Insurance glossary
Short definitions help you navigate a policy, but the definition section in your own contract controls.
Actual cash value
A property valuation method that commonly reflects depreciation. Policy wording determines the calculation.
Claim
A request for an insurer to apply policy benefits to a loss or covered event.
Coinsurance
A percentage of an eligible health-care cost that the member pays under plan rules.
Copay
A fixed amount a health-plan member may pay for an eligible service or item.
Coverage limit
The maximum amount payable under a specified coverage, subject to policy terms.
Declarations page
A policy summary showing named insureds, dates, property, limits, deductibles, and endorsements.
Deductible
The portion of an eligible loss or expense assigned to the policyholder before specified insurance payments.
Endorsement
A document that changes the standard policy by adding, removing, or modifying terms.
Exclusion
A provision identifying circumstances, losses, property, people, or services not covered.
Grace period
A limited period after a payment due date during which specified coverage rights may continue. Rules vary.
Network
Providers or facilities contracted with a health plan under negotiated terms.
Out-of-pocket maximum
The most a health-plan member pays for defined covered services during a period, excluding items the plan does not count.
Premium
The price charged to maintain an insurance policy for a stated period.
Replacement cost
A property valuation approach based on replacing covered property with comparable new property, subject to contract rules.
Rider
An addition or amendment to a policy, often used with life and health products.
Underwriting
The process of evaluating risk, eligibility, terms, and price within applicable law.