Insurance Terminology

What is PAC insurance? Pre-Authorized Check (PAC) Read more on www.massmutual.com Personal Accident and Cargo insurance, sometimes known as PAC insurance or “Personal Accident and Cargo,” is a form of policy that covers both personal accidents and cargo loss or damage. Typically, those who move goods by land, air, or sea obtain this protection on … Read more

What does TP mean in insurance? third party liability A comprehensive insurance cover for a vehicle offers complete safety against the loss and damage to your vehicle i.e. own damage (OD) and other vehicles and properties i.e. third party liability (TP). Read more on www.shriramgi.com You might come across the term “TP” in certain insurance … Read more

What is the difference between actual cash value and agreed value? What is the difference between Actual Cash Value (ACV) and Agreed Value? Actual Cash Value (ACV) is defined as the replacement cost minus depreciation. Agreed Value means that coverage is provided for a pre-determined amount settled upon by both the insured and the insurance … Read more

What is the difference between a named insured and an additional insured? A named insured is entitled to 100% of the benefits and coverage provided by the policy. An additional insured is someone who is not the owner of the policy but who, under certain circumstances, may be entitled to some of the benefits and … Read more

What is the DGA supplemental pension plan? The Supplemental Plan is a defined contribution plan funded by both Participants and Employers. Your benefit is based on the amount of contributions and investment returns credited to your account. You are always vested in the employee portion (contributions and investment income) of your account. Read more on … Read more

What does escape of water mean on home insurance? One of the most common home insurance claims is for escape of water ? that means damage caused by a water leak ? usually from your plumbing or heating system or a home appliance like a washing machine. Read more on www.aviva.co.uk One of the most … Read more

What does SPA mean in insurance? Sales and Purchase Agreement (SPA) Read more on www.investopedia.com For individuals who are unfamiliar with the sector, there are numerous terminology and acronyms related to insurance that can be bewildering. A good example of one of these abbreviations is SPA, short for “Sudden and Accidental Pollution.” When referring to … Read more

Is deductible same as out-of-pocket? Essentially, a deductible is the cost a policyholder pays on health care before the insurance plan starts covering any expenses, whereas an out-of-pocket maximum is the amount a policyholder must spend on eligible healthcare expenses through copays, coinsurance, or deductibles before the insurance starts covering all Read more on www.singlecare.com … Read more

What does tertiary insurance mean? Tertiary insurance is a third policy. When you have multiple insurance policies, such as if you have Medicare and a supplemental policy, it’s possible to have more than one covering a given procedure or loss. The third one to be billed is referred to as tertiary coverage. Read more on … Read more

What is a reinsurance contract called? Treaty reinsurance represents a contract between the ceding insurance company and the reinsurer who agrees to accept the risks of a predetermined class of policies over a period of time. One way an insurer can reduce its exposure is to cede some of the risk to a reinsurance company … Read more