A comprehensive reference of insurance industry terminology used by agencies, brokerages, CSRs, and producers. Each term includes a plain-language definition designed for insurance professionals and agency support staff.
A comprehensive agency management system developed by Vertafore, widely used by insurance agencies and brokerages. AMS360 handles policy management, client records, commission tracking, certificate issuance, and carrier downloads. It is one of the most common platforms Edge insurance professionals are certified on.
An agency management system developed by Applied Systems, used by insurance agencies and brokerages globally. Applied Epic provides policy management, CRM, document management, carrier connectivity, and reporting. Often used by mid-size to large brokerages.
The total portfolio of insurance policies managed by an agency, broker, or individual producer. Book of business value is typically measured by total annual premium volume and retention rate. Agencies may have books worth millions to billions in premium.
A document that summarizes the key coverage details of an insurance policy, including policy numbers, coverage limits, effective dates, named insureds, and additional insureds. COIs are frequently requested by clients' business partners, landlords, or contractors as proof of coverage.
An insurance professional who handles policyholder inquiries, processes policy changes (endorsements), issues certificates of insurance, handles claims intake, and provides general account management. CSRs are the primary point of contact between the agency and policyholders.
A written amendment to an insurance policy that changes the terms, conditions, or coverage. Endorsements can add coverage (additional insured), remove coverage, change limits, update addresses, add vehicles or locations, or modify policy language.
The process of continuing an insurance policy for another term (typically 12 months) at expiration. Renewals involve reviewing current coverage, updating information, negotiating premiums with carriers, presenting renewal options to the client, and processing the new policy term.
The process by which an insurance company evaluates the risk of insuring a person or entity and determines whether to offer coverage, at what terms, and at what premium. Underwriters assess applications, loss history, risk factors, and financial information.
The end-to-end workflow of handling an insurance claim from initial report (first notice of loss) through investigation, evaluation, negotiation, and settlement or denial. Claims processing involves documentation, adjuster assignment, coverage verification, and payment issuance.
The ratio of claims paid to premiums earned, expressed as a percentage. A loss ratio of 60% means the insurer pays $0.60 in claims for every $1.00 of premium collected. Loss ratios are a key profitability metric for insurance carriers.
A temporary insurance agreement that provides coverage until a formal policy is issued. Binders are commonly used in commercial insurance when coverage needs to be bound quickly (e.g., for real estate closings or contract requirements).
Insurance placed with non-admitted carriers (insurers not licensed in the state where the risk is located) for risks that the standard market cannot or will not cover. Surplus lines require specific licensing and are subject to different regulatory requirements.
Professional liability insurance that protects insurance agents and brokers against claims of negligence, errors, or omissions in their professional services. E&O coverage is essential for agencies and is often required by carriers and state regulators.
The quality assurance process of reviewing newly issued insurance policies against applications and quotes to verify that coverage terms, limits, deductibles, endorsements, and premium amounts match what was requested and quoted.
An agency management system designed for independent insurance agencies. HawkSoft provides client management, policy tracking, accounting, reporting, and carrier downloads with an emphasis on ease of use for small to mid-size agencies.
A cloud-based insurance platform that provides comparative rating, agency management, client portal, and marketing automation for independent insurance agencies. EZLynx is known for its real-time quoting capabilities across multiple carriers.
An automated electronic data exchange between insurance carriers and agency management systems. Downloads automatically update policy information, commission statements, and claims data in the agency's system, reducing manual data entry.
Standardized insurance forms developed by ACORD (Association for Cooperative Operations Research and Development) used across the insurance industry for applications, certificates, and policy documentation. Common forms include ACORD 25 (Certificate of Liability Insurance) and ACORD 125 (Commercial Insurance Application).
An insurance professional licensed to sell insurance products. Producers include agents (representing carriers) and brokers (representing clients). Producer licensing requirements vary by state and line of insurance.
Edge Edu certifies every professional on industry-specific terminology, workflows, and systems before placement.
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