Policies are full of insurance terms that can be overwhelming. Here's a short list of terms and definitions to help you understand your policy better.

  • Deductible 
    • the amount paid out of pocket by the policy holder before the insurance provider pays expenses
  • Endorsement 
    • a change to a policy. It is usually added to an existing policy to change the policy's coverage or update policyholder information
  • Surplus Lines 
    • Surplus Lines, aka "Non-admitted or Excess & Surplus Lines - E&S," is typically used for perils or locations difficult to place in the traditional (Admitted) market.
    • Admitted insurers are protected by the state's guaranty (insolvency) fund. Surplus Lines carriers are not backed by state guaranty funds.
    • Surplus Lines carriers to not file rates or forms with the state department of insurance. They are required to meet financial criteria to be authorized for business in a state.
    • A licensed surplus lines producer is responsible for a certain surplus lines taxes and/or fees, which are usually passed on to the buyer.
    • All iDemand policies use Non-Admitted insurance carriers
  • Parametric 
    • an agreement under which an entity assuming risk (the insurer) agrees to pay the indemnitee (the insured) an agreed amount upon the occurrence of a specific event, such as an earthquake or hurricane of a specified intensity.
  • Indemnity 
    • Pays an insured for losses actually sustained, subject to the policy terms. iDemand wind and flood policies are indemnity policies.
  • Moratorium
    • A moratorium is a temporary suspension of an activity.

If you have any questions, we're here to help. Please create a ticket or reach out to us at support@idemandinsurance.com.