Insurance Glossary - Understanding Common Terms

The Insurance Glossary is divided alphabetically in a quick reference guide to better assist consumers that need to find and understand terms commonly used by insurance companies.  Policy documents contain a number of these terms because they typically define the limitations of risk and liability for the insurance coverage issued.  If you plan to start a new policy or renew your current policy with a different carrier or agency, it is important to review and understand the differences behind individual policy quotes from multiple carriers.  Lower policy premiums may be the result of decreased benefits, higher deductibles, or maximum damages allowed.  It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim in the future.

Select the first letter of the word or term to locate a definition and brief description.  For example, to get help with the terms "Property Damage Coverage" or "Premium", select either the letter ( A ) or ( P ) from the menubar below: 

    123 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Insurance Terms: Glossary Page 'k'


Kenney Rule: Concept permitting a property/casualty insurer to write $2 of new net premiums for each $1 of policyholders surplus.

Keogh (HR 10) Account: An account to which a self-employed person can make annual tax deductible contributions and which may be withdrawn without penalty after the age of 59 1/2. Income generated in the account accumulates tax-deferred.

Key-Person Insurance: Insurance designed to protect a business firm against the loss of income resulting from the death or disability of a key employee.


Insurance Quotes

Insurance Information