TITLE TOP: Florida Insurance Glossary of Insurance Terms
Glossary of commonly used insurance related terms in Florida
Agent
An agent is a person licensed by the Department of Financial Services who sells and services insurance policies.
Arbitration
A binding process in which a third party is hired to make a decision in a dispute between an insurance company and a consumer.
Binder
The document that your insurance agency will give you when you first purchase a policy. The binder states the exact time and date that your coverage begins. It also serves as a temporary policy until the insurance company sends your full policy.
Captive Agent
An agent that represents the insurance products of a single company.
Claim
A request for financial reimbursement on an insured loss
Deductible
A deductible is the amount a policy-holder must pay per claim or accident.
Department of Highway Safety & Motor Vehicles
This is the regulating body for all aspects of vehicular commerce. Best known for drivers licenses and registration, it also registers, licenses, collects taxes, and otherwise regulates many aspects of the mobile home and recreational vehicle industry, as well as other highway safety issues in Florida.
Florida Insurance Guaranty Association
A non-profit corporation created by state law to pay claims in the event of bankruptcy of a property and casualty insurance company licensed in Florida.
Independent Agent
An agent who represents a number of insurance companies and is authorized to write policies on their behalf.
Insurance Identification (I.D.) Card
An insurance identification card is a wallet-sized card issued by an insurance company that indicates the insured’s policy number and coverage.
Insured
The person covered under an insurance policy. The term can also be used in describing items that are covered.
Liability
Any legally enforceable obligation. Anytime a type of insurance uses the word liability, it refers to coverage that pays for the injuries of others or damage to their property only when you are found to be at least partially at fault for causing the accident.
Liability Insurance
Coverage for a policy holder’s legal liability resulting from injuries to another person or damages to their property.
Limits
The maximum amount of benefits, as per the contract, that the insurance company will pay in the event of a loss.
Mediation
Similar to arbitration, only the decisions made by the third party are not binding.
Motor Vehicle
A motor vehicle is a self-propelled vehicle, with four or more wheels, that is registered and licensed in the state.
No-Fault Insurance
Compensates you for a loss according to the terms of the policy, regardless of who caused the accident. In Florida, no-fault insurance applies to personal injury only, and does not provide any coverage for your vehicle.
Padding
Do not be tempted to “pad” your insurance claim. Taking money that you are not due from an insurance company is a crime. This type of theft and fraud is investigated by insurance companies and the Department of Financial Services, and is punishable by fines or jail.
Premium Finance Company
A lending institution that finances insurance premiums for a fee. A premium finance company in Florida must obain a license from the Department of Financial Services. If you do not agree with the claim amount approved by the adjuster, you have the right to appeal.
Subrogation
The process by which an insurance company, after paying a loss to its insured, recovers the amount paid for damages (which can include the insured’s deductible) from the legally liable party.
Surcharge
An additional charge added to the basic policy premium.