GLOSSARY OF TERMS

S TERMS

Secondary Beneficiary: An alternate beneficiary designated to receive

payment, usually in the event the original beneficiary predeceases the

insured.

Short-Term Cancellation: Cancellation of an insurance policy prior to the

expiration date in which a penalty in the form of a less than full pro-

rata premium refund is allowed

Single Premium Policy: A whole life policy for people who want to buy a

policy for a one-time lump sum, and then be covered for the rest of

their lives without paying any additional premiums.

Special Causes of Loss Form: A cause of loss form providing coverage

from all causes of loss unless specifically excluded or limited

Specified Causes of Loss Coverage: Auto physical damage coverage only

for losses caused by the perils listed in the policy

Sprinkler Leakage Coverage: Coverage for property damage caused by

the accidental discharge or leakage of water from automatic sprinkler

systems or other fire prevention devices

Surplus Lines Insurance: Insurance written by insurers not licensed in

the states where the risks are located and placed with such insurers

under the surplus line laws of the various states. Before such

placements can be made through specially licensed surplus line agents

and brokers, state laws generally require evidence reported before some

predetermined future date ('sunset')