Insurance Jargon: A Guide to Insurance Abbreviations
by Yuvi K - December 16, 2023
Insurance Jargon: A Guide to Insurance Abbreviations
Insurance terminology can be confusing and overwhelming, especially to lay people who are not in the insurance industry. Insurance jargon may seem daunting, but understanding the common terms and abbreviations associated with insurance can help to clarify what services and products you are purchasing and how they will impact your life. This guide will help demystify insurance jargon by introducing common terms and abbreviations associated with insurance.
Insurance Companies and Providers
1. CPCU ( Chartered Property Casualty Underwriter):
This designation is given by the American Institute for Chartered Property Casualty Underwriters and is a professional designation that applies to those who specialize in property and casualty insurance. It requires completion of eight courses, a series of exams, and a Code of Ethics Exam.
2. CLU (Chartered Life Underwriter):
This is also a professional designation given by the American Institute for Chartered Property Casualty Underwriters. Similar to the CPCU designation, the CLU designation requires the completion of several courses and examinations.
3. CIA (Chartered Insurance Agent):
This is a professional designation given by the American Insurance Association. It is similar to the CPCU and CLU designations in that it involves the completion of courses and examinations. It focuses on insurance agency operations.
4. AIC (Associate in Insurance Counseling):
This is a program offered by the Insurance Institute of America. It involves a series of online courses and provides advanced insurance knowledge and skills to individuals in the industry.
5. AAI (Accredited Advisor in Insurance):
This is a program offered by the American Institute for Chartered Property Casualty Underwriters. It involves completion of several courses and exams. It is designed to provide individuals with advanced knowledge and skills related to the insurance industry.
Types of Insurance
6. P&C (Property and Casualty):
This type of insurance includes coverage for property damage, bodily injury, medical expenses, and liability that is caused by incidents or accidents. It is typically written for a specified period of time and can include any number of coverages.
7. H&H (Home and Health):
This type of insurance provides financial protection for homeowners and individuals related to their health. It can include coverage for medical expenses, property damage, personal liability, and disability.
8. L&H (Life and Health):
This type of insurance provides financial protection for individuals related to their life and health. It can include coverage for death, disability, long-term care, medical expenses, and critical illness.
9. BOP (Business Owners Policy):
This type of policy is specifically designed for small business owners. It typically combines property, liability, and crime insurances into one package. It provides financial protection for a business in case of property damage, liability claims, and employee theft.
10. GAP (Guaranteed Auto Protection):
This type of insurance is specifically designed for automobile owners. It provides financial protection for a vehicle in the event of a total loss due to theft, accident, or other covered peril. It typically pays the amount owed on the vehicle, less any deductible.
Risk Management
11. CLM (Certified Liability Manager):
This designation is given by the Risk and Insurance Management Society and is a professional designation that applies to those who specialize in risk management. It requires completion of several courses, a series of exams, and a Code of Ethics Exam.
12. CPM (Certified Property Manager):
This designation is given by the Institute of Real Estate Management (IREM). It is designed to provide individuals with advanced knowledge and skills related to property management and risk.
13. CRM (Certified Risk Manager):
This designation is given by the National Alliance for Insurance Education and Research. It is designed to provide individuals with advanced knowledge and skills related to risk management.
14. ARM (Associate in Risk Management):
This designation is given by The Institutes and is designed to provide individuals with advanced knowledge and skills related to risk management. It involves completion of several courses and exams.
15. CPC (Certified Professional Claims):
This designation is given by the American Institute for Chartered Property Casualty Underwriters and is designed to provide individuals with advanced knowledge and skills related to claims handling. It involves completion of several courses and exams.
Summary
It’s easy to get overwhelmed by insurance jargon. This guide provides an overview of many of the common terms associated with insurance and explains what they mean. While the words and acronyms may seem intimidating, understanding their meanings can help to make the insurance experience less confusing. With this guide in hand, anyone should be able to confidently navigate the world of insurance.
