Types of Health insurance

• Premium: The amount the policy-holder pays to the health plan each month to purchase health coverage.
• Deductible: The amount that the policy-holder must pay out-of-pocket before the health plan pays its share. For example, a policy-holder might have to pay a $500 deductible per year, before any of their health care is covered by the health plan. It may take several doctor's visits or prescription refills before the policy-holder reaches the deductible and the health plan starts to pay for care.
• Copayment: The amount that the policy-holder must pay out of pocket before the health plan pays for a particular visit or service. For example, a policy-holder might pay a $45 copayment for a doctor's visit, or to obtain a prescription. A copayment must be paid each time a particular service is obtained.
• Coinsurance: Instead of paying a fixed amount up front (a copayment), the policy-holder must pay a percentage of the total cost. For example, the member might have to pay 20% of the cost of a surgery, while the health plan pays the other 80%. Because there is no upper limit on coinsurance, the policy-holder can end up owing very little, or a significant amount, depending on the actual costs of the services they obtain.
• Exclusions: Not all services are covered. The policy-holder is generally expected to pay the full cost of non-covered services out of their own pocket.
• Coverage limits: Some health plans only pay for health care up to a certain dollar amount. The policy-holder may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition, some plans have annual or lifetime coverage maximums. In these cases, the health plan will stop payment when they reach the benefit maximum, and the policy-holder must pay all remaining costs.
• Out-of-pocket maximums: Similar to coverage limits, except that in this case, the member's payment obligation ends when they reach the out-of-pocket maximum, and the health plan pays all further covered costs. Out-of-pocket maximums can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year.
• Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer.
• In-Network Provider: A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or copayments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers.

4 Top Tips For Getting a Great Auto Insurance Deal

Auto insurance advertisements are everywhere, from the pages of the daily newspaper, to television and radio commercials. They each promise low rates, quick claims handling and personalized attention. But, how do you know that you are really getting the best deal? What does a smart driver need to know in order to find the best car insurance for their needs?

1. Consider Your Coverage Needs

Before diving headfirst into the murky waters of the auto insurance companies, you need to have a basic idea of the coverage you are looking for. At the very least, you need to be aware of the minimum limits each state imposes for various coverage options. For instance, liability insurance, which covers damage when you are at fault, is mandatory in almost every state. PIP or MedPay, which pays a percentage of your medical expenses and lost wages, is another coverage option that is required by most states. Also, keep in mind that if you are leasing or financing your car, comprehensive and collision coverage are mandatory.

Comprehensive coverage reimburses you for any damages other than those sustained by hitting another car (ex. theft and fire). Collision coverage protects you against any damages done as a result of impact from another vehicle, a curb, a telephone pole or any other object. If your car is old and/or already paid for, you can save a substantial amount of money by electing not to carry collision and comprehensive coverage. Just be sure to understand that if you are involved in an accident, these non-covered expenses will have to be paid for out of your own pocket.

One more consideration to think about when identifying your insurance needs is to examine your overall financial situation. If you have an excessive amount of assets, you would be better off going with a higher rate of coverage, as this will ensure that your assets are sufficiently covered should a lawsuit ensue.

2. Consider Your Driving Record

Do you have a history of fender-benders? If so, you may be better off getting more comprehensive coverage. Have you accumulated a heap of speeding tickets? Consider taking a defensive driving course. Remember that when you apply for car insurance, the company will contact the DMV for a copy of your driving record. Generally, car insurance companies look at the past 3-5 years of your driving history and base your premium on any previous accidents and infractions that occurred.

3. Start Shopping

After you have considered what kind of coverage you need and taken a look at your driving history, you can begin getting rate quotes. You can do this in person, on the phone or on the internet Be sure you are prepared with all the necessary paperwork. This includes your license, current insurance policy, your automobile's VIN, and registration. The idea is to get as many quotes as possible, so you can compare the coverage and rates side-by-side. Many websites will offer you their rates along with the rates of their competitors, which can save you time. Be sure to keep a detailed list of each company and their coverage limits, deductibles and rates. Print out a copy of quotes you get online and ask for a faxed/emailed/mailed copy of quotes you are given over the phone or in person.

Other things to consider when doing your research are: - any discounts that the company offers that would apply to you (student discounts, military discounts, good driving record, high credit score, optional safety equipment installed on your car, etc.) - the company's rating (by both consumers and ratings groups) - the company's payment policy (do they offer automatic deductions from your bank account? can you make payments online? are there late fees?)

One great way to ensure you get the best deal is to use a free online auto insurance quoting service. These services often compare quotes from hundreds of different suppliers and sometimes have the suppliers bidding against each other, so you can end up with an excellent deal.

4. Making Your Decision

After you've done all the necessary research, it's time to choose a company. While it may seem tempting, going with the cheapest is not automatically the best way to go. You should be certain the coverage you choose is adequate for your needs and the level of service is decent and reliable. When it comes down to it, getting the best deal in auto insurance has little to do with catchy jingles or funny commercials and everything to do with being a smart consumer. By taking a little time to do some research, you can save yourself hundreds of dollars a year and still maintain the level of coverage you need with a dependable company.

9 Ways to Lower Your Auto Insurance

Premiums for Auto Insurance are never calculated on a flat rate basis. There are many variables that determine the amount of the premium payable by each individual. The final rate of auto insurance is made after knowing the following:

1.) Applicant's age. Typically drivers who are younger are determined to be high risk. On the opposite side, older drivers pay more for auto insurance due to aging eyesight and coordination may lessen as you get older which may affect driving.

2.) The make and model of your vehicle. The majority of insurance carriers group auto insurance rates based on the vehicle make. Vehicles that fall into the category of being a sedan or compact have lower insurance rates while SUVs, sports cars, and exotic cars, are given high insurance premiums.

3.) Gender plays a role. Females tend to get lower auto insurance rates that males. Male drivers are considered to high risk motorists. The statistics don't lie. More auto accidents are caused by males than female motorists.

4.) Financial stability. Automobile owners with excellent credit scores and credit reports typically pay lower insurance premiums than people who have low credit ratings and scores. Insurance companies offer lower insurance rates to people who demonstrate a solid credit history.

5. Driving history can raise or lower your premiums. Motorists who have a accident and ticket free driving record for the last three years will get lower rates.

6.) Where you live. Areas with lower crime rates such as outside the city and less populated can give you lower insurance rates.

7.) Number of insurance policies. If you get your auto insurance policy with the same insurance company which has your health, life or home then you can ask and should receive a group policy discount.

8.) The amount of miles driven per year. If you limit the miles driven then you will be eligible for lower auto insurance rates. Also, if you use a car only for personal use it will trigger a lower premium versus one used for work.

9.) If you own a hybrid or electric car and care for the environment then your auto insurance premiums could be lower. As an automobile owner you can find something that can lower your premium by knowing all the factors mentioned above. It cannot be stresses enough, always compare rates and premiums from various auto insurance companies.

What You Need to Know About Insuring Your Jewelry

Jewelry insurance is a step you can take to protect your valuable fine jewelry. Most wealthy people take time to insure their jewelry, but there are a substantial number of people who are not as wealthy but own jewelry that is worth insuring.

If you have homeowners or renters insurance it may not fully cover your jewelry. Your insurance policy may cover jewelry theft, but not loss that occurs for other reasons.

Renter's and homeowner's insurance policies also set limits for the loss of certain categories of personal property, including jewelry. Homeowner's policies typically pay a maximum of $1,5 00 for jewelry theft. A renter's insurance policy might have a lower limit for jewelry loss--$500-$1000 is common.

The following are some tips for insuring your valuable fine jewelry.

One of the first and most important steps is to have all of your fine jewelry appraised by an independent appraiser. Make sure each item is listed, described and valued on paper.

You may be able to choose coverage with or without a deductible. Rates for personal property insurance may vary depending on where you live.

Carefully read and understand your home owner's or renter's insurance policy to find out the amount of coverage it will provide for items such as jewelry. The best insurance will cover loss, theft and damage.

Ask your insurance agent about taking out a separate policy on your valuables or adding a rider to your home owner's policy to cover jewelry that goes beyond the value of personal property covered in the basic policy.

Take time to compare all insurance plans, as well as the reputation of each company. Choose the one that gives you the most coverage for your money and the most flexibility if you have to replace jewelry.

Other tips to protect your jewelry:

-You should store your jewelry in a personal safe or in a safety deposit box.

-You should inspect your jewelry on a regular basis to reassess its value. If your jewelry is not valued properly, you may not be able to recover what you need to replace it if is stolen or lost.

-It is a good idea to have photos of your jewelry. Sometimes photos can offer assistance in recovering or replacing your valuables.

You should make yourself familiar with how the insurance process works. Ask your insurance agent questions before you insure an item. Don't wait until you need to file a claim. Always read the fine print in any insurance contract to make sure your are receiving the coverage you expect.

How to Use Insurance to Protect Your Mobile Phone

It's nice to get a bargain, especially when that bargain is able to offer real peace of mind.

Mobile phone insurance provides exactly that. Priced to be affordable to most budgets, mobile phone cover provides the security of knowing that those all too typical mobile phone mishaps - loss, theft, damage, etc - will not result in having to spend a lot of money at a financially inconvenient time or in doing without the phone until a replacement can be purchased.

This type of protection is especially important to those who chose a plan that offered a free or reduced priced phone in exchange for a long-term service contract. In such circumstances, the replacement cost of a phone that has been lost, stolen, or damaged can be quite high, ranging up to £1000. That is an amount that many would have trouble finding at a moment's notice, especially with the economic conditions today.

While most mobile phone cover rates tend to be fairly low, it still pays to shop with care. Not only can you reduce the amount spent on cover, but you can also end up with a much more comprehensive protection plan when you invest a bit of time into comparison-shopping. After all, not all mobile phone insurance plans are the same.

For those looking for a real bargain, it is a good idea to try to determine which mishaps are most likely to occur with your phone. For example, if you work in a crowded office, protection against unauthorized calls may be more important to you than to another person who doesn't spend that much time daily around other people or in situations where someone else may have access to his mobile. If you've bought a mobile for a child, as many parents do for safety purposes, protection against loss, water damage, and similar mishaps is something you'll be sure to appreciate at some point. By being selective about the cover points that are important to you, you can save significantly.

Researching the various plans offered by mobile phone insurance providers can also result in real savings. Many companies frequently run special promotions that include reduced rates. Some companies also offer rewards for customers that do not make claims, such as free batteries and even a mobile phone upgrade. The value of these perks can add up, and should be figured in when determining the cost of a policy.

A great number of mobile phone insurance providers do business via the Internet. In addition to making it much easier to comparison shop for the best deal, this makes it fast and easy to get cover, with some companies offering almost immediate protection. However, you will want to make sure that you don't skimp on ensuring that the company you do choose is a legitimate one with a good reputation. Make sure to fully check out contact information and look for customer reviews of claims services and other aspects of cover provision.

The relatively small amount of money you'll spend on mobile phone cover can be money well spent if you do a little homework first. Knowing that you are protected against the myriad of mishaps that can happen does offer peace of mind when we're so dependent on our mobiles.

Digital Insurance

With the advent of downloadable content on the internet and the rise of social networking websites, our buying habits have gone through a change when it comes to purchasing music.

With a wide range of mp3 players on the market and a variety of methods for selecting and downloading music, the choice for consumers is endless.

As we move away from the world of CDs and film reels into an age where music and photographs are stored and shared digitally, so the value of the data we keep on our computers is on the increase.

As a result, the risk of loss and theft has also increased, many now leave the house with packed music players and laptops - which may contain music files that run into thousands of pounds and priceless personal photographs and images for business purposes.

The thought of such equipment, and the data contained on it, being lost or stolen is enough to send a shiver down the spine of any music lover, graphic designer or social networking addict.

Whilst you are able to include electrical equipment - such as stereos and computers - on your home insurance policy, newer equipment such as mp3 players were not usually included in the list of contents that are covered by their policies.

However, many insurance companies are now beginning to include digital content - such as music, digital photographs and video game files - as part of home contents cover.

Keeping a record of your downloads can be crucial when it comes to making a claim, usually this can be done by e-mail - so printing the receipts and keeping them safe can be very beneficial should anything happen to your computer.

In order to ensure that your digital data is kept safe and secure, it's best to keep a backup of all your important data. Its also essential to ensure that you have updated anti-virus software installed on your computer, for your cover might not extend to loss and damage as a result of a computer virus.

External hard-drives are becoming more freely available and cheaper to purchase, so it can be worth buying one to give yourself a bit of reassurance and to keep your most important data secure.

It's always best to check with your contents insurance provider to see if there is the potential to cover your digital data. Many companies will offer the chance to insure your files as an add-on to your existing policy.

8 Tips on Protecting Assets With Business Liability Insurance

A business however big or small means responsibilities of many kinds. And one of the things every business needs is liability insurance.

When running a business as a partnership or sole proprietorship it means that your business and personal liabilities are at risk. To protect yourself and the family from financial disasters it is essential to insure yourself with a business liability policy.

There are three kinds of liability insurance:

* General Liability Insurance: This covers legal suits related to the business premises, business products, or services.

* Professional Liability Insurance: Covers companies that are professional like lawyers, doctors, advertising or creative companies and so on.

* Automotive Liability Insurance: This covers those who drive company owned vehicles. The policy covers damage to vehicle in an accident, injuries to the company employee and to those injured in case of accident.

* Employers' Liability Insurance: This covers aspects like wage discrepancy, hours of work and on site work related accidents.

When buying liability insurance you need to make educated choices so that you get a good deal at the most affordable cost:

1. First familiarize yourself with all aspects of liability insurance by surfing online. Make notes of valid tips and guidelines and any points that are applicable to you. Understand the fine points of liability insurance.

2. Decide on whether you will find a policy yourself or use an agent. Choose an agent who will study your specific needs and then make recommendations. Most agents help their clients get great rates too.

3. Check with your existing insurance provider whether they have liability insurance. If yes find out what the advantages of buying a liability policy from the same provider is.

4. Memberships at a Chamber of Commerce, trade or business association often means that you will get group rates on liability insurance policies.

5. Liability insurance coverage varies from insurer to insurer so make a list of what you need and compare coverage. Keep in mind aspects like legal fees too.

6. Look for liability insurance online and offline. Very often the online offers could mean great savings. Online insurance directories and sites also have comparison tools that help you compare policies and quotes from different insures.

7. Think about buying an Business Owners Policy (BOP),that will cover many things. However you will need an insurance specialist to ensure your needs are met with additional riders on the policy.

8. Keep abreast with changes in state laws and insurance news. This will help you greatly when you need to make a claim or renew the policy.

Always buy a business liability insurance policy from a reputed insurer. Always make the effort to do a background check of the insurer and ensure that they have no complaints pending at the better business bureau. Choose an insurance provider that follows fair business practices.

What is an Insurance Settlement?

An insurance settlement represents the settlement of an insurance claim made on an insurance company. This could be a claim by an insured person under his own insurance policy, or a third party claim.

Insurance companies could make the settlement payments in different ways. One of these is to defer the payments as when the company promises to make annuity payments over a number of future years.

A life insurance settlement, or life settlement, is something different. It involves selling your life policy for immediate cash to a life insurance settlement company. If you are aged over 65, and have a life insurance policy, you could sell the policy. Life insurance policies are like any other asset that you own, and you are free to sell it.

Insurance Settlements Can be Cashed Out

Life Settlements are cash outs by their very nature. You could also cash out any deferred payments you are receiving under an insurance settlement. We look at both below.

Selling Life Insurance Policies

There are a number of reasons why you might want to sell your life insurance policy.
* Paying the premium has become a heavy financial burden

* You need cash for a prolonged medical treatment

* There are life policies in the market that are more cost effective

* There are investment options that you consider better

* Your business or personal situation have changed and a life insurance policy might not be the best

option under the changed situation

Factors like those mentioned above could make it better to cash out your life policy. In extreme cases, you might even have to let the policy lapse before you are able to make any claim.

The common alternative in such a case was to surrender the policy to the insurance company and get the surrender value. This was a poor alternative as the surrender value could be zero or a very low sum compared to the premium you have been paying for years.

If you are aged above 65, you now have the alternative to sell your policy and get a sum significantly higher than the surrender value. The amount depends on such factors as your present medical condition, statistical life expectation, smoking or tobacco use habit and the policy type.

Selling Other Insurance Settlements Involving Deferred Payments

Where your insurance settlement involves annuity payments, you might wish to cash it out for a lump sum. A lump sum of cash now could help you invest your money better or meet the expenses of a prolonged medical treatment.

In such cases you are allowed to accelerate your insurance settlement payments. A court process is involved to determine that cashing out the annuity payments is in your best interests. If the court approves the acceleration, you could sell your annuities in whole or in part and get a lump sum of cash.

21+ Useful Insurance Terms You Should Know

INSURED - A person or a corporation who contracts for an insurance policy that indemnifies (protects) him against loss or damage to property or, in the case of a liability policy, defend him against a claim from a third party.

NAMED INSURED - Any person, firm or corporation specifically designated by name as an insured(s) in a policy as distinguished from others who, though unnamed, are protected under some circumstances. For example, a common application of this latter principle is in auto liability policies wherein by a definition of "insured", coverage is extended to other drivers using the car with the permission of the named insured. Other parties can also be afforded protection of an insurance policy by being named an "additional insured" in the policy or endorsement.

ADDITIONAL INSURED - An individual or entity that is not automatically included as an insured under the policy of another, but for whom the named insureds policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insureds impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., employees or members of an insured club) or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).

CO-INSURANCE - The sharing of one insurance policy or risk between two or more insurance companies. This usually entails each insurer paying directly to the insured their respective share of the loss. Co-insurance can also be the arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents, whatever the case may be. If you don't, the company pays claims only in proportion to the amount of coverage you do carry.

The following equation is used to determine what amount may be collected for partial loss:

Amount of Insurance Carried x Loss

Amount of Insurance that = Payment

Should be Carried

Example A Mr. Right has an 80% co-insurance clause and the following situation:

$100,000 building value

$ 80,000 insurance carried

$ 10,000 building loss

By applying the equation for determining payment for partial loss, the following amount may be collected:

$80,000 x $10,000 = $10,000

$80,000

Mr. Right recovers the full amount of his loss because he carried the coverage specified in his co-insurance clause.

Example B Mr. Wrong has an 80% co-insurance clause and the following situation:

$100,000 building value

$ 70,000 insurance carried

$ 10,000 building loss

By applying the equation for determining payment for partial loss, the following amount may be collected:

$70,000 x $10,000 = $8,750

$80,000

Mr. Wrong's loss of $10,000 is greater than the company's limit of liability under his co-insurance clause. Therefore, Mr. Wrong becomes a self-insurer for the balance of the loss-- $1,250.

PREMIUM - The amount of money paid by an insured to an insurer for insurance coverage.

DEDUCTIBLE - The first dollar amount of a loss for which the insured is responsible before benefits are paid by the insurer; similar to a self-insured retention (SIR). The insurer's liability begins when the deductible is exhausted.

SELF INSURED RETENTION - Acts the same way as a deductible but the insured is responsible for all legal fees incurred in relation to the amount of the SIR.

POLICY LIMIT - The maximum monetary amount an insurance company is responsible for to the insured under its policy of insurance.

FIRST PARTY INSURANCE - Insurance that applies to coverage for an insureds own property or a person. Traditionally it covers damage to insureds property from whatever causes are covered in the policy. It is property insurance coverage. An example of first party insurance is BUILDERS RISK INSURANCE which is insurance against loss to the rigs or vessels in the course of their construction. It only involves the insurance company and the owner of the rig and/or the contractor who has a financial interest in the rig.

THIRD PARTY INSURANCE - Liability insurance covering the negligent acts of the insured against claims from a third party (i.e., not the insured or the insurance company - a third party to the insurance policy). An example of this insurance would be SHIP REPAIRER'S LEGAL LIABILITY (SRLL) - provides protection for contractors repairing or altering a customer's vessel at their shipyard, other locations or at sea; also covers the insured while the customer's property is under the "Care, Custody and Control" of the insured. A Commercial General Liability policy is needed for other coverages, such as slip-and-fall situations.

INSURABLE INTEREST - Any interest in something that is the subject of an insurance policy or any legal relationship to that subject that will trigger a certain event causing monetary loss to the insured. Example of insurable interest - ownership of a piece of property or an interest in that piece of property, e.g., a shipyard constructing a rig or vessel. (See BUILDERS RISK above)

LIABILITY INSURANCE - Insurance coverage that protects an insured against claims made by third parties for damage to their property or person. These losses usually come about as a result of negligence of the insured. In marine construction this policy is referred to an MGL, marine general liability policy. In non marine circumstances the policy is referred to as a CGL, commercial general liability policy. Insurance policies can be divided into two broad categories:

• First party insurance covers the property of the person who purchases the insurance policy. For example, a home owner's policy promising to pay for fire damage to the home owner's home is a first party policy. Liability insurance, sometimes called third party insurance, covers the policy holder's liability to other people. For example, a homeowners' policy might cover liability if someone trips and falls on the home owner's property. Sometimes one policy, such as in these examples, may have both first and third party coverage.
• Liability insurance provides two separate benefits. First, the policy will cover the damage incurred by the third party. Sometimes this is called providing "indemnity" for the loss. Second, most liability policies provide a duty to defend. The duty to defend requires the insurance company to pay for lawyers, expert witnesses, and court costs to defend the third party's claim. These costs can sometimes be substantial and should not be ignored when facing a liability claim.

UMBRELLA LIABILITY COVERAGE - This type of liability insurance provides excess liability protection. Your business needs this coverage for the following three reasons:

• It provides excess coverage over the "underlying" liability insurance you carry.
• It provides coverage for all other liability exposures, excepting a few specifically excluded exposures. This subject to a large deductible of about $10,000 to $25,000.
• It provides automatic replacement coverage for underlying policies that have been reduced or exhausted by loss.

NEGLIGENCE - The failure to use reasonable care. The doing of something which a reasonably prudent person would not do, or the failure to do something which a reasonably prudent person would do under like circumstances. Negligence is a 'legal cause' of damage if it directly and in natural and continuous sequence produces or contributes substantially to producing such damage, so it can reasonably be said that if not for the negligence, the loss, injury or damage would not have occurred.

GROSS NEGLIGENCE - A carelessness and reckless disregard for the safety or lives of others, which is so great it appears to be almost a conscious violation of other people's rights to safety. It is more than simple negligence, but it is just short of being willful misconduct. If gross negligence is found by the trier of fact (judge or jury), it can result in the award of punitive damages on top of general and special damages, in certain jurisdictions.

WILLFUL MISCONDUCT - An intentional action with knowledge of its potential to cause serious injury or with a reckless disregard for the consequences of such act.

PRODUCT LIABILITY - Liability which results when a product is negligently manufactured and sent into the stream of commence. A liability that arises from the failure of a manufacturer to properly manufacture, test or warn about a manufactured object.

MANUFACTURING DEFECTS - When the product departs from its intended design, even if all possible care was exercised.

DESIGN DEFECTS - When the foreseeable risks of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design, and failure to use the alternative design renders the product not reasonably safe.

INADEQUATE INSTRUCTIONS OR WARNINGS DEFECTS - When the foreseeable risks of harm posed by the product could have been reduced or avoided by reasonable instructions or warnings, and their omission renders the product not reasonably safe.

PROFESSIONAL LIABILITY INSURANCE - Liability insurance to indemnify professionals, (doctors, lawyers, architects, engineers, etc.,) for loss or expense which the insured professional shall become legally obliged to pay as damages arising out of any professional negligent act, error or omission in rendering or failing to render professional services by the insured. Same as malpractice insurance.

Professional Liability has expanded over the years to include those occupations in which special knowledge, skills and close client relationships are paramount. More and more occupations are considered professional occupations, as the trend in business continues to grow from a manufacturing-based economy to a service-oriented economy. Coupled with the litigious nature of our society, the companies and staff in the service economy are subject to greater exposure to malpractice claims than ever before.

ERRORS AND OMISSIONS - Same as malpractice or professional liability insurance.

HOLD HARMLESS AGREEMENT - A contractual arrangement whereby one party assumes the liability inherent in the situation, thereby relieving the other party of responsibility. For example, a lease of premises may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises.

INDEMNIFY - To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

INDEMNITY AGREEMENTS - Contract clauses that identify who is to be responsible if liabilities arise and often transfer one party's liability for his or her wrongful acts to the other party.

WARRANTY - An agreement between a buyer and a seller of goods or services detailing the conditions under which the seller will make repairs or fix problems without cost to the buyer.

Warranties can be either expressed or implied. An EXPRESS WARRANTY is a guarantee made by the seller of the goods which expressly states one of the conditions attached to the sale e.g.,"This item is guaranteed against defects in construction for one year".

An IMPLIED WARRANTY is usual in common law jurisdictions and attached to the sale of goods by operation of law made on behalf of the manufacturer. These warranties are not usually in writing. Common implied warranties are a warranty of fitness for use (implied by law that if a seller knows the particular purpose for which the item is purchased certain guarantees are implied) and a warranty of merchantability (a warranty implied by law that the goods are reasonably fit for the general purpose for which they are sold).

DAMAGES OR LOSS - The monetary consequence which results from injury to a thing or a person.

CONSEQUENTIAL DAMAGES - As opposed to direct loss or damage -- is indirect loss or damage resulting from loss or damage caused by a covered peril, such as fire or windstorm. In the case of loss caused where windstorm is a covered peril, if a tree is blown down and cuts electricity used to power a freezer and the food in the freezer spoils, if the insurance policy extends coverage for consequential loss or damage then the food spoilage would be a covered loss. Business Interruption insurance, extends consequential loss or damage coverage for such items as extra expenses, rental value, profits and commissions, etc.

LIQUIDATED DAMAGES - Are a payment agreed to by the parties of a contract to satisfy portions of the agreement which were not performed. In some cases liquidated damages may be the forfeiture of a deposit or a down payment, or liquidated damages may be a percentage of the value of the contract, based on the percentage of work uncompleted. Liquidated damages are often paid in lieu of a lawsuit, although court action may be required in many cases where liquidated damages are sought. Liquidated damages, as opposed to a penalty, are sometimes paid when there is uncertainty as to the actual monetary loss involved. The payment of liquidated damages relieves the party in breech of a contract of the obligation to perform the balance of the contract.

SUBROGATION - "To stand in the place of" Usually found in property policies (first party) when an insurance company pays a loss to an insured or damaged to the insureds property, the insurer stands in the shoes of the insured and may pursue any third party who might be responsible for the loss. For example, if a defective component is sold to a manufacturer to be used in his product and that product is damaged due to the defective component. The insurance company who pays the loss to the manufacturer of the product may sue the manufacturer of the defective component.

Subrogation has a number of sub-principles namely:

• The insurer cannot be subrogated to the insureds right of action until it has paid the insured and made good the loss.
• The insurer can be subrogated only to actions which the insured would have brought himself.
• The insured must not prejudice the insurer's right of subrogation. Thus, the insured may not compromise or renounce any right of action he has against the third party if by doing so he could diminish the insurer's right of recovery.
• Subrogation against the insurer. Just as the insured cannot profit from his loss the insurer may not make a profit from the subrogation rights. The insurer is only entitled to recover the exact amount they paid as indemnity, and nothing more. If they recover more, the balance should be given to the insured.
• Subrogation gives the insurer the right of salvage.

Top 5 Insurance Tips For All

These are the top and most famous tips for everyone who wants to buy insurance of any category whether it is related to health insurance, car insurance, home insurance, travel or any other. Just remember these insurance tips and you will be safe:)

Top 5 Insurance Tips

1. Try to buy enough cover but don't overdo it. Cover all of the bases, from house mortgages to health plans to every single child's education, but don't overspend on coverage that you won't ever need or those that are easy to cover on your own.

2. Always read the fine print. If you are having trouble understanding all of the terms and rules, get help from someone else or a lawyer. You don't want to be caught in a loophole somewhere down the line just because you didn't read the fine print, or did not understand everything that was written.

3. Research and shop around. Don't buy insurance from the first agency that you encounter. Look around and shop for lowest rates and the best support they can provide. If an insurance agency realizes you are comparing, you may end up being offered special rates or discounts just because they really want to get your business. Agencies are also less likely to trick you if they find out that you know what you want and are not afraid to look in different places.

4. If you already have other insurances, make sure you have a reliable record before shopping around for new ones. If you are spotty with your monthly or annual payments, you may have trouble finding low rates or even insurance agencies willing to entertain you.

5. Use the Internet to your advantage. Get free assessments and compare rates online, look for feedback from past clients just to see if an agency treats its clients well.