What Does Insurance “Jargon” Mean?
We all buy some kind of insurance, but how well do we understand what we’re really purchasing?
Insurance policies generally aren’t fun to read and the terminology can sound like a foreign language. For example, what is the difference between an “occurrence” and a “loss”? And if a vehicle is described as “salvage,” exactly what does that mean?
The National Association of Insurance Commissioners (NAIC)
The NAIC is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. NAIC members are the elected or appointed state government officials who, along with their departments and staff, regulate the conduct of insurance companies and agents in their respective state or territory.
NAIC Glossary of Insurance Terms
The NAIC has developed a glossary of insurance terms and definitions that are commonly used in the insurance business. The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references.
These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable. New terms will be added to the glossary over time.
The Insurance Information Institute (I.I.I.)
The mission of the Insurance Information Institute (I.I.I.) is to improve public understanding of insurance — what it does and how it works.
For almost 60 years, the I.I.I. has provided definitive insurance information. Today, they are recognized by the media, governments, regulatory organizations, universities and the public as a primary source of information, analysis and referral concerning insurance.
The I.I.I. also publishes a host of helpful pamphlets and books ranging in subjects from 9 Ways to Lower Your Auto Insurance Costs to the I.I.I. Insurance Fact Book. They are an industry supported organization but do not lobby.