# 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.

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