Insurance terminology can be confusing. Our glossary provides clear, professional definitions of key insurance and estate planning terms — written by advisors, not marketers.
The maximum total amount an insurance policy will pay for all covered claims during the policy perio...
Admitted carriers are licensed and regulated by the state insurance department; non-admitted carrier...
A party added to an insurance policy by endorsement that receives liability coverage under the named...
A legally binding agreement between business owners that defines how ownership interests will be tra...
A single limit of coverage that applies across multiple items, locations, or categories rather than ...
A temporary insurance contract that provides coverage until the formal policy is issued....
A policy provision that penalizes the insured for underinsuring property below a specified percentag...
A document issued by an insurer or broker that summarizes the key terms of an insurance policy, used...
A policy provision that defines the conditions and notice requirements under which either the insure...
A wholly owned subsidiary insurance company created by a business to insure the risks of its parent ...
An irrevocable trust that provides income to the donor for a period of time, with the remainder pass...
Directors & Officers insurance protects corporate leaders from personal liability for decisions made...
While both require out-of-pocket payment by the insured, deductibles and SIRs differ in who controls...
Additional liability coverage that sits above primary policies and follows the same terms and condit...
Insurance that covers employers against claims by employees alleging wrongful employment practices s...
A written amendment to an insurance policy that adds, deletes, or modifies coverage terms, condition...
A provision in an insurance policy that eliminates coverage for certain risks, hazards, perils, or t...
A factor applied to workers' compensation premiums that compares a company's actual losses to expect...
A provision in a claims-made policy that allows claims to be reported after the policy expires, cove...
Life insurance strategies used to provide liquidity for estate tax obligations, prevent forced asset...
A legal obligation to act in the best interest of another party, carrying the highest standard of ca...
A federal tax on transfers of wealth to beneficiaries two or more generations below the transferor, ...
Insurance that is issued without medical underwriting — the applicant cannot be declined for health ...
A trust that owns a life insurance policy, removing the death benefit from the insured's taxable est...
A contractual obligation by one party to compensate another for losses or damages incurred....
Life insurance purchased by a business on the life of a critical employee to protect against the fin...
The world's largest specialist insurance and reinsurance market, operating as a marketplace where sy...
A report from an insurance carrier that details all claims filed under a policy during a specified p...
The ratio of claims paid by an insurer to premiums collected, expressed as a percentage — a key meas...
A custom insurance policy drafted specifically for a particular insured, rather than using standard ...
The named insured is the party named on the policy declarations; additional insureds are parties add...
Two fundamentally different policy trigger mechanisms that determine when an insurance policy respon...
A post-policy-period review of actual payroll, revenue, or other exposure bases to adjust the final ...
Coverage under a claims-made policy for wrongful acts that occurred before the current policy's ince...
The time frame during which an insurance policy provides coverage, typically running for one year fr...
A cash-value life insurance policy designed for ultra-high-net-worth investors, offering tax-advanta...
Replacement cost pays to replace damaged property without deduction for depreciation; actual cash va...
An amendment to a life insurance or health insurance policy that adds or modifies coverage, similar ...
The earliest date for which a claims-made policy will cover wrongful acts — claims arising from acts...
A liability insurance company owned by its policyholders, all of whom are in the same business or pr...
The right of an insurer to pursue a third party that caused a loss to the insured, recovering the am...
The amount of loss the insured must pay before the insurance policy begins to respond, similar to bu...
Individual items are listed (scheduled) on the policy with specific values and coverage terms for ea...
Insurance placed with non-admitted carriers that are not licensed in the state where the risk is loc...
An arrangement between an employer and employee (or trust) to share the costs and benefits of a life...
A life insurance policy covering two people that pays the death benefit only after both insureds hav...
An extended reporting period purchased at the end of a claims-made policy that allows claims to be r...
An insurance policy that provides additional liability coverage beyond the limits of underlying poli...
The process by which insurers evaluate risk, determine coverage terms, and set pricing for insurance...
A consolidated insurance program that covers all contractors and subcontractors working on a single ...
A life insurance trust designed to replace wealth donated to charity through a Charitable Remainder ...