Insurance Glossary

Here you will find common terms and definitions specific to insurance, the insurance process, and First Foundation Insurance.

A-C | D-H | I-L | M-S | T-Z

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Abandonment Clause

Details of a property insurance policy that states that a policyholder may not vacate or discard an insured property without further arrangements with the insurer.

Actuary

An actuary is a math expert who resolves the problems of insurance companies, pension plans and governments using financial analysis, statistics and risk analysis.

Accident Benefits

The payables to injured insured parties for medical treatment and income replacement in the event of a covered automobile accident.

Alberta Insurance Council

The Alberta Insurance Council (AIC) is meant to protect consumers by enforcing the operating standards of insurance companies, insurance adjusters and insurance agents.

Auto Insurance

Auto insurance, also known as car insurance, financially protects the driver of a vehicle in the event of an accident, collision, or loss.

Business Insurance

Business insurance, also known as commercial insurance, protects an organization against major financial loss and professional liability in the event of a loss, collision, or accident.

Car Insurance

Car insurance, also known as auto insurance, financially protects the driver of a vehicle in the event of an accident, collision, or loss.

Commercial Insurance

Commercial insurance, also known as business insurance, protects an organization against major financial loss and professional liability in the event of a loss, collision, or accident.

Condo Insurance

Condo insurance is a form of property or home insurance that provides payment to the condo owner in the event of loss of personal property or damage to parts unit not covered under existing condo association’s insurance policy.

Critical Illness Insurance

Critical Illness Insurance provides a one-time payout if you are diagnosed with a condition covered by the policy; it does not provide ongoing benefits like health insurance or disability insurance.

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Distracted Driving

Operating a motor vehicle while simultaneously engaging in another task that diverts your attention in an unsafe manner is deemed distracted driving.

Errors and Omissions Insurance

Errors and Omissions Insurance is a risk-management product that helps professionals limit their exposure to losses from lawsuits against their businesses that are brought about by a mistake an owner, employee, temporary worker or subcontractor makes in the course of performing their usual work.

Homeowners Insurance

Home insurance, also known as property insurance, provides payment to a homeowner when damage occurs to one’s home, loss of contents inside the home, or accidents that occur on the property.

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Insurance

A financial product that helps to protect policyholder's from financial hardship in the event that insured resources are damaged, destroyed, lost, or stolen.

Insurance Adjuster

Often called claims examiners or claims representatives, insurance adjusters are professionals who investigate the validity of claims and determines the payouts to insured in the event of a claim.

Insurance Broker

An insurance brokerage must employ an insurance broker to oversee the brokerage employees. Generally insurance brokers are responsible for the management within the brokerage. Insurance brokers are licensed by the province in which they operate and required to follow a strict code of conduct.

Insurance Institute of Canada

The Insurance Institute of Canada is a non-profit professional education and career development resource for Canadian property and casualty insurers.

Insurance Quote

A cost estimate for a insurance policy based on unverified, basic information provided by the prospective client.

Insurance Underwriter

An Insurance Underwriter is a professional who examines insurance policy applications to decide whether the applicant presents an acceptable risk that the insurance company should cover and issue a policy for.

Layoff Insurance

Layoff insurance covers policyholders for mortgage payments in the event of involuntary job loss.

Liability Insurance

Liability insurance is a type of insurance that protects the policyholder from losses in the event that they are found at fault and/or sued for claims that fall within the coverage of an insurance policy.

Life Insurance

Life insurance provides a payout of a specific dollar amount to a beneficiary at time of death.

Long Term Disability

Long Term Disability Insurance is a type of insurance that provides a steady income if you become too sick or injured to work.

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Mortgage Disability Insurance

Financial product that provides protection in the event the a person becomes so injured or sick that they are unable to work that they are still able to receive a monthly income.

Mortgage Life Insurance

Mortgage life insurance is a type of life insurance that pays out the balance of a mortgage at time of death.

Motorcycle Insurance

Motorcycle insurance covers repair or replacement of damaged assets, medical care and rehabilitation for injuries, and may provide income replacement required because of disability caused by a motorcycle accident.

Mutual Insurance Company

A customer-owned company, in contrast to a shareholder-owned company, that provides financial protection products.

No Fault Car Insurance

No Fault Car Insurance is a type of automobile insurance that requires your insurance company to pay your claim regardless of whether you or another driver is found partially or completely responsible for an accident.

Permanent Insurance

Permanent Insurance is a type of life insurance that remains in force until you die, as long as you continue to pay the premiums, rather than expiring when you reach a certain age.

Personal Insurance

Personal Insurance is a risk-management product that helps individuals limit their exposure to losses from death, disability and illness.

Property Insurance

A product that can help protect clients from financial loss due to damage or destruction of a property or structure.

Risk Management

Risk Management is the implementation of strategies to prevent or minimize potential losses. Effective risk management will limit exposure to lawsuits, property damage, product recalls, reputational harm, worker accidents and other sources of possible loss.

Short-Term Disability Insurance

Short-term disability insurance is a type of insurance that provides a benefit if you become unable able to work for a length of time.

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Term Insurance

Term Insurance is a type of life insurance that provides a benefit for a specified number of years. When the term ends, the policy ends.

Title Insurance

Title insurance protects homeowners and mortgage lenders against defects in title and risks involved in the transfer of ownership of a property.

Travel Insurance

Travel insurance will provide health care coverage for unforeseen illnesses or accidents when traveling outside of your home province or country.

Tenant Insurance

Tenant insurance is a type of home insurance that covers a renter’s personal belongs in the event of a loss, as well as protects against liability for accidents that occur on the property.

Universal Life Insurance

Universal Life Insurance is a type of permanent life insurance that includes both a death benefit and a tax-advantaged investment account, it is a type of permanent life insurance.

Water Damage Insurance

Water Damage Insurance is a risk-management product included in homeowners insurance policies that helps property owners limit their exposure to the cost of repairing property damage caused by water.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance policy that has both a death payout and a tax-advantaged investment account.

Windshield Insurance

Windshield Insurance is a risk-management product that helps automobile owners limit their exposure to the cost of repairing or replacing a chipped and cracked windshield, window or sunroof. Also called “auto glass insurance".

Last updated Nov 23, 2017