Insurance Concept of the Week: Subrogation

Each week we will post and define an industry term or concept for our readers.

Subrogation is the transfer of your rights to the insurance company to sue or seek recovery from a third party. For example, if you get into an auto accident and your car is damaged, your insurance company will take care of repairing your vehicle. Then, on your behalf, your insurer will collect from the at-fault party to cover the cost of the repairs, and even get your deductible back in some cases.  

Insurance Concept of the Week: Comprehensive Coverage/Open Perils

Each week we will post and define an industry term or concept for our readers.

Home insurance policies cover different causes of loss (i.e. hail, fire, windstorm, etc.). An insurance policy that covers all causes of loss, except those specifically listed as an exclusion, provide what is called comprehensive or open perils coverage. Policies may be written in different ways and with different loss coverage. It's best to speak with your agent if you have questions about your specific policy and what it protects against.

Insurance Concept of the Week: Bodily Injury Liability

Each week we will post and define an industry term or concept for our readers.

Our article on the passing of Daniel's Law earlier in the week (link here) looked at new legislation that will provide stricter penalties in PA for accidents that are the result of texting while driving. Bodily injury liability is a required coverage in PA, and relates to the aforementioned blog post.

Bodily injury liability pays others when an insured is responsible for causing injuries; these can include medical, rehabilitation expenses, and non-economic damages. The state-required minimums for this coverage are $15,000 per person and $30,000 in aggregate. However, when possible, we always recommend our clients carry more than the state minimum. This is one of the most important coverages you carry to protect you and your family's personal assets.

Insurance Concept of the Week: Judgement Rates

Each week we will post and define an industry term or concept for our readers.

To conclude our discussion of rates, judgement rates are determined and applied to individual insureds by the insurance company. Judgement rates are used for commercial insurance. Each insured is evaluated on its own merits and chance of loss.

Check out all our posts on rates: 

1. What is a rate (link here)
2. Manual/class rates (link here)
3. Merit rates (link here)

Insurance Concept of the Week: Merit Rates

Each week we will post and define an industry term or concept for our readers.

To continue our discussion on rates, a merit rate considers the characteristics of a particular risk, and depending on those characteristics a premium can be increased or decreased. Merit rates take into consideration a person's loss history, as well as steps he/she has taken to prevent loss, such as installing a smoke detector in a home.

Check out our previous posts on: (1) what is a rate (link here), and (2) manual/class rates (link here).

Insurance Concept of the Week: Manual or Class Rates

Each week we will post and define an industry term or concept for our readers.

Continued from last week's discussion on rates (link here), manual or class rates group insureds into classes based on similar characteristics. These classes receive the same rate. Manual rates are often used as the starting point for developing merit rates, which we will look at next week.

Insurance Concept of the Week: Rate

Each week we will post and define an industry term or concept for our readers.

There has been a lot of coverage in the news recently about insurance rates. So, we are going to use the next few "Concept of the Week" posts to look more closely at insurance rates and how insurance companies arrive at them.

A rate is a price per unit, and it is used to determine the total premium of an insurance policy. Rates establish a price structure to cover claims and other insurer expenses, as well as provide profit for the insurer.

Next week we will start looking at some of the different types of rates used by insurers.

Insurance Concept of the Week: Commercial Package Policy

Each week we will post and define an industry term or concept for our readers.

A commercial package policy is a business insurance policy that includes multiple coverage parts. It is beneficial for the insured because it minimizes gaps in coverage, and often it includes package discounts that lower the total premium for the customer. Examples of coverages usually included in a commercial package policy are: commercial property, general liability, and commercial automobile insurance.

Give us a call to find out more about our commercial offerings.

Insurance Concept of the Week: Insurance Adjuster

Each week we will post and define an industry term or concept for our readers.

This term was mentioned in our post on drones (link here), earlier in the week. An insurance adjuster is an agent who conducts an investigation to obtain information on a reported claim. An adjuster is also responsible for assessing the amount of compensation an insured should receive for a particular claim.

Insurance Concept of the Week: Term Insurance

Each week we will post and define an industry term or concept for our readers.

Because September is Life Insurance Awareness Month, we thought we'd participate with a related Concept-of-the-Week post.

Term insurance provides life insurance protection for a designated number of years - anywhere from one to thirty. It accumulates no cash values and expires with no value at the end of the term; however, it is less costly than permanent forms of insurance. As a benefit, term insurance can be written as renewable or convertible - meaning the policy can be renewed or converted (to permanent insurance) without proof of insurability.

Please let us know how we may help with your life-insurance questions.