What is Insurance?

  • Insurance is the pooling of money by many people to protect themselves from the risk of losses which may be difficult for an individual to withstand financially.

What is an Agent? 

  • An Agent is an individual that solicits insurance for an Insurance company or companies.

What is a policy?

  • A policy is a written contract of Insurance.

What is an Insured?

  • An insured is the person covered on the insurance policy.

What are Limits?

  • Limits are the specific amount of insurance protection provided by the insurance company.

What is a Deductible?

  • A deductible is the portion of a loss that the insured pays in the event of a claim.

What is the effective date?

  • The date that coverage begins on a policy.

What is the renewal date?

  • The date the policy renews or cancels.  (Cancels if no payment is received).

What is an Endorsement?

  • A change made to an existing policy.

What is an incident?

  • An incident is a citation, accident or a claim.

The terms above are basic, but not always clear.  I tell people all the time that Knowledge is powerful. 

If you have any questions contact your agent or this author.