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Independent Insurance Agents Association<br/>of Montana, Inc.
Independent Insurance Agents Association
of Montana, Inc.
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AAI = See Accredited Advisor in Insurance. Also Alliance of American Insurers. 

AAIS = See American Association of Insurance Services.

AIA = See American Insurance Association.

AICPCU = See American Institute for CPCU.

ARIA = See American Risk and Insurance Association.

ARM = See Associate in Risk Management.

"A" (or Judgment) Rates = Rates that are not backed up by loss experience statistics. They are based on the judgment of the underwriter on an individual risk basis.

Absolute Assignment = Assignment by a policy owner of all control of and rights in the policy to a third party.

Accident = An unplanned event, unexpected and undesigned, which occurs suddenly and at a definite place. See also Occurrence.

Accident Frequency = The rate of the occurrence of accidents, often expressed in terms of the number of accidents over a period of time. It is one method used for measuring the effectiveness of loss prevention services. Contrast with Accident Severity.

Accident Prevention = See Loss Prevention Service.

Accident Severity = A measure of the severity or seriousness of losses, rather than the number of losses. It is measured in terms of time lost from work rather than the number of individual accidents. It is another way of measuring the effectiveness of loss prevention services. Contrast with Accident Frequency.

Accident Year Experience = Measures premiums and losses relating to accidents which occurred during a 12-month period.

Accidental Bodily Injury = An injury sustained accidentally. Only the result need be accidental. Contrast with Accidental Means.

Accidental Means = Unexpected or undesigned cause of an accidental bodily injury. Under a definition of accidental means, the mishap itself must be accidental, not just the resulting injury. An example would be an individual chopping wood: If the axe slipped out of his hand and cut his foot, it would have been accidental means. However, if his finger got in the way of the axe, it would not have been.

Accommodation Line = Business accepted from an agent or broker which would normally be rejected according to strict underwriting standards but which is accepted because of the overall profitability of the agent's or customer's other business. As an example, an insurer might accept coverage on property that would not normally meet its underwriting standards, if the other lines of insurance which it carries for the customer were profitable.

Account Current = A monthly financial statement provided to an agent by an insurer showing premiums written, cancellations, endorsements, and commissions.

Acquisition Cost = The expenses incurred by an insurer or reinsurance company that are directly related to putting the business on the books of the company. The largest portion of this cost is usually the agent's or sales representative's commission or bonus.

Act of God = An event arising out of natural causes with no human intervention which could not have been prevented by reasonable care or foresight. Examples are floods, lightning, and earthquakes.

Actual Cash Value = An amount equivalent to the replacement cost of lost or damaged property at the time of the loss, less depreciation. With regard to buildings, there is a tendency for the actual cash value to closely parallel the market value of the property. See also Market Value.

Actual Total Loss = See Total Loss.

Actuarial = Having to do with insurance mathematics.

Actuary = A specialist trained in mathematics, statistics, and accounting who is responsible for rate, reserve, and dividend calculations and other statistical studies.

Additional Insured = A person other than the named insured who is protected under the terms of the contract. Usually, additional insureds are added by endorsement or referred to in the wording of the definition of "insured" in the policy itself.

Adhesion = This is a characteristic of a unilateral contract which is offered on a "take it or leave it" basis. Most insurance policies are contracts of "adhesion," because the terms are drawn up by the insurer and the insured simply "adheres." For this reason ambiguous provisions are often interpreted by courts in favor of the insured. Contrast with Manuscript Policy.

Adjuster = A representative of the insurer who seeks to determine the extent of the firm's liability for loss when a claim is submitted. Same as Claim Representative.

Adjuster, Independent = See Independent Adjuster.

Adjuster, Public = See Public Adjuster.

Adjustment Bureau = A firm organized to provide adjustment services to insurers not wishing to create their own claims division.

Admitted (or Allowed) Assets = Assets whose values are permitted by state law to be included in the annual statement of the insurer.

Admitted Company = An insurance company authorized and licensed to do business in a given state.

Advance Payment = Premiums paid in advance of the current policy period, including the amount tendered with an application by an applicant for Life Insurance.

Advance Premium = See Deposit Premium.

Adverse Selection = The tendency of poorer than average risks to buy and maintain insurance. Adverse selection occurs when insureds select only those coverages that are most likely to have losses.

Adverse Underwriting Decision = Any decision involving individually underwriting insurance coverages resulting in termination of existing insurance, declination of an application, or writing the coverage only at higher rates. For property and casualty insurance, it also includes placing the coverage with a residual market mechanism or an unauthorized insurer.

Age Limits = The ages below which or above which an insurer will not write certain forms of insurance or above which it will not continue a policy presently in force.

Agency = An insurance sales office which is directed by a general agent, manager, independent agent, or company manager.

Agency Company = An insurance company that produces business through an agency network. Contrast with Direct Writer.

Agency Contract (or Agreement) = The document which establishes the legal relationship between an agent and an insurer.

Agency Plant = The total force of agents representing an insurer. Agency System = See Independent Agency System.

Agent = One who solicits, negotiates or effects contracts of insurance on behalf of an insurer. His right to exercise various functions, his authority, and his obligations and the obligations of the insurer to the agent are subject to the terms of the agency contract with the insurer, to statutory law, and to common law.

Agent, Independent = See Independent Agent.

Agent, Policywriting = See Policywriting Agent.

Agent, Special = See Special Agent.

Agent, State = See State Agent.

Agent's Appointment = Official authorization from an insurance company granting an agent the authority to act as its agent. In most states, agents must be appointed by at least one insurer in addition to being licensed by the state.

Agent's Authority = The authority and power granted to an agent by the agency contract. The agent is also clothed with additional power under the legal concept of apparent agency. See also Apparent Agency.

Agent's Balance = A periodic statement of the sums due and owed to an agent under the agent's contract with an insurer.

Agent's Commission = The method by which an agent is compensated for placing insurance with a company that he represents. The commission is usually a percentage of the premium for the policy. See also Commission.

Agent's License = A certificate of authority from the state which permits the agent to conduct business.

Agent's Qualification Laws = Education, experience, and other requirements imposed by the state upon persons desiring to be licensed as agents.

Aggregate Limit = Usually refers to Liability Insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents may occur.

Aleatory Contract = A contract in which the number of dollars to be given up by each party is not equal. Insurance contracts are of this type, as the policyholder pays a premium and may collect nothing from the insurer or may collect a great deal more than the amount of the premium if a loss occurs.

Alien Insurer = An insurer formed under the laws of a country other than the United States. A U.S. company selling in other countries is also an alien insurer.

Alienated = In insurance, this term describes property that an insured no longer owns or holds title to. Generally a Public Liability policy will cover the insured's liability for premises alienated by him.

Alliance of American Insurers (AAI) = An association of insurance companies working together in the following areas of common interest: (1) Government affairs affecting insurance; (2) Education of the employees of member companies; (3) Loss prevention, and (4) Other insurance activities.

Allowed Assets = See Admitted Assets.

Ambiguity = Terms or words in an insurance policy which make the meaning unclear or which can be interpreted in more than one way. The general rule of law is that any ambiguity in the policy is construed against the insurer and in favor of the insured. This is because the contract is one of adhesion; that is, the insured must adhere to what the insurer has written. If the insurance does not make its contract clear, it is responsible.

Amendment = A formal document which corrects or revises an insurance master policy. See also Endorsement and Rider.

American Academy of Actuaries = A society concerned with the development of education in the field of actuarial science and with the enhancement of standards in the actuarial field. Members may use the designation MAAA (Member, American Academy of Actuaries).

American Agency System = See Independent Agency System.

American Association of Insurance Services (AAIS) = An association of insurance companies performing various technical functions for its member and subscribers. AAIS is licensed to operate in all states, the District of Columbia, and the Commonwealth of Puerto Rico. AAIS offers program services, files rates, rules and forms on behalf of member and subscriber companies, acts as an official statistical agent, and offers a variety of professional services for its member companies.

American Institute for CPLU = An insurance educational organization which establishes insurance standards and fosters educational work. Properly qualified individuals who pass a series of examinations given by this body receive the designation Chartered Property and Casualty Underwriter (CPCU).

American Insurance Association (AIA) = The informational, educational, technical and legislative organization of the capital stock insurance companies in the Property and Liability fields.

American Lloyd's = See Lloyd's Association.

American Risk and Insurance Association = An association of insurance educators and others interested in insurance study and research.

Amortized Value = The value of bonds purchased by an insurance company which are eligible for amortization. For example, if a 10-year bond were purchased at $50 more than its face value, that $50 would be "amortized" or spread over the 10-year period. Each year the bonds would be valued at $5 less than the year before.

Anniversary = See Policy Anniversary.

Annual Statement = A report to the state insurance department of the year's financial results. The insurer's income and expenses are stated in detail as well as its assets and liabilities.

Anti-Coercion Law = A provision usually contained in a section of the state code entitled "Unfair Trade Practices" or a similar name, declaring the use of coercion to be an unfair practice and, hence, a violation of the state law.

Anti-Selection = See Adverse Selection.

App = A trade expression for the insurance application. See Application.

Apparent Agency = See Presumption of Agency.

Apparent Authority = Authority of an agent that is created when the agent oversteps actual authority, and when inaction by the insurer does nothing to counter the public impression that such authority exists.

Application = A form on which the prospective insured states facts requested by the insurer on the basis of which, together with information from other sources, the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk. See App.

Appointment = See Agent's Appointment.

Apportionment = The method of dividing a loss among insurers in the same proportions as their participation when two of more companies cover the same loss.

Appraisal = An evaluation of property made to ascertain either the appropriate amount of insurance to be written or the amount of loss to be paid.

Approved = The condition which exists when the person or object to be insured meets the underwriting standards of the insurer.

Approved Roof = A term used in building construction. It indicates a roof made of fire-resistive materials, such as tile or asphalt shingles.

Assessed Value = The value of real estate or personal property as determined by a governmental unit, such as a city, for the purpose of determining taxes.

Assessment Company, Society or Insurer = An insurer who retains the right to assess policyholders additional amounts if premiums are insufficient for operations. In some cases, an assessment insurer may not charge a stipulated premium at all but will merely assess participants in the plan a pro rata share of each claim filed plus expenses.

Assets = The items on the balance sheet of the insurer which show the book value of property owned. Under state regulations, not all property or other resources can be admitted in the statement of the insurer. This gives rise to the term "nonadmitted assets." See also Nonadmitted Assets.

Assigned Risk = A risk which is not ordinarily acceptable to insurers and which is, therefore, assigned to insurers participating in an assigned risk pool or plan. Each participating company agrees to accept its share of these risks.

Associate in Risk Management = A professional designation granted by the American Institute for Property and Liability Underwriters to those who have completed a series of examinations.

Association = See Pool and Syndicate.

Assured = Same as Insured.

Assurer = Same as Insurer.

Attorney-In-Fact = The individual who manages a reciprocal insurance exchange and to whom each subscriber gives authority to exchange insurance for him with other subscribers. See also Reciprocal Insurance Exchange.

Audit Bureau = A stamping office. A central office or bureau to which agents and companies send certain daily reports and endorsements for auditing before transmittal to the insurer.

Authorization = The amount of insurance an underwriter says he will accept on a risk of a given class on specific property. It is given for the guidance and information of agents.

Authorized Insurer = An insurer authorized by the state to transact business in that state for specific types of insurance.

Automatic Cover = Coverage given automatically by a policy, usually for a specified period and limited amount, to cover increasing values and newly acquired and changing interests.

Avoidance of Risk = Taking steps to remove a hazard, engage in an alternative activity, or otherwise end a specific exposure. One of the four major risk management techniques. See Risk Management.

Balance Sheet = An accounting term which refers to a listing of the assets, liabilities, and surplus of a company or individual as of a specific date. 

Basic Limit = Usually refers to Liability policies and indicates the lowest amount for which a policy can be written. This amount is either prescribed by law or company policy.

Basic Premium = A fixed cost charged in a retrospective rating plan. It is a percentage of the standard premium and is designed to give the insurer the money needed for administrative expenses and the agent's commission plus an insurance charge. See also Retrospective Rating.

Basic Rate = The manual rate from which discounts are taken or to which charges are added to reflect the individual circumstances of a risk.

Benefits = Financial reimbursement and other services provided insureds by insurers under the terms of an insurance contract. An example would be the benefits listed under a Life or Health Insurance policy or benefits as prescribed by a Workers Compensation law.

Binder = An agreement executed by an agent or insurer (usually the latter) putting insurance into force before the contract has been written or the premium paid. This term is not usually used in Life Insurance. See also Cover note.

Birth Rate = The number of births related to the total population in a given group during a period of time. It is usually expressed as births per 100,000 people in 1 year.

Blanket Contract = See Blanket Insurance.

Book of Business = A total of all insurance accounts written by a company or agent. It may be treated in different ways. For example: an insurer's book of automobile business, or an agent's overall book of business, or an agent's book of business with each insurer.

Book Value = Refers to the value of assets as shown in the official accounting records of the company.

Bordereau = (1) A written report of individual cessions, usually detailed to show such items as reinsurance premiums or reinsurance losses with respect to specific risks. (2) A memorandum containing information concerning documents that accompany it. Used extensively in passing reinsurance from one insurer to another under a reinsurance agreement and by Property and Liability general agents for passing information to various insurers on coverages written.

Borderline Risk = An insurance prospect of doubtful quality from an underwriting point of view.

Boycott = An unfair trade practice which occurs when someone in the insurance business refuses to have business dealings with another until he or she complies with certain conditions or concessions.

Branch Manager = An executive who manages a branch office for an insurer or an agency. See also Regional Office.

Branch Office = See Regional Office.

Brick Construction = Refers to a building where at least 75% of the exterior walls are of some type of masonry construction, i.e., brick, stone or hollow masonry tile, poured concrete or reinforced concrete, or hollow masonry block.

Brick Veneer Construction = Refers to a building where the outside walls are constructed of wood with a facing of a single layer of brick.

Broker = One who represents an insured in the solicitation, negotiation or procurement of contracts of insurance, and who may render services incidental to those functions. By law the broker may also be an agent of the insurer for certain purposes such as delivery of the policy or collection of the premium.

Broker of Record = A broker who has been designated to handle certain insurance contracts for the policyholder.

Brokerage = (1) The fee or commission received by a broker. (2) Insurance placed by brokers contrasted with that placed by agents.

Brokerage Business = Business offered to an insurer by a broker. This is sometimes called excess or surplus business.

Brokerage Department = A department of an insurer whose purpose is to deal with brokers in the placing of insurance.

Broker-Agent = One acting as an agent of one or more insurers and as a broker in dealing with one or more other insurers.

Building Code = This refers to municipal or other governmental ordinances regulating the type of construction of buildings within its jurisdiction.

Bullion = Refers to precious metals, such as gold, in the form of ingots or bars.

Bureau, Rating = See Rating Bureau.

Burning Ratio = The ratio of losses suffered to the amount of insurance in effect.

Business = In Property, Liability, and Health lines, it usually refers to the volume of premiums.

"Buy-Back" Deductible = A deductible which may be eliminated for an additional premium in order to provide "first-dollar" coverage.

CAS = See Casualty Actuarial Society.  

CPCU = See Chartered Property and Casualty Underwriter.

CUNA = Credit Union National Association.

Calendar Year Experience = This measures the premiums and losses entered on accounting records during the 12-month calendar.

Cancellable = A contract of insurance that may be terminated by the insurer or insured at any time. Practically every form of insurance is cancellable, except Life Insurance and those Health Insurance policies designated as a "guaranteed renewable" or "noncancellable and guaranteed renew-able." Some states also regulate when or if Automobile policies can be cancelled.

Cancellation = Termination of a contract of insurance in force by voluntary act of the insurer or insured in accordance with the provisions in the contract or by mutual agreement.

Cancellation, Flat = See Flat Cancellation.

Cancellation, Pro Rata = See Pro Rata Cancellation.

Cancellation, Short-Rate = See Short Rate Cancellation.

Capacity = The largest amount of insurance or reinsurance available from a company. In a broader sense, it can refer to the largest amount of insurance or reinsurance available in the marketplace.

Capital Stock = The shares of ownership in a corporation.

Capital Stock Insurer = See Stock Insurer.

Capital Sum = The maximum lump sum payable in the event of accidental death or dismemberment.

Capital Transaction = The sale of a capital asset, such as stock, which results in the transaction being taxed as ordinary income and not as a dividend.

Captive Agent = One who sells insurance for only one company as opposed to an agent who represents several companies. See also Exclusive Agency System.

Captive Insurer = A legally recognized insurance company organized and owned by a corporation or firm whose purpose is to use the captive to write its own insurance at rates lower than those of other insurers. Usually it is a nonadmitted insurer that has the right, under special circumstances, to reinsure with an admitted insurer.

Carrier = Sometimes used to designate the insurer. The term "insurer" is preferred because of the possible confusion of "carrier" with transportation. See also Insurer.

Cash Flow Plans = Premium payment schemes which allow the insured to retain a large part of the premium and pay it out over a time period such as a year.

Cash Flow Underwriting = The use of rating and premium collection techniques by insurance companies to maximize interest earnings on premiums.

Cash Value = See Actual Cash Value.

Catastrophe Hazard = The hazard of large loss by reason of occurrence of a peril to which a very large number of insureds are subject. An example would be widespread loss due to a hurricane or tornado.

Caveat Emptor = Let the buyer beware.

Certificate of Authority = (1) A certificate showing the powers that an insurer grants to its agents. (2) A certificate issued by a state department of insurance showing the power of an insurer to write contracts of insurance in that state.

Certificate of Convenience = A term used in some jurisdictions to refer to a temporary license or permit empowering a person to act as an agent even though not fully licensed according to the law. Usually this certificate is granted to an agent who is studying for a licensing examination. It might also be issued to the administrator or executor of the estate of an insurance agent, who must have the authority of an agent to settle the estate, or to someone acting for an agent during a disability or an absence such as military duty.

Certificate of Insurance = (1) A statement of the coverage and general provisions of a master contract in group insurance that is issued to individuals covered in the group. (2) A form which verifies that a policy has been written and states the coverage in general, often used as proof of insurance in loan transactions and for other legal requirements.

Charter = Usually the same as articles of incorporation. This is the grant of rights from a state or federal government, such as the right to incorporate and transact business.

Chattel Mortgage = A type of mortgage where the collateral is personal property, rather than land or buildings.

Claim = A demand made by the insured, or the insured's beneficiary, for payment of the benefits provided by the contract.

Claim Expense = The expense of adjusting a claim, such as investigation and attorneys' fees. It does not include the cost of the claim itself.

Claim Report = A report filed by an agent setting forth the facts of a claim. Same as Loss Report.

Claim Representative = See Adjuster.

Claimant = The person making a demand for payment of benefits.

Claims Reserve = Amounts set aside to meet costs of claims incurred but not yet finally settled. An example might be a Workers Compensation case where benefits are payable for several years. At any given point in time, the reserve would be the funds kept based on the estimate of what the claim will cost when finally settled.

Class (or Classification) = A group of insureds having the same general characteristics and who are, therefore, grouped together for rating purposes. Class rates apply to dwellings and apartments, since they usually have the same general characteristics and are exposed to the same perils.

Clause = A section of a policy contract or endorsement dealing with a particular subject. For instance, a Subrogation Clause deals with the rights of the insurer in the event of payment of a loss under the contract.

Close Corporation = A corporate form of business controlled and operated by a small, close group of persons such as family members. The corporation's stock is not sold to outsiders.

Coding = A method of putting information into a numerical form for statistical use. Most information on policies is coded and then put into reports.

Coercion = An unfair trade practice which occurs when someone in the insurance business applies a physical or mental force to persuade another to transact insurance.

Collusion = An agreement, usually secret, between two or more persons to defraud or deprive another or others of their property or rights.

Combined Ratio = The sum of an expense ratio and a loss ratio. An underwriting profit occurs when the combined ratio is under 100% and an underwriting loss occurs when the combined ratio is over 100%.

Commercial Lines = This term is used to refer to insurance for businesses, professionals, and commercial establishments. See also Business Insurance. Contrast with Personal Lines.

Commercial Package Policy (CPP) = A commercial lines policy that contains more than one of the following coverage parts: Commercial Property, Commercial General Liability, Commercial Inland Marine, Commercial Crime, Boiler and Machinery Insurance, Commercial Automobile Insurance, and Farm Coverage.

Commingling = An illegal practice which occurs when an agent mixes personal funds with the insured's or insurer's funds.

Commission = That portion of the premium paid to the agent as compensation for his services. See also First Year Commission, Renewal Commission, Level Commission System, Unlevel Commission System, Contingent Commission and Graded Commission.

Commission of Authority = A document outlining the powers delegated to an agent by an insurer.

Commissioner of Insurance = The title of the head of most state insurance departments. In some states, the title Director or Superintendent of Insurance is used instead.

Commissioners' Values = An annual list of securities published by the NAIC. The values are to be used in recording security values on insurance company balance sheets.

Common Law Liability = Responsibility based on common law for injury or damage to another's person or property which rests on an individual because of his actions or negligence. This is opposed to liability based on statutory law.

Common Policy Conditions = Under the latest commercial lines program, a form including six common conditions which apply to all coverage parts attached to a commercial policy.

Common Policy Declarations = Under the latest commercial lines program, a common declaration page which is part of every commercial policy. It shows information applicable to the entire policy (policy number, insurer, insured, total premium, forms attached, etc.). Each individual coverage part may also have its own declarations page.

Contingency Surplus = See Contingency Reserve.

Contingent Fund = A reserve to cover possible liabilities resulting from an unusual happening.

Continuing Education Requirement = State-level requirement that insurance licensees periodically complete a minimum number of hours of insurance-related education in order to be eligible for license renewal.

Contract = (1) An agreement entered into by two or more persons under which one or more of them agree, for a consideration, to do or refrain from doing acts in accordance with the wishes of the other party(s). (2) In insurance, the agreement by which an insurer agrees, for a consideration, to provide benefits, reimburse losses or provide services for an insured. A "policy" is the written statement of the terms of the contract. (3) An agreement under which an agency or agent does business with an insurer.

Contribution Clause = See Coinsurance Clause. Both are similar in effect, but the term Contribution Clause is identified mostly with Business Interruption forms.

Controlled Business = This term refers to the amount of insurance countersigned, issued or sold by a producer covering the life, property or interests of that producer, members of the producer's immediate family, or the producer's employer or employees. Many states limit the amount of controlled business that may be written, and if the premium or commissions on controlled business exceed a given percentage (usually 10% in New York State, 50% elsewhere) of all business, the producer's license may be suspended, revoked, or not renewed.

Controlled Insurance = (1) See Control. See Control Provision. An insurance account that an agent or broker can control by virtue of his influence with the buyer, as contrasted with controlling it by actual agreement.

Convention = (1) An adjective, as in convention blank, derived from the original name for the National Association of Insurance Commissioners, which was the National Convention of Insurance Commissioners. (2) A gathering of persons, such as personnel of an insurer or members of a trade association, for the purpose of conducting business and/or receiving instruction and sales ideas.

Convention (or Statement Blank) = The uniform annual financial statement required by all United States insurance jurisdictions as prescribed by the National Association of Insurance Commissioners. It must be filed annually in an insurer's home state and every state in which it is licensed to do business. Nearly all insurance accounting practices are geared to it.

Convention Examination = A periodic audit of the books of an insurer by the state in which it is domiciled. Usually such an examination is conducted by the state insurance department with the assistance of representatives from several other state insurance departments.

Convention Values = Values assigned to insurers' assets in the convention blank.

Conversion = (1) Wrongful use of property by one in lawful possession of it. (2) Change of one policy form to another, usually without evidence of insurability. This usually refers to Life or Health Insurance contracts.

Cooperative Insurance = Insurance issued by a mutual association such as a fraternal society, an employee association, an industrial association, or a trade union.

Countersignature = The signature of a licensed agent or representative on a policy.

Countrywide Rates = For each major division of the Commercial Lines Manual, a section called "Countrywide Rates" contains rates and minimum premiums. State rates are used for coverages for which there are no countrywide rates, or to modify countrywide rates.

Countrywide Rules = For each major division of the Commercial Lines Manual, a section called "Countrywide Rules" contains rules and rating factors applicable to coverages in that division.

Court Bond = Any bond required of a litigant to enable him to pursue a remedy in court.

Cover = (1) A contract of insurance. (2) To effect insurance, that is, to "cover" an insured, for instance, for Automobile Insurance effective as of a given time. (3) To include within the coverage of a contract of insurance. For example, one could "cover" additional buildings under a Property Insurance contract.

Cover Note = Similar to a binder, but binders are usually issued by companies and delivered to agents. A Cover Note is usually written by an agent, and it informs the insured that coverage is in effect. See also Binder. In reinsurance, a Cover Note is a statement issued by an intermediary or broker indicating that coverage has been effected.

Coverage = The scope of the protection provided under a contract of insurance.

Coverage Part = Any one of the individual commercial coverage parts that may be attached to a commercial policy. Under the latest commercial lines program, a coverage part may be issued as monoline policy or may be combined with others as part of a package policy.

Covered Loss = Illness, injury, death, property loss, legal liability, or any other situation or loss for which an insurance company will pay benefits under a policy when such event occurs.

Credit Report = A confidential report made by an independent individual or organization that has investigated the reputation and record of an applicant for insurance.

Criticism = A correction suggested by a rating or auditing bureau to an insurer.

Currently Insured Status = A provision of OASDHI. The requirements for being "currently insured" are less than those for being "fully insured," and the former entitles a worker's dependents to survivor benefits in the event of his death. Contrast with Fully Insured.

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Serving the People of Montana since 1932. If you pass us by, we both lose!

Independent Insurance Agents Association of Montana, Inc.
3131 Dredge Drive · Helena, MT 59602
Tel: 406-442-9555  ·  Fax: 406-442-8263
Email:
info@iiamt.org

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