Risk & Insurance Glossary - I

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

INCIDENT (AVIATION) – Defined by the FAA as “an occurrence involving one or more aircraft in which a hazard or a potential hazard to safety is involved but not classified as an accident due to the degree of injury and/or extent of damage.” An incident could affect the safety of operations. This definition covers a broad range of events and may include runway incursions, pilot deviations and near midair collisions.
INDEMNITY
– Replacement, repair or payment of value of a loss.
INDEMNITY AGREEMENT – (See also HOLD HARMLESS AGREEMENT)
INDEPENDENT CONTRACTOR – One who agrees to perform services or supply commodities under a contract. In carrying out the conditions of the contract the independent contractor is not under the control of, nor an employee of, the other party of the contract.
INDIRECT COSTS – Costs incurred in the repair of damaged property, but which cannot be directly charged to the job and are charged on the percentage of some base; e.g., cost of employee benefits, administrative and general expenses, etc.
INDIRECT DAMAGE – (See also CONSEQUENTIAL LOSS)
INHERENT EXPLOSION – An explosion arising out of the inherent characteristics of the risk insured.
INHERENT VICE – A quality within an object that results in its tending to destroy itself, thus causing a loss to, or of the object.
IN KIND – To replace "in kind" means to replace lost or damaged property with material or property of like kind and quality.
INLAND MARINE INSURANCE – A class of insurance to provide coverage for goods while in transit, other than on the ocean, and also includes numerous floater policies, such as personal effects, personal property, jewelry, furs, etc. Although property must be movable to be eligible for coverage, bridges, tunnels, radio and 1V broadcasting equipment, and similar aids to transportation and communication also qualify for inland marine insurance.
INSPECTION REPORTS – A report of an inspection of the moral, financial and/or physical aspects of a risk. Report may include recommendations as to risk control.
INSTRUMENT – Any written document or paper.
INSURABLE INTEREST – A right or interest in property such as would create a financial loss to the holder of such right or interest, should the property be damaged or destroyed. An essential element of a insurance contract.
INSURANCE – A contract whereby one (the insurer), for a consideration (the premium), undertakes to indemnify another (the insured) against loss, damage, or liability arising from a contingent or unknown event.
INSURANCE AGENT – Representative of the insurer in negotiating, servicing, or effecting insurance contracts; he may be an independent contractor or an employee.
INSURANCE BROKER – One who negotiates, services, and effects insurance contracts on behalf of the insured. The major difference between a broker and an agent is that the broker represents the insured, whereas an agent represents the insurer. Brokers are usually compensated by commissions from the insurer, but a fee schedule can be negotiated with many brokers.
INSURANCE COMMISSIONER – A public official charged with enforcement of the insurance laws of a state or other jurisdiction.
INSURANCE COMPANY – A company which acts as an insurer.
INSURANCE POLICY – The entire written contract of insurance; that is, the basic written or printed document, as well as the coverage forms and endorsements added to the basic document.
INSURANCE SERVICES OFFICE (ISO) – A voluntary association of property and liability insurance companies providing rating, statistical, actuarial, policy form and advisory services. ISO also acts as an official rating organization.
INSURED – The party to the insurance contract to whom the insurer agrees to pay losses or benefits; assured; policyholder.
INSURER – The party to the insurance contract who, for a consideration (the premium) agrees to pay the insured or on behalf of the insured the losses sustained by the insured.
INSURING CLAUSE – That part of an insurance contract that constitutes the agreement to protect the insured against loss from specified perils or to pay benefits under specified circumstances.
INTERSTATE CARRIER – A common carrier whose business extends beyond the boundaries of one state.
INTERSTATE COMMERCE – Commerce between citizens of different states and subject to Federal Law. Insurance is legally considered to be interstate commerce.
INTRASTATE CARRIER – A common carrier whose business is confined entirely within the boundaries of a state.
INTRASTATE COMMERCE – Commerce conducted solely within a state's geographic borders.
INVITEES – Those who are lawfully on premises.