These are some of the commonly used terms in the field of insurance. You can use them to ge a better grasp on some of the insurance products you are covered by currently.

Actual Cash Value (ACV): The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost — Depreciation).

Bind: The agent or company representative agrees to cover the item/person etc. until the formal insurance contract is issued.

Binder: An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.

Cancellation: Termination of an insurance policy in force by a voluntary act of the insured or by insurer for lack of payment, fraud, misrepresentation etc.

Casualty Insurance: A line of insurance which historically has included a wide variety of unrelated coverages. One important coverage in the casualty lineis Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Workers Compensation and Surety Bonds.

Collision: A type of physical damage insurance which covers loss due to the insured object striking another object. Collision may also include upset of the insured object.

Comprehensive Coverage: In automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property which are specifically excluded.

Declarations: The page of an insurance contract that indicates the name of the policyholder, the insurance company, the period of coverage, what is covered (property, liability) under the contract.

Deductible: Usually, a dollar amount the insured must pay out of pocket on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. Depending on the type of coverage, a deductible amount may exceed $2,000. If you have a $2,000 deductible, it means you must pay the first $2,000 of a claim.

Direct Bill: The bill for the premium is produced by the insurance company and sent directly to the policyholder. The policyholder then pays the insurance company directly.

Dwelling Policy: An allied lines policy which provides coverage for the dwellings and personal property of individuals and families against fire andadditional perils.

Effective Date: The beginning of the policy term, usually 12:01 a.m. of the date shown.

Endorsement: A document which is attached to the policy and modifies or changes the original policy in some way.

Exclusions: Section of the insurance policy which lists property, perils, persons, or situations which are not covered under the policy.

Expiration Date: The date that coverage ceases to be provided by an insurance policy.

Financial Responsibility Law: State law which requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.

Flat Cancellation: The cancellation of a recently written insurance contract without charge to the insured.

Flood Insurance: Coverage against loss resulting from rising water.

Homeowners Policy: A personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection.

Hull Insurance: In Ocean Marine and Aviation insurance, insurance against physical damage to plane or ship.

Insurance: A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

Insured: Also referred to as the policyholder. The person, business or other entity that is covered by the policy.

Lapse: A policy becoming invalid because of failure to pay the premium on time.

Liability Insurance: Insures the individual for financial losses which arise out of the person`s responsibilities to others imposed by law or contract.

Motor Vehicle Report (MVR): A listing of the tickets (violations) and/or accidents for an individual driver over a period of time, i.e., three years, five years, etc.

Named Insured: Any person, firm, or corporation designated by name as the specific insured in a policy.

No-Fault Insurance: See Personal Injury Protection

Peril: The cause of loss. Examples include fire, windstorm or explosion.

Personal Auto Policy: Easy-to-read auto policy which provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.

Personal Injury Protection: A coverage provided in Auto policies in the state of Florida that provides coverage for the insured`s own injuries on a first-party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida.

Physical Damage: In auto insurance, damage or loss to the insured`s own autos or autos in the insured`s care, custody or control.

Policy: An insurance contract.

Policy Period: The period during which the policy contract is in force and affords protection, from inception date to expiration date.

Premium: The consideration (price) paid by the insured to the insurer for insurance protection over a specified period.

Property Damage: A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.

Quotation: A notification of the premium for coverage before the policy has been issued.

Renewal: The continuation of coverage for another period after a policy has expired.

Replacement Cost: The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.

Risk: 1) Uncertainty as to financial loss. 2) The person or thing insured.

Risk Management: Preserving financial resources against loss through various methods including the purchase of insurance.

Split Limits: In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10.

SR-22 Filing: A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.

Surety Bonds: Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party.

Underwriter: One who judges the acceptance or rejection of insurance risks on behalf of the insurance company.

Uninsured Motorist Coverage: Automobile coverage designed to provide protection for the insured should he or she be included in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.

Write: To insure, to underwrite or to take an application.