If you already have your Triple-S Property insurance policy, you must understand the essential terms.
What is insurance? Insurance is the contract by which one party undertakes to indemnify another or provide a specific benefit in an uncertain event but provided for in such a contract.
Once you have insurance, you will be the insured, the person, business, or organization that obtained an insurance policy and is covered under it.
On the other hand, the insurer is the person who takes out your insurance.
Coverage is the term used to refer to the scope of protection provided under the policy, and the procedure is the insurance contract that establishes the rights and duties of the insured and the insurer.
The definition of “unit insurance” for property differs from most other types of insurance.
Insurance policies can range from a few pages to over 100 pages and include several provisions and terms that a policyholder must read thoroughly. One of those terms is “insurance unit.” Insurance companies calculate their rates and premiums based on the functional insurance unit. An insurance unit has subtle differences in its definition depending on the type of insurance the team refers to.
Premium calculations
The insurance company takes over most insurance in exchange for the amount an insured pays in premiums—risk to the insured asset, including property, life, and health. Insurance companies incorporate expenses, good earnings, and risk adjustments for loss expectations. These rates apply as costs per insurance unit, which also reflect state regulatory limits and charges. Insurance companies calculate the insurance cost by multiplying the premium per unit of insurance by the number of units the policyholder purchased.
Life Insurance
Insurance companies base units on risk factors, including gender and age. And on the various regulations required by the insurance department in different states. A unit of insurance is also related to the amount of benefit a policyholder purchases.
Property insurance
In hazard, property, and business interruption insurance, a unit of insurance refers to the covered item. This includes a construction-in-progress structure, a building, or business income over a specified period. Policies often use the term “unit of insurance” when outlining deductible amounts per occurrence or insured item. This typically occurs when a policy sets different conditions on different things. For example, the procedure may provide one level of replacement coverage for property and another for business income.
Liability insurance
For liability, insurance companies set rates as the price per unit of insurance for each unit exposed to liability. The insurance defines properties or liabilities with characteristics similar to an exposure unit. Like life insurance, one unit of liability insurance equals $1,000 of standard liability coverage.
Health insurance
As with life and liability insurance, insurance companies define a unit of insurance for medical coverage as $1,000 in coverage. Health insurance rates reflect the historical loss levels that the health insurance provider has experienced with a particular group, often a large company or a group of smaller companies.
General Agency
A person appointed or hired by an insurer as an independent or commission contractor. In whole or in part, with general powers or duties to inspect the underwriting and policy servicing operations of the insurer. In addition, it may appoint agents for the insurer and perform other functions that are conferred to agents and general agents for the insurer, by custom of the class or classes of insurance made or the type of insurer represented.
Insured:
Person, business, or organization holding an insurance policy and covered under it.
Named Assured:
It is that person, corporation, or association in favor of whom an insurance policy is subscribed, and that is specifically named as an insured entity under the terms of said policy. Request policy change endorsements. Receive notice of policy cancellation. And receive any refund of premium.
