A crash course in insurance terms. Simple explanations that will help you better understand your policies.
AM Best rating: The AM Best Company provides authoritative ratings on insurance carriers. The ratings are the industry’s standard measure of financial strength and the ability to meet policyholder obligations. TDIC has earned A (Excellent) ratings for 30 consecutive years.*
Autopay: The option to streamline premium payments through automatic recurring debits from a chosen checking or savings account.
Claim: A claim is a demand for money or services due to alleged injuries or damage. In a liability policy, a claim starts with the filing of a lawsuit or legal proceedings. For
other policies, a claim starts as a result of loss or damage to property and equipment or on-the-job injuries.
Conditions: The conditions of a policy identify the requirements of both insured and insurer on procedures, rights, provisions, exclusions, cancellations and changes in coverage.
Declarations: Typically, the front page or pages of a policy that outlines the insured’s name, address, policy number, limits and other key information.
Deductible: The amount the insurer will deduct from the loss before payout. The insured is responsible for this amount.
Endorsements: A supplemental provision that modifies or amends an existing policy’s agreements, definitions, exclusions, conditions or coverage terms.
Exclusions: Provisions in a policy that preclude coverage under certain conditions or circumstances.
Extended Reporting Endorsement: A feature that can be added to your claims-made
professional liability policy that allows you to report claims for an extended period after your policy expires. Also known as “tail” coverage.
Indemnity: Compensation for loss or injuries that have already occurred or a guarantee to repay another party
for loss or damage that might occur in the future.
Losses: When a policyholder experiences damage to the space and equipment they use to do business
or experiences any threat to the financial health of their business. These include liability loss, income loss and property loss.
Policy number: Identifying number assigned to the written contract between insurer and insured.
Online account: TDIC policyholders’ account access through secure login at tdicinsurance.com, allowing 24/7 access to coverage, claims, policy documents and risk management resources.
Paperless: The option to “go green” and have communications for any or all policies delivered electronically.
Premium: The actual cost of an insurance policy.
Quote: The estimated cost of an insurance policy.
Risk Management Advice Line: A no-cost service for TDIC policyholders that provides one-on-one guidance from dedicated analysts by phone.
Subrogation: After payment for a claim, the process of recovering the loss amount from the legally responsible parties.
TDIC Insurance Solutions: The Dentists Insurance Company’s dedicated agency, which offers expanded coverage options from the nation’s leading carriers.
* AM Best Company rating effective February 2024. For the latest rating, access ambest.com.