Glossary of Insurance Terms

Summary: A list of terms used in UC insurance programs

Aggregate - the limit an insurance policy will pay for all losses during the policy period, no matter how many separate accidents may occur.

Additional Insured - entity other than a named insured who is protected under the terms of an insurance policy. Usually added by endorsement or referred to in the wording of the definition of 'insured' in the policy itself.

Bodily injury - physical injury, sickness, disease, or emotional distress sustained by a person.

Certificate of Insurance - document which verifies that a policy has been written and states the nature of the coverage in general terms.

Collision Damage Waiver (CDW) - a contract offered by rental car companies. The contract shifts liability for damage to the rental vehicle from the person renting the car to the car rental company.

Coverage – the types of incidents and the extent of protection afforded by an insurance policy.

Deductible – the amount the insured is required to pay prior to the insurance paying for any loss or damage. If a loss does not exceed the deductible amount a claim need not be filed.

Excess - an insurance policy that provides coverage once the limits of another policy have been reached.

Exclusion - those things specified in the policy for which benefits will not be paid.

Indemnity/Indemnification - reparation for loss or damages. When used contractually, often shifts responsibility for liability and damages from one party to another.

Liability Insurance - covers injury and damages to others that were created by the insured's actions and for which they are legally responsible.

Negligence – failure to use the degree of care which an ordinary person of reasonable prudence would use under the given or similar circumstances. A person may be negligent by acts of omission or commission or both.

Personal Injury – injury, other than bodily injury for wrongs including defamation, libel, slander, violation of privacy rights, discrimination or violation of civil rights, wrongful entry. See BUS-75, Part II for a complete list.

Premium – the amount paid to obtain insurance for a specified risk for a specified period of time.

Primary Coverage – the policy that will take priority or precedence over other policies that might cover the same loss.

Self-Insurance - UC pools funds (establishes reserves for future losses instead of purchasing insurance) from each campus to cover the risk of all.

Subrogation - the right to recover the amount paid by an insurerer from the other person or their insurer.

Notice: University policies, procedures and applicable collective bargaining agreements shall supersede information in this document or elsewhere on this site.