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HAUL AWAY

A vehicle used to carry other vehicles, principally automobiles, from or part way from a factory or other distributing point of the manufacturer to be delivered to a dealer, or purchaser or to be kept in storage, when such vehicle is especially constructed for that purpose, or is an automobile of the commercial type used frequently for the same purpose.

HAZARD

A specific situation that introduces, or increases, the probability of occurrence of loss arising from a peril, or that may influence the extent of the loss. (Fire, windstorm, hail, explosion and robbery are examples of perils; slippery floors, unsanitary conditions, shingle roofs, congested traffic and unguarded premises are examples of hazards.)

HAZARD, MORALE

An attitude that increases the probability of loss from a peril. The attitude of "It's insured, so why worry?" is an example of a morale hazard.

HAZARD, PHYSICAL

The material, structural, or operational features of the risk itself, apart from the persons owning or managing it.

HEALTH INSURANCE

This term has become accepted by the industry for the branch which includes all types of loss of time and medical expense insurance. It is also known as accident and health insurance, sickness and accident insurance, etc.

HEIR

One who inherits, or is entitled to succeed to the possession of any property after the death of its owner.

HEIR APPARENT

A person who will become the heir of another provided he/she outlives the other person.

HEIR AT LAW

One who is designated by law to inherit the property of someone who dies intestate.

HEIR PRESUMPTIVE

One who will be the heir of another provided he/she outlives the other and provided also that no closer heir apparent is born meanwhile or created by some change in status.

HIRED CAR

An automobile of which the exclusive use and control has been temporarily given to another for a consideration. This should be distinguished from contract hauling, since in the latter case the owner retains control of the movements of the vehicle and simply agrees to furnish transportation.

HOLD-HARMLESS AGREEMENT

An agreement by which one party assumes the liability of another. Hold-Harmless agreements are often found in leases; the lessee (tenant) agreeing to assume the lessor's (landlord's) liability if members of the public are injured through some faulty condition in the premises occupied by lessee. Railroad side-track agreements, permits from a city to erect a marquee or sign over a sidewalk, etc. often contain hold-harmless agreements.

HOSPITAL BENEFITS

Additional benefits payable under an accident or disability policy in case the insured is confined to a hospital.

HOSTILE FIRE

One that becomes uncontrollable or breaks out from its container and occurs where not intended.

HULL INSURANCE

A marine policy covering damage to the ship itself. This term is also used in aviation insurance with respect to damage to the airplane.

INCIDENTS OF OWNERSHIP

The rights to exercise any of the privileges in the policy: to change the beneficiary, withdraw cash values, make loans on the policy, assign it, etc.

INCOME BOND

See Retirement Annuity.

INCOME INSURANCE

Insurance which provides funds to replace salary loss due to illness.

INCOME POLICY

A life endowment which provides definitely for specified monthly amounts in the payment of proceeds in place of the lump sum.

INCONTESTABILITY CLAUSE

A provision found in most life policies and some disability policies. It stipulates that after the policy has been in force for a certain period of time (often one or two years), it shall be incontestable except for non-payment of the premium. This provision shall not apply to any additional benefits for disability or death.

INCORPORATED CARRIER

This includes all stock companies and most mutual, but not Lloyds organizations or reciprocal exchanges.

INCREASE IN HAZARD

Any change in the circumstances of a risk which may make a loss more probable. Most fire policies are automatically suspended while there is any increase in hazard within the knowledge or control of the insured.

INCREASED LIMITS (INC. LIMITS)

See Limits Excess.

INCURRED LOSS RATIO

This is calculated by applying incurred losses to the earned premium to determine the percentage of losses.

INDEMNIFY

To reimburse for a loss actually sustained, restored to position prior to loss without profit.

INDEMNITY

The remuneration paid by the carrier to the insured for loss or damage covered under the insured's contract; the benefit of insurance.

INDEMNITY RELEASE

A release in cases involving minors which requires signatures of the parents of the minor. Sometimes used in the same sense as release.

INDEPENDENT CONTRACTOR

One who agrees to perform services or supply commodities under a contract. In carrying out his/her contract, he/she is not under the control of, nor an employee, of the party with whom he/she contracts.

INDIRECT LOSS OR DAMAGE

See Consequential Loss.

INDUSTRIAL INSURANCE

See Weekly Premium Insurance.

IN-FORCE BUSINESS

Insurance for which premiums are being paid or for which premiums have been fully paid.

INHERENT EXPLOSION

One caused by some condition existing in the premises or property as opposed to an explosion occurring elsewhere.

INHERENT VICE

A condition which is in the very nature of the property and results in damage. For example, if you fill an ordinary glass vessel with very hot water, it will crack. This is an inherent vice. It is in the very nature of ordinary glasses to crack under such conditions.

IN KIND

Replacing lost or destroyed property with other property of the same type and equal value.

INLAND MARINE INSURANCE

Coverage for property subject to hazards of transportation. Coverage is usually for accidental direct physical loss. Property includes moveables written on floater forms and instrumentalities of transportation (bridges, tunnels, piers) as well as imports, exports and domestic shipments. Transportation does not include seagoing ventures.

INSOLVENCY

Inability to pay one's debts in full as they come due.

INSOLVENCY CLAUSE

The clause which holds the reinsurer liable for their pro rata share of any loss (or losses) assumed under treaty even though the primary company has become insolvent.

INSPECTION OF RISK

Examination of property to decide as to its desirability.

INSPECTION REPORT

A confidential report on a risk, stating the moral and physical hazards which may or may not be present. Inspection service is usually purchased from companies which specialize in that field.

INSPECTION REPORT [LIFE]

The report of an investigator providing facts required for a proper decision on applications for new insurance and reinstatements. Also see Commercial Inspection Report.

INSTRUMENT

A legal document, made and executed as evidence of some act, contract or proceeding.

INSURABLE INTEREST

A condition, which exists when the person concerned will suffer a financial loss if a certain event occurs. Insurance may only be sold to persons who have an insurable interest. In Fire or Property, insurable interest must exist only at time of loss.

INSURABLE INTEREST [LIFE]

The interest arising when a beneficiary of a policy has a reasonable expectation of benefiting from the continuance of the insured's life or of suffering a loss at death. Policies obtained by one person on the life of another without insurable interest are not enforceable by law since they are considered contrary to the public policy.

INSURABLE VALUE

The stated value in the insurance contract. It can be the market value, the declared value, or the replacement value.

INSURANCE

Transferring the risk of a loss to an insurer under the terms and conditions of an insurance contract. The insurer will indemnify said person against loss, damage, or liability arising from a contingent or unknown event.

INSURANCE AGENT

Is a person authorized by and on behalf of an insurer to transact insurance.

INSURANCE CARRIER

The insurer, incorporated or otherwise.

INSURANCE COMMISSIONER

(Known in some states as the Superintendent of Insurance.) The official who regulates the business of insurance within the state.

INSURANCE EXCHANGE

An unincorporated insurance company.

INSURANCE INSTITUTE OF AMERICA

Offers a number of study programs for which special diplomas or designations can be earned in property and liability insurance, risk management, insurance adjusting and management.

INSURANCE POLICY

The basic contract, as distinguished from the forms and endorsements which may be added to it.

INSURED

The person to be indemnified in case of loss or liability.

INSURER

The person guaranteeing to provide indemnity in case of loss or liability.

INSURING CLAUSE OR AGREEMENT

That part of the policy which states what the insurer agrees to do. (As opposed to the Exclusions, which states what the insurer will not do.)

INTEREST ONLY OPTION (INTEREST OPTION)

A mode of settlement under which all or part of the proceeds of a policy are left with the company for a definite period at a guaranteed minimum rate of interest. Interest may be added to the proceeds or may be paid annually, semi-annually, quarterly or monthly.

INTERIM TERM INSURANCE

Term insurance for a period of 12 months or less by special agreement of the company to permit a policy of permanent insurance to become effective at a selected date in the future.

INTER-INSURANCE OR RECIPROCAL INSURANCE EXCHANGE

An unincorporated insurance company whose members exchange contracts of insurance with one another through the medium of an attorney-in-fact.

INTERMEDIARY

A reinsurance broker who negotiates contracts of reinsurance on behalf of the reinsured. The Broker, because of specialized training and expert knowledge of markets, performs a valuable service to both parties, protecting their mutual interests to the best of his/her ability.

INTERSTATE COMMERCE

Licensed to conduct business across state lines.

INTERSTATE COMMERCE COMMISSION (ICC)

The federal body charged with enforcing Acts of Congress affecting interstate commerce. For the trucking industry, having to do with rates and related conditions of bailment involving transportation of goods for hire on an interstate basis.

INTER VIVOS TRUST

A trust established and effective when the grantor is alive, as compared with a testamentary trust.

INTESTATE

When a person dies leaving no will, he or she dies intestate.

INTRASTATE COMMERCE

Business carried on within the limits of one state only.

INURE

To serve to the benefit of a person.

INVENTORY

An itemized list of goods, with their estimated value.

INVESTMENT EXPENSE

Expenses paid incident to the handling of the company's investments, as for example, expenses for appraisal, safekeeping charges, and investment analysis services.

INVITEE

A person who comes upon your property at your express invitation, and is there principally for your benefit. A customer in a store, a patron in a restaurant or theater are examples. You owe them a high degree of care.

IRON BARS (Commercial Crime)

Should be at least 5/8" thick and with openings not over 5 inches wide between bars, with at least two supporting horizontal bars riveted or welded at all joints. The bars or their supports must be firmly embedded in the wall, preferably on the inside of wall or ceiling openings.

IRREGULAR PREMIUM

The fractional or proportionate premium paid to change the regular premium date due from one month or season of the year to another.

IRREVOCABLE BENEFICIARY

A beneficiary whose interest cannot be revoked without that individual's written consent, usually because the policy owner has made the beneficiary designation without retaining the right to revoke or change the designation.

IRREVOCABLE TRUST

A trust that cannot be altered by the person who created the trust.