Insured

This is a qualified entity (person or organization) who is covered by an insurer after buying a policy from the insurer or insurance company through paid premiums.

As long as the individual or organization is covered by the insurance company he/she is bound by the terms of the company.

Insurance Fraud

It is an illegal act of exaggerating or falsifying the facts of a damage or accident to an insurer or insurance company in order to have a claim that would otherwise not been made. This is a criminal offence that could result in the termination or closure of a policy.

This may take the form of medical bills that are inflated, exaggerating injuries sustained in an accident, staged accidents. 

Insurance

This is a policy or system in which people who have the chance to suffer a loss pass the risk of loss involved, to an insurance company by paying money (premiums) to the insurer or company for any loss resulting from a damage or accident, which in turn this insurance company promises to pay back to this individuals as a reimbursement when there eventually occurs a casualty.

The method of operation and premiums paid as well as the legal requirements differ from one insurance company to the other according to local law.

Independent Agent

Also called independent adjuster; this is an individual who is a professional in insurance and calculate losses on behalf of an insurer or insurance company he represents, but is not an employer of the insurance company.

They are normally paid on commission basis from all policies sold by the insurance companies they are representing.

Indemnification

What advantage would an insurance coverage serve without the act of an insurer compensating the loss of an insured or entity in order to restore the individual to the approximate or appropriate condition or financial position before the loss.

The ways of compensation differ from one insurance company to another. But basically the loss of the policyholder resulting from any form of casualties is covered.

Some companies would provide compensation according to the amount of premiums bought, the nature of the casualty and the law of the land.

It is really of great importance and highly recommendable to have the policy that is best for you and that would render the approximate and complete compensation to cover any loss.

Inception Date

This is the date from which an auto insurance policy took effect. The date that an insurance coverage starts on an auto insurance policy. Normally, the validity period of the insurance coverage starts counting from the date of inception.

When the validity period ends, this shows that the coverage which starts from the date of inception has cease or is no longer in force.

There will be need for the renewal of policy to keep the coverage active. The insurance company determines and enforce the date form which the coverage begins.

Hit and Run

In auto terms, this is a form of accident that is caused by a person who refuses to provide any needed information or fail to render assistance at the time of the accident.

In a situation like this, if the accident victim had earlier bought an auto coverage, he/she may have the alternative of using his/her insurance claim for damages done.

Hazard

In speaking auto insurance terms, this is something that is capable of causing an accident or increases its chances of occurrence. These things can come in any form and at any time. They range from climatic conditions such as wind, storm, etc.

Other forms of these may also come as a result of the poor condition of the vehicle, such as the brake, side mirror and the front class.

If you notice any fault in these areas of your car, why not buy the right auto insurance coverage for it, or if you have already bought an insurance policy you can use the premiums to do some repair work for it to save you more money.

Guarantee Funds

These are the amount of money used to recover policyholders from any possible liabilities resulting from the failure or closure of insurance companies.

All insurance companies that are licenced must consider the possible bankruptcy of their insured liabilities, hence be required to recover their insured or policyholders from future debt should the insurance company fail to operate.

Grace Period

This refers to the time period after the due date of insurance payment during which a policyholder is allowed to pay for an insurance coverage. This is a practise by some insurance companies that grant their insured the ability to pay for coverage right after the due date of their policy.

Some insurers would rather not allow policyholders to pay for insurance coverage after the expiry date. It could be a good thing to opt to pay for coverage online especially if you are insured under an insurance company that does not allow insurance payment after due date, giving room for lack of delayed insurance paymennt.