An insurance claim is a formal request that a policyholder makes to an insurance company to obtain coverage or compensation for a loss or event covered by the policy. The insurance company validates the claim and, once approved, issues the payment to the insured or to an approved interested party on behalf of the insured. An insurance policy is a legal contract between the insurance company (the insurer) and the insured person (s), company or entity (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your responsibilities and those of the insurance company in the event of a loss.
Many policyholders buy a policy without understanding what it covers, the exclusions that exclude coverage, and the conditions that must be met for coverage to apply when a loss occurs. The SCDOI would like to remind consumers that reading and understanding their entire policy can help them avoid problems and disagreements with their insurance company in the event of a loss. Claim: Request made by the insured for the insurer to remit payment due to a loss incurred and covered by the policy agreement. Homeowner's policy: Since a lender's policy doesn't protect your financial interests, a homeowner's title insurance policy is worth seriously considering.
If someone files a claim against your new home and you aren't insured, the result could be a financial disaster. Many insurers offer discounts when both the lender and the landlord's policies are purchased at the same time. Choice of title insurer: Under the Real Estate Settlement Procedures Act (RESPA) of 1974 (Public Law 93-53), the seller cannot require you to purchase title insurance from any particular company. This survey should be used when looking for both types of title insurance and ensure that the company you select meets your standards and those of your lender.
Term insurance: life insurance that is paid only if the insured's death occurs within a specific time, such as 5 or 10 years, or before a specific age. Accrued premium: part of the insured's prepaid premium that goes to the insurance company's experience of losses, expenses and profits so far from the year to date. Premises and operations: policies that cover the liability of an insured person to persons who have suffered bodily injury or material damage to the insured's facilities during normal operations or routine maintenance, or because of the insured's business operations inside or outside the insured's facilities. Statutory Accounting Principles (SAP): set of accounting principles established by the National Association of Insurance Commissioners that are used to prepare the legal financial statements of insurance companies.
Insurable interest: a right or relationship with the subject of the insured contract, so that the insured may suffer a financial loss as a result of the damage, loss, or destruction of the insured contract. Limited-payment life insurance: a type of full life insurance with a predefined number of premiums to pay. Multi-risk insurance: personal and business property coverage that combines several types of property insurance into a single policy. The timely payment law does not prevent providers or insurers from informing policyholders (when the insured is not the claimant) of the non-payment of the premium by a group of employers.
Claim Form: A type of liability insurance form that only pays if the event that causes (triggers), the claim and the actual claim, are presented to the insurance company during the life of the policy. Incurred but Unreported Losses (IBNR): Estimated amount set aside by the insurance company to pay for claims that may have occurred, but that for some reason have not yet been reported to the insurance company. Insurance for key people: a policy taken out by, for the benefit of, a company that insures the life or life of staff, an integral part of business operations. Credit and Assumption Agreement: insurance certificate issued under an existing insurance contract that indicates that another insurer has assumed all the risk stipulated in the contract by the transferring insurance company.
The insurer is not required to make any payments to the provider or the insured until it has established its liability, and information from the COB may be important to that determination. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Direct Writer: an insurance company that sells policies to policyholders only through salaried representatives or exclusive agents; reinsurance companies that negotiate directly with ceding companies instead of using brokers. .