Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.
If you plan to start a new policy or renew your current policy with a carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.
Habilitative/Habilitation Services
Healthcare services that help a person keep, learn or improve skill and functioning for day to day living.
Hard Market
That part of the insurance sales cycle in which competitive pricing is at a minimum as companies charge the premiums necessary to meet their underwriting losses in order to avoid insolvency and boost capacity; usually associated with a sharp decline in capacity. See also Soft Market.
Hardship Exemption
An approved excuse from paying the penalty for not having health insurance.
Hazard
Condition that creates or increases the chance of loss.
Health Insurance
Coverage designed to protect against financial losses resulting from sickness or accidental bodily injury. Health insurance coverages include accident insurance, disability income insurance, medical expense insurance, and accidental death and dismemberment insurance.
Health Insurance Marketplace
Also called exchanges, are organizations in each state whereby people can purchase health insurance.
Health Plan Categories
The four types of health insurance plans that were created under the Patient Protection and Affordable Care Act enacted March 23, 2010, that are based on the percentage of healthcare expenses that will be paid by the respective plan. These plans are often referred to as the ‘metal’ plans; Bronze, Silver, Gold and Platinum.
Health Maintenance Organization
An organization that provides a wide range of comprehensive health care services for a specified group at a fixed periodic payment. The HMO can be contracted with and sponsored by the government, medical schools, hospitals, employers, labor unions, consumer groups, insurance companies, and hospital-medical plans.
Health Reimbursement Account (HRA)
An IRS approved, tax advantaged health benefit that is funded by your employer, that reimburses you for out-of-pocket healthcare expenses.
Health Savings Account (HSA)
A tax advantaged savings account available to people enrolled in high-deductible health plans, whereby the funds in the account can be used towards approved healthcare related expenses, tax free and without penalty.
HIAA
Health Insurance Association of America.
High Deductible Health Plan (HDHP)
A healthcare plan that has a lower premium but much higher deductible than the average healthcare plan and is also required to have a Health Savings Account.
High-Risk Automobile Insurer
Company that specializes in insuring motorists who have poor driving records or have been canceled or refused insurance. Hold-Harmless Clause: Clause written into a contract by which one party agrees to release another party from all legal liability, such as a retailer who agrees to release the manufacturer from legal liability if the product injures someone.
HIPAA
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was the result of efforts by the Clinton Administration and congressional healthcare reform proponents to reform healthcare. The goals and objectives of this legislation are to streamline industry inefficiencies, reduce paperwork, make it easier to detect and prosecute fraud and abuse and enable workers of all professions to change jobs, even if they (or family members) had pre-existing medical conditions.
HIPAA Eligible Individual
People that are guaranteed the right to purchase individual health coverage without pre-existing condition exclusions when they leave group coverage.
HMO
See Health Maintenance Organization.
Home And Community-Based Services (HCBS)
HCBS organizations provide Medicaid clients with he opportunity to receive in home, or community services, rather than in institutions.
Home Service Life Insurance
Industrial life insurance and monthly debit ordinary life insurance contracts that are serviced by agents who call on the policy-owners at their homes to collect the premiums. The amount of life insurance per policy generally is larger than $1000.
Homeowner’s Policy
A package of insurance designed to provide homeowners with a broad range of property and liability coverages, pertaining to events at home as well as away from home (although not automobile-related).
Honesty
Moral uprightness – the quality, condition, or characteristic of being fair, just, truthful, and morally upright. Truthfulness – truthfulness, candor, or sincerity, (i.e.: In all honesty, I really didn’t know.)
Hospice
Health care facility providing medical care and support services such as counseling to terminally ill persons.
Hospital Admissions Program
An arrangement to facilitate admission of persons covered by health insurance to hospitals and to assure the prompt payment of applicable insurance benefits to hospitals.
Hospital Expense Insurance
A form of health insurance designed to provide specific benefits for daily hospital room and board and hospital services during hospital confinement. Generally the policy also provides benefits for surgical operations and for in-hospital doctor’s visits, in which case the policy is referred to as a Hospital and Surgical Expense Policy.
Hospital Indemnity
A form of health insurance which provides a stipulated daily, weekly, or monthly indemnity during hospital confinement. The indemnity is payable on an un-allocated basis without regard to the actual expense of hospital confinement.
Hospital Medical Insurance
A term used to indicate protection which provides benefits for the cost of any or all of the numerous health care services normally covered under various health care plans.
Hospital Miscellaneous Services
Services other than room and board and general nursing services provided by a hospital during hospital confinement. Included are such items as x- ray examinations, laboratory tests, medicines, surgical dressings, anesthetics (including the administration thereof), and use of operating room.
Hull Insurance
(1) Class of ocean marine insurance that covers physical damage to the ship or vessel insured. Typically written on an “all-risks” basis.
(2) Physical damage insurance on aircraft, similar to collision insurance in an automobile policy.
Human Life Value
For purposes of life insurance, the net present value of the family’s share of the deceased breadwinner’s future earnings.
Hurricane
A tropical storm marked by extremely low barometric pressure and circular winds with a velocity of 75 miles an hour or more.
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