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
Safe Burglary Policy

A Crime insurance policy that is designed to cover burglary of property from a safe or the felonious removal of the entire safe from the premises.


Property taken over by an insurance company to reduce its loss. The company may dispose of salvage property as it wishes, but on request and proper reimbursement, may return it to the insured.


A list of specified amounts payable for surgical procedures on Basic Medical Expense policies. Some policies utilize a Relative Value Schedule, where they only show a dollar limit for the most serious surgery covered and all other surgeries are covered “relative” (or as a %) to that amount.

Second-Injury Fund

A fund established under Workers’ Compensation laws in most states to help pay any increased compensation that may result when an employee with a previous injury is injured again.

Self-Inflicted Injury

An injury to the body of the insured inflicted by the insured, usually not covered on Health insurance. On Life insurance, although insurers do not want to cover suicide, most states require it to be covered after the policy has been in force for two years (one year in Colorado). However, if an insured dies as a result of suicide within the first two years, the premiums paid are refunded to the beneficiary.

Service Plans

An arrangement by a pre-paid Health Services Organization to pay certain providers of health-care services directly for rendering approved services to covered persons. HMOs are the best known — but not the only — form of pre-paid service plans.

Settlement Option

The method of receiving Life insurance proceeds. Generally, there are five Life insurance Settlement Options: Cash, Interest, Fixed Period, Fixed Amount or the beneficiary may use the proceeds of the policy to purchase an Annuity (remember the acronym of C-I-F-F-A). Proceeds paid to the beneficiary of a Life policy are tax free. However, if the beneficiary selects the Interest Option, the interest received will be taxable to the beneficiary.

Short Rate

A percentage penalty charged on insurance, canceled by the insured, before the end of the policy period. Return premium is calculated on a Short-Rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses.

Short Term Disability

A form of disability income insurance paying benefits which is usually written on a group basis with short waiting periods (often seven days) and short benefit periods (often six months).

Sickness Insurance

A generic name for Health insurance covering loss by illness or disease. Illness or disease does not include accidental bodily injury. Sickness insurance may provide benefits for loss of time or expense incurred by pregnancy. Watch out on the state exam for these definitions! Health insurance is a broad term that includes Medical Expense, Disability Income and AD&D insurance. Disability insurance is just another name of Health insurance. However, Disability Income insurance is a specific type of Health insurance.