Insurance Glossary - Understanding Common Terms

Our glossary is divided alphabetically by insurance term in a quick reference guide to assist understanding the language commonly used by insurance companies. Policy documents contain a number of these terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.

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 policy differences behind individual quotes from multiple carriers.  Lower policy premiums may be the result of decreased payout 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 for loss or damages 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 "Automobile Liability Insurance" or "Premium", select either the letter A or P from the menubar below: 

Insurance Glossary: Terms that Begin with the Letter '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An account to which a self-employed person can make annual tax deductible contributions and which may be withdrawn without penalty after the age of 59 1/2.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.