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.

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.

No-Fault
Auto insurance coverage which pays for each driver’s own injuries, despite who was responsible for the accident. No-fault coverage varies with each state.

Deductible
The amount of losses a policyholder pays. Either a specific dollar amount, a percentage of the claim amount, or a specified amount of time that must expire before benefits are paid.

Whole Life Insurance
Cash value life insurance which combines protection against premature death with a savings account. Premiums are at fixed rates and guaranteed and remain the same throughout the life of the policy.

Health Plan
A generic term referring to a specific benefit package offered by an insurer.

Universal Life Insurance
A flexible premium policy that combines protection against premature death with a cash value account that earns a money market rate of interest. Death benefits can be altered during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the cash value account, the premium can be paid at any time but the policy will lapse if there isn’t enough money to cover annual mortality charges and administrative costs.

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.

Pre-Existing Condition
A condition of health or physical condition that existed before the policy was issued.

Catastrophe Deductible
A percentage or amount that a homeowner must pay before the insurance policy goes into effect following a major natural disaster.