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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:
Insurance Terms: Glossary Page 'v'
Variable Annuity:
(1) An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor. (2) An annuity under which the benefit varies according to the investment results of a life insurance company's separate account (usually invested primarily in common stocks).
Variable Life Insurance:
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.
Verbal Threshold:
In no-fault auto insurance states with a verbal threshold, victims are allowed to sue in tort only if their injuries meet certain verbal descriptions of the types of injuries that render one eligible to recover for pain and suffering.
Vest:
A provision that a pension participant will, after meeting certain requirements, retain a right to all or part of the accrued benefits, even though the employee may leave the job before retirement.
Vested Commissions:
Renewal commissions payable to the writing agent or his estate, whether or not he remains with the company.
Viatical Settlement:
Payment of a portion of the proceeds from life insurance to an insured who is terminally ill.
Voluntary Market:
The market where one seeking insurance obtains insurance in the open market with no help from the state, through an insurer of his or her own selection.
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