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Adjuster - A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted.

Agent - individual who sells and services insurance policies in either of two classifications:

1. Independent agent represents multiple insurance companies and services clients by searching the market for the most advantageous price for the most coverage. The agent's commission is a percentage of each premium paid.
2. Direct agent represents only one company and sells only its policies. This agent is paid on a commission basis in much the same manner as the independent agent.

Aggregate Limit - Usually refers to liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents might occur.

Annuity - A contract which provides an income for a specified period of time.

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Benefit Period - In health insurance, the number of days for which benefits are paid to the named insured and his or her dependents. For example, the number of days that benefits are calculated for a calendar year consist of the days beginning on Jan. 1 and ending on Dec. 31 of each year.
Bodily Injury Liability Coverage - Coverage on an auto insurance policy that protects you, up to the policy limits, for car accidents that result in bodily injuries of others for which you are legally at fault.
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Carrier - Insurance company that underwrites and issues the insurance policy.
Casualty - Liability of loss resulting from an accident

Claim - A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy.

Coinsurance - In property insurance, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.

Collision Insurance - Covers physical damage to the insured's automobile (other than that covered under comprehensive insurance) resulting from contact with another object.

Combined Single Limit - Combined Single Limit (CSL) auto policies have a single liability payment limit for both property damage and bodily injury.

Commercial Lines - Refers to insurance for businesses, professionals and commercial establishments.

Comprehensive Coverage - Auto insurance coverage providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.

Coverage - The scope of protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification.

Copayment - A predetermined, flat fee an individual pays for health-care services, in addition to what insurance covers. For example, some HMOs require a $10 copayment for each office visit, regardless of the type or level of services provided during the visit.

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Death Benefit - The limit of insurance or the amount of benefit that will be paid in the event of the death of a covered person.

Declaration Page - The section of an insurance policy containing such information as name, description, and location of property, etc. Also includes name and address of policyholder, the policy period, the premium amount, and the amount of coverage. Also referred to as the "dec page".

Deductible - Amount of loss that the insured must pay for covered losses before the insurance company pays a claim.

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Elimination Period - The period of time which must pass after filing a claim before policyholder can collect insurance benefits. Also known as "waiting period."
Employers Liability Insurance - Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers' compensation law.
Exclusions - Items or conditions that are not covered by the insurance contract.
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General Liability Insurance - Insurance designed to protect business owners from a variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operations, products sold by the insured, operations completed by the insured, and contractual liability.

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Hazard - A circumstance that increases the probability of a loss. For example, the storing of explosives in a home basement is a hazard that increases the probability of an explosion.

Health Maintenance Organization (HMO) - Prepaid group health insurance plan that entitles members to services of participating physicians, hospitals and clinics. Emphasis is on preventative medicine, and members must use contracted health-care providers.

Health Savings Account - Plan that allows you to contribute pre-tax money to be used for qualified medical expenses. HSAs, which are portable, must be linked to a high-deductible health insurance policy.

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Indemnity - The principle according to which a person who has suffered a loss is restored (so far as possible) to the same financial position that he/she was in immediately prior to the loss, subject to any contractual limitation.

Insurable Interest - Interest in property such that loss or destruction of the property could cause a financial loss.

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Liability - Broadly, any legally enforceable obligation.

Licensed - Indicates the company is a licensed (admitted) insurer for this state to write specific lines of business for which it qualifies.

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Named Perils - Perils specifically covered on insured property.

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Occurrence - An event or series of related events that results in an insured loss.

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Peril - The cause of a loss.

Personal Lines - Insurance for individuals and families, such as private-passenger auto and homeowners insurance.

Policy - The written contract effecting insurance, including all clause, riders, endorsements, and papers attached thereto and made a part thereof.

Pre-Existing Condition - A coverage limitation included in many health policies which states that certain physical or mental conditions, either previously diagnosed or which would normally be expected to require treatment prior to issue, will not be covered under the new policy for a specified period of time.

Preferred Provider Organization - Network of medical providers who charge on a fee-for-service basis, but are paid on a negotiated, discounted fee schedule.

Premium - The price of insurance protection for a specified risk for a specified period of time.

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Renewal - The automatic re-establishment of your policy effected by the payment of another premium.

Replacement Cost - The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.

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Subrogation - The right of an insurer to take over rights to collect damages from a third party.
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Term Life Insurance - Life insurance that provides protection for a specified period of time.

Total Loss - A loss of sufficient size that it can be said no value is left. The complete destruction of the property. The term also is used to mean a loss requiring the maximum amount a policy will pay. The policy doesn't buildup any of the dollar values associated with whole life policies.

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Umbrella Policy - Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance.

Underwriter - The individual trained in evaluating risks and determining rates and coverages for them.

Underwriting - The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.

Uninsured Motorist Coverage - Endorsement to a personal automobile policy that covers an insured in an accident with a driver who does not have liability insurance.

Universal Life Insurance - Permanent life insurance which offers flexible premiums, flexible face amounts, and an accumulation of cash value.
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Variable Life Insurance - Permanent life insurance which provides investment flexibility and an accumulation of cash value.

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Waiting Period - See "elimination period".

Whole Life Insurance - Life insurance which offers fixed premiums and an accumulation of cash values.

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AHTKY Insurance Agency, LLC
1451 W. Artesia Blvd, Suite A, Gardena, California 90248
CA License: 0C46036