Insurance Terms

In order to understand what an insurance agent is talking about when they explain the parts of a policy to you, it is necessary to understand the important and basic terms used to discuss insurance policies. Many of these terms are familiar to most people, but their definitions may not be quite as familiar. The same familiar thing as online games are.

Liability – A liability is costs incurred by others due to an accident or negligence on the part of the policy holder. Most insurance policies carry a liability portion, and if you are unsure about the liability status of a policy then ask your insurance agent.

Beneficiary – A beneficiary is the person designated by the policyholder to receive the benefits of the policy if it is ever executed. In most cases a carrier will ask a policyholder to list two or three beneficiaries in case the primary beneficiary is unable to collect the benefits.

Adjuster – An adjuster is an insurance professional who is sent out to determine the value of a loss that is being claimed. Adjusters are traditionally used for auto insurance claims and homeowner claims.

Underwriter – An underwriter is an insurance professional who determines the monthly premium of a policy based on the terms of coverage, and then also determines whether or not the company is willing to take the risk of enforcing the policy. An underwriter is the person who rejects people’s request for insurance based on a long list of reasons including previous indiscretions by the insured and a history of frivolous insurance claims Agent – An agent is an insurance professional who represents the interests of the insurance carrier. An agent may only represent one carrier, or they may represent several carriers. But carriers don't mean carriers like in online games such as Seafight or other popular ones.

Broker – An insurance broker is an insurance professional that finds policies for based on the client’s needs, and not on the best needs of the carriers. A broker has access to the offerings of several carriers, but uses those offerings to get the best deal possible for the client.