Insurance Terms: I

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Insurance Terms-A
  • Income Protection Insurance is a type of disability income coverage providing an income benefit both, during the time the insured policyholder is totally disabled and unable to work. But also offers coverage when an insured policyholder is able to work, but due to a disability the policyholders earning are less than then before the disability. This is also called residual disability insurance.
  • Increasing Term Life Insurance is a type of term life insurance that provides a death benefit which increases by a specified amount and/or percentage during stated intervals of time during the policy term. This is in contrast to decreasing term life insurance policies.
  • Indemnify means to provide financial compensation for losses, the core concept of insurance is to indemnify policyholders for insured losses.
  • Independent Agent is a licensed self-employed insurance agent, paid on commission, from several insurance companies the agent is appointed with to represent. An Independent agent is free to place your insurance with any of the companies represented based on their underwriting and business agreement with the agent.
  • Individual Retirement Account (IRA) is tax-deductible savings plan for qualified people:
    Self-employed,
    People with earnings below a certain level, or
    People with employers who don’t offer other retirement plans.
  • Inflation Guard Clause is an added provision to a homeowners policy automatically adjusting coverage limits on the dwelling at the time of renewal. The Inflation Guard Clause is designed to keep pace with the current cost of construction.
  • Inflation Protection is an optional endorsement policyholders can add to increase the policy limits of insurance during the policy term in order to keep up with inflation.
  • Inland Marine Insurance is a broad type of insurance coverage originally designed for shipments not involving an ocean voyage. Inland Marine Insurance covers property in transit by all means of land and air transportation and includes coverage on bridges, in tunnels as well as other means of transportation and communication. Floaters covering an expensive personal item, fine art and jewelry are included in the category of inland marine insurance.
  • Insurable Interest is a person with an insurable interest in a possible loss if the person with the interest suffers an economic loss when an insured event occurs. If there is no insurable interest, an insurance contract can not formed and, thus, is not a valid contract. In other words you can’t put insurance on your neighbor’s car, you don’t have an insurable interest in your neighbor’s car, only your neighbor does.
  • Insurable Risks are those risks where it’s somewhat easy to obtain insurance coverage. An Insurance company must be able to determine a reasonable price for the premiums. An Insurable risk must meet certain criteria including:
    Something definable,
    Accidental in nature, and
    part of a group of related risks large enough to make the losses predictable.
  • Insurance is a system designed to help make a large financial loss more affordable. This is done by pooling the risks of many people and businesses and then managing these risks by transferring it to an insurance company or group in return for an insurance premium.
  • Insurance Credit Score uses confidential consumer credit information and claims history to rank insurance customers.
  • Intermediate Driver’s License: See Youthful Driver

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Glossary of Insurance Terms:

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