207 S. Kanawha St Buckhannon, WV, 26201 304-472-1532

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Glossary

AUTO                                              

Claim – A submitted request made by the policyholder, or the policyholder’s beneficiary for payment of benefits provided by the insurance policy.

Collision insurance – An auto insurance policy that insures and covers damage to the policyholder’s vehicle that was sustained in a car accident with another vehicle or property.

Comprehensive insurance – An auto insurance policy that covers damage to the policy holder’s vehicle that was not sustained in a motor vehicle collision, such as losses to your automobile by fire, theft, vandalism and numerous other perils. (Note:  On personal auto policies this is now referred to as “other than collision” coverage.)

Deductible – The amount the loss paid by the policyholder when they make a claim on their collision or comprehensive insurance policy.  IE:  If you have a deductible of $250 for damages to your vehicle, you would pay the first $250 of damages to your auto.

Gap Insurance – An automobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. Mainly used for leased cars.

Liability insurance – Insurance coverage that pays for unintentional damages done to other people and/or their property when the policyholder is deemed legally responsible and it is covered in the policy.

Student Discount – A discount on an auto policy granted to students who maintain a GPA average designated by the policy holder’s insurance company.

HOMEOWNERS:

Act of God – This is an accident or event that is unpreventable and is the result of natural causes such as lightning or floods.

Actual Cash Value (ACV) – The cost of repair or replacement of damaged or lost property at the time of the loss.  This coverage replaces the original property with same kind and quality minus depreciation.

Catastrophe – A severe disaster that causes a major or total loss unexpectedly and suddenly.

Deductible – The amount of the loss paid by the policyholder when they make a claim on their collision or comprehensive insurance policy.  IE:  If you have a deductible of $250 for loss due to fire, you would pay the first $250 of damages incurred if there is a fire in your home.

Depreciation – The decrease in value of any property over a period of time.

Fire insurance – A policy or part of a homeowner’s policy that that insures against losses due to fire, lightning and other causes defined in the contract.

FLOOD:

Elevation Certificate – A certificate that verifies the elevation data of a structure on a given property relative to the ground level. The Elevation Certificate is used by local communities and builders to ensure compliance with local floodplain management ordinances and is also used by insurance agents and companies in the rating of flood insurance policies.

Flood – A general and temporary condition of partial or complete inundation of an insured’s property from overflow of inland or tidal waters.

Flood Zone (Zone) – A geographical area shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map that reflects the severity or type of flooding in the area.

UMBRELLA:

Indemnity – Provides the policyholder compensation for any sum of money that is required to be paid by law or under contract during a claim.

Limits of Insurance – Occurrence limits are on all umbrella liability policies while others have one or more aggregate limits for the losses. Each umbrella policy is unique pertaining to your needs.

Self-Insured Retention – this is the amount the insured is required to pay before the coverage on the umbrella policy can be applied.

WORKER’S COMPENSATION

Subrogation – The legal process by which an insurance company, after paying a loss, seeks to recover the amount of the loss from another party legally liable for it.

Workers Compensation – Insurance that pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. State laws, which vary significantly, govern the amount of benefits paid and other compensation provisions.

 

 

COMMERCIAL/ BUSINESS AUTO:

Collision insurance –  An auto insurance policy that insures and covers damage to the policyholder’s vehicle that was sustained in a car accident with another vehicle or property.

Comprehensive insurance – An auto insurance policy that covers damage to the policy holder’s vehicle that was not sustained in a motor vehicle collision, such as losses to your automobile by fire, theft, vandalism and numerous other perils. (Note:  On personal auto policies this is now referred to as “other than collision” coverage.)

Deductible – The amount of the loss paid by the policyholder when they make a claim on their collision or comprehensive insurance policy.  IE:  If you have a deductible of $250 for damages to your vehicle, you would pay the first $250 of damages to your auto.

Hired and Non-Owned auto –  Liability and property damage insurance for a vehicle that is owned by an individual other than the company, but is used on a company’s behalf. It is intended for those “incidental” accidents-such as those that might occur when you send an in-house employee on an errand to buy lunch or go to the bank.

Liability insurance – Insurance coverage that pays for unintentional damages done to other people and/or their property when the policyholder is deemed legally responsible and it is covered in the policy.

COMMERCIAL  LIABILITY:

Aggregate Limit – The total amount on a policy that states the maximum amount the company will pay out per policy term.

Business Income – Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. Business interruption insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises.  This coverage is policy specific.

Claims-Made Policy – A form of insurance that pays claims presented to the insurer during the term of the policy or within a specific term after its expiration. It limits liability insurers’ exposure to unknown future liabilities.

Errors and Omission:  Insurance that protects the insured for any loss sustained because of an error or oversight on the insured’s part.

Occurrence Policy – Insurance that pays claims arising out of incidents that occur during the policy term, even if they are filed many years later.

COMMERCIAL UMBRELLA:

Endorsement – An attachment to a policy that amends and alters the coverage provided in the policy.  This is often called a Rider.

Indemnity – When the indemnity clause is put into play, the insurer will compensate the insured for any sum of money that is required to be paid by law or under contract during a claim.

Limits of Insurance – Occurrence limits are on all umbrella liability policies while others have one or more aggregate limits for the losses. Each umbrella policy is unique pertaining to your needs.

Self-Insured Retention – this is the amount the insured is required to pay before the coverage on the umbrella policy can be applied.

LIFE INSURANCE:

For the most part, life insurance can be classified into two categories: term and permanent.

Term insurance is less expensive especially at a young age, and is ideal when the need for coverage is for a shorter defined period of time. Term insurance simply put is insurance that will pay the death benefit if the insured dies while the policy is in force. Since term insurance has no cash value and is for a specific period, or “term”.  The  term life  policy normally provides an option to convert to a permanent life  policy.

Permanent insurance is designed to last for the life of the insured. It can be Universal or Whole Life insurance.

Universal Life insurance is designed to be very flexible for the period of coverage. Both the premiums and the death benefit can be adjusted to fit the changing needs of the policy owner. If a need for more coverage appears, the policy owner simply applies for more coverage on the existing policy. Since the company has already placed coverage on the insured, only the additional amount of coverage is subject to underwriting requirements. In addition, if the policy owner needs to reduce the premiums, they may do so as long as they have a ‘cash value’ in the policy and the policy will stay in force as long as there is one dollar of cash value in the policy.

Whole life insurance is designed to provide a high level of guarantee. Both the premiums and the death will never change unless the policy dividends are being utilized to do so. For example, participating Whole life policies give the contract owner four dividend options to choose from.

The first dividend option is to take them in cash. In this scenario, the policy owner will receive any dividend declared by the company in cash. Since the IRS recognizes life insurance dividends as a return of premium, they are usually tax-free.

HEALTH INSURANCE:

Coinsurance – A percentage of the cost to a health care professional that the insured is responsible for. (The rate differs for in network versus out-of-network health coverage).

Copayment (copay) – A flat fee that the insured is responsible to pay per occurrence for services such as doctors visits or prescription drugs.

Deductible – The dollar amount an insured must pay before the plan begins to pay for covered services. The deductible is satisfied when each family member has paid their individual deductible or when the total family deductible amount has been reached by any combination of family members.

In-Network Health Care Professional –  Any health care professional (physician, hospital, etc.)  that participates in the network.

Inpatient Care – Care given to a insured that is admitted to a hospital, hospice, skilled nursing center, or rehabilitation center.

Network – A physician, group of physicians, hospital, drug company, etc. that agrees to provide services at a certain rate or average rate for an area.

Out-of-Network Health Care Professional –  Any health care professional (physician, hospital, etc.)  that does not participate in the network.

Outpatient Care – Any health care service provided to an insured who in to admitted to a center.

Out-of-Pocket Costs – Copays, deductibles, fees, or coinsurance paid by the insured for health services or prescription drugs.

Out-of-Pocket Maximum – The amount most customers will pay per year for covered health expenses before the pan pays 100% for the rest of the year

Disability Insurance

Oftentimes, some of the most overlooked financial perils we face are those from injuries or illnesses that are not fatal.  Most of us think life insurance is all that is needed to protect our families. However, during our working years, the risk of disability is considerably higher and can lead to financial disaster.

The ability to create an income is of utmost importance to the breadwinner(s) in the home. If we lose it, it’s not long until our nest egg is depleted. No matter your occupation this is vital protection.  Social security disability, when you are approved, will replace some of your income but not nearly what is needed to support your family and maintain your current lifestyle.

The total monthly benefit will be in the ball park of 60%-80% of your pay depending on the policy you choose.  Also you need to consider your benefit period and waiting period.

The benefit period is how long benefits are paid under a disability policy and varies depending on what timeframe is chosen.  For example, you could choose two years, five years or to the age of 65.   Of course, the longer the benefit period, the higher your premium will be.

The waiting period is the amount of time from the date you become disabled until benefits are deemed payable also depends on what timeframe is chosen in the policy. Waiting periods can be 30, 60, 90 or 180 days. In this case, the longer the waiting period, the lower the premium.   If you are financially able to live without your income for three to six months, you can reduce the premium costs considerably by choosing a longer waiting period.

It is critical to take time to evaluate your current and future needs when choosing your disability policy benefit payable, benefit period and waiting period.  Our professional agents will help you procure the policy that you feel best fits your financial situation for today and the future.