Dictionary

peril: The potential cause of a loss specifically covered by an insurance policy. .

policy: The written contract between an insurer and the insured.

premium: The fee for insurance coverage. A premium may refer to the entire payment or a monthly or even quarterly payment.

prime rate: Interest rate financial institutions offer to their most creditworthy customers.

proof of loss: A statement given by the insured to the insurer in the event of a loss. The statement should allow the insurer to determine to what extent it is liable.

rate: The cost of a unit of insurance.

renter's insurance: Insurance for renters covering replacement costs of personal property within the rental space, but not the building itself. Renter's insurance can also include liability insurance.

rider: An attachment to an insurance policy either expanding or restricting coverage.

schedule: A list of items covered by an insurance policy.

self-insurance: Providing for possible future losses by having sufficient funds to meet the loss. No usually a viable alternative to insurance.

settlement: The final payment of an insurance claim agreed upon by both insurer and insured.

statutory: Concerning a statute or law.

structured settlement: A legal agreement to pay a person a specified sum in periodic payments instead of one lump sum.

superfund: Federal law designed to clean up hazardous waste and respond to accidents releasing hazardous waste.