Common Insurance Acronyms: Insurance Terms Explained (2024)

Unlock the secrets of insurance language with our comprehensive guidebook: a valuable resource for demystifying and understanding the most commonly used insurance acronyms. Empower yourself with knowledge and make informed decisions about your coverage. Gain confidence in navigating the complex world of insurance terminology.

UPDATED: Dec 18, 2023

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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Dec 18, 2023Fact Checked

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Jimmy McMillan

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Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...

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Brandon Frady

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Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...

Licensed Insurance Agent

UPDATED: Dec 18, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

UPDATED: Dec 18, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Dec 18, 2023Fact Checked

Welcome to our informative guidebook, the Common Insurance Acronyms Guidebook, where we aim to unravel the perplexing world of insurance acronyms. If you’ve ever felt overwhelmed by the alphabet soup of terms in insurance policies, you’re not alone.

In this comprehensive resource, we will provide you with a clear understanding of the most frequently used insurance acronyms, ensuring you can confidently navigate the complexities of the insurance landscape. Whether it’s deciphering terms like PPO, HMO, or COBRA, our guidebook covers all the key topics you need to know.

Don’t let confusing acronyms hinder your ability to make informed decisions about your coverage. Take control of your insurance knowledge today. Enter your zip code below and compare rates from top insurance providers, ensuring you find the best coverage options tailored to your needs.

A

ACSR – Accredited Customer Service Representative

ARM – Associate in Risk Management

ARM-P – Associate in Risk Management for Public Entities

ASOP – Actuarial Statement of Practice

B

BAP – business auto policy

BCBSA – Blue Cross and Blue Shield Association

BI – bodily injury

BOP – business owners policy

C

CFROI – cash flow return on investments

CRIS – Construction Risk and Insurance Specialist

CIC – Certified Insurance Counselor

CISR – Certified Insurance Service Representative

CPCU – Chartered Property Casualty Underwriter

CPIW / CPIM – Certified Professional Insurance Woman / Man

CCC – care, custody, or control (exclusion)

COBRA – Consolidated Omnibus Budget Reconciliation Act

D

D&B – Dun & Bradstreet

DEC – declarations page

DED – deductible

DI – disability income

DIC – difference-in-conditions (insurance)

DIL – difference-in-limits (clause)

D&O – directors and officers (liability insurance)

DSU – delay in start-up insurance

DOB – date of birth

DOC – drive other car coverage

DOD – date of death

E

EAP – estimated annual premium

EBIDDA – earnings before interest, dividends, depreciation, and amortization

EH&S – environmental health and safety

EP – earned premium

EPA – Environmental Protection Agency

EPD – expected policyholder deficit

EPL – employment practices liability

EPLI – employment practices liability insurance

ETB – engaged in trade or business

F

FAIR – Fair Access to Insurance Requirements

FALU – Fellow of the Academy of Life Underwriting

FCAS – Fellow of the Casualty Actuarial Society

FAP – family automobile policy (more commonly PAP)

FCPL – farmers comprehensive personal liability

FCRA – Fair Credit Reporting Act

FIRM – flood insurance rate map

FIRREA – Financial Institutions Reform Recovery and Enforcement Act

FMV – air market value

FTCAC – fire, theft, and combined additional coverage

FVD – full value declared

G

GAP – guaranteed auto protection

GCD – guaranteed cost discount

GIO – guaranteed insurability option

GKLL – garagekeepers legal liability (insurance)

GL – general liability

GVW – gross vehicle weight

GWP – gross written premium

H

HIAA – Health Insurance Association of America

HII – Health Insurance Institute

HIPAA – Health Insurance Portability and Accountability Act

HLDI – Highway Loss Data Institute

HLV – human life value

HCQIA – Health Care Quality Improvement Act

HPL – hospital professional liability (insurance)

HPR – highly protected risk (property)

I

IAHU – International Association of Health Underwriters

IFC – insured fixed-price cleanup

IIAA – Independent Insurance Agents of America, Inc.

IIAC – International Insurance Advisory Council

IIHS – Insurance Institute for Highway Safety

III – Insurance Information Institute

IRI – Industrial Risk Insurers

IRIS – Insurance Regulatory Information System

IRM – improved risk mutuals

ITI – Insurance Testing Institute

J

JCAH – Joint Commission on the Accreditation of Hospitals

JCAHO – Joint Commission on Accreditation of Healthcare Organizations

JSA – job safety analysis

JUA – joint underwriting authority; joint underwriting association

JV – joint venture

L

LAE – loss adjustment expense

LIAA – Life Insurance Association of America

LIAMA – Life Insurance Agency Management Association

LIRB – Liability Insurance Research Bureau

LLC – limited liability company

LMU – loss mitigation underwriting

LOC – letter of credit

LTA – lost time accident; long term agreement

LTD – long-term disability

M

MCO – managed care organization

M&D – minimum and deposit

MDO – monthly debit ordinary life insurance

MDRT – Million Dollar Round Table

MET – multiple employer trust

MFL – maximum foreseeable loss

MLE – maximum loss expectancy

MLEA – multiple line exclusive agent

MPCI – multi-peril crop insurance

MPL – maximum possible loss

MPP – managed premium plan

MVR – motor vehicle record

N

NAUA – National Auto Underwriters Association

NDI – National Disaster Insurance Association

NFIP – National Flood Insurance Program

NFIRA – National Flood Reform Act

NFPA – National Fire Protection Association

NIOSH – National Institute for Occupational Safety and Health

NRRA – National Risk Retention Association

NRT – National Response Team

NSC – National Safety Council

O

OCA – outstanding claims account

OCIP – owner controlled insurance program

OD – occupational disease

OL&T – owners, landlords, and tenants (insurance)

ORFS – operational risk financing securities

ORM – operational risk management

OSHA – Occupational Safety and Health Act; Occupational Safety and Health Administration

OSLR – outstanding loss reserves

OTC – other than collision

P

PAP – personal auto policy

P&C – property and casualty

PC – professional corporation

P&I – protection and indemnity (insurance)

PI – personal injury

PIA – primary insurance account

PIAA – Physician Insurers Association of America

PICA – Professional Insurance Communicators of America

PIP – personal injury protection

PMA – package modification adjustment

PMF – package modification factor

PMI – private mortgage insurance

PML – probable maximum loss

R

RAA – Reinsurance Association of America

RAM – reverse-annuity mortgage

RAROC – risk-adjusted return on capital

RARORAC – risk-adjusted return on risk-adjusted capital

RBC – risk-based capital

RBNE – reserved but not enough

RC – replacement cost

RTW – return to work

S

SAA – Surety Association of America

SCOPE – supervision, construction, occupancy, protection, exposure

SCPCU – Society of Chartered Property & Casualty Underwriters

SEC – Securities and Exchange Commission

SEMCI – single entry multiple carrier interface

S&P – Standard and Poor’s

SPAP – Special Personal Auto Policy

STD – short-term disability

T

TDB – temporary disability benefits

TDI – trade disruption insurance

TEFRA – Tax Equity and Financial Responsibility Acts of 1982 & 1983

TERI – targeted enterprise risk insurance

TIAA – Teachers Insurance and Annuity Association

TOLI – trust-owned life insurance

TOR – technique of operations review

TPA – third-party administrator

TRA – Tax Reform Act of 1984

TRIA – Terrorism Risk Insurance Act

TTD – temporary total disability

U

UEP – unearned premium

UJF – unsatisfied judgment fund

UIM – underinsured motorist

UIMV – underinsured motor vehicle

UL – umbrella liability; Underwriters’ Laboratories

ULAE – unallocated loss adjustment expenses

ULC – Underwriters Laboratories of Canada

UM – uninsured motorist

UMPD – uninsured motorist property damage

UMV – uninsured motor vehicle

UNL – ultimate net loss

U&O – use and occupancy

W

WC – Workers Compensation

WCRI – Workers Compensation Research Institute

Y

YRCT – yearly renewable convertible term

YRT – yearly renewable term
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About the Author: Terry Wood is a writer for US Insurance Agents. She works hard to help provide a fresh perpsective to insurance, personal finance and related topics.

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Frequently Asked Questions

What are some common insurance acronyms?

Common insurance acronyms may include:

  • BOP: Business Owner’s Policy
  • COBRA: Consolidated Omnibus Budget Reconciliation Act
  • D&O: Directors and Officers
  • EPLI: Employment Practices Liability Insurance
  • HMO: Health Maintenance Organization
  • PIP: Personal Injury Protection
  • PLI: Public Liability Insurance
  • RCV: Replacement Cost Value
  • UIM: Underinsured Motorist
  • UM: Uninsured Motorist

What is a BOP?

A BOP, or Business Owner’s Policy, is a type of insurance policy that combines property and liability insurance into one package. BOPs are typically designed for small businesses and can be a cost-effective way to obtain comprehensive insurance coverage.

What is COBRA?

COBRA, or Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows certain employees to continue their health insurance coverage after leaving their job. The employee is responsible for paying the entire premium, including the portion previously paid by the employer.

What is D&O insurance?

D&O insurance, or Directors and Officers insurance, is a type of liability insurance that provides coverage for claims made against directors and officers of a company for wrongful acts or omissions in their capacity as directors or officers.

What is EPLI insurance?

EPLI insurance, or Employment Practices Liability Insurance, is a type of liability insurance that provides coverage for claims made by employees against their employer for employment-related issues such as discrimination, harassment, or wrongful termination.

What is an HMO?

An HMO, or Health Maintenance Organization, is a type of managed care health insurance plan that typically requires members to choose a primary care physician and obtain referrals to see specialists. HMOs often offer lower out-of-pocket costs but may have more restrictions on providers and services.

What is PLI insurance?

PLI insurance, or Public Liability Insurance, is a type of liability insurance that provides coverage for claims made against a business or individual for bodily injury or property damage to third parties.

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Jimmy McMillan

Licensed Insurance Agent

Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...

Licensed Insurance Agent

Brandon Frady

Licensed Insurance Agent

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

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