Dictionary

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Incorporeal Right

A nonpossessory right in real estate like an easement right of way.

Indemnify

To restore the insured financially after a loss, or to make them “whole.” For example, a Basic Medical Expense policy might cover your room and board in the hospital up to $1,000 a day. If your bill for one day is $900, the company will pay it all. However, if your bill is $1,100, the company will only pay $1,000. The company will pay the policy limit or the amount of the claim, whichever is less.

Indemnity

Insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss. The intent is to cover the amount of the actual loss only and to avoid paying amounts that allow someone to profit from a loss situation. This is known as the Principle of Indemnity.

Independent Contractor

Someone retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not as to the way on which he or she performs the act. Unlike an employee, an independent contractor pays for all their expenses, Social Security, and income taxes and receives no employee benefits. Most real estate salespeople are independent contractors.

Index

A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. A margin is added to the index to determine the interest rate that will be charged on the ARM. This interest rate is subject to any caps that are associated with the mortgage.

Indirect Loss

Loss that is a result or consequence of a Direct Loss.

Individual Contract

A contract of Health insurance made with an individual that covers her and, in certain instances, specified members of the household. In general, any insurance policy except Group or Blanket.

Industrial Life

Life insurance generally with a face amount of less than $1,000, with premiums collected weekly by the producer in person. The grace period for this type of insurance is 28 days. Also known as “Home Service” Life insurance. There are three types of Life insurance: Ordinary (which includes Whole Life, Term and Endowment), Group and Industrial.

Inflation

An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services. Over time, inflation reduces the purchasing power of a dollar, making it worth less.

Infrastructure

Roads, highways, sewage and drainage systems, and utility facilities necessary to support a concentration of population.