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Insurance Glossary H - J
H
Hazard – A circumstance that increases the likelihood of a loss.
Hazard, Moral – The effect of a person’s reputation, character, living habits, etc. on his/her insurability.
Hazard, Morale – The effect a person’s indifference concerning loss has on the risk to be insured.
Hazard, Physical - A type of hazard that arises from the physical characteristics of an individual, such as a
physical disability due to either current circumstance or a condition present at birth.
Health Insurance – Protection against loss due to sickness or bodily injury.
Health Maintenance Organization (HMO) – A prepaid medical service plan in which specified medical
service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
Health Reimbursement Arrangement (HRA) - An employer-established benefit plan. These may be offered
in conjunction with other employer-provided health benefits. Employers have complete flexibility to offer various
combinations of benefits in designing their plan. You do not have to be covered under any other health care
plan to participate. HRAs are funded solely through employer contributions and may not be funded through
employee salary deferrals under a cafeteria plan. Self-employed persons are not eligible for an HRA. Certain
limitations may apply if you are a highly compensated participant. Distributions from an HRA must be paid to
reimburse you for qualified medical expenses you have incurred. The expense must have been incurred on or
after the date you are enrolled in the HRA.
Health Savings Accounts (HSAs) - Plans designed to help individuals save for qualified health expenses.
Home Health Agency – An entity certified by the insured’s health plan that provides health care services
under contract.
Home Health Care – Type of care in which part-time nursing or home health aide services, speech therapy,
physical or occupational therapy services are given in the home of the insured.
Home Health Services – A covered expense under Part A of Medicare in which a licensed home health
agency provides home health care to an insured.
Hospice – A facility for the terminally ill that provides supportive care such as pain relief and symptom
management to the patient and his/her family. Hospice care is covered under Part A of Medicare.
Hospital Confinement Rider – An optional disability income rider that waives the elimination period when an
insured is hospitalized as an inpatient.
I
Implied Authority – Authority that is not expressed or written into the contract, but which the agent is
assumed to have in order to transact the business of insurance for the principal.
Income Replacement Contracts – Policies which replace a certain percentage of the insured’s pure loss of
income due to a covered accident or sickness.
Indemnify – To restore the insured to the same condition as prior to loss with no intent of loss or gain.
Illustration – A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and
nonguaranteed elements.
Insurability – The acceptability of an applicant who meets an insurance company’s underwriting requirements
for insurance.
Insurable Interest – A financial interest in the life of another person; a possibility of losing something of value
if the insured should die. In life and health insurance, insurable interest must be stated at the time of policy
issue.
Insurance – A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured)
against a loss by a specified future contingency or peril in return for payment of a premium.
Insured – The person or organization that is protected by insurance; the party to be indemnified.
Insurer – An entity that indemnifies against losses, provides benefits, or renders services (also known as
"company" or "insurance company").
Insuring Clause – A general statement that identifies the basic agreement between the insurance company
and the insured, usually located on the first page of the policy.
Integrated LTC Rider – A rider that is added to a life insurance policy to pay log-term care benefits. The
amount of benefits available for LTC depends upon the life insurance benefits available; however, the benefits
paid toward LTC will reduce the life insurance policy’s benefits.
Intentional Injury – An act that is intended to cause injury. Self- inflicted injuries are not covered under
accident insurance; intentional injuries inflicted on the insured by another are covered.
Intermediaries – Organizations that process inpatient and outpatient claims on individuals by hospitals,
skilled nursing facilities, home health agencies, hospices and certain other providers of health services.
Intermediate Care – A level of care that is one step down from skilled nursing care; provided under the
supervision of physicians or registered nurses.
Investigative Consumer Report – A report similar to consumer report, but one that also provides
information on the consumer’s character, reputation and habits.
Issue Age – The individual’s age when a policy is issued.
J
Joint Life – A single policy that is designed to insure two or more lives.
Juvenile Life – Any life insurance written on the life of a minor.
H
Hazard – A circumstance that increases the likelihood of a loss.
Hazard, Moral – The effect of a person’s reputation, character, living habits, etc. on his/her insurability.
Hazard, Morale – The effect a person’s indifference concerning loss has on the risk to be insured.
Hazard, Physical - A type of hazard that arises from the physical characteristics of an individual, such as a
physical disability due to either current circumstance or a condition present at birth.
Health Insurance – Protection against loss due to sickness or bodily injury.
Health Maintenance Organization (HMO) – A prepaid medical service plan in which specified medical
service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
Health Reimbursement Arrangement (HRA) - An employer-established benefit plan. These may be offered
in conjunction with other employer-provided health benefits. Employers have complete flexibility to offer various
combinations of benefits in designing their plan. You do not have to be covered under any other health care
plan to participate. HRAs are funded solely through employer contributions and may not be funded through
employee salary deferrals under a cafeteria plan. Self-employed persons are not eligible for an HRA. Certain
limitations may apply if you are a highly compensated participant. Distributions from an HRA must be paid to
reimburse you for qualified medical expenses you have incurred. The expense must have been incurred on or
after the date you are enrolled in the HRA.
Health Savings Accounts (HSAs) - Plans designed to help individuals save for qualified health expenses.
Home Health Agency – An entity certified by the insured’s health plan that provides health care services
under contract.
Home Health Care – Type of care in which part-time nursing or home health aide services, speech therapy,
physical or occupational therapy services are given in the home of the insured.
Home Health Services – A covered expense under Part A of Medicare in which a licensed home health
agency provides home health care to an insured.
Hospice – A facility for the terminally ill that provides supportive care such as pain relief and symptom
management to the patient and his/her family. Hospice care is covered under Part A of Medicare.
Hospital Confinement Rider – An optional disability income rider that waives the elimination period when an
insured is hospitalized as an inpatient.
I
Implied Authority – Authority that is not expressed or written into the contract, but which the agent is
assumed to have in order to transact the business of insurance for the principal.
Income Replacement Contracts – Policies which replace a certain percentage of the insured’s pure loss of
income due to a covered accident or sickness.
Indemnify – To restore the insured to the same condition as prior to loss with no intent of loss or gain.
Illustration – A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and
nonguaranteed elements.
Insurability – The acceptability of an applicant who meets an insurance company’s underwriting requirements
for insurance.
Insurable Interest – A financial interest in the life of another person; a possibility of losing something of value
if the insured should die. In life and health insurance, insurable interest must be stated at the time of policy
issue.
Insurance – A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured)
against a loss by a specified future contingency or peril in return for payment of a premium.
Insured – The person or organization that is protected by insurance; the party to be indemnified.
Insurer – An entity that indemnifies against losses, provides benefits, or renders services (also known as
"company" or "insurance company").
Insuring Clause – A general statement that identifies the basic agreement between the insurance company
and the insured, usually located on the first page of the policy.
Integrated LTC Rider – A rider that is added to a life insurance policy to pay log-term care benefits. The
amount of benefits available for LTC depends upon the life insurance benefits available; however, the benefits
paid toward LTC will reduce the life insurance policy’s benefits.
Intentional Injury – An act that is intended to cause injury. Self- inflicted injuries are not covered under
accident insurance; intentional injuries inflicted on the insured by another are covered.
Intermediaries – Organizations that process inpatient and outpatient claims on individuals by hospitals,
skilled nursing facilities, home health agencies, hospices and certain other providers of health services.
Intermediate Care – A level of care that is one step down from skilled nursing care; provided under the
supervision of physicians or registered nurses.
Investigative Consumer Report – A report similar to consumer report, but one that also provides
information on the consumer’s character, reputation and habits.
Issue Age – The individual’s age when a policy is issued.
J
Joint Life – A single policy that is designed to insure two or more lives.
Juvenile Life – Any life insurance written on the life of a minor.
| Trout Insurance is a full line insurance agency located in Asheville, NC. Trout Insurance offers life, health, disability, Medicare supplement, long term care insurance home and auto insurance for individuals as well as college funding and retirement planning. Christopher Smith, Dave Trout, Jan Trout and Ralph Redpath are independent insurance agents with Trout Insurance. Christopher Smith specializes in group health insurance, employee benefits, insurance needs for business owners, key person disability insurance, disability buy out insurance, individual life insurance, short term health insurance, disability insurance, long term care insurance, group long term care insurance and critical illness insurance. Dave Trout specializes in life and disability insurance, Medicare supplement insurance, retirement planning for individuals and businesses, commercial business insurance and college funding. Jan Trout specializes in individual health insurance. Ralph Redpath specializes in home and auto coverage. Web site design by Christopher Smith. Agency photo by Jason Sanford. |
