Premium - Glossary (2024)

FAQs

What's it called when insurance doesn't pay? ›

Bad faith insurance refers to an insurer's attempt to renege on its obligations to its clients, either through refusal to pay a policyholder's legitimate claim or investigate and process a policyholder's claim within a reasonable period.

Insurance proceeds are benefit proceeds paid out by any insurance policy as a result of a claim. Insurance proceeds are paid out once a claim has been verified, and they financially indemnify the insured for a loss that is covered under the policy.

Premium. The amount of money that you are charged to purchase or maintain your insurance coverage.

A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured.

File a Lawsuit

Negotiating with the insurance company should be your first step in trying to get a larger insurance settlement. However, it may not be successful, and you should be prepared for that outcome. You may need to take your case to court if you cannot negotiate a settlement.

Insurance claims are often denied if there is a dispute as to fault or liability. Companies will only agree to pay you if there's clear evidence to show that their policyholder is to blame for your injuries. If there is any indication that their policyholder isn't responsible the insurer will deny your claim.

An insurance premium is the amount you pay each month (or each year) to keep your insurance policy active. Your premium amount is determined by many factors, including risk, coverage amount and more – depending on the type of insurance you have. This does not apply to all types of life insurance.

Depending on your coverage, you may have noticed policy terms about unused premiums. Having unused premiums means you have already paid into the policy without using it, and that money can be refunded.

Monthly premium x 12 months: The amount you pay to your insurance company each month to have health insurance. Deductible: How much you have to spend for covered health services before your insurance company pays anything (except free preventive services)

Broadly speaking, a premium is a price paid for above and beyond some basic or intrinsic value. Relatedly, it is the price paid for protection from a loss, hazard, or harm (e.g., insurance or options contracts). The word "premium" is derived from the Latin praemium, where it meant "reward" or "prize."

What is a premium ?( 1 point? ›

A premium is the amount of money that an individual or business must pay for an insurance policy. It is typically paid on a regular basis, such as monthly or annually, to keep the insurance policy active.

An insurance claim is a formal request from the policyholder to their insurance company asking for payment after a covered incident, such as a hospital stay, a natural disaster, theft, and more.

Yes, as long as you can find a buyer. The price you get from a life settlement depends on a number of factors, such as your life expectancy, your policy's death benefit and what you're paying in premiums. Most buyers look for policies from people who are older than 65 or have a serious health condition.

Adjuster. An adjuster is a person who helps people after their property has been damaged. They investigate how the property was damaged and determine whether or not the damage will be paid for by the insurance company. One of the most important things adjusters do is to determine how much the damage will cost to repair ...

There may also be an age restriction on selling your life insurance policy. In most cases, you need to be aged 65 or older unless you can verify certain health issues to qualify for an exemption.

Exclusion. Something not covered by the policy and specifically so stated in the policy contract.

Your insurance will be cancelled if, for whatever reason, you are unable to pay the premium due, even within the grace period offered by the insurer.

Personal injury protection (PIP), also known as no-fault insurance, covers medical expenses and lost wages for you and your passengers if you're injured in an accident.

Non-payment insurance: the most complete solution

If your customer fails to pay you, your insurer covers your loss.