29 terms defined in plain language
Deductibles, endorsements, riders, premiums, declarations page — key policy contract terms defined.
Temporary coverage agreement while the formal policy is being issued. Confirms coverage is in effect before the full policy is delivered.
Document confirming a policy is in force. Often required by facilities, event organizers, and commercial haulers.
Percentage of eligible expenses paid by the policyholder after the deductible. Example: 80/20 means insurer pays 80%, owner pays 20%.
Amount paid out of pocket before reimbursement begins. May be per incident or per policy period. Typical range: $150–$500.
The date coverage begins. Pre-existing conditions are determined relative to this date.
An amendment to the policy that adds, removes, or modifies coverage. Used to customize a standard policy to specific needs.
A financial stake in the horse's wellbeing. Owners, lessees, lienholders, and partners may all have insurable interest.
Deductible structure where a separate deductible applies to each new injury or illness.
Deductible structure where one deductible applies to all claims during the entire policy year.
The duration of the insurance contract, typically one year from the effective date.
The cost of insurance coverage. For mortality, typically 2.5%–4% of the insured value annually.
Return of the unused premium portion upon cancellation, calculated proportionally to the remaining policy term.
Insurer's act of voiding a policy from inception due to material misrepresentation on the application. Premiums may be returned but all claims are denied.
See "Endorsement." An amendment to the policy that modifies, adds, or removes coverage.
Cancellation method that includes a penalty, resulting in less refund than pro-rated. More common when the insured initiates cancellation.
Time between the policy effective date and when certain coverages become active. Common for medical coverage (15–30 days) and shipping fever.
A person or entity added to a policy who receives liability protection under the policyholder's coverage. Common for facility owners who require boarders or trainers to add them.
The maximum total amount an insurer will pay for all claims during a policy period. Different from per-occurrence limits.
Violation of a policy condition or representation. Can void coverage. Common breaches include use misrepresentation and failure to disclose health conditions.
The summary page of an insurance policy listing the insured, covered horses, values, coverages, premiums, effective dates, and policy number. Also called the "dec page."
The portion of premium corresponding to coverage already provided. If you cancel after 6 months on an annual policy, 50% of the premium has been "earned" by the insurer.
A policy covering multiple horses under a single contract with potential volume discounts. Common for large operations with 10+ horses.
Unforeseeable circumstances (acts of God, natural disasters) that prevent fulfillment of a contract. Relevant to both insurance claims and underlying contracts like breeding agreements.
A short period after the premium due date during which coverage remains active even if payment hasn't been received. Typically 10–30 days. Not all policies include one.
The principle of restoring the insured to the same financial position they were in before the loss. Insurance pays the loss amount, not a windfall.
The insurer's decision not to renew a policy at expiration. May result from claims history, risk changes, or market withdrawal. Different from mid-term cancellation.
A list of individually identified items on a policy — each horse with its name, value, and specific coverage. Allows customized coverage for each horse on a multi-horse policy.
A state-run safety net that pays claims if an admitted insurance carrier becomes insolvent. Coverage limits apply. Does NOT cover surplus lines carriers.
The portion of premium corresponding to coverage not yet provided. The basis for premium refund calculations upon cancellation.
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