Texas Department of Insurance - Home Insurance Glossary (actual cash value, binder, cancellation, endorsement, insurable interest via single interest insurance, replacement cost, unearned premium and others)

What this document is

Texas Department of Insurance - Home Insurance Glossary (actual cash value, binder, cancellation, endorsement, insurable interest via single interest insurance, replacement cost, unearned premium and others) is a reference published by Texas Department of Insurance (www.tdi.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas property & casualty, texas personal lines, texas claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Texas Department of Insurance, Home insurance glossary, "Market value"

  “The current value of your home, including the price of land.”

• Texas Department of Insurance, Home insurance glossary, "Replacement cost"

  “Pays the dollar amount needed to replace the structure or damaged personal property without deducting for depreciation but limited by the policy's maximum dollar amount.”

• Texas Department of Insurance, Home insurance glossary, "Deductible"

  “The amount the insured must pay in a loss before any payment is due from the company.”

• Texas Department of Insurance, Home insurance glossary, "Additional living expenses (ALE)"

  “Reimburses the policyholder for the cost of temporary housing, food, and other essential living expenses, if the home is damaged by a covered peril that makes the home temporarily uninhabitable.”

• Texas Department of Insurance, Home insurance glossary, "Loss"

  “Loss – The amount an insurance company pays on a claim. Loss history – Refers to the number of insurance claims previously filed by a policyholder.”

• Texas Department of Insurance, Home insurance glossary, "Loss history"

  “A company will consider loss history when underwriting a new policy or considering a renewal of an existing policy. Companies view loss history as an indication of the likelihood that an insured will file a claim in the future.”

• Texas Department of Insurance, Home insurance glossary, "Peril"

  “A named-peril policy covers the policyholder only for the risks named in the policy. An all-risk policy covers all causes of loss except those specifically excluded.”

• Texas Department of Insurance, Home insurance glossary, "Binder"

  “A temporary insurance contract that provides proof of coverage until you receive a permanent policy.”

• Texas Department of Insurance, Home insurance glossary, "Declarations page"

  “The page in a policy that shows the name and address of the insurer, the period of time a policy is in force, the amount of the premium, and the amount of coverage.”

• Texas Department of Insurance, Home insurance glossary, "Single interest insurance"

  “For instance, if you still owe money on your mortgage and do not have homeowners insurance, your lender may take out a single interest insurance policy to protect its own interest in your property. Single interest insurance protects only the policy owner, not the homeowner.”

• Texas Department of Insurance, Home insurance glossary, "Non-renewal"

  “Non-renewal – A decision by an insurance company not to renew a policy.”

• Texas Department of Insurance, Home insurance glossary, "Underwriter"

  “Underwriter - The person who reviews an insurance application and decides whether to sell you a policy and how much to charge.”

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Questions about this source

More Texas sources

• Texas Government Code ch. 2001 -- Administrative Procedure Act, complete (Secs. 2001.001-2001.903)State statute
• Texas Government Code Chapter 2253, Public Work Performance and Payment Bonds, complete: Subchapters A-D, Secs. 2253.001-2253.079State statute
• Tex. Ins. Code ch. 541: Unfair methods of competition and unfair or deceptive acts or practicesState statute
• Tex. Ins. Code ch. 1101: Life insurance required and prohibited policy provisionsState statute
• Tex. Ins. Code ch. 4001: Agent licensing in generalState statute
• Tex. Ins. Code ch. 4005: Conduct, disciplinary actions, and sanctionsState statute
• Tex. Ins. Code ch. 1201: Accident and health insurance policy provisionsState statute
• Texas Insurance Code Chapter 151, Consolidated Insurance Programs, complete: Subchapters A-D, Secs. 151.001-151.151State statute