Total Loss
When the cost to repair a vehicle approaches or exceeds the vehicle's actual cash value.

Loss
Any diminution of quantity, quality or value of property. With reference to policies of indemnity, this term means a valid claim for recovery thereunder. In its application to liability policies, the term refers to payments made on behalf of the insured.

Liability Limits
The sum or sums beyond which a liability insurance company does not protect the insured on a particular policy, similar to limit of liability.

Homeowner Policy
A package or multi-line policy providing the protection needed by most homeowners. The policy provides property insurance, including theft, with very broad coverage on both the building and the contents.

Replacement Cost
Insurance which pays the amount needed to replace damaged personal property or home property without deducting for depreciation.

Lapse
Termination of a policy because of failure to pay the premium.

Credit Life Insurance
Life insurance coverage on a borrower designed to repay the balance of a loan if the borrower dies before the loan is paid off. It can also be offered as an option for credit cards and auto loans.

Auto Replacement Coverage
A supplemental auto insurance coverage that guarantees your car will be completely repaired or replaced, even if the costs exceed its depreciated value.

Grace Period
A period of time (commonly 30-31 days) after premium-due date during which a policy remains in force without penalty even though the premium due has not been paid.

Waiting Period
The period of time between the beginning of a disability and the date benefits begin.