Indemnify: To restore the victim of a loss, in whole or in part, by payment, repair or replacement.
Indemnity Bond: A bond which indemnifies the obligee against loss which arises as a result of failure on the part of a principal to perform.
Indemnity Health Plan: A health insurance plan where the individual pays a pre-determined percentage of the cost of health care services. The health plan pays the other percentage. Also called "fee-for-service."
Independent Contractor: One who agrees to perform according to a contract and who is not an employee.
Inherent Vice: A defect or cause of loss arising out of the nature of the goods in question.
Insurability: The acceptability of an insurance applicant based on a number of factors such as age, health, occupation, financial status, etc.
Insurable Risk: A risk which meets most of the following requisites: (1) The loss insured against must be defined; (2) It must be accidental; (3) It must be large enough to cause hardship to the insured; (4) It must belong to a homogenous group of risks large enough to make losses predictable; (5) It must not be subject to the same loss at the same time as a large number of other risks; (6) The insurance company must be able to determine a reasonable cost for the insurance; (7) The insurance company must be able to calculate the chance of loss.
Insurance: Financial protection against loss or harm. An agreement by which a company provides a customer with financial protection against loss or harm in return for the customer regularly paying a premium.
Insured: An individual or object covered by insurance, also referred to as a "policyholder."
The above information is for general informational purposes only and is not to be construed as a recommendation or advice in any way shape or form.
Copyright 2009 Stephen W. Gersh Insurance Agency, Inc. All rights reserved.