Indemnify: To restore the victim of a loss, in whole or in part, by payment, repair or

Indemnity Bond: A bond which indemnifies the obligee against loss which arises as a result
of failure on the part of a principal to perform.

Indemnity Health Plan: A health insurance plan where the individual pays a
pre-determined percentage of the cost of health care services. The health plan pays the
other percentage. Also called "fee-for-service."

Independent Contractor: One who agrees to perform according to a contract and who is
not an employee.

Inherent Vice: A defect or cause of loss arising out of the nature of the goods in question.

Insurability: The acceptability of an insurance applicant based on a number of factors such
as age, health, occupation, financial status, etc.

Insurable Risk: A risk which meets most of the following requisites: (1) The loss insured
against must be defined; (2) It must be accidental; (3) It must be large enough to cause
hardship to the insured; (4) It must belong to a homogenous group of risks large enough
to make losses predictable; (5) It must not be subject to the same loss at the same time as
a large number of other risks; (6) The insurance company must be able to determine a
reasonable cost for the insurance; (7) The insurance company must be able to calculate the
chance of loss.

Insurance: Financial protection against loss or harm. An agreement by which a company
provides a customer with financial protection against loss or harm in return for the
customer regularly paying a premium.

Insured: An individual or object covered by insurance, also referred to as a "policyholder."

The above information is for general informational purposes only and is not to be
construed as a recommendation or advice in any way shape or form.
Copyright © 2016 Stephen W. Gersh Insurance Agency, Inc.  All rights reserved.
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