Age-banded – Different age groups have different rates. For example the age group of 30-40 has one rate, but at 40-50 there is a rate increase. Each carrier has its own age-banding.
A.M. Best – Reports the financial condition (ratings and analysis) of insurance companies.
Activities of Daily Living – Ordinary day-to-day activities such as bathing, dressing, toileting, transferring, continence and eating.
All-risk property protection – Covers your building and its contents.
Beneficiary – In a life insurance policy, the person or entity named to receive the death benefit.
Claims-made coverage – A form of insurance in which coverage is limited to liability only for those claims that arise from incidents or events that both happen and are reported to the insurance company while the policy is in force. As premiums for claims-made insurance reflect ongoing claims experience, they can be readily adjusted up or down as experience changes. When a claims-made policy is terminated, future claims arising from incidents that occurred during the policy period are not covered.
Dividend – A partial return of premium to policyholders.
Free prior acts – No need to purchase tail coverage when you switch carriers.
General liability – Coverage for “slips and falls” and other perils.
Group insurance – The policy is cancelable, age-banded and a level premium is not guaranteed.
Individual insurance – The policy is noncancelable and there is a guaranteed level premium.
Involuntary deductible – Imposed by the insurance company due to the adverse risk of characteristics of an insured. Does not include a premium deduction.
Long-term care – Therapeutic, rehabilitative maintenance or personal care services, delivered in a setting other than a hospital. For people needing assistance with the activities of daily living because of functional or cognitive impairments.
Mutual insurance company – Has no formal stockholders or capital stock. All participants share the losses and profits of the business.
Occurrence coverage – A type of policy in which the insured is covered for any incident that occurs (or occurred) while the policy is (or was) in force, regardless of when the incident is reported or when it becomes a claim. Occurrence insurance for medical liability coverage is rarely offered today because of the difficulty in projecting long-term claims costs under this type of policy.
Own-occupation – Your regular occupation (or occupations, if you have more then one) in which you are engaged at the time you become disabled. The policy also says, “You will be totally disabled, even if you are at work in some other capacity, so long as you are not able to work in your occupation.”
Personal injury liability – Injury, other than bodily injury, arising out of one or more of the following offenses committed in the course of your dental practice:
- False arrest, detention or imprisonment
- Wrongful eviction
- Undue familiarity
- Discrimination against patients or prospective patients
- Malicious prosecution or abuse of process
- Libel, slander, defamation of character or disparagement of a person’s or entity’s goods, products or services
- Oral or written publication of material that violates a person’s right of privacy
- Personal umbrella insurance – Provides additional/higher limits of protection when underlying aggregates are exhausted.
- Premium – The amount of money a policyholder pays for insurance protection.
- Professional liability – Insuring agent agrees to pay legal obligations for damages because of injury caused by a medical incident.
- Residual disability – Partial disability that limits one’s ability to work and results in decreased income.
Tail – Coverage that protects the dentist against all claims arising from professional services performed while the claims-made policy was in effect but reported after termination of the policy.
Term life – A type of life insurance that covers the insured for a specified period of time. It pays a benefit to a designated beneficiary only when the insured dies within that specified period.
Totally disabled – When, due to sickness or injury, one cannot perform the material and substantial duties of one’s occupation.
Universal life – A type of permanent life insurance where the premium and benefits are adjustable.
Vicarious liability – The duty of a principal (e.g., a dentist) to pay for losses occasioned by the acts of an agent (e.g., a dental auxiliary).
Voluntary deductible – Allows the insured to pay an amount of the first dollars of a claim payment and to pay a lower premium for assuming this risk.
Whole life – A type of life insurance which provides coverage for an individual’s whole life, rather than a specified term. It builds cash value over time and can be used for wealth accumulation. It pays a benefit upon the person’s death.
Workers’ compensation – Insurance that pays for medical care and physical rehabilitation of injured employees and helps to replace lost wages while they are unable to work.