Dictionary Of Insurance Terms [Trusted | 2025]

: Specific conditions, circumstances, or items that are explicitly not covered by the insurance policy.

: A receipt for a premium payment that makes the policy effective from that date, provided the application is later approved.

: A fundamental principle requiring both the insurer and the insured to act with total honesty and disclose all material facts. Dictionary of Insurance Terms

: The right of an insurer to pursue a third party that caused an insurance loss to the insured. Essential Policy Components

: A document providing formal evidence of insurance coverage, often required for business contracts. : Specific conditions, circumstances, or items that are

: The legal principle that insurance should restore the insured to the same financial position they were in prior to a loss, without providing a profit.

: A formal document that changes or adds provisions to the original insurance policy. Industry Specific Terminology Key terms used in underwriting and claims processing: : The right of an insurer to pursue

This " Dictionary of Insurance Terms " paper provides a foundational guide to the specialized terminology used in the insurance industry, designed to assist consumers, agents, and professionals in navigating complex policy language. Core Insurance Principles