- Peril
- The specific cause of a loss — such as fire, theft, windstorm, or hail — that an insurance policy may either cover or exclude.
- Endorsement (Rider)
- A written amendment attached to a policy that adds, removes, or modifies coverage terms without rewriting the entire contract.
- Passing Score
- The minimum result required to pass the licensing exam, which is set at 70 percent of the 150 scoreable questions administered within the 150-minute time limit.
- All-Lines Adjuster
- A license that authorizes an adjuster to investigate, evaluate, and settle claims across multiple insurance lines — including property, casualty, and workers' compensation — rather than being restricted to a single line of coverage.
- Claim
- A formal request by a policyholder (or a third party) to an insurer for payment or coverage of a loss that the policy is intended to protect against.
- Insured / Policyholder
- The person or entity that owns an insurance policy and is protected by its coverage; also called the named insured when specifically listed on the policy.
- Deductible
- The fixed amount the insured must pay out of pocket toward a covered loss before the insurer pays the remainder of the claim.
- Indemnity
- The principle that insurance should restore the insured to the same financial position they held before a loss — no better and no worse — preventing profit from a claim.
- Actual Cash Value (ACV)
- The value of damaged property calculated as its replacement cost minus depreciation for age, wear, and obsolescence.
- Replacement Cost Value (RCV)
- The cost to repair or replace damaged property with new property of like kind and quality, without any deduction for depreciation.
- Subrogation
- The insurer's right, after paying a claim, to step into the insured's shoes and pursue recovery from the third party who was legally responsible for the loss.
- Proof of Loss
- A formal, usually sworn statement the insured submits to the insurer documenting the details and dollar amount of a claimed loss.