Glossary Group: Glossary of Insurance Terms

A contract that is legally enforceable.

A contract in which only one of the contracting parties assumes legally enforceable promises.

A contract that was never enforced legally.

Policy that specifies the benefit amount payable in case a covered loss occurs, regardless of the cash amount of the loss incurred.

A contract in which both parties assume legally enforceable promises when entering a contract.

An insurance contract that insures several persons.

A contract under which one of the parties is authorized to avoid its obligations under the contract without incurring in civil liability under the law.

A legally binding agreement among two or more parties.

The person or organization that decides which types of collective or group insurance coverage will be contracted for the members of the group, negotiates the collective or group insurance contract terms with the insurer, and purchases the collective or group insurance coverage.

(1) Condition in which a person has received medical treatment for existing conditions before the date on which the coverage has come into force. (2) under the majority of individual health insurance policies, an injury that occurred or a disease that appeared or manifested for the first time within a specific period—usually two years—before issuance of the policy and which was not revealed in the application.