Dictionary

fiduciary liability: The legal responsibility of a fiduciary, or trustee, to safeguard a beneficiary's assets and act in the best interest of the beneficiary.

first-party coverage: Insurance that provides coverage for the policy holder's own property or person, unlike liability insurance, which covers other people.

floater: An attachment to a homeowner's policy covering movable property, providing more coverage for items such as jewelry.

flood insurance: Additional homeowner's insurance covering damage caused by flooding.

fraud: Acts by insurance policy holders to obtain claims that would not, or should not, ordinarily be covered by their insurance policy.

generic auto parts: Auto parts not made by car manufacturers, often cheaper than the original parts and considered as replacements by insurance companies.

goodwill: The value of a business based on its good reputation.

graduated driver licenses: Driving licenses designed to ease new drivers into driving. A graduated driver's license might, for instance, prohibit night driving.

group insurance: Insurance policy provided by an employer for employees.

guaranteed death benefit: Death benefits guaranteed by annuity contracts.

homeowners insurance policy: An insurance policy covering a home and personal possessions against a variety of threats.

identity theft insurance: Insurance covering expenses caused by identity theft.

indemnify: Restoring victims of loss to the state they were in prior to the loss.

inflation guard clause: A homeowner's insurance provision that adjusts coverage limits upon policy renewal to reflect construction costs.

insolvency: The inability of an insurance company to honor claims and pay debts.

insurance: A situation in which an insurer assumes the risk, up to a point, for losses incurred by the insured.

insurance score: Similar to credit scores, insurance scores indicate the ability of the insured to pay premiums, and other credit related information.

integrated benefits: A combination of job-related and personal health coverage.

intermediation: The process of bringing investors and borrowers together

investment income: The profit insurers acquire through investment portfolios.

junk bonds: Corporate bonds with a high risk of default.