Personal Lines Glossary · Insurance

Community Rating System (CRS): the NFIP program discounting premiums 5% to 45% in communities that exceed floodplain management minimums (Flood & the NFIP).
Coverages A to F: the homeowners coverages: dwelling, other structures, personal property, loss of use, personal liability and medical payments to others (Homeowners & Renters).
Designated Responsible Producer (DRP): the licensed individual a limited lines travel insurance producer names as responsible for compliance (Pet & Travel Insurance).
Emergency medical condition: the Florida PIP finding that raises the medical benefit limit from $2,500 to $10,000 (Personal Auto).
Federal Policy Fee: the NFIP's per-policy fee, $47 for most policies, funding mapping and floodplain management (Flood & the NFIP).
Financial responsibility: a state's requirement that a driver carry liability insurance or equivalent security at minimum limits (Personal Auto).
Force-placed (lender-placed) insurance: coverage a mortgage servicer buys and charges to a borrower whose own coverage lapsed (Homeowners & Renters).
HFIAA surcharge: the NFIP's annual surcharge of $25 for primary residences and $250 for other properties (Flood & the NFIP).
Holdback: the depreciation withheld from an ACV-first property payment until repair or replacement (Homeowners & Renters).
Hurricane deductible: a homeowners deductible, often a percentage of Coverage A, that applies to hurricane losses, in Florida across all hurricanes in a calendar year (Homeowners & Renters).
Limited lines travel insurance producer (LLTIP): a business entity licensed to sell travel insurance and to register travel retailers that offer it (Pet & Travel Insurance).
Mandatory purchase requirement: the federal rule that loans on buildings in special flood hazard areas carry flood insurance (Flood & the NFIP).
Negative option: selling coverage by making the buyer deselect it, such as a pre-checked box, which the travel model act prohibits (Pet & Travel Insurance).
No-fault: a system in which each person's own auto policy pays their injuries through PIP regardless of fault, with suits limited by a threshold (Personal Auto).
Personal injury protection (PIP): first-party auto coverage for medical costs, lost income and other expenses in no-fault states (Personal Auto).
Pet insurance: "a property insurance policy that provides coverage for accidents and illnesses of pets," in the NAIC model act's definition (Pet & Travel Insurance).
Preexisting condition (pet): a condition with veterinary advice, treatment, or signs or symptoms before the policy's effective date or during a waiting period (Pet & Travel Insurance).
Private flood insurance: flood coverage from a private insurer that lenders must accept if it is at least as broad as the NFIP's standard policy and meets the statute's terms (Flood & the NFIP).
Replacement cost: the cost to repair or replace with like kind and quality, without deduction for depreciation (Homeowners & Renters).
Reserve Fund assessment: the NFIP's 18% charge on premium funding its reserve (Flood & the NFIP).
Risk Rating 2.0: the NFIP's building-level pricing method, fully in effect from April 1, 2023 (Flood & the NFIP).
SR-22: a certificate an insurer files with a state proving a driver's future financial responsibility, with a duty to notify the state if coverage ends (Personal Auto).
Stacking: adding together the UM or UIM limits of several vehicles or policies (Personal Auto).
State insurance verification system: a state system (TexasSure and others) to which insurers report auto coverage or answer inquiries (Personal Auto).
Travel protection plan: a plan combining travel insurance, travel assistance services and cancellation fee waivers sold at one price (Pet & Travel Insurance).
Travel retailer: a business that offers travel insurance under a limited lines travel insurance producer's license (Pet & Travel Insurance).
Underinsured motorists (UIM): coverage for the insured's injuries when the at-fault driver's liability limits are insufficient, paid on an excess or limits-less basis (Personal Auto).
Uninsured motorists (UM): coverage for the insured's injuries caused by an uninsured or hit-and-run driver (Personal Auto).
Waiting period (flood): the 30 days before a new NFIP policy takes effect, with exceptions for loans, map revisions and post-wildfire flooding (Flood & the NFIP).
Waiting period (pet): time before some coverage begins; the NAIC model caps illness waiting periods at 30 days and bans them for accidents (Pet & Travel Insurance).
Wellness program: a pet health subscription separate from insurance that may not be marketed as insurance or required for eligibility (Pet & Travel Insurance).
Write Your Own (WYO): the NFIP arrangement under which private insurers sell and service federal flood policies in their own names as fiscal agents (Flood & the NFIP).