Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.
If you plan to start a new policy or renew your current policy with a carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.
Value Based Purchasing Model (VBP)
Model that incentivizes healthcare providers through paying them based on patient outcomes.
Statute that requires insurance companies to pay the full value of a policy to the insured, in the event of a complete loss. This is sometimes referred to as ‘Agreed Amount.’
(1) An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor.
(2) An annuity under which the benefit varies according to the investment results of a life insurance company’s separate account (usually invested primarily in common stocks).
Variable Life Insurance
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.
Vehicle Identification Number (VIN)
A unique 17 letter and/or number code given to each on-road vehicle that can be used to identify the make, model and year of a vehicle.
In no-fault auto insurance states with a verbal threshold, victims are allowed to sue in tort only if their injuries meet certain verbal descriptions of the types of injuries that render one eligible to recover for pain and suffering.
A provision that a pension participant will, after meeting certain requirements, retain a right to all or part of the accrued benefits, even though the employee may leave the job before retirement.
Renewal commissions payable to the writing agent or his estate, whether or not he remains with the company.
Payment of a portion of the proceeds from life insurance to an insured who is terminally ill.
The assignment of liability to a person or entity that did not cause the injury or loss but has a legal relationship to the party that was negligent.
The market where one seeking insurance obtains insurance in the open market with no help from the state, through an insurer of his or her own selection.
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