Comprehensive Coverage
Coverage that pays for damage to or the loss of your vehicle from causes other than collision.

Grace Period
A period of time (commonly 30-31 days) after premium-due date during which a policy remains in force without penalty even though the premium due has not been paid.

Endowment Insurance
A form of life insurance payable to the insured if living at the end of the endowment period or to a beneficiary if the insured dies before the endowment date.

Lapse
Termination of a policy because of failure to pay the premium.

Actual Cash Value
A form of insurance coverage that pays damages equal to the replacement value of damaged property with the deduction of depreciation of value.

Personal Injury Protection
This is a mandatory no fault coverage for automobile insurance providing benefits including, but not limited to, medical expenses, loss of income resulting from an automobile accident, and essential services.

Pro Rata
Distribution of the amount of insurance in one policy, among the several objects or places covered, in proportion to their value or to the amounts shown. The distribution of liability among the several insurance companies having policies on the risk.

Policyholder
Literally, the person who has possession of the policy.

Homeowner Policy
A package or multi-line policy providing the protection needed by most homeowners. The policy provides property insurance, including theft, with very broad coverage on both the building and the contents.

Deductible
The deductible is the amount you agree to pay on each loss before your insurance company pays.