Definitions for some common terms used in insurance policies include "adjustable rate," which is when an interest rate is subject to change based on the market-rate or "hazardous activity," which defines dangerous activities that are more likely to cause injury such as horse riding, bungee jumping or BASE jumping, according to A.M. Best Worldwide Headquarters. Another term is the "certified copy," which refers to a reproduction of an original document meaning that the signatures are copied but the reproduction is considered authentic, reports Pratt, Lambert & Brown Insurance.
Yet another common insurance term is "adjuster," which describes a person who must investigate a person's claim and is hired by the individual's insurance company to review the claim. Another common insurance term is "essential benefit," which details the basic benefits that the insured is entitled to such as newborn care, ambulatory patient services, hospitalization, emergency services, rehabilitative services and mental health services, states the Washington State Office of the Insurance Commissioner.
Insurance policies are created to protect people against injury and to protect their assets against injury such as their homes, their businesses and other property. Many insurance policies also cover life insurance and use terms, such as "accidental death benefit," which is a benefit that is given to the beneficiary of an insurance plan when the insured dies due to an accident.