Industry Terminology

1. Though not an absolute separation; an agent is an insurance company's representative. The agent's primary alliance is with the insurance company's representative. The agent's primary alliance is with the insurance carrier, not the insurance buyer. A broker generally has no contractual agreements with the insurance carriers. The broker works for the insurance buyer.
3. The statement of information that a prospective insured provides when applying for an insurance policy. The insurance company uses it to help decide if it will issue the policy and what premium rate will be charged.
5. A person, who signs the loan or lease, assuming equal responsibility, for the loan. Also known as Cosigner.
6. The failure to make payments or violations of the other provisions of the loan contract.
7. A claim against collateral for the repayment of a debt. Also know as Policy Lapse.
8. A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.
9. The payment, or regular periodic payments, that a policyholder makes to have insurance coverage.
10. The date the insurance coverage begins.
12. Property used to support a loan and subject to seizure if in default.
13. The number of months given to the borrower to repay the loan.
15. The date when insurance coverage ends if an insurance policy is not renewed.
17. The process of keeping an active policy in force.
18. An individual covered by an insurance policy.

1. The process of obtaining verbal or written confirmation of required coverage from an insurance agent or company.
2. The restoration of a lapsed insurance policy to its original premium-paying status usually after past-due premiums has been paid. Also known as rescission.
4. Declarations summarizes the factual information essential to the insurance coverage: the policyholder's name and address, a description of the insured vehicle(s),the insurance premium, as well as the coverage's, limits, and deductibles. Also known as an insurance Policy or Certificate of Insurance.
7. A point in time when a policy has been cancelled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
11. The insurance company or the one who agrees to pay the losses. The carrier may be organizes as a stock or mutual company, a reciprocal exchange, as an association of underwriters or as a sate fund.
14. The discontinuance of an insurance policy before its normal expiration date.
16. The length of time an insurance policy is valid.