Term
Relating to a contract of health insurance that makes no provision for renewal or termination other than by expiration of the policy term. Life insurance issued for a term of years, after which it expires without value.

Policy
The contract form issued by the company to explain the coverage provided. It is a legal document.

Term Insurance
Life insurance that covers the policyholder for a specific period of time, the “term” specified in the policy. It pays a benefit to a beneficiary only if the insured dies within that specified period of time. Term life policies are renewable.

Underinsured Motorist
Is coverage for any bodily injury resulting from the operation of a motor vehicle, which is covered under a liability policy at the time of the injury causing occurrence.

Loss
Any diminution of quantity, quality or value of property. With reference to policies of indemnity, this term means a valid claim for recovery thereunder. In its application to liability policies, the term refers to payments made on behalf of the insured.

Quote
An estimate of the premium charge, based upon the information provided for the coverage(s) requested. This quote may not be the final or actual premium, and the premium charged is subject to underwriting adjustments by the insurer.

Cancellation
Termination of contract of insurance in force by voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.

Pro Rata
Distribution of the amount of insurance in one policy, among the several objects or places covered, in proportion to their value or to the amounts shown. The distribution of liability among the several insurance companies having policies on the risk.

Health Maintenance Organization
A legal entity in the state that provides health care in a geographic area, and which accepts responsibility to provide directly or by contract an agreed-upon set of health services to a defined, voluntarily-enrolled group of individuals.

Collision Coverage
Pays for damage to your vehicle when it collides with another vehicle or object, or if it overturns.