- Rider
Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage.
- Risk
- A chance of loss.
- A person or thing insured. (Impaired or substandard risk: An applicant whose physical condition or moral habits do not meet the standard on which the rate is based).
- Risk Management
Management of the pure risks to which a company might be subject. It involves analyzing all exposures to the possibility of loss and determining how to handle these exposures through such practices as avoiding the risk, retaining the risk, reducing the risk, or transferring the risk, usually by insurance.
- Robbery
The felonious taking, either by force or by fear of force, of the personal property of another, commonly known as "hold-up."
- Settlement
Usually, a policy benefit or claim payment. It connotes an agreement between both parties to the policy contract as to the amount and method of payment.
- Specified Perils
An optional coverage designed to provide basic protection for your vehicle for loss or damage resulting from incidents specifically stated in your policy. A few examples of the types of losses insured under named perils coverage include fire, lightning, theft, explosion, earthquake, windstorm and hail. This coverage is optional and may be purchased in addition to the mandatory coverages required by law, and it is subject to a deductible.
- Subrogation
The right of an insurance company to step into the shoes of the party whom they compensate and sue any party whom the compensated party could have sued.
- Tenants Policy
A Homeowners form, which is specifically designed for people who rent.
- Theft
Any act of stealing. Theft includes larceny, burglary and robbery.
- Third Party Insurance
Protection of the insured against liability for damage to or destruction of the bodies or property of others.
- Total Loss
A loss of sufficient size so that it can be said there is nothing left of value. The complete destruction of the property. The term is also used to mean a loss requiring the maximum amount a policy will pay.
- Transfer of Risk
Shifting all or part of a risk to another party. Insurance is the most common method of risk transfer, but other devices, such as hold harmless agreements, also transfer risk. One of the four major risk management techniques. See Risk Management.
- Umbrella Liability Policy
A policy that pays for liability losses in excess of those covered in homeowners and auto insurance.
- Underwriter
- A person trained in evaluating risks and determining the rates and coverages that will be used for them.
- An agent, especially a life insurance agent, who might qualify as a "field underwriter." In theory, the agent is supposed to do some underwriting before submitting the case to the home office underwriter; i.e., to make a decision on the basis of facts known to him on whether or not the risk is sound and to report all facts known to him that might affect the risk.
- Underwriting
The process of evaluating a risk for the purpose of issuing insurance coverage on it.
- Valuation
Estimation of the value of an item, usually by appraisal.
- Vandalism
Used synonymously with malicious mischief; willful physical damage to property.
- vandalism and Malicious Mischief (V&MM)
Damage or destruction to property, which is willful. This coverage can be purchased under many Property forms and is automatically covered under most Homeowners policies.
- VIN
The vehicle identification number (VIN) on your vehicle. This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car.
- Waiver
- A rider waiving (excluding) liability for a stated cause of accident or (especially) sickness.
- A provision or rider agreeing to waive (forego) premium payment during a period of disability.
- The giving up or surrender of a right or privilege that is known to exist. It may be effected by the agent, adjuster, or insurance company employee or official orally or in writing.
