glossary of common insurance terms:

1. **Policyholder**: The individual or entity who owns an insurance policy and is entitled to receive
the benefits outlined in the policy.

2. **Premium**: The amount of money paid by the policyholder to the insurance company in
exchange for insurance coverage.

3. **Deductible**: The portion of an insurance claim that the policyholder is responsible for paying
out of pocket before the insurance company starts covering the remaining expenses.

4. **Coverage**: The scope of protection provided by an insurance policy, including the types of
risks or losses that are included or excluded from the policy.

5. **Beneficiary**: The person or entity designated to receive the benefits or proceeds of an

insurance policy in the event of the policyholder's death or other covered loss.

6. **Claim**: A formal request made by the policyholder to the insurance company to receive
compensation for a covered loss or damage.

7. **Underwriting**: The process of evaluating and assessing the risk associated with insuring an
individual or entity, including determining premium rates, coverage limits, and policy terms.

8. **Policy Term**: The duration for which an insurance policy is in effect, specifying the start and
end dates of coverage.

9. **Exclusion**: Specific risks, conditions, or circumstances that are not covered by an insurance
policy, resulting in the policyholder being responsible for any related losses or expenses.

10. **Endorsement**: A written amendment or modification to an insurance policy that changes or

adds coverage, terms, conditions, or exclusions.

11. **Rider**: An additional provision or endorsement attached to an insurance policy to provide

supplementary coverage for specific risks or circumstances.
12. **Insured Value**: The monetary amount or value assigned to the property, asset, or individual
covered by an insurance policy, representing the maximum amount the insurer will pay in the event
of a covered loss.

13. **Loss Ratio**: The ratio of incurred losses (claims paid out) to earned premiums (premiums
collected), used by insurers to measure profitability and risk exposure.

14. **Actuary**: A professional trained in mathematics, statistics, and risk assessment who analyzes
data and calculates insurance premiums, reserves, and other financial metrics to help insurers
manage risk and set pricing.

15. **Reinsurance**: The process by which insurance companies transfer a portion of their
insurance liabilities to other insurers, known as reinsurers, to spread risk and protect against large
losses.

This glossary provides a basic understanding of key insurance terminology, but it's essential to
consult the specific terms and conditions outlined in individual insurance policies for comprehensive
coverage details.