Pre-Existing Condition
A condition of health or physical condition that existed before the policy was issued.

Policy Owner
The person who has the right to exercise the rights and privileges in the policy contract. Such person may or may not be the insured, depending on policy ownership and assignment, if any.

Pro Rata
Distribution of the amount of insurance in one policy, among the several objects or places covered, in proportion to their value or to the amounts shown. The distribution of liability among the several insurance companies having policies on the risk.

Liability Coverage
This coverage pays for losses to other people and their property caused by negligence on your part.

Whole Life Insurance
Cash value life insurance which combines protection against premature death with a savings account. Premiums are at fixed rates and guaranteed and remain the same throughout the life of the policy.

Endowment Insurance
A form of life insurance payable to the insured if living at the end of the endowment period or to a beneficiary if the insured dies before the endowment date.

Catastrophe Deductible
A percentage or amount that a homeowner must pay before the insurance policy goes into effect following a major natural disaster.

Deductible
The deductible is the amount you agree to pay on each loss before your insurance company pays.

Business Interruption Insurance
Coverage that reimburses a business owner for lost profits and expenses during the time a business is closed while being restored due to physical damage caused by a covered peril. Business interruption insurance may also cover financial losses that occur if civil authorities limit access to the area your business is located after a disaster.

No-Fault
Auto insurance coverage which pays for each driver’s own injuries, despite who was responsible for the accident. No-fault coverage varies with each state.