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TheLifeInsurancegroup.com- Independent General Insurance Agency,
Licenced in the state of Maryland only.
PO BOX 26537 | Baltimore, MD 21207
Licenced in the state of Maryland only.
PO BOX 26537 | Baltimore, MD 21207
Life Insurance Glossary
death if the insured
is terminally ill .
Accident: an unexpected, unforeseen event not under the control of an insured and resulting in a
loss.
Accident frequency: the number of times an accident occurs. Used in predicting losses upon
which premiums are based.
Accidental death: coverage in the event of death due to an accident, usually in combination with
dismemberment insurance.
Act of God: natural occurrence beyond human control or influence. Such acts of nature include
hurricanes, earthquakes, and floods. (A snow storm is an act of God. Driving in a snow storm is an
act of man or woman or teenager.)
Actuary: a professional trained in the mathematics of insurance and risk management.
Add-ons: additional coverage to your basic policy.
Adjuster: a person employed by a property/casualty insurer to evaluate losses and settle claims.
Agents: two types of agents sell insurance. Independent agents are self employed business
people who typically represent two insurance companies and are paid on a commission basis.
Exclusive agents represent only one insurance company and may be salaried employees or work
on a commission basis.
Alien insurance company: an insurance company incorporated under the laws of a foreign
country.
Annuity: a life insurance company contract that pays a periodic income benefit for a specific period
or lifetime.
Application: a signed statement by a prospective insured person which becomes part of the health
insurance contract.
are to be paid upon the insureds death or when an endowment matures.
Binder: temporary insurance contract providing coverage until a permanent policy is issued
Blanket policy: a health insurance contract which protects all members of a certain group against
a specific hazard.
Broker: a sales and service representative who handles insurance for clients, generally selling
insurance of various kinds and for several companies.
notification sent to the other party according to the terms set forth in the policy
Carrier: an insurer or insurance company.
Cash surrender value: money the policyholder is entitled to receive from the insurance company
upon surrendering a life insurance policy with cash value.
Chartered Life Underwriter (CLU):
a professional designation conferred by the American College. Recipients must pass examinations
in business courses, including insurance, investments and taxation and must have professional
experience in life insurance planning.
Claim: (1) A formal request for payment of a loss under an insurance contract or bond. (2) The
actual amount of the final settlement.
Claimant: one who seeks reimbursement for loss under the terms and conditions of his/her
insurance contract.
Clause: a section or paragraph in an insurance policy that explains, defines or clarifies the
conditions of coverage.
COBRA (Consolidated Omnibus Budget Reconciliation Act):a federal law under which group health
plans sponsored by employers with 20 or more employees must offer continuation of coverage to
employees who leave their jobs, voluntarily or otherwise, and their dependents; gives individuals
and their dependent family members the right to continue their
health care coverage for as long as 18 months.
Conversion privilege: a right granted to group certificate holders, by which they may obtain an
individual policy (upon leaving the group) regardless of physical condition.
Co-payment: the portion, either a percentage or a fixed dollar amount, of a medical bill that a
patient pays. The insurer pays the rest.
Coverage: a term usually referring to the type and extent of benefits provided by an insurance
contract.
Credit insurance: coverage that pays off an outstanding loan in the event of the policyholder's
death and/or makes loan payments if the policyholder is disabled.
insured.
Declaration page: that page of the insurance policy which lists the insurance company, its
address, name of the policyholder, starting and ending dates of coverage, and the actual
coverages given in the contract, including the locations and amounts.
Deductible: the amount of loss paid by the policyholder before the insurance policy benefits
become payable
Defense clause: a provision in a casualty insurance policy that provides additional coverage for
expenses of judicial assistance.
Depreciation: a decrease in the original value of an item because of wear and tear, obsolescence,
and deterioration.
Disability insurance: a type of health insurance that pays a monthly income to the policyholder
when he or she is unable to work because of illness or accident.
Domestic insurance company: an insurer domiciled in this state.
including the short-rate charge on cancellation.
Effective date: the date on which an insurance policy coverage starts
Employee Retirement Income Security Act of 1974 (ERISA): federal law that established rules
and regulations to govern private pension plans. Most self-insured health plans are created under
this act.
Evidence of insurability: any statement or proof of a person's physical condition, occupation,
etc., affecting his acceptance for insurance.
Exclusions: specified hazards for which a policy will not provide benefit payments. They are often
called exceptions.
Experience: the record of claims made or paid within a specified time period.
Experience rating: determination of the premium rate for an individual risk, made partially or
wholly on the basis of that risk's own past claim experience.
hospital of their choice and the insurer pays the largest portion of the bill.
Flat cancellation: cancellation of an insurance policy as of the date of its start with no premium
charge.
Foreign insurance company: an insurer domiciled in another state.
the timely payment of premiums to a specified age, (usually age 50) during which period the insurer
has no right to make unilaterally any change in any provision of the policy while the policy is in force
but may make changes in premium rates for the entire
policyholder classification.
Guarantee funds: all 50 states, the District of Columbia and Puerto Rico require licensed insurers
to assume some of an insolvent insurance company's policyholder liabilities. These funds (life &
health and property & casualty) are the mechanism by which solvent insurers bail out the
policyholders of companies that fail.
from an illness or injury. Sometimes called Accident of Sickness Insurance, Accident and Health
Insurance, or Disability Insurance.
Health maintenance organization (HMO): an organization that provides health care for a
monthly payment set in advance. In a traditional HMO, doctors and other providers are salaried
employees and the facilities are owned by the organization. In recent years, however, other forms
of HMOs have sprung up that contract with doctors and hospitals to care for members at set,
negotiated fees. Many HMOs are hybrids, offering both kinds of care to members.
to a large group who share the financial losses.
Insurer: the company offering protection through the sale of an insurance policy to an insured.
Insured: the person whose risk is transferred and shared.
bodily injury or property damage caused to another person and covered in the policy.
Life insurance: protection against the death of the insured in the form of payment to a designated
beneficiary, typically a family member or business.
Long Term Care Insurance: covers the cost of long-term custodial care in a nursing facility or at
home.
Loss of use insurance: insurance against loss due to the insured's inability to use property, such
as a vehicle or a store; includes additional living expense, business interruption, rent insurance,
rental reimbursement, and rental value.
and other providers a member can use and still receive full coverage. Generally under managed
care an insurer negotiates lower fees with doctors, hospitals, laboratories, for instance, who join in
a network that members of the plan are encouraged to use.
Frequently, members of a managed care plan can use health care providers outside the network,
but they must pay a greater share of the cost.
Medicaid: a federal-state program that helps pay for health care for the needy, blind and disabled
and for low-income families with children.
Medicare: a federal health care insurance program for people age 65 and over, and for the
disabled.
Medigap: because Medicare does not cover all expenses, private insurers sell "Medigap" policies
to supplement federal insurance benefits.
Mortgage insurance: life insurance that pays the balance of a mortgage if the mortgagor
(insured) dies.
no matter who caused the accident.
Non-cancellable or Non-cancellable: and guaranteed renewable policy a policy which the
insured has the right to continue in force by the timely payment of premiums set forth in the policy
to a specified age, (usually age 50) during which period the insurer has no right to make unilaterally
any change in any provision of the policy while the policy is in force.
individual policyholder
no further premiums due.
Pre-existing conditions: a physical condition of an insured person which existed prior to the
issuance of the policy.
Premium: the payment for an insurance policy, usually paid periodically, i.e., annually, semi-
annually, quarterly or monthly.
Pro-rata: cancellation of an insurance contract by the insurance company, allowing the
policyholder a share of the premium relating to the remainder of the time under the contract that
bears to the total contract premium.
and trucks.
Reinsurance: a form of insurance that insurance companies buy for their own protection
Rider: an endorsement to an insurance policy that modifies clauses and provisions of the policy,
adding or excluding coverage.
Risk: a term used to designate an insured or a peril insured against.
premiums to the policyholder of less than would be given under pro-rata consideration.
Specified disease insurance: a policy which provides stated benefits, usually of large amounts,
toward the expense of the treatment of the disease or diseases named in the policy.
Solvency: one of MIA's primary responsibilities is to make sure insurance companies remain
solvent, i.e., have sufficient assets and income, in order to have the ability to pay the claims of their
policyholders.
Title Insurance: indemnifies the owner of real estate in the event clear ownership of property is
challenged by discovery of faults in the title.
Twisting: an unfair trade practice, in insurance, whereby an agent or broker attempts to persuade
a life insurance policyholder through misrepresentation to cancel an existing policy and buy a new
one.
liability policy.
Underwriting: process of examining, accepting, or rejecting insurance risks, and classifying those
selected, in order to charge the proper premium for each
Universal life insurance: a flexible premium policy that combines protection against premature
death with a savings account that typically earns a money market rate of interest.
whenever that occurs.
Workers compensation insurance: pays for medical care and physical rehabilitation of injured
workers and replaces their lost wages while they're unable to work.
- A
death if the insured
is terminally ill .
Accident: an unexpected, unforeseen event not under the control of an insured and resulting in a
loss.
Accident frequency: the number of times an accident occurs. Used in predicting losses upon
which premiums are based.
Accidental death: coverage in the event of death due to an accident, usually in combination with
dismemberment insurance.
Act of God: natural occurrence beyond human control or influence. Such acts of nature include
hurricanes, earthquakes, and floods. (A snow storm is an act of God. Driving in a snow storm is an
act of man or woman or teenager.)
Actuary: a professional trained in the mathematics of insurance and risk management.
Add-ons: additional coverage to your basic policy.
Adjuster: a person employed by a property/casualty insurer to evaluate losses and settle claims.
Agents: two types of agents sell insurance. Independent agents are self employed business
people who typically represent two insurance companies and are paid on a commission basis.
Exclusive agents represent only one insurance company and may be salaried employees or work
on a commission basis.
Alien insurance company: an insurance company incorporated under the laws of a foreign
country.
Annuity: a life insurance company contract that pays a periodic income benefit for a specific period
or lifetime.
Application: a signed statement by a prospective insured person which becomes part of the health
insurance contract.
- B
are to be paid upon the insureds death or when an endowment matures.
Binder: temporary insurance contract providing coverage until a permanent policy is issued
Blanket policy: a health insurance contract which protects all members of a certain group against
a specific hazard.
Broker: a sales and service representative who handles insurance for clients, generally selling
insurance of various kinds and for several companies.
- C
notification sent to the other party according to the terms set forth in the policy
Carrier: an insurer or insurance company.
Cash surrender value: money the policyholder is entitled to receive from the insurance company
upon surrendering a life insurance policy with cash value.
Chartered Life Underwriter (CLU):
a professional designation conferred by the American College. Recipients must pass examinations
in business courses, including insurance, investments and taxation and must have professional
experience in life insurance planning.
Claim: (1) A formal request for payment of a loss under an insurance contract or bond. (2) The
actual amount of the final settlement.
Claimant: one who seeks reimbursement for loss under the terms and conditions of his/her
insurance contract.
Clause: a section or paragraph in an insurance policy that explains, defines or clarifies the
conditions of coverage.
COBRA (Consolidated Omnibus Budget Reconciliation Act):a federal law under which group health
plans sponsored by employers with 20 or more employees must offer continuation of coverage to
employees who leave their jobs, voluntarily or otherwise, and their dependents; gives individuals
and their dependent family members the right to continue their
health care coverage for as long as 18 months.
Conversion privilege: a right granted to group certificate holders, by which they may obtain an
individual policy (upon leaving the group) regardless of physical condition.
Co-payment: the portion, either a percentage or a fixed dollar amount, of a medical bill that a
patient pays. The insurer pays the rest.
Coverage: a term usually referring to the type and extent of benefits provided by an insurance
contract.
Credit insurance: coverage that pays off an outstanding loan in the event of the policyholder's
death and/or makes loan payments if the policyholder is disabled.
- D
insured.
Declaration page: that page of the insurance policy which lists the insurance company, its
address, name of the policyholder, starting and ending dates of coverage, and the actual
coverages given in the contract, including the locations and amounts.
Deductible: the amount of loss paid by the policyholder before the insurance policy benefits
become payable
Defense clause: a provision in a casualty insurance policy that provides additional coverage for
expenses of judicial assistance.
Depreciation: a decrease in the original value of an item because of wear and tear, obsolescence,
and deterioration.
Disability insurance: a type of health insurance that pays a monthly income to the policyholder
when he or she is unable to work because of illness or accident.
Domestic insurance company: an insurer domiciled in this state.
- E
including the short-rate charge on cancellation.
Effective date: the date on which an insurance policy coverage starts
Employee Retirement Income Security Act of 1974 (ERISA): federal law that established rules
and regulations to govern private pension plans. Most self-insured health plans are created under
this act.
Evidence of insurability: any statement or proof of a person's physical condition, occupation,
etc., affecting his acceptance for insurance.
Exclusions: specified hazards for which a policy will not provide benefit payments. They are often
called exceptions.
Experience: the record of claims made or paid within a specified time period.
Experience rating: determination of the premium rate for an individual risk, made partially or
wholly on the basis of that risk's own past claim experience.
- F
hospital of their choice and the insurer pays the largest portion of the bill.
Flat cancellation: cancellation of an insurance policy as of the date of its start with no premium
charge.
Foreign insurance company: an insurer domiciled in another state.
- G
the timely payment of premiums to a specified age, (usually age 50) during which period the insurer
has no right to make unilaterally any change in any provision of the policy while the policy is in force
but may make changes in premium rates for the entire
policyholder classification.
Guarantee funds: all 50 states, the District of Columbia and Puerto Rico require licensed insurers
to assume some of an insolvent insurance company's policyholder liabilities. These funds (life &
health and property & casualty) are the mechanism by which solvent insurers bail out the
policyholders of companies that fail.
- H
from an illness or injury. Sometimes called Accident of Sickness Insurance, Accident and Health
Insurance, or Disability Insurance.
Health maintenance organization (HMO): an organization that provides health care for a
monthly payment set in advance. In a traditional HMO, doctors and other providers are salaried
employees and the facilities are owned by the organization. In recent years, however, other forms
of HMOs have sprung up that contract with doctors and hospitals to care for members at set,
negotiated fees. Many HMOs are hybrids, offering both kinds of care to members.
- I
to a large group who share the financial losses.
Insurer: the company offering protection through the sale of an insurance policy to an insured.
Insured: the person whose risk is transferred and shared.
- L
bodily injury or property damage caused to another person and covered in the policy.
Life insurance: protection against the death of the insured in the form of payment to a designated
beneficiary, typically a family member or business.
Long Term Care Insurance: covers the cost of long-term custodial care in a nursing facility or at
home.
Loss of use insurance: insurance against loss due to the insured's inability to use property, such
as a vehicle or a store; includes additional living expense, business interruption, rent insurance,
rental reimbursement, and rental value.
- M
and other providers a member can use and still receive full coverage. Generally under managed
care an insurer negotiates lower fees with doctors, hospitals, laboratories, for instance, who join in
a network that members of the plan are encouraged to use.
Frequently, members of a managed care plan can use health care providers outside the network,
but they must pay a greater share of the cost.
Medicaid: a federal-state program that helps pay for health care for the needy, blind and disabled
and for low-income families with children.
Medicare: a federal health care insurance program for people age 65 and over, and for the
disabled.
Medigap: because Medicare does not cover all expenses, private insurers sell "Medigap" policies
to supplement federal insurance benefits.
Mortgage insurance: life insurance that pays the balance of a mortgage if the mortgagor
(insured) dies.
- N
no matter who caused the accident.
Non-cancellable or Non-cancellable: and guaranteed renewable policy a policy which the
insured has the right to continue in force by the timely payment of premiums set forth in the policy
to a specified age, (usually age 50) during which period the insurer has no right to make unilaterally
any change in any provision of the policy while the policy is in force.
- O
individual policyholder
- P
no further premiums due.
Pre-existing conditions: a physical condition of an insured person which existed prior to the
issuance of the policy.
Premium: the payment for an insurance policy, usually paid periodically, i.e., annually, semi-
annually, quarterly or monthly.
Pro-rata: cancellation of an insurance contract by the insurance company, allowing the
policyholder a share of the premium relating to the remainder of the time under the contract that
bears to the total contract premium.
- R
and trucks.
Reinsurance: a form of insurance that insurance companies buy for their own protection
Rider: an endorsement to an insurance policy that modifies clauses and provisions of the policy,
adding or excluding coverage.
Risk: a term used to designate an insured or a peril insured against.
- S
premiums to the policyholder of less than would be given under pro-rata consideration.
Specified disease insurance: a policy which provides stated benefits, usually of large amounts,
toward the expense of the treatment of the disease or diseases named in the policy.
Solvency: one of MIA's primary responsibilities is to make sure insurance companies remain
solvent, i.e., have sufficient assets and income, in order to have the ability to pay the claims of their
policyholders.
- T
Title Insurance: indemnifies the owner of real estate in the event clear ownership of property is
challenged by discovery of faults in the title.
Twisting: an unfair trade practice, in insurance, whereby an agent or broker attempts to persuade
a life insurance policyholder through misrepresentation to cancel an existing policy and buy a new
one.
- U
liability policy.
Underwriting: process of examining, accepting, or rejecting insurance risks, and classifying those
selected, in order to charge the proper premium for each
Universal life insurance: a flexible premium policy that combines protection against premature
death with a savings account that typically earns a money market rate of interest.
- W
whenever that occurs.
Workers compensation insurance: pays for medical care and physical rehabilitation of injured
workers and replaces their lost wages while they're unable to work.
| We are licensed Maryland Life and Health Insurance Agents Proudly serving Proudly serving Baltimore Maryland and surrounding counties. Allegany County, Charles County, Prince George's County, Anne Arundel County, Dorchester County, Queen Anne's County, Baltimore City, Frederick County, St. Mary's County, Baltimore County, Garrett County, Somerset County, Calvert County, Harford County, Talbot County, Caroline County, Howard County, Washington County, Carroll County, Kent County, Wicomico County, Cecil County, Montgomery County, Worcester County |
The Life Insurance Group
Financial Services & Insurance. Protecting Your Financial Future.
Call for an Appointment. Local in Baltimore, MD 410.456.5356
Financial Services & Insurance. Protecting Your Financial Future.
Call for an Appointment. Local in Baltimore, MD 410.456.5356
| Protecting Your Money in These Hard Economical Times. |
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