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Reference guide

Insurance Glossary

Plain-language definitions of common insurance terms across policies, coverage, and claims. Check your policy or plan documents for the terms that apply to you.

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Showing 24 of 43 matching terms

Terms beginning with S

Salvage

Claims
Damaged property an insurer or owner may retain, sell, or dispose of after a total-loss settlement.
Also called: salvage value

Salvage title

Auto insurance
A vehicle title designation generally used after a vehicle has been declared a total loss or suffered qualifying damage under state rules.

Scheduled equipment coverage

Business insurance
Coverage that separately lists specified equipment and its insured value.
Also called: equipment schedule

Scheduled personal property

Home insurance
An endorsement that separately lists valuable belongings and may provide broader or higher coverage for them.
Also called: scheduled property, personal articles floater

Scope of loss

Claims
A detailed description of damaged property and the work or costs considered necessary to repair or replace it.
Also called: damage scope

Self-funded health plan

Health insurance
An employer health plan in which the employer pays eligible claims from its own funds, usually with administrative support.
Also called: self-insured health plan

Self-insurance

Business insurance
A risk-financing approach in which a person or business retains funds and responsibility for some losses instead of transferring all risk to an insurer.
Also called: self-funded risk

Self-insured retention

Business insurance
An amount the insured must pay on certain claims before an excess or liability policy begins paying.
Also called: SIR, retained limit

Separation of insureds

Business insurance
A liability policy provision applying coverage separately to each insured when evaluating a claim, subject to shared limits.

Service line coverage

Home insurance
Optional coverage for certain damage to underground utility lines connecting a home to public services.
Also called: utility line coverage

Settlement

Claims
An agreement or payment that resolves all or part of an insurance claim.
Also called: claim settlement

Settlement option

Life insurance
A method for paying life insurance proceeds, such as a lump sum, installments, interest income, or life income.

Short-rate cancellation

General insurance
A cancellation method that retains more premium than pro rata cancellation to reflect early policy termination by the insured.

Short-term health insurance

Health insurance
Temporary medical coverage that is generally not subject to all Affordable Care Act individual-market protections.
Also called: short-term limited-duration insurance, STLDI

Single-premium deferred annuity

Life insurance
A deferred annuity purchased with one lump-sum payment, with income generally scheduled for a later date.
Also called: SPDA

Sinkhole coverage

Home insurance
Coverage for qualifying sinkhole-related property damage when included by policy terms or required by applicable state law.

Social engineering fraud coverage

Business insurance
Coverage for qualifying losses from deception that induces an employee to transfer money or property.

Special enrollment period

Health insurance
A limited opportunity to enroll in or change certain health coverage after a qualifying life event or other allowed circumstance.
Also called: SEP

Special limits

Home insurance
Lower coverage limits a policy may apply to particular categories of personal property, such as jewelry, cash, or collectibles.
Also called: special sublimits

Special limits of liability

Auto insurance
Lower sublimits in a homeowners policy for certain property categories, such as jewelry, money, or firearms.

Specialty drug

Health insurance
A prescription drug that may require special handling, monitoring, or administration and is often placed on a separate formulary tier.
Also called: specialty medication

Spendthrift clause

Life insurance
A settlement provision restricting a beneficiary’s ability to assign or pledge future policy proceeds.

Split limits

Auto insurance
Separate liability limits for bodily injury per person, bodily injury per accident, and property damage.
Also called: split limit policy

SR-22

Auto insurance
A certificate an insurer files with a state to show that a driver maintains required liability coverage.
Also called: certificate of financial responsibility