Vocabulary Words Every Insurance Sales Agent Should Know

Policy

Definition: A plan or course of action adopted by an organization.

• The school has a policy on bullying.
• Their policy helps protect the environment.
• She explained the new policy to the staff.

Policy in a sentence

Claim

Definition: To state something as a fact or to assert a right to something.

• He will claim his prize at the ceremony.
• She made a claim about her invention.
• You need to claim your lost items at the office.

Claim in a sentence

Premium

Definition: Of higher quality; an additional cost for extra benefits.

• They offer a premium membership with special perks.
• He paid a premium price for the concert tickets.
• The product comes in a premium package.

Premium in a sentence

Risk

Definition: The possibility of something bad happening.

• There is a risk of falling if you climb too high.
• We need to assess the risk before starting the project.
• Taking risks can lead to great rewards if managed well.

Risk in a sentence

Agent

Definition: A person who acts on behalf of another; also a representative or a force in a process.

• He is an agent for a famous actor.
• In science, water can be an agent of erosion.
• The travel agent helped us plan our vacation.

Agent in a sentence

Coverage

Definition: The extent to which something is reported or included.

• The news coverage of the event was extensive.
• He checked the insurance coverage before the trip.
• The magazine provided great coverage of the festival.

Coverage in a sentence

Insurance

Definition: A contract that provides protection against financial loss.

• Car insurance helps pay for damages in an accident.
• I have health insurance to cover doctor visits.
• You should get insurance for valuable items.

Insurance in a sentence

Customer

Definition: A person who buys goods or services.

• The customer was happy with her purchase.
• They treat every customer with respect.
• She is a loyal customer at that store.

Customer in a sentence

Accident

Definition: An unexpected event that causes harm or damage.

• She had a minor accident while riding her bike.
• The accident caused traffic to be delayed for hours.
• He was shaken but unhurt after the car accident.

Accident in a sentence

Benefits

Definition: Advantages or positive results gained from something.

• The benefits of studying include better grades.
• She explained the benefits of exercise to her friends.
• There are many benefits to eating healthy foods.

Quote

Definition: To repeat someone's words or a statement from a text.

• He likes to quote famous authors in his essays.
• Can you quote the passage from the book?
• She often uses a quote to inspire her friends.

Quote in a sentence

Renewal

Definition: The act of making something new or fresh again.

• The renewal of the park brought joy to the community.
• She completed the renewal of her driver's license.
• Their project entered a renewal phase after feedback.

Renewal in a sentence

Loss

Definition: the state of losing something; not having something anymore

• His loss of a pet made him very sad.
• The team felt the loss of their star player.
• She experienced a loss when her grandmother passed away.

Loss in a sentence

Protection

Definition: The act of keeping someone or something safe.

• They wear helmets for protection while biking.
• The law provides protection for workers.
• He believes in the protection of wildlife.

Protection in a sentence

Service

Definition: The action of helping or doing work for someone.

• The restaurant provides excellent service to its customers.
• We offer a service to help students with their studies.
• Volunteering is a way to give back to the community through service.

Service in a sentence

Insured

Definition: A person or entity covered by an insurance policy.

• The insured received compensation for the loss.
• She is the insured under her father's policy.
• The insured party must report any claims promptly.

Insured in a sentence

Benefit

Definition: An advantage or profit gained from something.

• Exercise has many health benefits.
• The scholarship will benefit students in need.
• We all benefit from working together.

Benefit in a sentence

Deductible

Definition: An amount that can be subtracted from income or expenses when calculating taxes.

• The insurance plan has a high deductible that must be paid first.
• Make sure to keep track of all deductible expenses.
• Her medical bills are partially deductible on her taxes.

Deductible in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Underwriter

Definition: A person or organization that evaluates risks and determines the terms of an insurance policy or loan.

• The underwriter assessed the application carefully.
• He works as an underwriter for a large insurance company.
• The underwriter is responsible for approving new policies.

Underwriter in a sentence

Endorsement

Definition: a public declaration of support or approval

• The athlete received an endorsement deal with a popular brand.
• Her endorsement of the book encouraged many to read it.
• He was thrilled by the endorsement from his favorite celebrity.

Endorsement in a sentence

Exclusion

Definition: The act of keeping someone or something out; a state of being excluded.

• The exclusion of certain groups can lead to issues.
• She faced exclusion from the team for her behavior.
• Exclusion can have negative effects on individuals.

Exclusion in a sentence

Insurer

Definition: A company or entity that provides insurance coverage.

• The insurer reviewed the claim before approval.
• She chose a reliable insurer for her house.
• The insurer is responsible for paying claims as agreed.

Insurer in a sentence

Beneficiary

Definition: A person or group that receives benefits or advantages, especially from a will or insurance.

• She was the beneficiary of her grandmother's will.
• The charity acts as a beneficiary of the donations.
• He named his sister as the beneficiary of his life insurance.

Beneficiary in a sentence

Commission

Definition: A fee paid to an agent or employee for their services; also refers to a group assigned to perform a task.

• He received a commission for selling the house.
• The commission will investigate the issue further.
• Understanding commissions is important in business transactions.

Commission in a sentence

Fraud

Definition: Wrongful or criminal deception intended to result in financial or personal gain.

• He was charged with fraud for lying about his income.
• Fraud can happen in many forms, such as scams.
• It's important to be aware of fraud when shopping online.

Fraud in a sentence

Assessment

Definition: An evaluation or test to measure knowledge or skills.

• The teacher gave an assessment to check our progress.
• We will have a math assessment next week.
• Assessments help identify areas to improve.

Assessment in a sentence

Adjustment

Definition: A change made to improve or adapt to a situation.

• She made an adjustment to her schedule to fit in more study time.
• He needed an adjustment to his glasses for better vision.
• Understanding adjustment helps in adapting to new environments.

Adjustment in a sentence

Limit

Definition: to set a maximum amount or boundary

• We need to limit the number of students in the classroom.
• The speed limit on this road is 30 miles per hour.
• Understanding limits helps in setting rules.

Limit in a sentence

Terms

Definition: The specific conditions or rules of an agreement.

• The terms of the contract must be followed.
• She agreed to the terms before signing.
• Understanding terms helps in negotiations.

Terms in a sentence

Policyholder

Definition: A person or entity that owns an insurance policy; entitled to its benefits.

• As a policyholder, she received updates on her coverage.
• The policyholder is responsible for making premium payments.
• He understood his rights as a policyholder.

Policyholder in a sentence

Underwriting

Definition: the process of evaluating risk for insurance

• Underwriting is essential for approving insurance policies.
• He works in underwriting for a large company.
• Understanding underwriting helps in managing risks.

Underwriting in a sentence

Risk Assessment

Definition: The process of identifying and analyzing potential problems or dangers.

• They conducted a risk assessment before the project began.
• His job involves risk assessment for workplace safety.
• Risk assessment helps in making informed decisions.

Risk Assessment in a sentence

Adjuster

Definition: a person who changes or modifies something

• The adjuster reviewed the insurance claim.
• He is an adjuster for the insurance company.
• An adjuster can help make necessary changes.

Adjuster in a sentence

Co-payment

Definition: Same as copayment; a set fee for medical services.

• Her co-payment for the procedure was covered by insurance.
• He learned about the co-payment structure in his plan.
• Knowing the co-payment can help reduce surprises at the doctor.

Reimbursement

Definition: The act of paying back money spent.

• He received reimbursement for his work expenses.
• The reimbursement process can take a few days.
• Understanding reimbursement policies is important.

Reimbursement in a sentence

Broker

Definition: A person who arranges transactions between buyers and sellers, often in finance.

• She works as a broker for real estate.
• The broker helped them find a good investment.
• He consulted his broker for stock advice.

Broker in a sentence

Conditions

Definition: the circumstances or factors affecting a situation

• The weather conditions were perfect for a picnic.
• They discussed the conditions of the contract.
• Living conditions can vary greatly.

Conditions in a sentence

Quotation

Definition: a repetition of someone else's statement or thoughts

• She included a famous quotation in her essay.
• His quotation about friendship inspired the whole class.
• We learned how to properly cite a quotation in our reports.

Quotation in a sentence

Indemnity

Definition: Security or protection against a financial loss or damage.

• The policy offered indemnity against theft.
• They sought indemnity for damages caused by the storm.
• Indemnity clauses are common in contracts.

Indemnity in a sentence

Claims Adjuster

Definition: A professional who investigates insurance claims.

• The claims adjuster examined the damage to the car.
• After the accident, a claims adjuster was sent to assess the situation.
• Claims adjusters help determine how much the insurance company should pay.

Actuarial

Definition: Related to the statistical analysis of risk and uncertainty.

• The actuarial profession involves calculating insurance risks.
• He studied actuarial science to understand risk management.
• Actuarial methods are used to set insurance premiums.

Actuarial in a sentence

Reinsurer

Definition: A company that provides reinsurance.

• The reinsurer helps insurers manage large claims.
• They work with a reinsurer to reduce their risks.
• The reinsurer plays a crucial role in the insurance industry.

Reinsurer in a sentence

Fraud Prevention

Definition: Measures taken to stop dishonest activities.

• Fraud prevention is important for businesses.
• We learned about fraud prevention techniques.
• The bank focuses on fraud prevention strategies.

Malpractice

Definition: improper or negligent treatment by a professional

• The doctor was sued for malpractice after the incident.
• She studied malpractice cases in medical school.
• Malpractice can lead to serious consequences.

Malpractice in a sentence

Subrogation

Definition: The legal right for one party to pursue a claim for damages after paying a debt or claim.

• Subrogation allows the insurance company to recover costs.
• He learned about subrogation in his law class.
• Subrogation is important in insurance claims.

Subrogation in a sentence

Loss Ratio

Definition: A measure of the losses incurred in an insurance company compared to the premiums earned.

• A high loss ratio can indicate financial trouble.
• The company monitored its loss ratio closely.
• Understanding loss ratio is key to assessing profitability.

Loss Ratio in a sentence

Aggregate

Definition: To combine or gather into a whole.

• They aggregate data from various sources.
• The aggregate score determines the winner.
• She analyzed the aggregate results of the survey.

Aggregate in a sentence

Exposure

Definition: The state of being exposed to something; the experience of something new.

• He had exposure to different cultures during his travels.
• The artist gained exposure through her exhibitions.
• She was worried about the exposure to cold weather.

Exposure in a sentence

Retention

Definition: The ability to keep or hold onto something; often refers to keeping employees or information.

• Employee retention is important for a successful business.
• The school focuses on student retention through support programs.
• Retention of information is key for effective studying.

Retention in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Provision

Definition: the act of supplying or providing

• The provision of food is essential for the event.
• They made a provision for emergencies.
• The contract included a provision for overtime pay.

Provision in a sentence

Exclusionary

Definition: Designed to keep certain people or things out; limiting.

• The exclusionary policy affected many students.
• He criticized the exclusionary practices at the school.
• Exclusionary rules can create divisions.

Insurable Interest

Definition: A financial stake in the subject of an insurance policy.

• You must have insurable interest to buy life insurance.
• The concept of insurable interest protects both parties.
• Insurable interest is required for claims to be valid.

Insurable Interest in a sentence

Diversification

Definition: The process of varying investments or activities to reduce risk.

• Diversification in business can lead to greater stability.
• They discussed the importance of diversification in farming.
• Understanding diversification helps in planning.

Diversification in a sentence

Co-insurance

Definition: Another term for coinsurance; sharing of costs in insurance.

• The co-insurance rate is 20% for this procedure.
• She was aware of her co-insurance agreement.
• Understanding co-insurance is important for budgeting.

Co-insurance in a sentence

Residual

Definition: Remaining after the main part is taken away; leftover.

• There was residual heat after the fire was put out.
• The residual effects of the medication lasted for hours.
• She cleaned the residual mess left after the project.

Residual in a sentence

Fraud Detection

Definition: Identifying and preventing deceptive practices.

• Fraud detection is important for protecting financial systems.
• He worked in fraud detection to help secure transactions.
• Understanding fraud detection methods is vital for security.

Underwriting Guidelines

Definition: rules for assessing risk in insurance

• The underwriting guidelines determine policy eligibility.
• He followed the underwriting guidelines for approval.
• Understanding underwriting guidelines is crucial for the job.

Aggregate Limit

Definition: The maximum amount an insurer will pay for claims.

• The aggregate limit protects the insurer from losses.
• He reviewed the policy's aggregate limit carefully.
• Understanding the aggregate limit is crucial for coverage.

Moral Hazard

Definition: The risk that a party will engage in risky behavior because they don’t bear the consequences.

• Insurance can create a moral hazard if people take more risks.
• Understanding moral hazard is important in finance.
• He learned about moral hazard in his economics class.

Moral Hazard in a sentence

Peril

Definition: Serious and immediate danger; risk of harm or loss.

• He was in peril while climbing the steep mountain.
• The peril of driving in bad weather is well known.
• She warned him about the peril of swimming alone.

Peril in a sentence

Risk Management

Definition: The identification and assessment of risks followed by coordinated efforts to minimize them.

• Effective risk management is important for businesses.
• He studied risk management in his business course.
• The team focused on risk management strategies.

Risk Management in a sentence

Comprehensive

Definition: Including all or nearly all elements; thorough.

• The report provided a comprehensive overview of the project.
• A comprehensive study covers all aspects of the topic.
• She created a comprehensive list of resources for students.

Comprehensive in a sentence

Exclusionary Clause

Definition: A part of a contract that excludes certain conditions or groups.

• The exclusionary clause in the agreement surprised them.
• She read the exclusionary clause carefully before signing.
• Understanding the exclusionary clause is important for rights.