Rick Debe Insurance Agency - DBI Insurance Services
(262) 363-8650
Office Hours: M - Th 8:30 - 5:30 Friday 8:30 - 3:00

We've listed all the relevant insurance terminology we could think of...and then some!  If you don't find what you're looking for, just send us an email with your question and we'll get right back to you with the answer!


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Damaged property an insurer takes over to reduce its loss after paying a claim. You can receive salvage rights over property on which you have paid claims on, such as a badly-damaged cars. Salvage charges are the costs associated with recovering that property.


A list of individual items or groups of items that are covered under one policy or a listing of specific benefits, charges, credits, assets or other defined items.

Secondary Payer

An insurance policy, plan, or program that pays second on a claim for medical care. This could be Medicare, Medicaid, or other health insurance depending on the situation.

Securities and Exchange Commission/ SEC

The organization that oversees publicly-held insurance companies. Companies must also disclose any material events and other information about their stock.

Securitization of Insurance Risk

Using the capital markets to expand and diversify the assumption of insurance risk. The issuance of bonds or notes to third-party investors directly or indirectly by an insurance or reinsurance company or a pooling entity as a means of raising money to cover risks.

Selective Screening 

Accepting the best risks and declining the others - forces other insurers to practice selective screening or suffer poor loss experience.

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Self-Insured Plan 

An employer who offers health insurance to its employees, with the benefits paid for entirely by the employer. Self-insured plans are exempt from regulation by state laws, but are subject to certain federal requirements under ERISA.

Service Area 

The area where the plan accepts enrollees and, for managed care plans, where the plan has contracted providers that you are required to use. Most coordinated care plans operate in a limited geographic area known as a service area. It is usually stated as county or zip code of operation.

Settlement Options 

Methods for payment of the value of a policy. An insurance company can select one of three options in settlement of a loss: (1) make a cash payment; (2) take possession of damaged or destroyed property and replace it with property of like kind and quality, or (3) repair the property so that it is restored to its structural condition prior to the loss and return the repaired property to the insured. Usually insurance companies settle losses by a cash payment to the insured.


Size of a loss. One of the criteria used in calculating premiums rates.

Sewer Back-Up Coverage

An optional part of homeowners insurance that covers sewers.

Single Premium Annuity

An annuity that is paid in full upon purchase.

Skilled Nursing Care

Medically necessary care that can only be provided by, or under the supervision of, skilled, licensed, medical professionals such as registered nurses or professional therapists. All skilled services require a physician's order. Medicare's definition is often different from the definitions used in many Medicare supplement and long-term care insurance policies.

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Practice that increases the money available to pay auto liability claims. In states where this practice is permitted by law, courts may allow policyholders who have several cars insured under a single policy, or multiple vehicles insured under different policies, to add up the limit of liability available for each vehicle.

State Health Insurance Assistance Program

A state program that gets money from the federal government to give free health insurance counseling and assistance to people with Medicare.

Structured Settlement

Legal agreement to pay a designated person, usually its someone who has been injured. Its a specified sum of money periodic payments during that persons lifetime, instead of paying it all in one lump sum.


The right of the insurance company to recover from a third party the amount paid under the policy. For example, if damage is done to your automobile, protected by a collision insurance policy, the insurance company may collect from the party whose automobile ran into your car, the amount of damages which was paid to you by the process of subrogation.

Surety Bond

A contract guaranteeing the performance of a specific obligation. Simply put, it is a three-party agreement under which one party, the surety company, answers to a second party, the owner, creditor or “obligee,” for a third party's debts, default or nonperformance. Contractors are often required to purchase surety bonds if they are working on public projects. The surety company becomes responsible for carrying out the work or paying for the loss up to the bond “penalty” if the contractor fails to perform.

Surplus Lines Insurance

(1) A risk or part of a risk for which there is no normal insurance market available. (2) Insurance written by unauthorized insurance companies. Surplus lines insurance is insurance placed with unauthorized insurance companies through licensed surplus lines agents or brokers.

Surrender Charges

Charges an insurance company may deduct if you cash in--or surrender--your life insurance policy or annuity. Companies also deduct these charges if you borrow money on your policy or your policy lapses for nonpayment.

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