Admitted insurer (Standard insurer)
A state-licensed insurance company regulated by state authorities and backed by the state guaranty fund if it becomes insolvent.
Agent of Record
The agency or person officially authorized to manage, modify, or cancel your policy on your behalf.
Binder
A temporary document confirming that insurance coverage is active while the full policy is being issued.
Bundle (Multi-Policy Discount)
A discount for purchasing multiple policies, such as home and auto, through the same carrier or agency.
Carrier
The insurance company that underwrites your policy, sets your rates, and pays claims.
Claim
A formal request made to an insurer to pay for a covered loss.
Coverage
The protection or benefits provided under an insurance policy.
Deductible
The portion of a covered loss that you pay before your insurer contributes.
Depreciation
The decrease in value of property over time due to age, wear, or use.
Endorsement
An addition or change to your policy that alters its coverage or terms.
Exclusion
A specific condition or type of damage your policy does not cover.
Guaranty fund
A state-managed fund that protects policyholders if an admitted insurer becomes insolvent.
Insurable interest
A financial stake in the insured property – you must own it or be financially affected by its loss.
Peril
A specific cause of loss, such as fire, theft, or wind.
Policy period
The duration your policy is active – typically six months for auto or one year for home.
Premium
The price you pay for your insurance, billed monthly, quarterly, semi-annually, or annually.
Quote
An estimated cost of insurance coverage before the policy is issued.
Underwriting
The process insurers use to evaluate risk, verify eligibility, and determine coverage and premiums.