Glossary

Agent - An agent is a person who sells and services insurance policies. Agents must be licensed by the Florida Department of Financial Services to sell insurance in Florida.

Authorized Insurer - An authorized insurer is an insurance company that has a Certificate of Authority from the Department of Financial Services to operate in Florida.

Commercial Liability - Commercial liability is an insurance policy written for businesses to cover negligent acts that cause injury or damage to persons or property unrelated to the business.

Deductible - A deductible is the amount that a policyholder must pay before the insurance company pays.

Domestic Insurer - A domestic insurer is an insurance company formed under Florida laws.

Florida Life and Health Insurance Guaranty Association (FLAHIGA) - FLAHIGA is an association whose members are all life and health casualty companies authorized to operate in Florida that pays a company’s claims if it becomes insolvent and cannot pay them.

Foreign Insurer - A foreign insurer is an insurance company formed under the laws of a state other than Florida, but which offers policies in Florida.

Group Insurance - Group insurance is an insurance policy written on a group of people under a single master policy.

Insured - The insured are persons and items covered under an insurance policy.

Insurer - The insurer is the company that provides the insurance.

Liability Limits - The liability limit is the maximum amount of benefits your insurance company will pay for liability claims or losses.

Loss - A loss is an occurrence or event resulting in damage or destruction of property, injury or death. A policy may cover, limit or exclude certain losses depending on the terms of the policy.

Named Perils - Named perils are specific, named causes of losses that are covered in a property policy. Some examples are fire, windstorm, theft and smoke damage.

Pool - A pool is an organization of insurers that band together to write insurance jointly for applicants who are unable to get coverage through ordinary methods.

Preferred Provider Organization (PPO) - A PPO offers another kind of provider network to meet the health care needs of consumers. A traditional insurance carrier provides the health benefits. An insurer contracts with a group of health care providers to control the cost of providing benefits to consumers. These providers charge lower-than-usual fees because they require prompt payment and serve a greater number of patients. Consumers usually choose who will provide their health services, but pay less in coinsurance with a preferred provider than with a nonpreferred provider.

Risk - Risk is a chance of loss to insured persons, liabilities or properties.

Risk Management - Risk management is the management of the various risks that might affect a business. Its purpose is to identify potential loss situations and to control or reduce them through safety and insurance programs.

Third-Party Administrator - A third-party administrator is a business licensed by the Department of Financial Services to handle claims for insurance companies of self-insured programs.

Unauthorized Insurer - An unauthorized insurer is an insurance company not issued a Certificate of Authority to do business in a particular state.