurance designed to protect directors and officer's personal financial assets in the event of a lawsuit regarding management decisions.
  • Directors and Officers Side A Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side A Coverage is designed to protects coverage gaps for directors' and officers' personal asstes when the company can't or won't cover them.
  • Directors and Officers Side B Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side B Coverage covers the company's costs when they indemnify their director and officers. This ensured the company isn't left with legal fees, settlements, or judgments of the associated costs.
  • Directors and Officers Side C Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side C Coverage is also referred to as "entity coverage", and it protects the company itself from lawsuits filed directly against it.
  • Directors  - Directors are the individuals who, acting as a group known as the board of directors, manage the business and affairs of a corporation. Director & officer updates Producer lift-out: its impact on compliance
  • Disability Plan  - Disability Plan (also known as Disability Income Insurance, or Income Protection Insurance) is an insurance plan that covers loss of income if an employee becomes disabled due to illness or accident. Major lines of authority
  • Dissolution  - Dissolution is the statutory procedure that terminates the existence of a domestic corporation.  
  • Division / Department  - Large organizations or businesses are often divided into divisions or departments to make functions more organized and orderly. 
  • Doing Business As Name (DBA)  - The Doing Business As Name (DBA) is the operating name of a company, as opposed to the legal name of the company. DBA is also known as "Fictitious Name," "Assumed Name," or "Trade Name." Newspaper publication requirements 5 unexpected tasks when registering as a foreign entity
  • Domestic Partner  - Domestic Partner refers to two people of the same or opposite sex who live together and share a domestic life, but aren't married. 
  • Drive Other Cars Endorsement - Drive Other Cars Endorsement is an amendment that can be added to a commercial auto insurance policy. It extends coverage to situations where certain authorized individuals can drive vehicles that aren't lisred on the policy.
  • Driver Other Car coverage (DOC) - Drive Other Car (DOC) coverage can provide protection for the employees, the executive of a partnership or corporation or their spouse who is supplied a company-owned vehicle but who does not own a personal vehicle and thus does not have a personal auto policy. It can afford protection for the covered named individual or spouse while driving a personal or non-owned vehicle from a third party for personal use, such as a vehicle is rented or borrowed. This coverage may include auto liability, auto medical payment, auto physical damage, UIM and UIM coverages.
  • Dual-Capacity Suits - A dual-capacity suit arises when an employee sues their employer as a seperate entity. Employers Liability(EL) coverage is important to apply to legal issues arising from employee claims that fall beyond the scope of Workers Compensation.
  • Duplicate License Request  - A Duplicate License Request is a written request submitted to a state department of insurance to have another copy of a previously-issued license copy sent to an agent or agency.
  • Duty to defend - In insurance, the duty to defend is a legal obligation of an insurance company to provide an attorney and cover legalexpenses on behalf of the insured, when a lawsuit is filed that falls under the coverage of the policy.
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  • Fiduciary Liability - Fiduciary liability is coverage specifically designed for someone who holds a fiduciary duty, such as a trustee, employee or individual in a position of trust. It typically covers situations involving errors & omissions (E&O) where the fiduciary can be help personally liable under the Employee Retirement Income Security Act of 1974 (ERISA). What are the fiduciary risks of self-funded health plans
  • Fine Arts Coverage - Fine arts coverage covers the loss or damage to fine art owned by the insured.
  • First Named Insured - First Named Insured is responsible for the duties and obligations listed in the conditions, such as the duty to pay the premium and give proper notice of accidents and losses. Additionally, the insurer's obligations, such as proper notice of cancellation or non-renewal and premium refund, need go only to the first-named-insured.
  • Fiscal Year -  A fiscal year is an accounting year that ends on a date other than December 31.
  • Fleet Policy - A fleet policy is a single policy that covers multiple vehicles owned by a business.
  • Flood Coverage - Covers losses in the event of a flood. It is typically purchased by endorsement to a difference-in-condition (DIC) policy or to an all-risks policy.
  • Foreign Corporation - A foreign corporation is a corporation doing business in a state other than its state of incorporation. 5 unexpected tasks when registering as a foreign entity Certificates of authority: The secretary of state
  • Foreign Liability - In general liability, foreign liability is a coverage that applies to damages arising from business operations in other countries.
  • Forgery & Alteration - Forgery & Alteration is type of insurance that covers loss sustained through forgery or alteration of outgoing negotiable instruments made or drawn by you, or drawn on your accounts, or made or drawn by one acting as your agent.
  • Franchise Tax  - Franchise Tax is a tax or fee usually imposed annually upon a corporation, limited liability company or similar business entity for the right to exist or do business in a particular state. Failure to pay the franchise tax or similar fees may result in the administrative dissolution of the company and forfeiture of the charter. 5 unexpected tasks when registering as a foreign entity Insurance agency compliance requires full-time focus
  • Full Time Equivalent (FTE) - FTE, or full time equivalent, is a unit of measurement used to represent the workload of a typical full-time employee.
  • Full-Time Employee (FT)  - A full-time employee is who works more than the minimum number of hours defined by employer. 
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  • Garage Keepers Liability - Garage keepers legal liability protects business that store or service vehicles. It provides coverage for physical damage to customer's vehicles while in the insured's care, custody or control. In Texas and Virginia only, Garage Keepers Legal Liability is called Storage Location Insurance, and Garage Keepers Legal Liability refers seperately to On-Hook Towing Insurance in those states only.
  • General Liability - Protects businesses from claims that it caused damage to others, not including car accidents and professional liability. Top underinsurance risks agents need to talk about in 2021 3 ways insurance brokers can help clients cut costs during COVID-19
  • Glass - A type of property insurance that covers breakage of windows and other glass.
  • Good Standing - A corporation is said to be in good standing when it has remained current with the necessary reports and fees required by the regulatory jurisdictions under which it operates. In good standing: certificates of authority statuses
  • Group Insurance  - Group Insurance is an insurance that is purchased by a company (known as the employer or group) and provided to their employees. A company can provide multiple insurance plans to their employees.
  • Group Name  - Group Name (also known as company name, employer name), is the name by which a company is known legally and officially. 
  • Group Number  - Group Number (also known as Plan Number) is the unique number insurance company uses to identify the group. 
  • Guaranteed Issue (GI)  - Guaranteed Issue (GI) is a fixed amount of life and AD&D insurance that is available to an employee. If the benefits amount an employee selects is over the guaranteed issue amount, Evidence of Insurability (EOI) is required by carrier. 
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  • Hazard - Hazard is defined as anything that increases the chance of a loss or increases the chance that a loss will be severe. Loss control: a hidden opportunity for carriers How insurance agents can positively influence pricing
  • Health Maintenance Organization (HMO)  - Health Maintenance Organization (HMO) is a type of health insurance plan that emphasizes preventive care and coordination between the insured and network of healthcare providers. The features of this type are if an insured is sick and needs health service, he or she always needs to go to his or her PCP first before going to other specialists or doctors. The PCP then makes a decision if the medical issue requires a specialist or different doctors. If so, the PCP provides an authorized referral for the insured to the specialist or doctor. With this referral, the insured can be reimbursed by the insurance company for the medical services provided by the specialist. Without the referral, the insured most likely will not be reimbursed. 
  • Hired Car Physical Damage - Coverage for physical damage for a rental vehicle. The limit/deductible of the compensation/collision for the losses caused by the car that rented by the insured. Unlimited lines: unlimited possibilities
  • Hired Non/Owned Auto Liability - Hired Non/Owned Auto Liability coverage pays for bodily injury (BI) or property damage (PD) arising out of the maintenance or use of a hired automobile in the course of business by the insured or an employee (core - for business use), or the use of a non-owned automobile in the business by any person other than the insured.
  • Home Address  - Home Address is the address where the employee lives. 
  • Hospital Indemnity Insurance  - Hospital Indemnity Insurance is an insurance plan that provides a lump-sum benefit to help with out-of-pocket costs related to a hospital stay (e.g., the costs in ICU). 
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  • In-network  - In-network health care providers are part of a health plan's network of providers with which it has negotiated a discount. Providers partner with the insurance carrier and agree to the negotiated rate for services.
  • Independent Adjuster - An independent contractor that provides claims adjusting services to various insurance companies and charges a fee for each claim handled. Adjusters: they’re not all the same
  • Individual Rating - Individual Rating is a rating system used when every insured is unique. Each insured is assigned an insurance rate that reflects its own unique characteristics.
  • Inland Marine - Inland Marine Insurance is a type of commercial insurance that provides coverage for property not fixed to one location that isn't traditionally covered by commercial property insurance. Inland marine policies provide coverage without regard to the location of the covered property, sometimes called "floater" policies. Examples of property covered may including a range of moveable business equipment and products like: constuction equipment, computers and electronitcs, fine art, production equipment and more.
  • Insurance - Insurance is a system that operates based on the concept of risk sharing. A person, business, or organization transfers risks to an insurer by buying insurance. The insurer in turn reimburses the insured for covered losses by sharing the costs of losses among all insured's.
  • Insurance Bureau - An insurance burea is a government agency reponsible for regulating the insurance industry and address consumer concerns.
  • Insurance Company  - Insurance Company (also known as carrier, insurer) is the company who provides insurance service. 
  • Insurance Rate - Insurance Rate is the price of insurance for each unit of exposure. The rate is multiplied by the number of exposure units to arrive at a premium. How insurance agents can positively influence pricing
  • Insurance Rating System - Insurance Rating System is an orderly method for arriving at an appropriate premium.
  • Insured - An Insured is a person, business, or organization that is covered by an insurance policy by purchasing insurance.
  • Insurer - Also known as an insurance company or carrier, is an organization that sells insurance policies to protect insured's from financial hardship caused by financial loss.
  • Insuring Agreements - Insuring Agreements are provisions in an insurance policy stating, in broad terms, the promises made by the insurance company. An insurance policy provides coverage only if the claim is within the scope of the promise expressed in an insuring agreement. Which policy checking solution is right for you?
  • InsurTech - Insurtech refers to the usage of technology to innovate and improve the insurance industry. The term is a blend of "insurance" and "technology." Insurtech companies develop solutions and applications to address inefficiencies and limitation in traditional insurance models to streamline processes, personalize products and enhance customer experiences within the industry. Key insurtech terms to know
  • Intake Personnel - Personnel who are specifically assigned to "intake information" in order to onboard new clients. Intake processes each agency and individual data form, runs PDBs, checks for affiliations and CQs.
  • Intelligent Document Processing (IDP) - Intelligent Document Processing (IDP) is a technology that extracts information from documents in various formats. It scans, reads, extracts, and organizes structured, semi-structured, and unstructured data from various file types and sizes, including documents, spreadsheets, and PDFs. ITC 2023 trends and takeaways: it's all about focus
  • Internet of Things (IoT) - The Internet of Things (IoT) is the network of connected physical devices embedded with sensors, software and other technologies that connect and exchange data over the internet. Examples of IoT devices used in insurance include vehicle sensors, water leak sensors, smart security sensors, fitness trackers, property inspection drones, equipment performance devices and more. ReSource Pro's Mark Breading talks futurism in insurance
  • Involuntary Dissolution  - Involuntary dissolution occurs when the corporation's legal existence is terminated pursuant to an administrative or court proceeding; the dissolution is forced rather than decided upon by the corporation.
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  • Kidnap and Ransom - Kidnap and Ransom (K&R) is a type of insurance designed to protect employees, relatives of employees, or guests from financial loss as the result of kidnapping, extortion and wrongful detention.
  • Knowledge Process Management (KPM) - KPM, or Knowledge Process Management, is a strategy used to manage an organization's knowledge and business processes. It involves combining strategies for creating, sharing and leveraging knowledge with optimizing business processes to improve efficiency, quality, and consistency. Featured in Carrier Management: Dan Epstein on global talent crisis
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  • Large Language Model (LLM) - A Large Language Model (LLM) is a type of generative artificial intelligence program trained on a large amount of text data. The LLM is trained on this data to process and generate human-like text responses to prompts. Generative AI in insurance, explained in plain English
  • Lawyers Professional Liability - Lawyers Professional Liability(LPL) is a commercial insurance providing professional liability coverage to law firms and lawyers due to legal mistakes.
  • Liability Insurance - Liability Insurance, also called "Third Party Coverage" protects the insured from losses due to injury to someone else or accidental loss or damage to someone else's property.
  • License Cancellation  - To cancel a license that is no longer needed, an agent or agency can submit a written request to the state's Department of Insurance. Resident state change compliance tips
  • License Reinstatement  - License reinstatement is typically available only within a short period, usually 15 days to 1 year, after the renewal deadline. Reinstatement of expired licenses may require late fees in addition to the regular renewal fee. 7 tips for dealing with a lapsed license
  • License Renewal  - License Renewal is the periodic and scheduled renewal of a license to keep it from lapsing/expiring. Insurance compliance myths busted: license renewals  
  • Life Plan  - Life Plan is an insurance plan that pays a lump sum to a beneficiary after employee death, and normally pays for employee a portion of life insurance upon other events such as terminal illness. 
  • Limit - Also called limits of insurance, limits of liability, or policy limits, indicates in an application how much insurance is requested. Once the policy is issued, the limits in the policy set the maximum dollar amount the insurance company will pay.
  • Limited Liability Company (LLC)  - Limited Liability Company (LLC) is an entity created under and governed by the laws of the jurisdiction in which it was formed. Such entities are generally able to provide the limited personal liability of corporations and the pass-through taxation of partnerships or S corporations. S-election and business entity taxes Annual returns: when and what to file
  • Limited Partnership  - A limited partnership is a form of partnership consisting of one or more general partners who manage the business and are responsible for its debts, and one or more limited partners who invest in the business and have limited personal liability. Director & officer updates
  • Lines of Authority (LOA)  - Lines of Authority (LOA) are the specific types (or lines) of insurance that the individual/agency is licensed to write.  Examples include P/C, L/A/H, SL, Adjuster, and TPA (Third Party Administrator). Major lines of authority Limited lines, unlimited possibilities
  • Liquor Liability - Liquor liability insurance is business insurance that protects businesses against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. The business that served the alcohol could be legally liable for injuries, damages, or both that occurred as a result of actions, behaviors, or conduct of a patron under the influence of alcohol.
  • Location  - Location is the place or building where an employer run its business, and may have multiple offices in different locations. If the employer has multiple locations in different states, the group insurance plans in different locations may be different. 
  • Long Term Disability Plan (LTD Plan)  - Long Term Disability (LTD) covers a longer time period (usually to age 65 or retire). Normally, benefits is paid on a monthly basis. 
  • Loss - A loss is defined as the financial cost to pay for the losses in case of an accident.
  • Loss Control Inspection Reports - Written by a loss control inspector. It describes the operations and hazards of the applicant's business as they relate to the type of insurance coverages the applicant is requesting. It reports not only strengths and weaknesses but also makes recommendations for improvement such as safety programs and other measures to control the hazards.
  • Loss Exposures - Loss exposures, also simply called exposures, are situations that could lead to an accidental loss. Loss control: a hidden opportunity for carriers
  • Loss Payee - A loss payee is another entity that has a financial interest in a business or property.
  • Loss run - Loss run, also referred to as loss history or loss record, are lists of the losses incurred by the insured during the policy period.
  • Loss summary - A loss summary is a brief summary of the loss runs. It is usually simpler than a loss run but keeps all the necessary data, such as the date and the type of loss.
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  • Mailing Address  - Mailing Address is the address where mail is delivered to the Insured. It could be a physical address or PO Box. 
  • Management Liability - Management liaibility insurance, also known as executive liaiblity insurance is a type of insurance that protects a ompany's directors, officers and managers from financial loses arising from lawuits alleging mismanagement or negligence.
  • Managers  - Managers are individuals responsible for the maintenance, administration and management of the affairs of a limited liability company (LLC). Managers usually do not hold a percentage of ownership in the company. Annual returns: when and what to file 7 ways agents and brokers can reduce e&o risk 
  • Managing General Agent (MGA)  - A Managing General Agent is a specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer. Accordingly, MGAs perform certain functions ordinarily handled only by insurers, such as binding coverage, underwriting and pricing, appointing retail agents within a particular area, and settling claims. What is an mga?
  • Master Service Agreement (MSA)  - A master service agreement (MSA), also sometimes referred to as a framework agreement, is a fundamental contract outlining the standard terms and conditions that will govern the relationship between a service provider and a client.
  • Media Liability - Media liability is a type of errors and omissions (E&O) liability insurance for media companies that protects agasint damages such as defamation, invasion of privacy, copyright and plagiarism.
  • Medical Malpractice - Medical Malpractice is a commercial insurance providing protection to doctors, hospitals, and other healthcare providers from financial losses due to medical errors.
  • Medical Payments - In general liability, medical payments is a coverage that pays for medical bills for persons injured in the business, regardless of the insured's liability.
  • Medical Plan  - Medical Plan is an insurance plan that covers medical costs when an employee gets sick or hurt, and needs to go to the hospital. 
  • Medical Professional Liaibility (MPL) - Medical Professional Liaibility (MPL), also known as medical malpractice insurance, prtects healthcare providers from financial loss due to lawsuits alleging negligence or errors in their medical care.
  • Medicare  - Medicare is the federal health insurance program for people who are 65 or older, or certain younger people with disabilities or with End-Stage Renal Disease. 
  • Members  - The owner(s) of a limited liability company (LLC) may be known as members. Members usually hold a percentage of ownership in the company.
  • Money & Securities Inside/Outside - Money & Securities Coverage Inside/Outside pays for loss due to theft, disappearance or destruction of insured's money and securities on premises, in a bank or savings institution, in the insured's living quarters, or the living quarters of partners or employees who have use and custody, or in transit insured's money.
  • Mortgagee - A mortgagee is the lender of a loan secured by property. For example, a bank that lends money to purchase a home or building is a mortgagee.
  • Motor Carrier Policy - Motor Carrier Policy is a commercial auto policy designed for businesses that transport goods using vehicles for hire. It provides financial protection in the event of an accident, injury or damage in transit. Coverages include auto liability, trailer interchange and auto physical damage.
  • Motor Vehicle Report - Motor vehicle report, also known as a Motor Vehicle Record or MVR, lists the moving violations (such as seeding tickets) and serious accidents that a driver has had in the past several years.
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  • Name Change  - The process by which the name of an individual or corporation is updated with all state departments that record this information
  • National Association of Insurance Commissioners (NAIC)  - National Association of Insurance Commissioners (NAIC) is an association representing the various state commissioners of insurance that promotes uniformity of insurance licensing procedures and governing law and regulations.
  • National Insurance Producers' Registry (NIPR)  -  The National Insurance Producers' Registry is a business entity created by the NAIC to oversee the electronic licensing process and maintain a database of agents' and agencies' licensing and appointment statuses in the various states.
  • New Hire  - A New Hire is an employee who has not previously worked for the employer.
  • Newspaper Publication  - Newspaper publications are a public notice in local newspaper(s) required prior to the issuance of certain types of corporate qualifications and/or licensure.
  • Nexus Questionnaire  - The Nexus Questionnaire  is a state provided application that helps an agency determine whether or not it needs to file taxes in that state.
  • No Par Value Shares  - A no par value share is issued without the specification of a par value indicated in the company's articles of incorporation. They may be issued for any consideration determined by the board of directors.
  • Non-Admitted Carrier  -  A non-admitted carrier is an insurance carrier that, although it has not been approved by the state department of insurance to underwrite standard insurance products, may underwrite certain excessive risks, i.e. surplus lines policies with the special permission of the DOI.
  • Non-Contributory Plan  - Non-Contributory Plan refers to a plan where an employer pays premium entirely and employees don't contribute money at all.  
  • Not-For-Profit Corporation  - A Not-for-Profit Corporation, also known as a non-profit, is generally organized for some socially beneficial purpose, rather than for the direct monetary benefit of the directors or members. Not all not-for-profit corporations are tax exempt and some make a profit. However, the profit is not distributed to the members or directors.
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  • Ocean Marine - Ocean Marine coverage is a type of insurance specifically designed to protect against financial loss from the transportation of goods at sea. The term Ocean Marine encompasses a variety of coverages, including Cargo, Hull and liability coverages.
  • Officers  - Officers are individuals appointed by the board of directors who are responsible for carrying out the board's policies and for making day-to-day decisions.
  • On-Hook Towing Insurance - On-Hook Towing Insurance, (also known as Garage Keepers Legal Liaiblity insurance in Texas and Virgina only) is a coverage designed for businesses that tow vehicles. It provides financial protection in the case that a customers car is damaged while it is being towed.
  • Open Lot Coverage - Open Lot, also referred to as Dealers Open Lot coverage is a specific type of insurance designed for car dealerships. It provides financial protection for a dealerships vehicle inventory. Coverage options include collision, comprehensive, specified cause of loss, or fire and theft.
  • Optical Character Recognition (OCR) - OCR, or Optical Character Recognition, is a technology that transforms images containing text into editable digital text.
  • Out-of-network  - Out-of-network providers are the ones do not have an agreement with a carrier's care plan. Employees could still go to the doctors who are out-of-network, but they would have to pay more or they would need to pay the cost by themselves. 
  • Outdoor Property Coverage - Outdoor Property Coverage covers the following specific property: outdoor fences, radio and television antenna (including satellite dishes), signs not attached to buildings, trees shrubs and plants, and the debris removal expense of the above coverage. Is your insurance organization prepared for disaster?
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  • Par Value  - Par value is the minimum price of a share below which the share cannot be issued, as designated in the articles of incorporation.
  • Parametric Insurance - Parametric insurance is a type of insurance that pays out predefined amounts based on event triggers.
  • Parent Corporation  - A corporation that owns a controlling interest in another corporation is a parent corporation.
  • Part-Time Employee (PT)   - A part-time employee (PT) is who works less than the minimum number of hours defined by employer. 
  • Partnership  - A partnership is a business organization in which two or more people agree to do business together.
  • Pass-Through Taxation  - In Pass-Through Taxation rather than tax the income of the entity, taxation is “passed through” to the individual shareholders in S corporations (and LLCs). Income or losses are declared on their individual tax returns.
  • Peril - A peril is a unexpected and damaging event that causes a loss. Insurance is specifically designed to protect individuals and businesses from perils.
  • Period - The term "Period" refers to the duration of a policy.
  • Perpetual - "Perpetual" describes a license that does not require a renewal.  The license will always continually be active until a withdrawal is submitted to inactivate the license (or the resident license lapses/expires, then all others begin to fall off as a result). You may see the expiration date listed as 2/2/2222.
  • Perpetual Existence  - Perpetual existence refers to an unlimited term of existence; characteristic of most business corporations.
  • Personal Injury - In general liability, personal injury is a coverage that pays for non-physical harm. According to International Organization for Standardixation (ISO)'s 1986 commercial general liability (CGL) policy, PI includes: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion of privacy.
  • Personal Injury Protection - Personal injury protection (PIP), also known as no-fault insurance, is a type of coverage that helps pay for medical expenses and other losses incurred regardless of who caused the accident. PIP is mandated in some jurisdictions and covers medical expenses, loss of income, funeral expenses, etc.
  • Personal Insurance - Personal insurance is a type of insurance designed to protect individual and families from financial losses arising from unexpected events impacting their personal well-being, assets or liabilities. P&C personal lines insurers: viewing key strategic initiatives through a new lens
  • Personal Property off Premises Coverage - Personal property off premises coverage extends insurance that applies to Business Personal Property to cover Business Personal Property other than Money and Securities, Valuable Papers and Records, or Accounts Receivable, while in course of transit or temporarily at a premise not owned, leased or operated by the insured.
  • Physical Damage - In insurance, physical damage refers to coverage for harm to physical objects, typically vehicles. It provides coverage from the cost of repairing or replacing the object in the event of an accident. Major lines of authority
  • Point-Of-Service (POS)  - Point-Of-Service (POS) combines some of the design features of both an HMO and a PPO. Each insured must select a PCP but still has the option of receiving services from doctors without a referral from the PCP. The insured can go out-of-network and still receive a certain amount of coverage. The cost will be lower in-network and higher for out-of-network. Normally, a POS is more suitable if your favorite doctor is already in the network or when you are willing to visit a PCP before receiving in-network healthcare. 
  • Policy - A policy is a contract that states the rights and duties of the insurance company and the insured.
  • Policy Checking - Policy checking refers to the tasks involved in making sure that the policy is complete and accurate before it is issued to the insured. Expand your resources
  • Policy Condtions - In an insurance policy, policy conditions are provisions that explain the duties, rights, and options of the insured and the insurance company.
  • Policy Declarations - Policy Declarations are the page or pages of an insurance policy containing information, such as the insured's name and address, that the policyholder declared (stated as facts) on the application for insurance.
  • Policy Definitions - In an insurance policy, policy definitions are provisions that define the words and phrases that have a special meaning when they are used elsewhere in that policy. Words defined in some policies are printed in bold or enclosed by quotation marks.
  • Policy Exclusions - Policy Exclusions are policy provisions that restrict the broad terms of the insuring agreement by stating some exceptions to coverage, including certain activities, loss causes, property, persons, and places for which the insurer does not provide coverage. How agencies can reduce e&o risk across the policy lifecycle
  • Policy Issuance - Policy issuance is the act of issuing the policy documents, which will be printed out and delivered to the insured.
  • Policy Servicing Representative (PSR) - A Policy Servicing Representative (PSR) is an insurance professional that interacts with the insured after they have purchased an insurance policy. They act as a bridge between the policyholder and insurance company, ensuring the policy runs smoothly and adressing any questions for the policyholder.
  • Policy Typing - Policy typing refers to the data entry of the information that is necessary to create a policy.
  • Power of Attorney -  Power of attorney is the authority given to one person or organization to act on behalf of and obligate another.
  • Pre-licensing Requirements  - Before a license application can be submitted, a new agent must complete certain pre-licensing requirement courses on state insurance laws and procedures, either online or in a classroom setting.
  • Preferred Provider Organization (PPO)  - Preferred Provider Organization (PPO) allows a patient to go to out-of-network doctors or hospitals without an authorization from a PCP. Both in-network and out-of-network providers' medical costs are reimbursed. But the cost for out-of-network is generally higher that in-network. 
  • Preferred Shares  - Preferred Shares are a class of shares that entitles the holders to preferences over the holders of common shares, usually with regard to dividends and distributions of assets upon dissolution or liquidation.
  • Premises & Operations - Premises & Operations covers liability for bodily injury (BI) or property damage (PD) that happens on your business premises or as a result of your business operations while they are ongoing.
  • Premium - Premium is a periodic payment by the insured to the insurance company in exchange for insurance coverage. How insurance agents can positively influence pricing
  • Premium auditing - At the end of the year, the policyholder's records are examined or audited by a premium auditor to determine the audited premium.
  • Premium auditor - A premium auditor is a person who examines policyholders' records at the end of the policy period to determine the final audited premium.
  • Primary Care Physician (PCP)  - Primary Care Physician (PCP, also known as Primary Care Provider), is a health care professional who practices general medicine. PCPs are first stop for medical care. 
  • Producer - Anyone who ‘produces' insurance business by selling insurance.
  • Producer Database Report (PDB)  - Producer Database Report (PDB) is a report from the National Producer Database that gives the last known addresses and aliases (DBAs) of an individual or agency.   It also provides license detail for all license types that are reported to this national database, as well as any administrative actions and appointment currently on file.  A PDB is only good at the moment it is run, because details are ever changing.  A PDB could be run for the same person/agency the following day and contain different information.
  • Producer License - A producer license is a credintial that authorizes and individual to sell, solicit, or negotiate insurance on behalf of insurance companies. Specific requirements for obtaining a producer license varies by state, and there are different types of producer license available, depending on the specific line of insurance: property & casualty, life & health, and accident & health.
  • Products & Completed Operations - Products & Completed Operations covers liability for bodily injury (BI) or property damage (PD) that happens away from your premises and is caused by a product you sell or a service you completed. This applies even after the work is finished.
  • Professional Liability - Professional liability (PL) protects professionals from errors & omissions (E&O) in their services. Most PL policies cover financial losses as opposed to bodily injury.
  • Property Insurance - Property insurance protects property and physical assets from damages and loss.
  • Proposal - A proposal is a booklet that highlights the important features of the proposed coverage and related services by the broker and states the premium.
  • Prospect - A prospect is a person, business, or organization that a producer hopes to sell insurance to. After the sale is completed, the prospect becomes a customer, client, policyholder, or account.
  • Provision - A provision is any statement in an insurance policy is referred as a policy provision.
  • Public Adjuster - An insurance claims adjuster advocates for and is paid by the policyholder to appraise and negotiate an insurance claim. Adjusters: they're not all the same
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  • Qualifying Life Event (QLE)  - Qualifying Life Event (QLE) is a change that happens to the employee and/or dependents, like getting married, having a baby, or losing coverage, etc. QLE may trigger enrollment or change of group insurance plans. 
  • Quote - A quote is a statement regarding the premium that will be charged for certain coverage.
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  • Reappraisal - A reappraisal is the process of re-estimating the value of something, typically after a period of time to determine is the value has changed.
  • Region Code (RC) -  A Region Code (RC) is a specific number assigned to each new client as they onboard.
  • Registered Agent (RA)  - A Registerd Agent (RA) is required by each state that you are registered in at the Secretary of State level (a couple of exceptions). The RA is an office or person in that state. We use Corporate Creations or CT Corp and if our clients use them through us, the fee is $95 per state per year.
  • Rehire Date  - Rehire Date is the first day officially re-employed by the employer.  
  • Rehire  - Rehire is a former employee who is hired by the employer again. 
  • Reinstatement  - Reinstatement involves returning a corporation that has been administratively dissolved, or had its certificate of authority revoked, to good standing at the Secretary of State.
  • Reinsurance - Reinsurance is an agreement by one insurer (the primary insurer) with another insurer (the reinsurer) to share a risk. M&A keeps the non-admitted market growing Categorizing emerging exposures helps reinsurers
  • Reinsurer - An insurance company that sells insurance to another insurance company as a way of offsetting risk.
  • Renewal - At the end of the period of insurance (usually one year) the policy may be extended for another period of time. This is called a renewal.
  • Renewal Questionnaire - A renewal questionnaire is a form that asks questions about changes during the past coverage period.
  • Rental Reimbursement - Rental reimbursement (or rental car coverage) is a type of optional car insurance coverage that helps pay for the cost of rental car while your vehicle is being repaired after a car accident or after suffering damages that are covered through your car insurance policy.
  • Replacement Cost Value - When an insured chooses replacement cost, the insurance company will pay the amount that it costs to replace the property at the time of the loss. 7 ways agents and brokers can reduce e&o risk
  • Restricted State  - A restricted state is one that requires the approval of an agent's or agency's request for appointment before any insurance policy is solicited or written
  • Retail Agent - Also known as independent agent. A retail agent sells insurance as a representative of several unrelated insurance companies. The retail agent's business is a retail agency.
  • Retainer -  A retainer is an account set up between a service provider and a client in which money for ‘pre-paid' items will be deposited.  Once the items or “tasks” have been completed and put into the billing cycle, the funds for those particular items will be removed from the Retainer account and used to pay service fees.
  • Risk - Risk refers to the possibility of financial loss.
  • Risk Sharing - In risk sharing, insured's pays premiums to the insurance company, which pools the premiums into a large fund. Insured's who suffer losses are paid from this pool of money. The total cost of paying for losses that occur to relatively few insured's is spread among all members of the group. Sharing the cost among all insured's makes each insured's premium relatively small.
  • Robotic Process Automation (RPA) - Robotic Process Automation (RPA) is a technology that uses software robots to automate repetitive high-volume tasks. Tasks that can be automated with RPA in insurance include data entry, form processing, claims intake and more. Pitfalls of robotic process automation
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  • S Corporation  - S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. S-election and business entity taxes
  • Saving Accounts  - When an employer is creating a competitive benefits package for employees, good healthcare options should be a top priority. In addition to health, dental and vision insurance, many employers choose to offer employees tax-free accounts that can be used to pay for health care expenses, such as: Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA)
  • Secretary of State (SOS)  - Secretary of State (SOS) is the regulatory authority that grants business entities the authority to conduct business in their state.  Some states refer to as State Corporation Commission or other similar name
  • Selling Agreement  - A Selling Agreement is the contract between an insurance carrier and an agency defining the terms and conditions under which the agency and its agents may represent the carrier's insurance products. The agreement typically defines marketing procedures, terms and schedules for compensation, and binding legal responsibilities of both parties.
  • Short Term Disability Plan (STD Plan)  - Short Term Disability (STD) plan covers a shorter time period (usually 13 to 26 weeks). Normally, benefits is paid on a weekly basis. 
  • Shrinking Limits Defense Provision - A shrinking limits defense provision is a clause that states the costs incurred by the insurance company defending a lawsuit against a policyholder will be deducted from the overall policy limits available to pay for actual damages in a lawsuit.
  • Signature Date  - Signature Date (sign date) is the date when an employee applies for group insurance plans. Employee may sign on benefits administration system or paper application form.  
  • Signs Coverage - Signs coverage is designed to pay out to damages to signs not attached to the covered building, owned by you or owned by others but in your care, custody or control.
  • Social Security Number (SSN)  - A Social Security Number (SSN) is a nine-digit number in the format “123-45-6789” or “123456789” that the U.S. government issues to all U.S. citizens, legal permanent resides, and noncitizens who have jobs in the United States. 
  • Sole Proprietorship  - A sole proprietorship is an unincorporated business with a sole owner in which the owner is personally liable for business debts and claims against the business.
  • Specialist  - A specialist is a type of doctor that focuses on a certain area of medicine, such as cancer.
  • Specificied Perils Policy - A Specified Perils Policy covers any loss that is caused by one or more of the perils that is specified in the policy. The burden of proof is on the insured.
  • Spoilage Coverage - Spoilage Coverage pays for damage to insured's personal property (normally food) due to mechanical breakdown or failure of refrigerating equipment, contamination by refrigerant or power outages beyond insured's control.
  • Spouse  - A Spouse refers to an individual who is lawfully married to another individual.
  • State Fees -  State Fees refers to the amount of funds needed to process an item and pay the state.  This amount usually includes an additional amount to cover any related ‘processing fees'. 
  • Stockholders  - Stockholders, also known as shareholders, are the owners of a corporation based on their holdings. They own an interest in the corporation rather than specific corporate property.
  • Stop Gap Endorsement - Stop Gap Endorsement provides liability coverage to employers in states with limited workers' compensation options.
  • Submission - A submission is the package of materials that will go to the underwriters as part of a request for a quote.
  • Subrogation - When the insurer pays the insured for a loss, the insurer takes over the insured's right to collect damages from the other party responsible for the loss through a process called subrogation. The insurance company may subrogate against the party directly responsible for the loss.
  • Surplus Lines (a.k.a. Excess Lines)  - Surplus lines is the license class that enables an insurance agent and/or agency to place large and/or hard-to-place insurance risks with non-admitted insurance carriers.
  • Surplus Lines Tax Filing  - Surplus Lines Tax Filing is a tax filing required from a business entity to report income earned, if any, within the state from surplus lines policies. DEC pages & surplus lines filings
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  • Tasking -  Tasking is the process of manually entering a client's signed/funded PCA request into the database so the license reps can complete the work.  The lines are entered manually one at a time into various tables for the below mentioned services.  The licensing reps get their work assignments from queries that pull from these various tables: New License, New Affiliation, New Appointment, New CQ, New Initial Annual Return, New Corporate Tax Filing, Address Changes, Director & Officer Updates, Bonds, etc.
  • Tax Clearance  - Tax Clearance is a confirmation from the state that no further tax filings are due and that the agency is in good standing with the Department of Revenue is a tax clearance.
  • Technology Errors and Omissions - Technology errors and omissions (tech E&O) insurance is specifically designed for businesses that provide technology products or services and protects from losses from mistakes or negligence related to those technology products or services.
  • Telematics - Telematics refers to the technology that collects data about a vehicle and its operation. Data collected is then used for purposes like usage-based insurance (UBI). Telematics data collected may include distance driven, time of day, braking frequency, acceleration patterns, or instances of speeding. Key insurtech terms to know
  • Tenant Improvement & Betterment - Tenant improvement & Betterment coverage is both the standard business owners and commercial property coverage designed for tenants who lease commercial space and make modifications to it. Forms define TI&B as fixtures, alterations, installations, or additions that made a permanent part of a building by and at the expense of the tenant, which may not legally be removed. Various courts have ruled that the additions must also be substantial (not merely putting in a few shelves) in order to qualify.
  • Termination of Corporate Affiliation  - Secretary of State (SOS) is the process of disassociating an individual agent's state license from the license of an agency in the same state is a termination of corporate affiliation.
  • Termination Rule  - Termination rule is used to calculate when an employee's group insurance plans terminate. 
  • Termination  - Termination is a process of ending benefits for an employee who no longer joins in group insurance plans for any reason. 
  • Terrorism Insurance - Terrorism Insurance is a type of property and general liability coverage designed to protect losses due to acts of terrorism. The Terrorism Risk Insurance Act (TRIA) passed in 2002 created a public-private partnership with insurers and the government, ensuring availability of terrorism coverage.
  • Third Party Administrator (TPA)  - A third party administrator is an individual or entity licensed by the state to perform certain administrative functions, including claims administration and payment, marketing administrative functions, premium accounting, premium billing, coverage verification, underwriting authority or certificate issuance on behalf of insurance companies. Common pitfalls in third-party risk management
  • Third-Party Over Actions - A third-party over action is a suit where an employer is found liable for an employee injury. In the case the employee sues the employer, Employers Liability(EL) coverage is important to apply to legal issues arising from employee claims that fall beyond the scope of Workers Compensation.
  • Towing and Labor Coverage - Towing and Labor Coverage refers to the cost of calling towing and payments for the related servicce.
  • Trigger & Cap (T&C) - A specific accounting option available for clients that don't like to fund invoices each month.  When their escrow account reaches a certain low "trigger" balance it prompts accounting to send an invoice for an amount that brings them back up to their "cap" balance. The trigger amounts and cap amounts differ by client.
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  • Umbrella Liability Policy - Umbrella Liability Policy, similar to Excess Liability Policy, is an additional layer of coverage to provide protection against catastrophic losses. It generally is written over various primary liability policies, such as the business auto policy (BAP), commercial general liability (CGL) policy, watercraft and aircraft liability policies, and employers liability coverage and kicks in once the limits of the primary policy have been reached.
  • Umbrella Policy - An umbrella policy is a liability policy that covers the insured for losses exceeding the limits of the primary policies.
  • Underinsured Motorist - Underinsured Motorists (UIM) coverage is coverage for bodily insjury(BI) and property damage(PD) caused by a motorist who has liability insurance, but the limits of their coverage aren't enoughto compensate for all of the damage or injury sustained in the accident.
  • Underwriter - An Underwriter is a professional who decides to accept or reject applications for insurance. They also decide how much coverage their insurance company is willing to provide and at what price.
  • Underwriting Assistant (UA) - An Underwriting Assisstant (UA) is an insurance professional who provides support to underwriters in the process of evaluating and approving insurance applicationns. Responsibiltiies of an UA may include data collection, risk assessment, policy processing, research and more. Extend your team
  • Underwriting Authority - Underwriting Authority refers to the limit on decisions an underwriter can make without receiving approval from someone at a higher level.
  • Underwriting Guide - An Underwriting Guide is a book or computer database that details the underwriting practices of the insurance company and provides specific guidance about how underwriters should analyze all of the various types of applicants they might encounter.
  • Uninsured Motorist - Uninsured Motorist (UM) coverage is a type of auto insurance that protects financially in the event of an accident caused by a driver who doesn't have liability insurance.
  • Usage-Based Insurance (UBI) - Usage-based insurance (UBI) is a type of auto insurance that tailors premium to how a vehicle is driven using data about driving habits to calculate rate. Data collected may include: distance drive, time of day, brakinf frequency, acceleration patters or instances of speeding.
  • Utility Service Coverage - Utility service coverage provides financial protection from property damage from a utility service (water, electricity, gas, etc.) interruption. It includes two parts: Utility service – Direct Damage and Utility service- Time Element.
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  • Valuable Papers & Records Coverage - Valuable paper & records coverage pays the cost to reconstruct damaged or destroyed valuable papers and records. "Valuable papers and records" typically include almost all forms of printed documents or records except money or securities; data processing programs, data, and media are usually excluded.
  • Valuation - A provision in a property insurance policy stating the method that is used to place a value on damaged property covered by the policy.
  • Valuation Type - In insurance, valuation type is the method used to calculate the value of a covered loss. A few common valuation types include Actual Cash Value (ACV), Replacement Cost (RC), Agreed Value (AV), and Market Value.
  • Vision Plan  - An insurance plan that covers an employee's vision care costs.
  • Voluntary Dissolution  - Voluntary dissolution is when shareholders, incorporators or initial directors decide to dissolve a corporation in their domicile state.
  • Voluntary Life  - Employee pays premium for voluntary life plan. If has no cost to employer, and the benefit amount is higher than basic life plan. 
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  • Waiver of Subrogation - Subrogation is the process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss. A Waiver of Subrogation (WOS) means the right is waived; in other words, the insurer will not recover the amount paid under the above condition. Avoiding certificates of insurance e&o part 1
  • Wholesale Broker - A wholesale broker serves as a transactional organization between a broker and the insurance company.
  • Withdrawal of Corporate Qualification  - Withdrawal of Corporate Qualification is the process of terminating a business entity's corporate qualification (certificate of authority to conduct business) in a non-resident state without prejudice to the entity
  • Workers' Compensation - Workers' Compensation is a state-mandated program that requires business to provide medical and wage benefits to employees injured on the job. A roadmap to growth for workers comp carrier
  • Working Hours  - Working Hours is the period of time that an employee spends at paid labor. Usually, the employee's working hours is calculated by week. For example, working hours is 40 hours per week. 
  • Worksite Benefits  - Worksite Benefits (as known as supplemental insurance), are a cost-effective solution to help employees offset out-of-pocket medical expenses, mainly including: Accident Insurance, Cancer Insurance, Critical Illness Insurance and Hospital Indemnity Insurance.
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  • Back-up Sewers or Drain Coverage - Back-up Sewers or Drain Coverage pays for the reasonable and necessary cost to repair or replace property due to loss or damage caused by back up or overflow of a sewer, drain, sump pump, and sump pump well or any other system located off the premises which is designed to remove subsurface water from the foundation area.
  • Background Investigation - Some states may require a check of federal, state, and/or local governments' records to determine an agent's or agency's officers' criminal history prior to issuing a license or processing an appointment.
  • Banker's Blanket Bond (BBB) - Banker's Blanket Bond is a type of employee Dishonesty liaiblity insurance designed specifically for banks. It protect from financial losses arising from employee dishonesty. This typically covers the illegal trading, theft, and forgery of money, securities or other assets by employees.
  • Basic Life Plan  - Employer pays premium for basic life plan. It has no cost to employee, but benefit amount is lower than voluntary life plan. 
  • Beneficiary  - A Beneficiary is the person or entity whom the employee names in a life/AD&D insurance plan to receive the death benefit. Employee can name spouse, children, another family member, a friend or a charity as a beneficiary. If more than one beneficiary, the employee will assign to a certain percentage of benefits to each beneficiary, e.g., 50% to spouse, 50% to child.  
  • Benefit Amount  - Benefit Amount is the maximum amount an insurance company agrees to pay for a specific covered benefit. 
  • Benefits Effective Date  - Benefits effective date is calculated based on the trigger of enrollment.  Different triggers have different eligibility rules. 
  • Benefits End Date  - Benefits End Date (also known as Termination Date) is the date when employer terminates employee from group insurance plans.  
  • Bid Bond - A bid bond is a financial guarentee issued by a surety company ensuring that the contractor will enter into a contract to perform the work at the price quoted.
  • Binder - A Binder is a statement that coverage is in force. Its purpose is to provide temporary coverage until an actual insurance policy can be issued. A binder need not be in writing. How agencies can reduce EO risk across the policy lifecycle DEC pages & surplus lines filings
  • Boiler and Machinery - Boiler and Machinery Coverage is designed specifically for equipment to provide financial protection against breakdown, physical damages, and subsequent lost income.
  • Bond - In order to obtain certain types of insurance licenses, you may be required to obtain a bond. A bond is an insurance agreement pledging responsibility for financial loss caused to a state by the act or default of an agent or agency. What is an MGA
  • Bond Cancellation - A bond cancellation is a written request to a bond underwriter to terminate a bond that is no longer needed.
  • Bond Renewal - Bond Renewal refers to the payment of a premium, usually on an annual basis, to continue a required bond.
  • Bond Rider  - Bond Rider refers to all amendments to a bond, name change, extension of the expiration date must be executed on a bond rider by the bonding company.
  • Broker Type License - This license type indicates an agency that will "shop around" for the best deal for their client.  They aren't locked into specific carriers and can shop multiple carriers until they find the deal that will best suit their client's needs.   No contract between agency and carrier are needed, and therefore no appointments needed.
  • Broker  - An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of an employer for compensation. Use Case: broker enhances commercial account servicing New digital solutions are transforming insurance distribution
  • Builders Risk - Builders Risk is a property insurance policy designed to protect property under construction.
  • Building Coverage - Building Coverage pays for direct physical loss to the covered building or buildings including completed additions, fixtures, permanently installed machinery and equipment. Is your insurance organization prepared for disaster?
  • Building Ordinance or Law Coverage - Building ordinance or law coverage is a specific type of insurance that provides protection in the event of needing to rebuild or repair property caused by enforcement of ordinances or laws. Top underinsurance risks agents need to talk about in 2021
  • Business Income - Business income coverage is a type of commercial property coverage that covers from financial losses due to unexpected events that disrupt regular operations. Getting the most out of contingent commissions?
  • Business owners policy - A Businessowners Policy (BOP) is a comprehensive insurance package that combines property and liability coverage for small businesses. These policies are tailored to suit the needs of eligible businesses, offering unique advantages. BOP programs are available through organizations like the American Association of Insurance Services (AAIS) and the Insurance Services Office, Inc. (ISO), as well as through various insurers who offer their own BOP programs. Insurance agency compliance requires full-time focus Knowledge management for the new economy
  • Business Personal Property Coverage - Business Personal Property Coverage is designed to pay for direct physical loss to property the insured owns that is used in the business (including products for sale).
  • Business Registration  - A business registration at the Department of Revenue is a business tax account application. A business registration at the Secretary of State is the process of registering an entity for a certificate of authority to transact business in that state. Newspaper publication requirements Certificates of authority & secretary of state
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  • Damage to Premises Rented by You - In general liability, "Damage to Premises Rented by You" is a coverage that applies to damage by fire or damages to premises(and contents) rented to the insured, and occupied by the insured for 7 days or less. Basic limits start at $100,000.
  • Damage to Rented Premise Coverage - An insurance policy which protects the insured against liability incurred when the insured's negligent actions result in the destruction of property which is in the insured's care, custody or control.
  • Data Compromise - Data compromise coverage is an innovative product designed to help small and midsize businesses respond to data breaches and offers identity theft recovery for designated executives of an insured organization. Data Compromise can help reimburse your company for expenses related to a data breach. Data security: the NAIC model laws
  • Data Form (DF) - A Data Form (DF) is an online form completed by each individual and each agency that is enrolled in ILSA services.  The client completes the online secure form to submit their personal information to ILSA so that Intake personnel can build the record in the system for use in the licensing process. DEC pages & surplus lines filings
  • Date of Hire  - Date of Hire (DOH) (also known as hire date) is the first day an employee officially joins the employer. The real cost of employee turnover Pre-employment testing" how to help your company
  • DBA/Fictitious Name Filing Renewal  - DBA/Fictitious names may need to be renewed and appropriate fees paid in order to maintain the name for use in that state. Annual returns: what and when to file Newspaper publication requirements    
  • DBA/Fictitious Name Filing  - DBA/Fictitious Name Filing is the process for registering names of a business entity, other than that listed on the entity's Articles of Incorporation/Partnership, with various state offices.
  • Debris Removal - Debris Removal is a coverage that pays to remove debris and costs associated with damages covered by the insured commercial property insurance.
  • Deductible - A portion of a covered loss that is not paid by insurance. The deductible is subtracted from the amount the insurer would otherwise be obligated to pay.
  • Dental Plan  - A Dental Plan is an insurance plan that covers an employee's dental costs.
  • Department of Insurance (DOI)  - Department of Insurance (DOI) is the state office responsible for issuing insurance licenses and monitoring the activities of insurance agents and agencies doing business in the state. What causes consent orders 5 pro tips for surplus lines compliance
  • Department of Revenue (DOR)  - The regulatory authority that sets up tax accounts, receives taxes and provides tax clearance letters for business entities that are approved by that state's Secretary of State office to do business in that state.
  • Dependent Child(ren)  - Dependent Child(ren) is either a biological child or non-biological child.
  • Dependent  - Dependent refers to someone added to an insurance policy who coverage can be extended to. This mainly includes spouse, domestic partner, dependent child(ren) and other relationships. What are the fiduciary risks of self-funded health plans?
  • Designated Responsible Licensed Producer (DRLP or DP)  - Designated Responsible Licensed Producer (DRLP or DP) is the main person in charge of and responsible for the agency license. They maintain a license for the same lines of authority that the agency holds. The designated responsible licensed producer  
  • Direct Billing - Direct Billing is a process through which the insurance company sends bills directly to the policyholder and the policyholder makes payments directly to the insurance company. The insurance company pays to the producer commissions or other compensation for producer new business and servicing renewal business. The need for proactive digital engagement in insurance
  • Directors and Officers Liability - Directors and Officers (D&O) liaibility insurance is a type of insurance designed to protect directors and officer's personal financial assets in the event of a lawsuit regarding management decisions.
  • Directors and Officers Side A Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side A Coverage is designed to protects coverage gaps for directors' and officers' personal asstes when the company can't or won't cover them.
  • Directors and Officers Side B Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side B Coverage covers the company's costs when they indemnify their director and officers. This ensured the company isn't left with legal fees, settlements, or judgments of the associated costs.
  • Directors and Officers Side C Coverage - Directors and officers (D&O) liability insurance protects individuals from loss as a result of managment errors and omissions. D&O is often structured into 3 parts. Side C Coverage is also referred to as "entity coverage", and it protects the company itself from lawsuits filed directly against it.
  • Directors  - Directors are the individuals who, acting as a group known as the board of directors, manage the business and affairs of a corporation. Director & officer updates Producer lift-out: its impact on compliance
  • Disability Plan  - Disability Plan (also known as Disability Income Insurance, or Income Protection Insurance) is an insurance plan that covers loss of income if an employee becomes disabled due to illness or accident. Major lines of authority
  • Dissolution  - Dissolution is the statutory procedure that terminates the existence of a domestic corporation.  
  • Division / Department  - Large organizations or businesses are often divided into divisions or departments to make functions more organized and orderly. 
  • Doing Business As Name (DBA)  - The Doing Business As Name (DBA) is the operating name of a company, as opposed to the legal name of the company. DBA is also known as "Fictitious Name," "Assumed Name," or "Trade Name." Newspaper publication requirements 5 unexpected tasks when registering as a foreign entity
  • Domestic Partner  - Domestic Partner refers to two people of the same or opposite sex who live together and share a domestic life, but aren't married. 
  • Drive Other Cars Endorsement - Drive Other Cars Endorsement is an amendment that can be added to a commercial auto insurance policy. It extends coverage to situations where certain authorized individuals can drive vehicles that aren't lisred on the policy.
  • Driver Other Car coverage (DOC) - Drive Other Car (DOC) coverage can provide protection for the employees, the executive of a partnership or corporation or their spouse who is supplied a company-owned vehicle but who does not own a personal vehicle and thus does not have a personal auto policy. It can afford protection for the covered named individual or spouse while driving a personal or non-owned vehicle from a third party for personal use, such as a vehicle is rented or borrowed. This coverage may include auto liability, auto medical payment, auto physical damage, UIM and UIM coverages.
  • Dual-Capacity Suits - A dual-capacity suit arises when an employee sues their employer as a seperate entity. Employers Liability(EL) coverage is important to apply to legal issues arising from employee claims that fall beyond the scope of Workers Compensation.
  • Duplicate License Request  - A Duplicate License Request is a written request submitted to a state department of insurance to have another copy of a previously-issued license copy sent to an agent or agency.
  • Duty to defend - In insurance, the duty to defend is a legal obligation of an insurance company to provide an attorney and cover legalexpenses on behalf of the insured, when a lawsuit is filed that falls under the coverage of the policy.
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  • Fiduciary Liability - Fiduciary liability is coverage specifically designed for someone who holds a fiduciary duty, such as a trustee, employee or individual in a position of trust. It typically covers situations involving errors & omissions (E&O) where the fiduciary can be help personally liable under the Employee Retirement Income Security Act of 1974 (ERISA). What are the fiduciary risks of self-funded health plans
  • Fine Arts Coverage - Fine arts coverage covers the loss or damage to fine art owned by the insured.
  • First Named Insured - First Named Insured is responsible for the duties and obligations listed in the conditions, such as the duty to pay the premium and give proper notice of accidents and losses. Additionally, the insurer's obligations, such as proper notice of cancellation or non-renewal and premium refund, need go only to the first-named-insured.
  • Fiscal Year -  A fiscal year is an accounting year that ends on a date other than December 31.
  • Fleet Policy - A fleet policy is a single policy that covers multiple vehicles owned by a business.
  • Flood Coverage - Covers losses in the event of a flood. It is typically purchased by endorsement to a difference-in-condition (DIC) policy or to an all-risks policy.
  • Foreign Corporation - A foreign corporation is a corporation doing business in a state other than its state of incorporation. 5 unexpected tasks when registering as a foreign entity Certificates of authority: The secretary of state
  • Foreign Liability - In general liability, foreign liability is a coverage that applies to damages arising from business operations in other countries.
  • Forgery & Alteration - Forgery & Alteration is type of insurance that covers loss sustained through forgery or alteration of outgoing negotiable instruments made or drawn by you, or drawn on your accounts, or made or drawn by one acting as your agent.
  • Franchise Tax  - Franchise Tax is a tax or fee usually imposed annually upon a corporation, limited liability company or similar business entity for the right to exist or do business in a particular state. Failure to pay the franchise tax or similar fees may result in the administrative dissolution of the company and forfeiture of the charter. 5 unexpected tasks when registering as a foreign entity Insurance agency compliance requires full-time focus
  • Full Time Equivalent (FTE) - FTE, or full time equivalent, is a unit of measurement used to represent the workload of a typical full-time employee.
  • Full-Time Employee (FT)  - A full-time employee is who works more than the minimum number of hours defined by employer. 
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  • Garage Keepers Liability - Garage keepers legal liability protects business that store or service vehicles. It provides coverage for physical damage to customer's vehicles while in the insured's care, custody or control. In Texas and Virginia only, Garage Keepers Legal Liability is called Storage Location Insurance, and Garage Keepers Legal Liability refers seperately to On-Hook Towing Insurance in those states only.
  • General Liability - Protects businesses from claims that it caused damage to others, not including car accidents and professional liability. Top underinsurance risks agents need to talk about in 2021 3 ways insurance brokers can help clients cut costs during COVID-19
  • Glass - A type of property insurance that covers breakage of windows and other glass.
  • Good Standing - A corporation is said to be in good standing when it has remained current with the necessary reports and fees required by the regulatory jurisdictions under which it operates. In good standing: certificates of authority statuses
  • Group Insurance  - Group Insurance is an insurance that is purchased by a company (known as the employer or group) and provided to their employees. A company can provide multiple insurance plans to their employees.
  • Group Name  - Group Name (also known as company name, employer name), is the name by which a company is known legally and officially. 
  • Group Number  - Group Number (also known as Plan Number) is the unique number insurance company uses to identify the group. 
  • Guaranteed Issue (GI)  - Guaranteed Issue (GI) is a fixed amount of life and AD&D insurance that is available to an employee. If the benefits amount an employee selects is over the guaranteed issue amount, Evidence of Insurability (EOI) is required by carrier. 
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  • Hazard - Hazard is defined as anything that increases the chance of a loss or increases the chance that a loss will be severe. Loss control: a hidden opportunity for carriers How insurance agents can positively influence pricing
  • Health Maintenance Organization (HMO)  - Health Maintenance Organization (HMO) is a type of health insurance plan that emphasizes preventive care and coordination between the insured and network of healthcare providers. The features of this type are if an insured is sick and needs health service, he or she always needs to go to his or her PCP first before going to other specialists or doctors. The PCP then makes a decision if the medical issue requires a specialist or different doctors. If so, the PCP provides an authorized referral for the insured to the specialist or doctor. With this referral, the insured can be reimbursed by the insurance company for the medical services provided by the specialist. Without the referral, the insured most likely will not be reimbursed. 
  • Hired Car Physical Damage - Coverage for physical damage for a rental vehicle. The limit/deductible of the compensation/collision for the losses caused by the car that rented by the insured. Unlimited lines: unlimited possibilities
  • Hired Non/Owned Auto Liability - Hired Non/Owned Auto Liability coverage pays for bodily injury (BI) or property damage (PD) arising out of the maintenance or use of a hired automobile in the course of business by the insured or an employee (core - for business use), or the use of a non-owned automobile in the business by any person other than the insured.
  • Home Address  - Home Address is the address where the employee lives. 
  • Hospital Indemnity Insurance  - Hospital Indemnity Insurance is an insurance plan that provides a lump-sum benefit to help with out-of-pocket costs related to a hospital stay (e.g., the costs in ICU). 
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  • In-network  - In-network health care providers are part of a health plan's network of providers with which it has negotiated a discount. Providers partner with the insurance carrier and agree to the negotiated rate for services.
  • Independent Adjuster - An independent contractor that provides claims adjusting services to various insurance companies and charges a fee for each claim handled. Adjusters: they’re not all the same
  • Individual Rating - Individual Rating is a rating system used when every insured is unique. Each insured is assigned an insurance rate that reflects its own unique characteristics.
  • Inland Marine - Inland Marine Insurance is a type of commercial insurance that provides coverage for property not fixed to one location that isn't traditionally covered by commercial property insurance. Inland marine policies provide coverage without regard to the location of the covered property, sometimes called "floater" policies. Examples of property covered may including a range of moveable business equipment and products like: constuction equipment, computers and electronitcs, fine art, production equipment and more.
  • Insurance - Insurance is a system that operates based on the concept of risk sharing. A person, business, or organization transfers risks to an insurer by buying insurance. The insurer in turn reimburses the insured for covered losses by sharing the costs of losses among all insured's.
  • Insurance Bureau - An insurance burea is a government agency reponsible for regulating the insurance industry and address consumer concerns.
  • Insurance Company  - Insurance Company (also known as carrier, insurer) is the company who provides insurance service. 
  • Insurance Rate - Insurance Rate is the price of insurance for each unit of exposure. The rate is multiplied by the number of exposure units to arrive at a premium. How insurance agents can positively influence pricing
  • Insurance Rating System - Insurance Rating System is an orderly method for arriving at an appropriate premium.
  • Insured - An Insured is a person, business, or organization that is covered by an insurance policy by purchasing insurance.
  • Insurer - Also known as an insurance company or carrier, is an organization that sells insurance policies to protect insured's from financial hardship caused by financial loss.
  • Insuring Agreements - Insuring Agreements are provisions in an insurance policy stating, in broad terms, the promises made by the insurance company. An insurance policy provides coverage only if the claim is within the scope of the promise expressed in an insuring agreement. Which policy checking solution is right for you?
  • InsurTech - Insurtech refers to the usage of technology to innovate and improve the insurance industry. The term is a blend of "insurance" and "technology." Insurtech companies develop solutions and applications to address inefficiencies and limitation in traditional insurance models to streamline processes, personalize products and enhance customer experiences within the industry. Key insurtech terms to know
  • Intake Personnel - Personnel who are specifically assigned to "intake information" in order to onboard new clients. Intake processes each agency and individual data form, runs PDBs, checks for affiliations and CQs.
  • Intelligent Document Processing (IDP) - Intelligent Document Processing (IDP) is a technology that extracts information from documents in various formats. It scans, reads, extracts, and organizes structured, semi-structured, and unstructured data from various file types and sizes, including documents, spreadsheets, and PDFs. ITC 2023 trends and takeaways: it's all about focus
  • Internet of Things (IoT) - The Internet of Things (IoT) is the network of connected physical devices embedded with sensors, software and other technologies that connect and exchange data over the internet. Examples of IoT devices used in insurance include vehicle sensors, water leak sensors, smart security sensors, fitness trackers, property inspection drones, equipment performance devices and more. ReSource Pro's Mark Breading talks futurism in insurance
  • Involuntary Dissolution  - Involuntary dissolution occurs when the corporation's legal existence is terminated pursuant to an administrative or court proceeding; the dissolution is forced rather than decided upon by the corporation.
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  • Kidnap and Ransom - Kidnap and Ransom (K&R) is a type of insurance designed to protect employees, relatives of employees, or guests from financial loss as the result of kidnapping, extortion and wrongful detention.
  • Knowledge Process Management (KPM) - KPM, or Knowledge Process Management, is a strategy used to manage an organization's knowledge and business processes. It involves combining strategies for creating, sharing and leveraging knowledge with optimizing business processes to improve efficiency, quality, and consistency. Featured in Carrier Management: Dan Epstein on global talent crisis
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  • Large Language Model (LLM) - A Large Language Model (LLM) is a type of generative artificial intelligence program trained on a large amount of text data. The LLM is trained on this data to process and generate human-like text responses to prompts. Generative AI in insurance, explained in plain English
  • Lawyers Professional Liability - Lawyers Professional Liability(LPL) is a commercial insurance providing professional liability coverage to law firms and lawyers due to legal mistakes.
  • Liability Insurance - Liability Insurance, also called "Third Party Coverage" protects the insured from losses due to injury to someone else or accidental loss or damage to someone else's property.
  • License Cancellation  - To cancel a license that is no longer needed, an agent or agency can submit a written request to the state's Department of Insurance. Resident state change compliance tips
  • License Reinstatement  - License reinstatement is typically available only within a short period, usually 15 days to 1 year, after the renewal deadline. Reinstatement of expired licenses may require late fees in addition to the regular renewal fee. 7 tips for dealing with a lapsed license
  • License Renewal  - License Renewal is the periodic and scheduled renewal of a license to keep it from lapsing/expiring. Insurance compliance myths busted: license renewals  
  • Life Plan  - Life Plan is an insurance plan that pays a lump sum to a beneficiary after employee death, and normally pays for employee a portion of life insurance upon other events such as terminal illness. 
  • Limit - Also called limits of insurance, limits of liability, or policy limits, indicates in an application how much insurance is requested. Once the policy is issued, the limits in the policy set the maximum dollar amount the insurance company will pay.
  • Limited Liability Company (LLC)  - Limited Liability Company (LLC) is an entity created under and governed by the laws of the jurisdiction in which it was formed. Such entities are generally able to provide the limited personal liability of corporations and the pass-through taxation of partnerships or S corporations. S-election and business entity taxes Annual returns: when and what to file
  • Limited Partnership  - A limited partnership is a form of partnership consisting of one or more general partners who manage the business and are responsible for its debts, and one or more limited partners who invest in the business and have limited personal liability. Director & officer updates
  • Lines of Authority (LOA)  - Lines of Authority (LOA) are the specific types (or lines) of insurance that the individual/agency is licensed to write.  Examples include P/C, L/A/H, SL, Adjuster, and TPA (Third Party Administrator). Major lines of authority Limited lines, unlimited possibilities
  • Liquor Liability - Liquor liability insurance is business insurance that protects businesses against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. The business that served the alcohol could be legally liable for injuries, damages, or both that occurred as a result of actions, behaviors, or conduct of a patron under the influence of alcohol.
  • Location  - Location is the place or building where an employer run its business, and may have multiple offices in different locations. If the employer has multiple locations in different states, the group insurance plans in different locations may be different. 
  • Long Term Disability Plan (LTD Plan)  - Long Term Disability (LTD) covers a longer time period (usually to age 65 or retire). Normally, benefits is paid on a monthly basis. 
  • Loss - A loss is defined as the financial cost to pay for the losses in case of an accident.
  • Loss Control Inspection Reports - Written by a loss control inspector. It describes the operations and hazards of the applicant's business as they relate to the type of insurance coverages the applicant is requesting. It reports not only strengths and weaknesses but also makes recommendations for improvement such as safety programs and other measures to control the hazards.
  • Loss Exposures - Loss exposures, also simply called exposures, are situations that could lead to an accidental loss. Loss control: a hidden opportunity for carriers
  • Loss Payee - A loss payee is another entity that has a financial interest in a business or property.
  • Loss run - Loss run, also referred to as loss history or loss record, are lists of the losses incurred by the insured during the policy period.
  • Loss summary - A loss summary is a brief summary of the loss runs. It is usually simpler than a loss run but keeps all the necessary data, such as the date and the type of loss.
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  • Mailing Address  - Mailing Address is the address where mail is delivered to the Insured. It could be a physical address or PO Box. 
  • Management Liability - Management liaibility insurance, also known as executive liaiblity insurance is a type of insurance that protects a ompany's directors, officers and managers from financial loses arising from lawuits alleging mismanagement or negligence.
  • Managers  - Managers are individuals responsible for the maintenance, administration and management of the affairs of a limited liability company (LLC). Managers usually do not hold a percentage of ownership in the company. Annual returns: when and what to file 7 ways agents and brokers can reduce e&o risk 
  • Managing General Agent (MGA)  - A Managing General Agent is a specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer. Accordingly, MGAs perform certain functions ordinarily handled only by insurers, such as binding coverage, underwriting and pricing, appointing retail agents within a particular area, and settling claims. What is an mga?
  • Master Service Agreement (MSA)  - A master service agreement (MSA), also sometimes referred to as a framework agreement, is a fundamental contract outlining the standard terms and conditions that will govern the relationship between a service provider and a client.
  • Media Liability - Media liability is a type of errors and omissions (E&O) liability insurance for media companies that protects agasint damages such as defamation, invasion of privacy, copyright and plagiarism.
  • Medical Malpractice - Medical Malpractice is a commercial insurance providing protection to doctors, hospitals, and other healthcare providers from financial losses due to medical errors.
  • Medical Payments - In general liability, medical payments is a coverage that pays for medical bills for persons injured in the business, regardless of the insured's liability.
  • Medical Plan  - Medical Plan is an insurance plan that covers medical costs when an employee gets sick or hurt, and needs to go to the hospital. 
  • Medical Professional Liaibility (MPL) - Medical Professional Liaibility (MPL), also known as medical malpractice insurance, prtects healthcare providers from financial loss due to lawsuits alleging negligence or errors in their medical care.
  • Medicare  - Medicare is the federal health insurance program for people who are 65 or older, or certain younger people with disabilities or with End-Stage Renal Disease. 
  • Members  - The owner(s) of a limited liability company (LLC) may be known as members. Members usually hold a percentage of ownership in the company.
  • Money & Securities Inside/Outside - Money & Securities Coverage Inside/Outside pays for loss due to theft, disappearance or destruction of insured's money and securities on premises, in a bank or savings institution, in the insured's living quarters, or the living quarters of partners or employees who have use and custody, or in transit insured's money.
  • Mortgagee - A mortgagee is the lender of a loan secured by property. For example, a bank that lends money to purchase a home or building is a mortgagee.
  • Motor Carrier Policy - Motor Carrier Policy is a commercial auto policy designed for businesses that transport goods using vehicles for hire. It provides financial protection in the event of an accident, injury or damage in transit. Coverages include auto liability, trailer interchange and auto physical damage.
  • Motor Vehicle Report - Motor vehicle report, also known as a Motor Vehicle Record or MVR, lists the moving violations (such as seeding tickets) and serious accidents that a driver has had in the past several years.
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  • Name Change  - The process by which the name of an individual or corporation is updated with all state departments that record this information
  • National Association of Insurance Commissioners (NAIC)  - National Association of Insurance Commissioners (NAIC) is an association representing the various state commissioners of insurance that promotes uniformity of insurance licensing procedures and governing law and regulations.
  • National Insurance Producers' Registry (NIPR)  -  The National Insurance Producers' Registry is a business entity created by the NAIC to oversee the electronic licensing process and maintain a database of agents' and agencies' licensing and appointment statuses in the various states.
  • New Hire  - A New Hire is an employee who has not previously worked for the employer.
  • Newspaper Publication  - Newspaper publications are a public notice in local newspaper(s) required prior to the issuance of certain types of corporate qualifications and/or licensure.
  • Nexus Questionnaire  - The Nexus Questionnaire  is a state provided application that helps an agency determine whether or not it needs to file taxes in that state.
  • No Par Value Shares  - A no par value share is issued without the specification of a par value indicated in the company's articles of incorporation. They may be issued for any consideration determined by the board of directors.
  • Non-Admitted Carrier  -  A non-admitted carrier is an insurance carrier that, although it has not been approved by the state department of insurance to underwrite standard insurance products, may underwrite certain excessive risks, i.e. surplus lines policies with the special permission of the DOI.
  • Non-Contributory Plan  - Non-Contributory Plan refers to a plan where an employer pays premium entirely and employees don't contribute money at all.  
  • Not-For-Profit Corporation  - A Not-for-Profit Corporation, also known as a non-profit, is generally organized for some socially beneficial purpose, rather than for the direct monetary benefit of the directors or members. Not all not-for-profit corporations are tax exempt and some make a profit. However, the profit is not distributed to the members or directors.
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  • Ocean Marine - Ocean Marine coverage is a type of insurance specifically designed to protect against financial loss from the transportation of goods at sea. The term Ocean Marine encompasses a variety of coverages, including Cargo, Hull and liability coverages.
  • Officers  - Officers are individuals appointed by the board of directors who are responsible for carrying out the board's policies and for making day-to-day decisions.
  • On-Hook Towing Insurance - On-Hook Towing Insurance, (also known as Garage Keepers Legal Liaiblity insurance in Texas and Virgina only) is a coverage designed for businesses that tow vehicles. It provides financial protection in the case that a customers car is damaged while it is being towed.
  • Open Lot Coverage - Open Lot, also referred to as Dealers Open Lot coverage is a specific type of insurance designed for car dealerships. It provides financial protection for a dealerships vehicle inventory. Coverage options include collision, comprehensive, specified cause of loss, or fire and theft.
  • Optical Character Recognition (OCR) - OCR, or Optical Character Recognition, is a technology that transforms images containing text into editable digital text.
  • Out-of-network  - Out-of-network providers are the ones do not have an agreement with a carrier's care plan. Employees could still go to the doctors who are out-of-network, but they would have to pay more or they would need to pay the cost by themselves. 
  • Outdoor Property Coverage - Outdoor Property Coverage covers the following specific property: outdoor fences, radio and television antenna (including satellite dishes), signs not attached to buildings, trees shrubs and plants, and the debris removal expense of the above coverage. Is your insurance organization prepared for disaster?
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  • Par Value  - Par value is the minimum price of a share below which the share cannot be issued, as designated in the articles of incorporation.
  • Parametric Insurance - Parametric insurance is a type of insurance that pays out predefined amounts based on event triggers.
  • Parent Corporation  - A corporation that owns a controlling interest in another corporation is a parent corporation.
  • Part-Time Employee (PT)   - A part-time employee (PT) is who works less than the minimum number of hours defined by employer. 
  • Partnership  - A partnership is a business organization in which two or more people agree to do business together.
  • Pass-Through Taxation  - In Pass-Through Taxation rather than tax the income of the entity, taxation is “passed through” to the individual shareholders in S corporations (and LLCs). Income or losses are declared on their individual tax returns.
  • Peril - A peril is a unexpected and damaging event that causes a loss. Insurance is specifically designed to protect individuals and businesses from perils.
  • Period - The term "Period" refers to the duration of a policy.
  • Perpetual - "Perpetual" describes a license that does not require a renewal.  The license will always continually be active until a withdrawal is submitted to inactivate the license (or the resident license lapses/expires, then all others begin to fall off as a result). You may see the expiration date listed as 2/2/2222.
  • Perpetual Existence  - Perpetual existence refers to an unlimited term of existence; characteristic of most business corporations.
  • Personal Injury - In general liability, personal injury is a coverage that pays for non-physical harm. According to International Organization for Standardixation (ISO)'s 1986 commercial general liability (CGL) policy, PI includes: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion of privacy.
  • Personal Injury Protection - Personal injury protection (PIP), also known as no-fault insurance, is a type of coverage that helps pay for medical expenses and other losses incurred regardless of who caused the accident. PIP is mandated in some jurisdictions and covers medical expenses, loss of income, funeral expenses, etc.
  • Personal Insurance - Personal insurance is a type of insurance designed to protect individual and families from financial losses arising from unexpected events impacting their personal well-being, assets or liabilities. P&C personal lines insurers: viewing key strategic initiatives through a new lens
  • Personal Property off Premises Coverage - Personal property off premises coverage extends insurance that applies to Business Personal Property to cover Business Personal Property other than Money and Securities, Valuable Papers and Records, or Accounts Receivable, while in course of transit or temporarily at a premise not owned, leased or operated by the insured.
  • Physical Damage - In insurance, physical damage refers to coverage for harm to physical objects, typically vehicles. It provides coverage from the cost of repairing or replacing the object in the event of an accident. Major lines of authority
  • Point-Of-Service (POS)  - Point-Of-Service (POS) combines some of the design features of both an HMO and a PPO. Each insured must select a PCP but still has the option of receiving services from doctors without a referral from the PCP. The insured can go out-of-network and still receive a certain amount of coverage. The cost will be lower in-network and higher for out-of-network. Normally, a POS is more suitable if your favorite doctor is already in the network or when you are willing to visit a PCP before receiving in-network healthcare. 
  • Policy - A policy is a contract that states the rights and duties of the insurance company and the insured.
  • Policy Checking - Policy checking refers to the tasks involved in making sure that the policy is complete and accurate before it is issued to the insured. Expand your resources
  • Policy Condtions - In an insurance policy, policy conditions are provisions that explain the duties, rights, and options of the insured and the insurance company.
  • Policy Declarations - Policy Declarations are the page or pages of an insurance policy containing information, such as the insured's name and address, that the policyholder declared (stated as facts) on the application for insurance.
  • Policy Definitions - In an insurance policy, policy definitions are provisions that define the words and phrases that have a special meaning when they are used elsewhere in that policy. Words defined in some policies are printed in bold or enclosed by quotation marks.
  • Policy Exclusions - Policy Exclusions are policy provisions that restrict the broad terms of the insuring agreement by stating some exceptions to coverage, including certain activities, loss causes, property, persons, and places for which the insurer does not provide coverage. How agencies can reduce e&o risk across the policy lifecycle
  • Policy Issuance - Policy issuance is the act of issuing the policy documents, which will be printed out and delivered to the insured.
  • Policy Servicing Representative (PSR) - A Policy Servicing Representative (PSR) is an insurance professional that interacts with the insured after they have purchased an insurance policy. They act as a bridge between the policyholder and insurance company, ensuring the policy runs smoothly and adressing any questions for the policyholder.
  • Policy Typing - Policy typing refers to the data entry of the information that is necessary to create a policy.
  • Power of Attorney -  Power of attorney is the authority given to one person or organization to act on behalf of and obligate another.
  • Pre-licensing Requirements  - Before a license application can be submitted, a new agent must complete certain pre-licensing requirement courses on state insurance laws and procedures, either online or in a classroom setting.
  • Preferred Provider Organization (PPO)  - Preferred Provider Organization (PPO) allows a patient to go to out-of-network doctors or hospitals without an authorization from a PCP. Both in-network and out-of-network providers' medical costs are reimbursed. But the cost for out-of-network is generally higher that in-network. 
  • Preferred Shares  - Preferred Shares are a class of shares that entitles the holders to preferences over the holders of common shares, usually with regard to dividends and distributions of assets upon dissolution or liquidation.
  • Premises & Operations - Premises & Operations covers liability for bodily injury (BI) or property damage (PD) that happens on your business premises or as a result of your business operations while they are ongoing.
  • Premium - Premium is a periodic payment by the insured to the insurance company in exchange for insurance coverage. How insurance agents can positively influence pricing
  • Premium auditing - At the end of the year, the policyholder's records are examined or audited by a premium auditor to determine the audited premium.
  • Premium auditor - A premium auditor is a person who examines policyholders' records at the end of the policy period to determine the final audited premium.
  • Primary Care Physician (PCP)  - Primary Care Physician (PCP, also known as Primary Care Provider), is a health care professional who practices general medicine. PCPs are first stop for medical care. 
  • Producer - Anyone who ‘produces' insurance business by selling insurance.
  • Producer Database Report (PDB)  - Producer Database Report (PDB) is a report from the National Producer Database that gives the last known addresses and aliases (DBAs) of an individual or agency.   It also provides license detail for all license types that are reported to this national database, as well as any administrative actions and appointment currently on file.  A PDB is only good at the moment it is run, because details are ever changing.  A PDB could be run for the same person/agency the following day and contain different information.
  • Producer License - A producer license is a credintial that authorizes and individual to sell, solicit, or negotiate insurance on behalf of insurance companies. Specific requirements for obtaining a producer license varies by state, and there are different types of producer license available, depending on the specific line of insurance: property & casualty, life & health, and accident & health.
  • Products & Completed Operations - Products & Completed Operations covers liability for bodily injury (BI) or property damage (PD) that happens away from your premises and is caused by a product you sell or a service you completed. This applies even after the work is finished.
  • Professional Liability - Professional liability (PL) protects professionals from errors & omissions (E&O) in their services. Most PL policies cover financial losses as opposed to bodily injury.
  • Property Insurance - Property insurance protects property and physical assets from damages and loss.
  • Proposal - A proposal is a booklet that highlights the important features of the proposed coverage and related services by the broker and states the premium.
  • Prospect - A prospect is a person, business, or organization that a producer hopes to sell insurance to. After the sale is completed, the prospect becomes a customer, client, policyholder, or account.
  • Provision - A provision is any statement in an insurance policy is referred as a policy provision.
  • Public Adjuster - An insurance claims adjuster advocates for and is paid by the policyholder to appraise and negotiate an insurance claim. Adjusters: they're not all the same
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  • Qualifying Life Event (QLE)  - Qualifying Life Event (QLE) is a change that happens to the employee and/or dependents, like getting married, having a baby, or losing coverage, etc. QLE may trigger enrollment or change of group insurance plans. 
  • Quote - A quote is a statement regarding the premium that will be charged for certain coverage.
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  • Reappraisal - A reappraisal is the process of re-estimating the value of something, typically after a period of time to determine is the value has changed.
  • Region Code (RC) -  A Region Code (RC) is a specific number assigned to each new client as they onboard.
  • Registered Agent (RA)  - A Registerd Agent (RA) is required by each state that you are registered in at the Secretary of State level (a couple of exceptions). The RA is an office or person in that state. We use Corporate Creations or CT Corp and if our clients use them through us, the fee is $95 per state per year.
  • Rehire Date  - Rehire Date is the first day officially re-employed by the employer.  
  • Rehire  - Rehire is a former employee who is hired by the employer again. 
  • Reinstatement  - Reinstatement involves returning a corporation that has been administratively dissolved, or had its certificate of authority revoked, to good standing at the Secretary of State.
  • Reinsurance - Reinsurance is an agreement by one insurer (the primary insurer) with another insurer (the reinsurer) to share a risk. M&A keeps the non-admitted market growing Categorizing emerging exposures helps reinsurers
  • Reinsurer - An insurance company that sells insurance to another insurance company as a way of offsetting risk.
  • Renewal - At the end of the period of insurance (usually one year) the policy may be extended for another period of time. This is called a renewal.
  • Renewal Questionnaire - A renewal questionnaire is a form that asks questions about changes during the past coverage period.
  • Rental Reimbursement - Rental reimbursement (or rental car coverage) is a type of optional car insurance coverage that helps pay for the cost of rental car while your vehicle is being repaired after a car accident or after suffering damages that are covered through your car insurance policy.
  • Replacement Cost Value - When an insured chooses replacement cost, the insurance company will pay the amount that it costs to replace the property at the time of the loss. 7 ways agents and brokers can reduce e&o risk
  • Restricted State  - A restricted state is one that requires the approval of an agent's or agency's request for appointment before any insurance policy is solicited or written
  • Retail Agent - Also known as independent agent. A retail agent sells insurance as a representative of several unrelated insurance companies. The retail agent's business is a retail agency.
  • Retainer -  A retainer is an account set up between a service provider and a client in which money for ‘pre-paid' items will be deposited.  Once the items or “tasks” have been completed and put into the billing cycle, the funds for those particular items will be removed from the Retainer account and used to pay service fees.
  • Risk - Risk refers to the possibility of financial loss.
  • Risk Sharing - In risk sharing, insured's pays premiums to the insurance company, which pools the premiums into a large fund. Insured's who suffer losses are paid from this pool of money. The total cost of paying for losses that occur to relatively few insured's is spread among all members of the group. Sharing the cost among all insured's makes each insured's premium relatively small.
  • Robotic Process Automation (RPA) - Robotic Process Automation (RPA) is a technology that uses software robots to automate repetitive high-volume tasks. Tasks that can be automated with RPA in insurance include data entry, form processing, claims intake and more. Pitfalls of robotic process automation
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  • S Corporation  - S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. S-election and business entity taxes
  • Saving Accounts  - When an employer is creating a competitive benefits package for employees, good healthcare options should be a top priority. In addition to health, dental and vision insurance, many employers choose to offer employees tax-free accounts that can be used to pay for health care expenses, such as: Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA)
  • Secretary of State (SOS)  - Secretary of State (SOS) is the regulatory authority that grants business entities the authority to conduct business in their state.  Some states refer to as State Corporation Commission or other similar name
  • Selling Agreement  - A Selling Agreement is the contract between an insurance carrier and an agency defining the terms and conditions under which the agency and its agents may represent the carrier's insurance products. The agreement typically defines marketing procedures, terms and schedules for compensation, and binding legal responsibilities of both parties.
  • Short Term Disability Plan (STD Plan)  - Short Term Disability (STD) plan covers a shorter time period (usually 13 to 26 weeks). Normally, benefits is paid on a weekly basis. 
  • Shrinking Limits Defense Provision - A shrinking limits defense provision is a clause that states the costs incurred by the insurance company defending a lawsuit against a policyholder will be deducted from the overall policy limits available to pay for actual damages in a lawsuit.
  • Signature Date  - Signature Date (sign date) is the date when an employee applies for group insurance plans. Employee may sign on benefits administration system or paper application form.  
  • Signs Coverage - Signs coverage is designed to pay out to damages to signs not attached to the covered building, owned by you or owned by others but in your care, custody or control.
  • Social Security Number (SSN)  - A Social Security Number (SSN) is a nine-digit number in the format “123-45-6789” or “123456789” that the U.S. government issues to all U.S. citizens, legal permanent resides, and noncitizens who have jobs in the United States. 
  • Sole Proprietorship  - A sole proprietorship is an unincorporated business with a sole owner in which the owner is personally liable for business debts and claims against the business.
  • Specialist  - A specialist is a type of doctor that focuses on a certain area of medicine, such as cancer.
  • Specificied Perils Policy - A Specified Perils Policy covers any loss that is caused by one or more of the perils that is specified in the policy. The burden of proof is on the insured.
  • Spoilage Coverage - Spoilage Coverage pays for damage to insured's personal property (normally food) due to mechanical breakdown or failure of refrigerating equipment, contamination by refrigerant or power outages beyond insured's control.
  • Spouse  - A Spouse refers to an individual who is lawfully married to another individual.
  • State Fees -  State Fees refers to the amount of funds needed to process an item and pay the state.  This amount usually includes an additional amount to cover any related ‘processing fees'. 
  • Stockholders  - Stockholders, also known as shareholders, are the owners of a corporation based on their holdings. They own an interest in the corporation rather than specific corporate property.
  • Stop Gap Endorsement - Stop Gap Endorsement provides liability coverage to employers in states with limited workers' compensation options.
  • Submission - A submission is the package of materials that will go to the underwriters as part of a request for a quote.
  • Subrogation - When the insurer pays the insured for a loss, the insurer takes over the insured's right to collect damages from the other party responsible for the loss through a process called subrogation. The insurance company may subrogate against the party directly responsible for the loss.
  • Surplus Lines (a.k.a. Excess Lines)  - Surplus lines is the license class that enables an insurance agent and/or agency to place large and/or hard-to-place insurance risks with non-admitted insurance carriers.
  • Surplus Lines Tax Filing  - Surplus Lines Tax Filing is a tax filing required from a business entity to report income earned, if any, within the state from surplus lines policies. DEC pages & surplus lines filings
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  • Tasking -  Tasking is the process of manually entering a client's signed/funded PCA request into the database so the license reps can complete the work.  The lines are entered manually one at a time into various tables for the below mentioned services.  The licensing reps get their work assignments from queries that pull from these various tables: New License, New Affiliation, New Appointment, New CQ, New Initial Annual Return, New Corporate Tax Filing, Address Changes, Director & Officer Updates, Bonds, etc.
  • Tax Clearance  - Tax Clearance is a confirmation from the state that no further tax filings are due and that the agency is in good standing with the Department of Revenue is a tax clearance.
  • Technology Errors and Omissions - Technology errors and omissions (tech E&O) insurance is specifically designed for businesses that provide technology products or services and protects from losses from mistakes or negligence related to those technology products or services.
  • Telematics - Telematics refers to the technology that collects data about a vehicle and its operation. Data collected is then used for purposes like usage-based insurance (UBI). Telematics data collected may include distance driven, time of day, braking frequency, acceleration patterns, or instances of speeding. Key insurtech terms to know
  • Tenant Improvement & Betterment - Tenant improvement & Betterment coverage is both the standard business owners and commercial property coverage designed for tenants who lease commercial space and make modifications to it. Forms define TI&B as fixtures, alterations, installations, or additions that made a permanent part of a building by and at the expense of the tenant, which may not legally be removed. Various courts have ruled that the additions must also be substantial (not merely putting in a few shelves) in order to qualify.
  • Termination of Corporate Affiliation  - Secretary of State (SOS) is the process of disassociating an individual agent's state license from the license of an agency in the same state is a termination of corporate affiliation.
  • Termination Rule  - Termination rule is used to calculate when an employee's group insurance plans terminate. 
  • Termination  - Termination is a process of ending benefits for an employee who no longer joins in group insurance plans for any reason. 
  • Terrorism Insurance - Terrorism Insurance is a type of property and general liability coverage designed to protect losses due to acts of terrorism. The Terrorism Risk Insurance Act (TRIA) passed in 2002 created a public-private partnership with insurers and the government, ensuring availability of terrorism coverage.
  • Third Party Administrator (TPA)  - A third party administrator is an individual or entity licensed by the state to perform certain administrative functions, including claims administration and payment, marketing administrative functions, premium accounting, premium billing, coverage verification, underwriting authority or certificate issuance on behalf of insurance companies. Common pitfalls in third-party risk management
  • Third-Party Over Actions - A third-party over action is a suit where an employer is found liable for an employee injury. In the case the employee sues the employer, Employers Liability(EL) coverage is important to apply to legal issues arising from employee claims that fall beyond the scope of Workers Compensation.
  • Towing and Labor Coverage - Towing and Labor Coverage refers to the cost of calling towing and payments for the related servicce.
  • Trigger & Cap (T&C) - A specific accounting option available for clients that don't like to fund invoices each month.  When their escrow account reaches a certain low "trigger" balance it prompts accounting to send an invoice for an amount that brings them back up to their "cap" balance. The trigger amounts and cap amounts differ by client.
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  • Umbrella Liability Policy - Umbrella Liability Policy, similar to Excess Liability Policy, is an additional layer of coverage to provide protection against catastrophic losses. It generally is written over various primary liability policies, such as the business auto policy (BAP), commercial general liability (CGL) policy, watercraft and aircraft liability policies, and employers liability coverage and kicks in once the limits of the primary policy have been reached.
  • Umbrella Policy - An umbrella policy is a liability policy that covers the insured for losses exceeding the limits of the primary policies.
  • Underinsured Motorist - Underinsured Motorists (UIM) coverage is coverage for bodily insjury(BI) and property damage(PD) caused by a motorist who has liability insurance, but the limits of their coverage aren't enoughto compensate for all of the damage or injury sustained in the accident.
  • Underwriter - An Underwriter is a professional who decides to accept or reject applications for insurance. They also decide how much coverage their insurance company is willing to provide and at what price.
  • Underwriting Assistant (UA) - An Underwriting Assisstant (UA) is an insurance professional who provides support to underwriters in the process of evaluating and approving insurance applicationns. Responsibiltiies of an UA may include data collection, risk assessment, policy processing, research and more. Extend your team
  • Underwriting Authority - Underwriting Authority refers to the limit on decisions an underwriter can make without receiving approval from someone at a higher level.
  • Underwriting Guide - An Underwriting Guide is a book or computer database that details the underwriting practices of the insurance company and provides specific guidance about how underwriters should analyze all of the various types of applicants they might encounter.
  • Uninsured Motorist - Uninsured Motorist (UM) coverage is a type of auto insurance that protects financially in the event of an accident caused by a driver who doesn't have liability insurance.
  • Usage-Based Insurance (UBI) - Usage-based insurance (UBI) is a type of auto insurance that tailors premium to how a vehicle is driven using data about driving habits to calculate rate. Data collected may include: distance drive, time of day, brakinf frequency, acceleration patters or instances of speeding.
  • Utility Service Coverage - Utility service coverage provides financial protection from property damage from a utility service (water, electricity, gas, etc.) interruption. It includes two parts: Utility service – Direct Damage and Utility service- Time Element.
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  • Valuable Papers & Records Coverage - Valuable paper & records coverage pays the cost to reconstruct damaged or destroyed valuable papers and records. "Valuable papers and records" typically include almost all forms of printed documents or records except money or securities; data processing programs, data, and media are usually excluded.
  • Valuation - A provision in a property insurance policy stating the method that is used to place a value on damaged property covered by the policy.
  • Valuation Type - In insurance, valuation type is the method used to calculate the value of a covered loss. A few common valuation types include Actual Cash Value (ACV), Replacement Cost (RC), Agreed Value (AV), and Market Value.
  • Vision Plan  - An insurance plan that covers an employee's vision care costs.
  • Voluntary Dissolution  - Voluntary dissolution is when shareholders, incorporators or initial directors decide to dissolve a corporation in their domicile state.
  • Voluntary Life  - Employee pays premium for voluntary life plan. If has no cost to employer, and the benefit amount is higher than basic life plan. 
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  • Waiver of Subrogation - Subrogation is the process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss. A Waiver of Subrogation (WOS) means the right is waived; in other words, the insurer will not recover the amount paid under the above condition. Avoiding certificates of insurance e&o part 1
  • Wholesale Broker - A wholesale broker serves as a transactional organization between a broker and the insurance company.
  • Withdrawal of Corporate Qualification  - Withdrawal of Corporate Qualification is the process of terminating a business entity's corporate qualification (certificate of authority to conduct business) in a non-resident state without prejudice to the entity
  • Workers' Compensation - Workers' Compensation is a state-mandated program that requires business to provide medical and wage benefits to employees injured on the job. A roadmap to growth for workers comp carrier
  • Working Hours  - Working Hours is the period of time that an employee spends at paid labor. Usually, the employee's working hours is calculated by week. For example, working hours is 40 hours per week. 
  • Worksite Benefits  - Worksite Benefits (as known as supplemental insurance), are a cost-effective solution to help employees offset out-of-pocket medical expenses, mainly including: Accident Insurance, Cancer Insurance, Critical Illness Insurance and Hospital Indemnity Insurance.
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