Glossary N - Q

Nonpayment of Premium

Failure by the policyholder to pay the premium on a policy or pay the installment premium payments due on a policy.

Nonrenewal

The termination of an insurance policy on its normal expiration date.

Occurrence

A liability insurance policy that covers claims arising out of occurrences that take place during the policy period, regardless of when the claim is filed.

Peril

Cause of loss.

Personal Lines

Insurance written on the personal and real property of an individual (or individuals) to include such policies as homeowners insurance and personal auto insurance as contrasted with commercial lines.

Policy

A contract that states the rights and duties of the insurance company and the insured.

Premium

The monetary payment that an insured makes to an insurance company in exchange for the contract indemnifying the insured against potential loss. Simply put, this is the payment made by the insured to keep an insurance policy in effect.

Producer

A term used by the insurance industry to refer to agent, brokers, broker-agents, and solicitors.

Pro Rate Cancellation

A cancellation of a policy by an insurance company that returns the unearned premium to the policyholder (the portion of the premium for the remaining time period that the policy will not be in force).

Provisions

The statement of policy conditions in an insurance policy.

Public Adjuster

A licensed person or organization that represents the policyholder by contract in property damage claims negotiations with an insurance company.

Quotation (Quote)

An estimate of the cost of insurance based on the information supplied to the agent, broker-agent, or the insurance company.

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