Auto and Home Insurance HomepageInsurance TerminologyActuary.A specialist trained in mathematics, statistics, and accounting who is responsible for rate, reserve, and dividend calculations and other statistical studies. Adjuster. A representative of the insurer who seeks to determine the extent of the firm's liability for loss when a claim is submitted. Same as Claim Representative. Approved Roof. A term used in building construction. It indicates a roof made of fire-resistive materials, such as tile or asphalt shingles. Basic Rate. The manual rate from which discounts are taken or to which charges are added to reflect the individual circumstances of a risk Brick Construction. Refers to a building where at least 75% of the exterior walls are of some type of masonry construction, i.e., brick, stone or hollow masonry tile, poured concrete or reinforced concrete, or hollow masonry block. Brick Veneer Construction. Refers to a building where the outside walls are constructed of wood with a facing of a single layer of brick Claim. A demand made by the insured, or the insured's beneficiary, for payment of the benefits provided by the contract. Claimant. The person making a demand for payment of benefits Deductible. The portion of an insured loss to be borne by the insured before he is entitled to recovery from the insurer Depreciation. A decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear, or obsolescence. Dwelling Coverage A section of a homeowners insurance policy that covers a house and attached structures against fire, theft, wind and other perils. Effective Date. The date on which the protection of an insurance policy or bond goes into effect Hazard. A specific situation that increases the probability of the occurrence of loss arising from a peril, or that may influence the extent of the loss. For example, accident, sickness, fire, flood, liability, burglary, and explosion are perils. Slippery floors, unsanitary conditions, shingled roofs, congested traffic, unguarded premises, and uninspected boilers are also hazards. Housekeeping. The care, cleanliness and maintenance of an insured's property. It is an important underwriting consideration in many forms of insurance, such as Workers Compensation and Property Impaired Insurer. An insurer which is in financial difficulty to the point where its ability to meet financial obligations or regulatory requirements is in question Insurance. A formal social device for reducing risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the insured Insurance Policy. The printed form which serves as the contract between an insurer and an insured. Insurance to Value. Insurance written in an amount approximating the value of the property insured.
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