Insurance Definitions

H Return To Alpha Index     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 "Soft market"). Hazard: Condition that creates or increases the chance of loss. Health Insurance: Insurance against financial losses resulting from sickness or accidental bodily injury. Health Insurance: Insurance providing for the payment of benefits as a result of sickness or injury. Includes various types of insurance such as accident insurance, disability income insurance, medical expense insurance, accidental death insurance, and dismemberment insurance. Health Maintenance Organization (HMO): 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 sponsored by the government, medical schools, hospitals, employers, labor unions, consumer groups, insurance companies, and hospital-medical plans. Hedging: Technique for transferring the risk of unfavorable price fluctuations to a speculator by purchasing and selling options and futures contracts on an organized exchange. 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. Homeowners Policy: A package of insurance providing home owners with a broad range of property and liability coverage's. Home Service Life Insurance: Industrial life insurance and monthly debit ordinary life insurance contracts that are serviced by agents who call on the policy owner's at their homes to collect the premiums. The amount of life insurance per policy generally is larger than $1000. 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: Health insurance protection against the cost of hospital care resulting from the illness or injury of the insured person. Hospital Expense Insurance: A form of health insurance that provides 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 unallocated 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 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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