18 terms defined in plain language
Pre-purchase exam, pre-existing conditions, Coggins test, material misrepresentation — underwriting terms explained.
Formal evaluation of a horse's value by a qualified appraiser. May be required for high-value horses, typically $25,000+.
The form submitted requesting coverage. Requires details about breed, age, sex, use, value, health history, and location. Misrepresentations may void coverage.
Document recording purchase price and transfer of ownership. Primary evidence of value for insurance purposes.
Blood test for Equine Infectious Anemia (EIA). Required annually for transport, competition, and often for insurance applications. A positive Coggins can make a horse uninsurable.
Recent sale prices of similar horses used to establish or verify a horse's insured value.
The declared primary use of the horse on the insurance application. Critical for both underwriting and Loss of Use claims.
False or misleading information on an application that, if known, would have changed the underwriting decision. Can void the entire policy.
A specific condition excluded from coverage based on the horse's health history. Example: "navicular disease excluded." The rest of the horse remains covered.
Any illness, injury, or clinical sign present before the policy effective date. Almost universally excluded from coverage.
Veterinary examination before buying a horse. Findings become part of the health record and affect insurability.
The insurance company or individual who evaluates risk and determines coverage terms. The financial entity backing the policy.
When higher-risk individuals are more likely to purchase insurance, skewing the risk pool. Insurers manage this through underwriting, health requirements, and exclusions.
Independent financial strength rating of insurance carriers. "A" or better indicates strong ability to pay claims. Check before purchasing any policy.
An agent who represents a single insurance company exclusively. Contrast with independent agent who can access multiple carriers.
An agent who represents multiple insurance carriers and can shop among them for the best coverage. Generally preferred for equine insurance due to market variety.
When an insurance company cannot meet its financial obligations, including paying claims. State guaranty funds may provide limited protection for admitted carriers. Check AM Best ratings.
Information that would influence the insurer's decision to accept, decline, or price a risk. Failure to disclose material facts can void coverage entirely.
The risk that insurance coverage may change behavior — for example, an insured person taking less care because they know losses are covered. Insurers manage moral hazard through deductibles and claims investigation.
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