See our insurance glossary below for answers to many questions regarding coverage in Connecticut. This glossary does not amend, replace or supersede any policy definitions or descriptions provided by any insurance policy.
ACCELERATED DEATH BENEFITS - Allows the policy holder to receive cash advances against a life insurance policy’s death benefit in if the policy holder is diagnosed with a terminal illness.
ACCIDENTAL DEATH BENEFIT - Provides an increased death benefit in if the insured’s death is an accident.
ACTUAL CASH VALUE (ACV) - The value of the property lost or damaged at the time of the loss.
ADDITIONAL EQUIPMENT COVERAGE - Provides coverage for accessories and enhancements not originally installed by the manufacturer.
ADDITIONAL INSURED/INTEREST - Extends coverage to a person or organization.
ADDITIONS AND ALTERATIONS COVERAGE - Provides coverage for any additions, alterations and improvements made to a unit in the event of a covered loss.
ADJUSTER - A person who estimates the cost of a repair.
ADMITTED COMPANY - An insurance company authorized to do business in the state.
ALIEN INSURANCE COMPANY - An insurance company incorporated under the laws of a foreign country.
AMENDMENT - A change to a policy contract.
ANTI-LOCK BRAKING SYSTEM (ABS) - Computer system that assists with a vehicle’s normal braking system.
ANTI-THEFT DEVICE - Devices that deter a thief or alert a third party to assist in a vehicles recovery.
APPRAISAL - A document that that determines the value of property by an impartial expert.
BINDER - An agreement that the policy is temporary in effect.
BODILY INJURY LIABILITY COVERAGE - Provides coverage for a covered loss for injuries to other persons.
BUILDING COVERAGE - Provides coverage to repair a building in the event of a covered loss.
CAPACITY - An insurance company’s financial ability to accept risk.
CANCELLATION - Termination of an insurance policy by the insured or insurance company.
CARRIER - The company issues the insurance policy.
CERTIFICATE OF FINANCIAL RESPONSIBILITY - Certification that may be required for a driver that they have purchased specific coverage on an auto insurance policy to meet the state’s laws.
CLAIM - Any request for payment subject to the policy’s terms.
CLAIMS-MADE POLICY - An insurance policy that will cover a claim regardless of when the claim occurred.
COINSURANCE - A fixed percentage of the eligible medical expenses the insured is required to pay, in excess of any deductible.
COLLISION COVERAGE - Provides coverage in the event of a covered loss to a insured vehicle caused by collision with another vehicle or object regardless of fault.
COMPREHENSIVE COVERAGE - Provides coverage for a covered loss to a insured vehicle for theft or vandalism.
CONTENTS COVERAGE - Provides coverage for covered loss for an insured’s belongings.
DEATH BENEFIT - Provides coverage to the insured’s beneficiary with either a specific or flexible amount payable on the insured’s death.
DECLARATION PAGE - The information page of the insurance policy which lists the carrier, policyholder, policy term and the coverage’s.
DEDUCTIBLE - The amount that must be paid out of pocket before an insurer will pay any expenses.
DEFENSIVE DRIVER COURSE - A driving skills course that allows an insured to receive discounts on their auto insurance policy.
DISABILITY COVERGAE - The amount of money paid to replace income.
DISEASE FOR EACH EMPLOYEE LIABILITY -The maximum amount an insurer will pay for all claims for damages due to bodily injury by disease to any one employee.
DISEASE POLICY LIMIT - The aggregate limit an insurer will pay for all claims sustaining bodily injury by disease.
DOMESTIC INSURANCE COMPANY - An insurance company incorporated in the same state that it operates in.
DRIVER EDUCATION - An educational course for new drivers that prepares them for the written and the vehicle operating test.
DWELLING COVERAGE - Provides coverage to repair a dwelling in the event of a covered loss.
EACH ACCIDENT LIABILITY - The maximum amount an insurer will pay to all employees involved in a accident.
EARNED PREMIUM - The remaining premium that is due after an insurance policy expires.
ELIMINATION PERIOD - A waiting period before coverage begins.
EMPLOYEE AS INSURED COVERAGE - Provides bodily injury liability coverage on a commercial auto policy for an employee’s vehicle that is occasionally used for the insured’s business.
EMPLOYEE HIRED AUTO COVERAGE - Provides bodily injury liability, property damage, comprehensive and collision coverage on a commercial auto policy for a vehicle that is rented or leased in an employee’s name and used for the for the insured's business.
ENDORSEMENT - A change to an insurance policy.
EXCESS LIABILITY - Provides coverage for a covered loss for injuries to other persons when the underlying coverage has been exhausted.
EXCLUSION - A provision toan insurance policy to remove coverage.
FINANCIAL RATINGS - They show the financial strength of an insurance company’s ability to meet its ongoing obligations to their policyholders.
FLAT RATE CANCELLATION - Termination of an insurance contract at inception.
FLOATER - A floater insures movable property such as jewelry, musical instruments, furs, artwork, antiques and electronics to cover a loss wherever the claim may occur.
FORCED PLACED INSURANCE - Insurance purchased by a lien holder on behalf of their customer.
FOREIGN INSURANCE COMPANY - An insurance company domiciled in another state.
FULL GLASS COVERAGE - Replacement of auto glass due to loss or damage.
GAP COVERAGE - Pays the difference between the actual cash value of a vehicle and the remaining balance owed on a loan or lease after a comprehensive or collision claim.
GARAGE KEEPERS LEGAL LIABILITY COVERAGE - Provides commercial coverage for a loss to an insured's customer's vehicle left in their custody for servicing, parking or storing.
GENERAL LIABILITY COVERAGE - Provides coverage for bodily injury and property damage.
GOOD STUDENT DISCOUNT - A discount on auto insurance policies for drivers who maintain a minimum grade point average subject to the insurance company’s rules.
GUARANTEE FUNDS - A State fund used to bail out policyholders if their insurance company becomes insolvent.
GUARANTEED REPLACEMENT COST - Pays the full cost of a replacing or repairing a home if the policy limits are not enough at the time of a claim subject to policy conditions.
GUEST PASSENGER LIABILITY COVERAGE - Provides coverage for a covered loss for injuries to a passenger in an accident which the driver was at fault.
HIRED AUTO COVERAGE - Provides bodily injury liability and property damage coverage on a commercial auto policy for a vehicle that is rented, leased or borrowed.
HIRED AUTO PHYSICAL DAMAGE COVERAGE - Provides comprehensive and collision coverage on a commercial auto policy for a vehicle that is rented, leased or borrowed.
IDENTITY THEFT COVERAGE - Provides coverage for fraudulent transactions and resolution services.
INDEMNIFY - Payment to a claimant to restore their financial loss.
INDEPENDENT ADJUSTER - A person who estimates the cost of a repair, but is not an employee of the insurance company.
INDEPENDENT AGENT - A licensed insurance agent who represents more than one insurance company.
INFLATION GUARD CLAUSE - An automatic adjustment at renewal on a homeowners insurance policy to increase the dwelling limit.
LIABILITY - An enforceable obligation to another party for an injury or damage caused by an insured.
LIABILITY LIMIT - The maximum dollar amount purchased by a policyholder for a specific coverage.
LOSS ASSESSMENT COVERAGE - Provides coverage for a covered loss for fees assessed by a homeowners or condominium association.
LOSS PAYEE - A financial institution who will receive payment first on property which they have an insurable interest.
LOSS OF RENTS COVERAGE - Provides coverage to the insured with replacement income during a covered loss for a vacant rental building.
LOSS OF USE COVERAGE - Provides coverage to the insured for living expenses if a property becomes uninhabitable because of a covered loss.
MEDICAL COVERAGE (HEALTH) - Provides coverage for an examination, accident or sickness.
MEDICAL COVERAGE (HOME) - Provides coverege for a covered loss for medical expenses of guests resulting from an accident on your property.
MEDICAL PAYMENTS COVERAGE (VEHICLE) - Provides coverage for a covered loss with limited payment for the driver and passengers medical and funeral expenses in the event of an accident, regardless of who is at fault.
MOLD/FUNGI COVERAGE - Provides coverage for the remediation costs associated with removing spores from a home.
MUTUAL INSURANCE COMPANY - An insurance company owned by its policyholders.
NAMED INSURED - The namedesignated as the insured person(s) in a policy.
NAMED PERIL - The specific cause of loss covered on an insurance policy.
NON-ADMITTED INSURER - An insurance company that is notlicensed within the state, but sells coverage that is unavailable from licensed insurance companies.
OCCURRENCE POLICY - An insurance policy that will only cover a claim that occurs during a policy term.
ON-HOOK COVERAGE - Provides commercial coverage for damage to a vehicle while being towed.
ORDINANCE OR LAW COVERAGE - Provides coverage for financial protection for repair and replacement costs that result from updated building codes.
OTHER STRUCTURES COVERAGE - Provides coverage for a covered loss for a detached structures on the insured property.
PERSONAL INJURY LIABILITY - Provides coverage for false arrest, detention, imprisonment, libel, slander, defamation, invasion of privacy and wrongful eviction or wrongful entry.
PERSONAL LIABILITY COVERAGE - Provides coverage for bodily injury and property damage.
PRO RATA CANCELLATION - The returned premium for an insurance policy that was cancelled before the policy expiration date is adjusted in proportion for the time the policy was in effect.
PROPERTY DAMAGE COVERAGE - Provides coverage for a covered loss for damage by an insured vehicle to the property of another.
RATE - The cost of an insurance policy.
REINSTATEMENT - The restoring of a cancelled policy to full force and effect.
REINSURANCE - Insurance purchased by insurance company to assume part of their liabilities and increases an insurer’s capacity to sell more coverage.
RENTAL REIMBURSEMENT COVERAGE - Reimburses rental expense for a replacement vehicle.
REPLACEMENT COST - The cost of replacing damaged or destroyed property without deduction for depreciation in the value of the property.
RETAINED LIMIT - The amount that must be paid out of pocket before an insurer will pay any expenses.
RESERVES - An insurance companies estimate of what it will pay for claims.
RIDER -A provision to an insurance policy to add coverage.
SCHEDULED PROPERTY - Listing specific stated value for property that otherwise has limited coverage.
SEWER OR DRAIN COVERAGE - Provides coverage for repair and replacement costs that result from water which backs up through sewers or drains or leaks from equipment.
SHORT RATE CANCELLATION - The returned premium for an insurance policy that was cancelled before the policy expiration date is adjusted in proportion for the time the policy was in effect minus any fixed charges.
SINKHOLE COVERAGE - Provides coverage for structural damage to a home resulting from sudden sinking or collapse of land into underground empty spaces.
STATED VALUE COVERAGE - The value of the property lost or damaged agreed upon prior to loss.
STOCK INSURANCE COMPANY - An insurancecompany owned by its stockholders.
SUBROGATION - When an insurer seeks restitution for a claim paid to their insured from a third party
SURPLUS LINES - An insurance company that is notlicensed within the state, but sells coverage that is unavailable from licensed insurance companies.
TERM - The time a insurance policy is in force.
TOWING COVERAGE - Reimburses towing expense from the location of an insured disabled vehicle.
TRAVEL TRAILER COVERAGE - Provides coverage for the value of a trailer used to transport vehicles.
UNDERWRITING - The application process an insurance company uses to determine if an applicant is eligible for coverage.
UNINSURED BOATERS - Provides coverage for a covered loss to the insured and passengers for bodily injury caused by the operator of an uninsured or underinsured watercraft.
UNINSURED/UNDERINSURED MOTORIST COVERAGE - Provides coverage for a covered loss to the insured and passengers for bodily injury caused by the operator of an uninsured or underinsured vehicle. Coverage can be purchased either non-stacked which provides coverage for the injured with the chosen limits for the insured vehicle that may be recovered or stacked which provides the injured with the chosen limits added together by the number of insured vehicles to determine the total amount that may be recovered.
WAIVER OF SUBROGATION - Prohibits the insurer from seeking restitution from an insured’s customer.
WATER DAMAGE COVERAGE - Provides coverage for sudden damage caused by water.