We hope that our extensive glossary of common (and some not-so-common)
insurance terms and phrases proves helpful to you! Simply start
below by choosing the first letter of the word or phrase you want to
learn more about.
A - B - C - D - E - F - G - H - I - J - K - L - M
N - O - P - Q - R - S - T - U - V - W
TERM CERTAIN ANNUITY - An form of annuity that
pays out over a fixed period rather than when the annuitant dies.
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TERM INSURANCE - A form of life
insurance that covers the insured person for a certain period of
time, the “term” that is specified
in the policy. It pays a benefit to a designated beneficiary only when the
insured dies within that specified period which can be one, five,
10 or even 20 years. Term life policies are renewable but premiums
increase with age.
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TERRITORIAL RATING - A method of classifying risks
by geographic location to set a fair price for coverage. The location of the
insured may have a considerable impact on the cost of losses. The chance of
an accident or theft is much higher in an urban area than in a rural one, for
example.
TERRORISM COVERAGE - Included as a part of the
package in standard commercial insurance policies before September 11, 2001
virtually free of charge. Since September 11, terrorism coverage prices have
increased substantially to reflect the current risk.
THIRD-PARTY ADMINISTRATOR - Outside group that
performs clerical functions for an insurance company.
THIRD-PARTY COVERAGE - Liability coverage purchased
by the policyholder as a protection against possible lawsuits filed by a third
party. The insured and the insurer are the first and second parties to the
insurance contract. (See First-party
coverage)
TIME DEPOSIT - Funds that are held in a savings
account for a predetermined period of time at a set interest rate. Banks can
refuse to allow withdrawals from these accounts until the period has expired
or assess a penalty for early withdrawals.
TITLE INSURANCE - Insurance that indemnifies the
owner of real estate in the event that his or her clear ownership of property
is challenged by the discovery of faults in the title.
TORT - A legal term denoting a wrongful act resulting
in injury or damage on which a civil court action, or legal proceeding, may
be based.
TORT LAW - The body of law governing negligence,
intentional interference, and other wrongful acts for which civil action can
be brought, except for breach of contract, which is covered by contract law.
TORT REFORM - Refers to legislation designed to
reduce liability costs through limits on various kinds of damages and through
modification of liability rules.
TOTAL LOSS - The condition of an automobile or
other property when damage is so extensive that repair costs would exceed the
value of the vehicle or property.
TRANSPARENCY - A term used to explain the way
information on financial matters, such as financial reports and actions of
companies or markets, are communicated so that they are easily understood and
frank.
TRAVEL INSURANCE - Insurance to cover problems
associated with traveling, generally including trip cancellation due to illness,
lost luggage and other incidents.
TREASURY SECURITIES - Interest-bearing obligations
of the U.S. government issued by the Treasury as a means of borrowing money
to meet government expenditures not covered by tax revenues. Marketable Treasury
securities fall into three categories — bills, notes and bonds. Marketable
Treasury obligations are currently issued in book entry form only; that is,
the purchaser receives a statement, rather than an engraved certificate.
TREATY REINSURANCE
- A standing agreement between
insurers and reinsurers. Under a treaty each party automatically accepts
specific percentages of the insurer’s business.
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