GLOSSARY OF TERMS

I TERMS

Improvements and Betterments: Additions or changes made by a lessee

at his own expense to property that may not legally be removed. Usually

covered under the tenants property coverage

Incontestable Clause: A clause in a policy providing that a policy has

been in effect for a given length of time (two or three years), the

insurer shall not be able to contest the statements contained in the

application. In life policies, if an insured lied as to the condition of his

health at the time the policy was taken out, that lie could not be used

to contest payment under the policy if death occurred after the time

limit stated in the incontestable clause.

Incurred Losses: The amount of paid claims and loss reserves within a

particular period of time, usually a policy year. Customarily computed as

losses incurred during the period, plus outstanding losses at the end of

the period, less outstanding losses at the beginning of the period

Independent Adjuster: A claims adjuster who provides adjustment

services to insurance companies but is not employed by them

Independent Contractor: An individual or company who has agreed, in

writing, with another party to perform a job or function on behalf of

that party

Inflation Guard Provision: A provision that increases the limit of

insurance by a specified percentage over a specified period of time to

offset inflation costs

Insurability: The condition of the individual wishing to be insured,

including their health, susceptibility to injury and life expectancy.

Insurance: A formal social device for reducing risk by transferring the

risks of several

individual entities to an insurer. The insurer agrees, for a consideration,

to pay for the loss in the amount specified in the contract.

Insurance Policy: The printed form which serves as the contract

between an insurer and an insured.

Insurance to Value: Insurance written in an amount equal to the value of

the property or which meets coinsurance requirements

Insured: The party who is being insured. In life insurance, it is the

person because of his or her death the insurance company would pay out

a death benefit to a designated beneficiary.

Insurer: The insurance company; Party that provides insurance coverage,

typically through a contract of insurance.

Irrevocable Beneficiary: A beneficiary that cannot be changed without

that beneficiary's consent.

Increasing Term Insurance: Term life insurance in which the death

benefit increases periodically over the policy's term. Usually purchased

as a cost of living rider to a whole life policy.