Insurance Terms: J
- Jettison is an insurance term used in Marine Insurance to describe the act of throwing a ships cargo overboard in order to lighten the load in an effort to save the ship from sinking. Jettison is an insured peril when covered under the correct marine insurance coverage.
- Jewelers Block is an all risk insurance policy covering a wide range of perils for jewelers and similar shops. Jewelers Block coverage may also be written for the manufacturers of jewelry.
- Jewelry includes all of the personal jewelry owned by an individual. This kind of personal property is best insured under an all risk homeowner policy or floater.
- Joint and Survivor Annuity is an annuity with two annuitants, typically the spouses. Payments under this annuity would continue until the death of both even after one has died.
- Junk Bonds are corporate bonds with credit ratings of BB or less. Junk Bonds tend to pay a higher yield than many other types of investments, but they have a higher default risk. Junk bonds typically involve risk that could force investors, to sell off the bonds at a much lower value. States place limits on insurance company investments in junk bonds, because property/casualty insurance companies may face huge claims following a disaster, and their investments have got to be liquid in order to pay out the claims.
Insurance Terms: K
- Key Person Insurance is an insurance policy with coverage on the life or health of a key person essential to the success of a business and whose death or disability may cause the business a real financial loss. Key-person insurance is designed to protect a business from income losses resulting from a disability or death of a person with a significant position in the company or business.
- Kidnap and/or Ransom Insurance is insurance coverage up to a stated limit to cover the cost of ransom or extortion payments and the related expenses. Kidnap and Ransom insurance is most often purchased by international corporations in order to insure employees. These policies usually have expensive deductibles and often exclude certain geographic areas of the world. In some cases these policies require a policyholder not to reveal they have this type of insurance coverage to anyone.
- Knock for Knock Agreement is an agreement used to simply the recovery of claims between two or more insurance companies. Most common between two auto insurance companies whereby an agreement is made that each insurance company will pay the repair costs for their own policyholder’s auto damage no matter who was responsible for an accident.
Glossary of Insurance Terms:
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