Insurance Terms
Improvements And Betterments: Permanent alterations which a tenant makes
to the rented property which will not be removed when the tenant leaves.
Inception Date: See Effective Date.
Indemnitor: In a Surety agreement, one who agrees to reimburse the surety for
any loss it may suffer from having bonded the principal.
Indemnity: A principle of insurance which provides that when a loss occurs, the
insured should be restored to the approximate financial condition occupied
before the loss occurred, no better, no worse.
Indemnity Bond: A License bond which holds the government harmless from
injuries or damages caused by the principal’s activities.
Independent Insurance Agent: One who represents more than one company,
sells and services the insurance solely on a commission or fee basis under
contract, and is recognized to own the business produced.
Indirect Damage: Loss resulting as a consequence of physical damage to
property.
Indirect Loss: Loss which is a result or consequence of a direct loss.
Inflation Guard: A property insurance option which provides that the policy
limits will increase a certain percentage at regular intervals, for instance,
annually.
Inland Marine Insurance: A form of insurance originally designed as an
extension of marine coverage to insure transportation of goods over land.
Today, it covers, in addition to goods in transit, a variety of portable property.
Insolvency Bond: Fiduciary bonds that are required of persons appointed to
conserve remaining assets and protect creditors.
Installation Form: An uncontrolled Inland Marine form that covers property in
transit and at premises where an installation is to be made.
Instrumentalities Of Transportation And Communication: A category of
Inland Marine insurance covering such property as bridges, tunnels,
pipelines, etc.
Insurable Interest: Any actual, lawful and substantial economic interest in the
safety or preservation of the subject of the insurance from loss, destruction or
pecuniary damage or impairment. A claim may be paid only when an
insurable interest exists.
Insurance: A contract whereby one undertakes to indemnify another or pay or
allow a specified amount or a determinable benefit upon determinable
contingencies.
Insurance Service Office (ISO): An organization made up of member
companies, which collects and analyzes statistics collected from members
and then establishes and files standard rates for many lines of insurance. Also
develops standardized forms.
Insured: Also referred to as the policyholder. The person, business or other
entity that is covered by the policy.
Insurer: The insurance company.
Insuring Agreement: The section of an insurance policy which states which
losses will be indemnified, what property is covered, which perils are insured
against.
Invoice: A bill for providing coverage.
