[H062]
Habitational insurance
Typically refers to coverage designed for commercial apartments (including high-rises), condos, multi-unit dwellings, hotels and motels.
Haddon Matrix
A method used in evaluating and controlling injuries. It is a four-column, three-row table where three stages of a given event (pre-event, event and post-event) is examined across four different factors (personal, agent, physical and social) that influence the event.
[H001]
Hague Rules
Maritime rules that were developed in Hague, Holland, in the early 1920s regarding the transport of cargo by sea. Many countries have adopted and abide by these rules.
Hague-Visby Rules
A set of international maritime rules that describe the responsibilities and obligations held by insurers and shippers when transporting goods over water.
[H002]
Hail Insurance
Insurance against hail damage to growing crops. Although hail is the basic cause of loss protected against in these policies, coverage is often granted for crop damage resulting from additional causes of loss such as fire, windstorm, lightning, drought, frost, excessive heat, snow, sleet, etc.
[H064]
Hammer Clause
An informal title for a provision that is a modification of a consent-to-settle clause. It requires the insurance company to secure the insured's permission to settle a claim or lawsuit. It allows the insured to have control over an action that could affect his or her reputation. However, if permission is not given, the typical clause usually caps any subsequent settlement at the amount the insurer originally sought to pay and/or it may limit or eliminate an insurer's obligation to continue to defend a lawsuit.
[H003]
Hangarkeepers Legal Liability Insurance
Protection for the aircraft hangarkeeper for losses caused by negligence in storing aircraft as a bailee.
[H004]
Hard Market
In the property and liability insurance business, underwriting philosophies fluctuate between periods called the hard market and the soft market. The hard market is the period during which underwriting standards are very tight and the rates are high. Normally the hard market closely follows a soft market period during which the underwriting standards had been soft and the price or rates are very low, resulting in substantial underwriting losses. The cycle swings back and forth between the two cycles and bounces between soft underwriting with low rates and heavy losses, to the hard market with subsequent tightening of standards and dramatic increases in price.
[H005]
Hardware
The mechanical, electronic and electrical devices comprising a computer.
(See software.)
[H006]
Harter Act
A law passed by Congress in 1893 which provides that a vessel owner is not responsible for loss or damage caused by faults or errors in navigation, provided the shipowner has taken proper care to see that the ship is in all respects seaworthy and properly manned and equipped.
(See bill of lading.)
[H007]
Hazard
A condition which may lead to a loss, such as oily rags leading to a fire.
(See moral hazard, morale hazard, and physical hazard.)
[H008]
Hazardous Waste
Products or residues known or suspected to be toxic that require special care in their handling and disposal. Examples are asbestos, dioxin or radioactive substances
[H009]
Hazardous Waste Site
1) A site that has been contaminated by hazardous waste and is subject to cleanup and EPA regulation.
2) A dump site used to dispose of hazardous wast
[H053]
HCFA
An agency established under the U.S. Department of Health and Human Services which administrates two major national health care programs: Medicaid and Medicare. Headquarters: Baltimore, Maryland.
[H010]
Head Office
1) The principal place of business of a company; the head office or the chief office.
2) The term may be modified to include regional offices in some jurisdictions (Florida) for tax purposes, with a company's principal place of business referred to as its home office.
[H065]
Heads of Damages
A legal and claims term referring to type or categories of damages that are sought to be recovered through litigation.
[H054]
Health Care Financing Administration (HCFA)
An agency established under the U.S. Department of Health and Human Services which administrates two major national health care programs: Medicaid and Medicare. Headquarters: Baltimore, Maryland.
[H011]
Health Indemnity Plan
A group health insurance program that reimburses insureds for covered medical expenses, minus deductibles and co-payments, after they have paid the health care provider.
[H012]
Health Insurance
A broad term describing protection from loss due to illness or injury, resulting in loss of life, loss of earnings, or expenses incurred. Within the broad area of health insurance, there are several major coverages which focus on more specific needs, for example, accident insurance, disability income insurance, hospitalization insurance, and sickness insurance.
(See accident and sickness insurance.)
[H058]
Health Insurance Portability and Accountability Act
A federal law that affects how confidential information is collected, used and shared. It has created new standards for insurers who must now take more precautions to protect the private information of their customers. The Act has also created constraints to the industry's ability to access medical records related to investigating claims-related injuries.
[H013]
Health Maintenance Organization (HMO)
An entity with four essential characteristics:
1) an organized system for providing health care in a geographic area
2) delivering an agreed upon set of basic and supplemental health maintenance and treatment services
3) to a voluntarily enrolled group of persons
4) for which services the HMO is reimbursed through a predetermined and periodic prepayment made by or on behalf of each person or family unit enrolled in the HMO, without regard to the amounts of actual services provided.
[H014]
Health Promotion
Planned activities designed to support changes in behavior and the environment to enhance health by reducing risks, e.g., disease prevention, risk screening, medical self-care, and lifestyle modification.
(See wellness programs.)
[H015]
Held in Trust
A clause in property insurance extending the policy to cover property of others held by the insured as a bailee. Such coverage is always qualified by the requirement that the bailee is legally responsible for such property.
[H066]
Herbicide Applicator Coverage
This coverage supplements the protection of a Commercial General Liability policy by providing protection against loss or damage an insured causes by a pesticide or herbicide application. The loss must involve accidental introduction of a substance at a site that is not owned or controlled by the insured. Typically, the loss must occur in relation to an operation that complies with all government regulations.
[H016]
Hidden Defect
A term used in connection with products liability coverage to designate a product that has a hidden or concealed flaw or problem which could cause injury or damage when used.
[H059]
High Risk
Insurance coverages that are outside those considered "standard" with respect to the coverages, forms and endorsements provided. Standard insurance is those policies and forms that share common policy language and verbiage as well as same or similar clauses and provisions.
Standard also refers to business types and the exposures that the business represents. Businesses that pose only commonly expected exposures are considered standard while businesses that pose unique, unusually or very high exposures are considered nonstandard and thus require nonstandard insurance.
[H063]
High-Risk Automobile Insurer
(See nonstandard insurance.)
[H017]
Highly Protected Risk (HPR)
A program for larger commercial properties meeting higher safety standards in order to obtain significantly lower premiums. Protection includes automatic sprinkler systems, better than average construction and occupancy.
[H060]
HIPAA--Health Insurance Portability and Accountability Act
A federal law that affects how confidential information is collected, used and shared. It has created new standards for insurers who must now take more precautions to protect the private information of their customers. The Act has also created constraints to the industry's ability to access medical records related to investigating claims-related injuries.
[H055]
Historical Insurance Audit
A process, similar to an audit, for researching internal and external sources to reconstruct and document an organization’s history of insurance coverage. This is particularly important to assist with liability arising from past years or even decades, such as damage related to environmental liability or asbestos.
Hit and Run
An accident caused by someone who does not stop to assist or provide information related to that accident.
[H018]
HMO--health maintenance organization
An entity with four essential characteristics:
1) an organized system for providing health care in a geographic area
2) delivering an agreed upon set of basic and supplemental health maintenance and treatment services
3) to a voluntarily enrolled group of persons
4) for which services the HMO is reimbursed through a predetermined and periodic prepayment made by or on behalf of each person or family unit enrolled in the HMO, without regard to the amounts of actual services provided.
HO-1
A package of basic homeowners insurance that covers a number of specified causes of direct loss to a residence and personal property as well as liability insurance.
HO-2
A package of basic homeowners insurance that covers a number of specified causes of direct loss to a residence and personal property as well as liability insurance. It responds to several more causes of loss than an HO-1 form.
HO-3
A broad package of homeowners insurance that, with exception of earthquake, flood, military and nuclear activity, covers all of direct loss to a residence that is not specifically excluded. It also provides personal property protection on a specified cause basis, as well as liability insurance.
HO-4
A package of basic homeowners insurance that covers a number of specified causes of direct loss to personal property as well as liability insurance. It responds similarly to an HO-2 form and is designed for tenants.
HO-5
A broad package of homeowners insurance that, with exception for earthquake, flood, military and nuclear activity, covers all of direct loss to a residence that is not specifically excluded. It also provides personal property protection on a specified cause basis, as well as liability insurance. It is broader than an HO-3 as it settles all eligible property losses on a replacement cost basis.
HO-6
A package of basic homeowners insurance that covers a number of specified causes of direct loss to certain types of structural and personal property as well as liability insurance. It also provides some coverage for structural property that is under joint ownership and limited coverage for property loss assessments. It responds similarly to an HO-2 form and is designed for condominium owners.
Content
Hoists and Lifts
A type of insurance that protects insureds against their liability related to operating devices that raise and lower personnel and property and similar exposures that may be excluded under basic general liability policies.
[H019]
Hold Harmless Agreement
A contractual arrangement in which one party agrees to assume certain liability which otherwise would be borne by the other party. For example, an insurer may wish to pay a loss when it is uncertain whether it may be called upon a second time to some other party. The payee may be asked to execute an agreement whereby the company will be reimbursed or held harmless by the payee if such request should happen. Another example is when the principal in a large construction project frequently demands hold harmless agreements from all subcontractors in respect to claims made against the principal arising out of the subcontractors' negligence. The principal often stipulates the purchase of a liability policy by the subcontractor to support the hold harmless agreement.
[H020]
Holdup
The taking of property by violence or threat of violence
[H050]
Hole-in-one insurance
Hole-in-one coverage is a form of prize indemnification insurance usually purchased by a sponsor of a local golf tournament who donates a prize, such as a new car, tractor, clothes or other merchandise or cash, to be given to any golfer who scores a hole-in-one on a specified hole on the golf course. The insurance is arranged prior to the event and indemnifies the insured only if the hole-in-one is made and the prize awarded. The policy warrants that certification of the hole-in-one must be made by at least two tournament officials prior to payment of the insured's loss.
[H050a]
Holistic Risk Management
A newer, broader application of the risk management concept. It refers to an aggressive approach to handling an organization’s multitude of exposure to loss of tangible and intangible property, including income. It may use a variety of tools to avoid loss, such as safety procedures, insurance, shifting of risk via contracts, arranging for alternate supply channels, etc. The concept focuses on growing concerns that face new, often unanticipated, risks.
[H056]
Home Automation
Refers to any residence that contains some level of technology (usually computer) to automate control of its major systems (lighting, sound, plumbing, heating/cooling, electricity). The equipment needed to create the automated environment results in a higher exposure to loss represented by the home and its contents
[H022]
Home Office
1) The principal place of business of a company; the head office or the chief office.
2) The term may be modified to include regional offices in some jurisdictions (Florida) for tax purposes, with a company's principal place of business referred to as its head office.
[H023]
Homeowners Policy
A package policy for dwelling and contents risks combining fire and allied line coverage with comprehensive personal liability and theft insurance for homeowners and tenants. This policy carries an indivisible premium in that the premium is not separately stated or broken down for the various hazards insured against. There are different homeowners forms, varying in extent of coverage and cost from the broad cause of loss policy (HO2), to the special cause of loss policy (HO3), to the renter's policy (HO6).
[H024]
Homogeneous Exposure Unit
An insurance concept on which the actuarial credibility of insurance rate-making is based. Data and statistics of large numbers of similar or homogeneous exposure units (the persons or properties exposed to insurance losses), with similar characteristics and thus similar exposure to loss, are used to determine the frequency and severity of loss to that exposure group per exposure unit. The homogeneous exposure units are placed into rating categories based on their similar characteristics called classes.
[H025]
Honesty Clause
The former name for the full reporting clause in reporting forms of fire policies. A clause in many reporting policies that provides for a penalty in the event of loss if the insured has reported less value than required by the policy.
[H026]
Honorable Undertaking
A clause used in some reinsurance treaties, the purpose of which is that the agreement not be defeated by a strict or narrow interpretation of the language in the treaty.
[H027]
Hospice
A program that provides palliative and supportive care for terminally ill patients and their families, either directly or on a consulting basis with the patient's physician or another community agency, such as a visiting nurse association. The entire family is considered the unit of care, and care extends through the mourning process.
[H028]
Hospital Benefits
In health and accident insurance, if an insured must be hospitalized for illness, accident, or injury, hospital benefits are the amounts provided in the insurance coverage for hospital expenses.
[H029]
Hospital Confinement Insurance
A type of health insurance policy which pays a specified periodic benefit should the insured be confined to a hospital for accident, illness or injury. This benefit is paid regardless of whether or not there is other insurance available and is not reflective of or dependent upon the amount of medical expenses involved. Sometimes called hospital income insurance.
[H030]
Hospital Expense Insurance
Reimbursement for certain limited expenses incurred while being hospitalized due to injury or illness. Also known as hospital-surgical expense insurance.
[H031]
Hospital Income Insurance
A type of health insurance policy which pays a specified periodic benefit should the insured be confined to a hospital for accident, illness, or injury. This benefit is paid regardless of whether or not there is other insurance available and is not reflective of or dependent upon the amount of medical expenses involved. Sometimes called hospital confinement insurance.
[H051]
Hospital Indemnity Insurance
(See hospital confinement insurance.)
[H032]
Hospital Professional Liability Insurance
Protects a hospital against claims for injury resulting from malpractice, professional errors, or a mistake by the hospital staff.
[H033]
Hospital-surgical expense insurance
Reimbursement for certain limited expenses incurred while being hospitalized due to injury or illness. Also known as hospital expense insurance.
[H034]
Hospitalization Insurance
Reimbursement for certain expenses incurred while being hospitalized due to injury or illness.
(See accident and sickness insurance.)
[H035]
Host Liquor Liability
A form of liquor liability directed at hosts of business or social functions where liquor or alcohol is served, with or without a charge. The basis for legal liability is a dram shop, liquor control or alcoholic beverage law. The laws vary by state, but most provide that the owner, operator or host serving or selling alcoholic beverages is liable for injury or damage caused by or to an intoxicated person if it can be established that the owner, operator or host caused or contributed to the intoxication of the person through the sale or serving of alcoholic beverages.
[H036]
Host Liquor Liability Insurance
A form of liquor liability coverage where the basis for legal liability is a dram shop, liquor control, or alcoholic beverage law. The laws vary, but most provide that the owner of an establishment which serves alcoholic beverages is liable for injury or damage caused by an intoxicated person if it can be established that the liquor licensee caused or contributed to the intoxication of the person.
[H037]
Hostile Fire
A fire occurring where it is not supposed to be, as distinguished from a friendly fire which occurs in its proper place, such as in a stove or a fireplace. Fire insurance policies do not insure losses caused by friendly fires.
(See friendly fire.)
[H057]
Hostile Work Environment
A source of harassment that may be a basis of a lawsuit under federal law. It refers to improper or inappropriate (typically sexist or racist) behavior in the workplace that creates an atmosphere that is hostile or intimidating to other workers.
[H038]
Hotel Safe Deposit Box Liability
This crime coverage form was replaced with the Guest's Property Optional Insurance Agreement that is part of the ISO Commercial Crime policy. It combines coverage for an insured's bailee exposure for physical damage to the property of guests contained in safe deposit boxes or vaults of the insured. Both physical damage and the insured's legal liability are covered.
[H039]
Household Goods
The normal contents of a dwelling, such as furniture, clothing, etc.
[H040]
Housekeeping
The care and management of property and the provision of equipment and services (as for a home or industrial organization).
[H041]
HPR--Highly Protected Risk
A program for larger commercial properties meeting higher safety standards in order to obtain significantly lower premiums. Protection includes automatic sprinkler systems, better than average construction and occupancy.
[H052]
HR-10
(See Keogh plan.)
[H042]
Hull
1) In ocean marine insurance, the frame, body, machinery and equipment of a ship, excluding masts, yards, sails and rigging.
2) In aviation insurance, the fuselage, wings, tail, rudders, and other major structural features of an aircraft, including machinery and equipment.
[H061]
Hull and Machinery
Hull and machinery insurance may be used to insure a very wide variety of commercial vessels. It protects a vessel's hull and any equipment and/or machinery that is aboard the vessel. Policy protection also includes damage from colliding with other vessels.
Hull Clauses
General reference to various sources of standard policy provisions that provide named peril coverage against damage to ship exteriors.
[H043]
Hull Policy
1) An ocean marine policy designed to cover physical damage losses to the hull of a ship.
2) An aviation policy designed to cover physical damage losses to aircraft.
[H044]
Hull Syndicate
A group of ocean marine underwriters who insure certain ships or who perform certain functions in the insurance of ships on a joint or cooperative basis to spread the risk automatically and to save expense.
(See syndicate.)
[H045]
Human Factors Engineering
The applied science involving the factors and interaction of the workplace environment on its workers. Although it is most often associated with automation in the workplace, this science covers the cause and effect of any workplace environment. Also known as ergonomics.
(See ergonomics.)
[H046]
Human Life Value
The monetary value placed on an individual's life, based on set criteria of economic and social factors.
[H047]
Human Perils
One of three broad categories of perils commonly referred to in the insurance industry which include not only human perils, but also natural perils and economic perils. Human perils are those caused directly by people and include crime, liability, fidelity, and some types of property damage such as vehicle damage or arson. Contrast those with natural perils which include wind, flood, or earthquake, or economic perils such as inflation or obsolescence.
(See economic perils and natural perils.)
[H048]
Hurricane
Violent, revolving-pattern windstorms that originate in the North Atlantic or in parts (particularly northeast and south) of the Pacific Ocean. They are classified in five categories, having a minimum wind speed of 74 mph (Category 1) to 156 mph (Category 5).
[H049]
Hurricane Insurance
A type of property insurance policy specifically designed to cover physical damage as a result of wind from a hurricane.
(See beachfront plans.)
