Common Insurance Terms: Adjuster

// Natalie McCormick on Thursday October 8, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Adjuster ad·just·er [uh-juhs-ter] noun A claims agent charged with evaluating an insurance claim to determine the insurance company’s liability under the terms of an owner’s policy.

Adjusters may represent the insurance company, may be hired by the claimant or may be independent. Adjusters often handle property claims relating to damage of structures or liability claims involving personal injury. The adjuster reviews the claim by speaking with the claimant, interviewing witnesses, researching records and inspecting any involved property.

 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Out-of-Pocket Limit

// Natalie McCormick on Tuesday September 22, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Out-of-Pocket Limit out of pock·et lim·it [out-uhv-pok-it lim-it] noun A predetermined amount of money that an individual must pay before insurance will pay 100 percent for an individual's allowed healthcare expenses.

The out-of-pocket limit helps the insured control risk by placing a maximum on the most they could spend in a policy year. It also helps the insurance company control risk by making the insured responsible for some of his or her healthcare costs. Once the insured has reached his or her out-of-pocket limit, the insurance company will pay for 100 percent of the allowed healthcare expenses. Deductibles, co-payments and co-insurance costs count toward the out-of-pocket limit.

 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Umbrella Policy

// Natalie McCormick on Tuesday August 11, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Umbrella Policy um·brel·la pol·i·cy [uhm-brel-uh pol-uh-see] noun Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance.

An umbrella policy provides an extra layer of protection to the insured. For example, if a homeowner is sued for damages or injuries caused to another person, and the dollar limit of the homeowner's policy has been exhausted, the umbrella policy is there for further coverage. An umbrella policy is particularly useful to an individual with a lot of expensive assets and therefore is at a higher risk of being sued.

 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Copayment

// Natalie McCormick on Tuesday July 28, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Copayment co·pay·ment [ko-pay-muh nt] noun A predetermined, flat fee an individual pays for health-care services, in addition to what insurance covers.

For example, a copay would require you to pay a certain amount per doctor visit or per prescription to a specified coverage limit. A copay fee varies among insurers, but typically is $25 or less. A copayment is different from coinsurance in that a copay plan requires the insured to pay a flat fee, while a coinsurance plan requires that the insured pays a percentage of the covered costs.

 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Replacement Cost

// Natalie McCormick on Tuesday June 16, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Replacement Cost re·place·ment cost [ri-pleys-muh nt] [kawst] noun The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declaration page of the policy.

You also may hear this referred to as the price that will have to be paid to replace an existing asset with a similar asset. For example, let's say your home and some furnishsings were damaged in a recent storm.  You are looking at replacing some of your damaged furniture and have contacted your insurance company.  A bedroom set that you want to replace cost you $2,000 when you purchased it. The actual cash value of the bedroom set (cost minus depreciation) is $1,500.  With replacement cost coverage, your insurance company will pay you $2,100 because that is what it would cost to buy a similar bedroom set today.

Typically, insurance companies will first give you the actual cash value of the bedroom set ($1,500) and require that you submit a receipt for the new bedroom set ($2,100) before paying you the remainder ($600).
 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Floater

// Natalie McCormick on Thursday May 14, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Floater floa-ter [floh-ter] noun A separate policy available to cover the value of goods beyond the coverage of a standard renters insurance policy including movable property.

Adding a floater to your insurance policy is a greater way to insure anything from jewelry to expensive electronics. Often, a renters policy will not fully cover some items, but by adding a floater the insured can rest assured that the full value of the item will be replaced in the event of a theft or loss. Typically, this insurance only covers one item. So, if you have multiple items you will have to get a floater for each of them.   
 

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Underwriting

// Natalie McCormick on Thursday April 30, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Underwriting un·der·writ·ing [uhn-der-rahyt-ing] verb The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes the rejection of those risks that do not qualify.

In insurance, the underwriters evaluate the risk of a potential insured based on a variety of factors that are typically determined by an actuarial team.  With auto insurance, some of those factors may include, the age, make and model of your vehicle, and the driver’s age and driving record.  The goal of the underwriter is to then price the insurance policy in accordance with its associated risk.  
 

Source: A.M. Best Resource Glossary, Investing Answers

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Deductible

// Natalie McCormick on Tuesday March 31, 2015

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Deductible de·duct·i·ble [dih-duhk-tuh-buhl] noun The amount of loss that the insured pays before the insurance kicks in.

So, your policy says you have a $500 deductible? That means you, the insured, will pay $500 before most, if not all, of the policy's benefits are realized. It is a way for you to shoulder some of the responsibility for the accident, while still affording protection from large expenses. Here are some scenarios to illustrate a deductible.

Scenario 1
You're in an accident that resulted in $500 worth of damage. You would pay the full $500 deductible and your insurance company would pay nothing.

Scenario 2
You're in an accident that caused $2,000 worth of damage. Because your deductible is $500 you will only have to pay $500 toward the repair costs. The insurance company will likely pay most, if not all, of the additional $1,500. However, this is contingent on the facts of the accident and your particular insurer.

Scenario 3
You're in an accident but it is declared that it was not your fault. The individual who is at fault's liability insurance will likely then pay for your damages. In this scenario, you will not have to pay your deductible.

Source: A.M. Best Resource Glossary

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.

Common Insurance Terms: Collision Insurance

// Natalie McCormick on Tuesday December 30, 2014

Your monthly vocab lesson in insurance terminology

Ever wonder what some of the terms on your insurance policy mean? If you're a first-time insurance buyer, or just not familiar with all of the insurance jargon, making sense of your insurance policy can be tough. Maybe the terms are memorable to you, but when asked to explain them, you're at a loss for words. That's why we're here, to help you make sense of insurance. Check out the Insurance Term of the Month below for your monthly dose of insurance vocab.

Collision Insurance col·li·sion in·sur·ance [kuhl-lizh-uh-n] [in-shoo r- uh ns, -shur-] noun Covers physical damage to the insured's automobile (other than that covered under comprehensive insurance) resulting from contact with another inanimate object.

So you've been in an accident? First question: who's at fault? The scenarios below will help illustrate why this matters.

Scenario 1
You're in accident that is solely your fault. You knew you shouldn't have swerved to miss that banana peel… unlike in Mario Cart, they aren't actually slippery. Your collision insurance will reimburse you for the damage sustained to your vehicle. Luckily, no other vehicle was involved in the crash, but if one was, and the accident was your fault your liability insurance would then kick in to pay for the other vehicle's damages you caused.

Scenario 2
You're in an accident and another driver involved is at fault. Your collision insurance doesn't cover your damage. Instead, that is paid from the other driver's policy.

Scenario 3
You park your vehicle on the street and run into a nearby store. While you're gone, your car is vandalized, and to make matters worse, you notice your computer has been stolen from the back seat. While this likely caused some damage to your vehicle, and a tension headache, you are not covered by your collision insurance for vandalism or theft.

Source: A.M. Best Resource Glossary; Investopedia

This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusion. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. GuideOne welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.

Natalie McCormick

Natalie McCormick

Natalie McCormick is the Marketing Coordinator for GuideOne Insurance where she manages the direct mail program and assists with content marketing. 

When she's not at work she enjoys playing volleyball as well as perusing the local farmer's market.  If you can't find her outside you may find her inside reading a good book or baking a new recipe.