Glossary of terms used in insurance CRM, comparative rating, quoting and agency management software.
The standard ACORD form used to evidence liability coverage — the certificate a business issues to show it carries insurance.
Standardized insurance forms and data standards maintained by ACORD and used industry-wide for applications, certificates and data exchange.
The core software an insurance agency uses to manage clients, policies, documents, activities and accounting in one system.
A widely used cloud-based agency management system from Applied Systems, aimed at agencies handling both P&C and benefits.
A temporary agreement providing coverage while a formal policy is being issued — proof that insurance is in force in the interim.
The total set of clients and policies an agency (or producer) manages, and the recurring commission income they generate.
A signed letter from the client designating which agency or agent controls and services a policy with the carrier.
A formal authorization from an insurance carrier allowing an agency to sell and service that carrier's products and earn commission.
A one-page document that summarizes an insured's coverage and limits as proof of insurance to a third party.
A secure self-service website or app where policyholders can view coverage, request certificates, make payments and access documents.
The percentage of premium a carrier pays an agency for placing and keeping business, often at different rates for new versus renewal policies.
Software that enters a client's information once and returns quotes from multiple carriers side by side for comparison.
Extra compensation a carrier pays an agency for meeting volume, growth or loss-ratio (profitability) targets over a period.
Selling additional policies to an existing client so more of their coverage sits with the agency — which raises revenue and retention.
An agency staff member who services existing accounts — endorsements, certificates, billing questions, claims support and renewals.
Two billing methods: with direct bill the carrier bills the client directly; with agency bill the agency collects premium and remits it to the carrier.
A written change to an existing insurance policy that adds, removes or modifies coverage mid-term.
Professional liability insurance that protects an agency against claims of negligence, mistakes or failure to provide proper coverage.
The use of new technology — software, data, AI and digital distribution — to modernize how insurance is sold, underwritten and serviced.
The industry network, now part of Applied Systems, that moves policy download and real-time data between carriers and agencies.
The ratio of claims paid to premium earned, used by carriers to judge how profitable an agency's book of business is.
A specialized intermediary granted authority by carriers to underwrite, bind and sometimes service certain lines on the carrier's behalf.
Personal lines insures individuals and families (auto, home); commercial lines insures businesses and organizations.
The automated delivery of policy data from a carrier directly into the agency management system, eliminating manual entry.
A loan arrangement that lets a policyholder pay a large annual premium in installments while the insurer is paid up front.
A licensed insurance salesperson who sells policies and brings in new business for an agency — the industry term for an agent or broker who produces.
The branch of insurance covering property (homes, autos, buildings) and liability, as distinct from life and health insurance.
Single sign-on connectivity that lets an agent access carrier functions such as quoting, billing and claims from inside the agency system.
The percentage of clients or policies an agency keeps from one term to the next — a key measure of book stability and value.
A cloud agency management system from Vertafore, popular with small to mid-size independent P&C agencies.
A wholesaler places risks standard carriers decline, often through non-admitted surplus lines markets, on behalf of a retail agency.