Glossary

Travel insurance can seem complex. Here are some definitions of common terms, to help make travel insurance a little more simple.

A

Accident
A sudden, unexpected, unusual, specific event that occurs at an identifiable time and place, but shall also include exposure resulting from a mishap to a conveyance in which you are traveling.
Accidental Injury
Bodily injury to a covered person as a direct result of an accident.
Accommodation
A hotel or other kind of lodging where you make a reservation and pay a fee.
Actual Cash Value
The purchase price of an item, less depreciation of the item's value since you bought it.
Additional Expense
Any reasonable expenses for meals and lodging which were necessarily incurred as the result of a hazard and which were not provided by the common carrier or other party free of charge.
Assault, Physical
Assault that requires treatment in a hospital.

B

Baggage
Personal property you take on your trip and the suitcases or other kinds of containers you use to carry them.
Bankruptcy
The filing of a petition for voluntary or involuntary bankruptcy in a court of competent jurisdiction under Chapter 7 or Chapter 11 of the United States Bankruptcy Code 11 L.S.C. Subsection 101 et seq.
Bodily Injury
Identifiable physical injury which is caused by an accident and is independent of disease or bodily infirmity.
Business Partner
An individual who: (a) is involved in a legal partnership; and/or (b) is actively involved in the day-to-day management of the business.

C

Common Carrier
Any land, sea, or air conveyance operating under a valid license for the transportation of passengers for hire.
Covered Reasons
The specific situations and events that are covered by a specific coverage or policy.

D

Deductible
The dollar amount you must contribute to the loss.
Default
A material failure or inability to provide contracted services due to financial insolvency.
Dependent
Your lawful spouse or unmarried children under 19 years of age.
Destination
A place more than 100 miles from your primary residence where you spend more than 24 hours of your trip.
Domestic Partner
A person who is at least eighteen years of age and you can show: 1) evidence of financial interdependence, such as joint bank accounts or credit cards, jointly owned property, and mutual life insurance or pension beneficiary designations; 2) evidence of cohabitation for at least the previous 6 months; and 3) an affidavit of domestic partnership if recognized by the jurisdiction within which they reside.

E

Economy Fare
The lowest published rate for an economy ticket.
Effective Date
The date and time your coverage begins.
Elective Treatment and Procedures
Any medical treatment or surgical procedure that is not medically necessary including any service, treatment, or supplies that are deemed by the federal, or a state or local government authority, or by us to be research or experimental or that is not recognized as a generally accepted medical practice.
Epidemic
An outbreak of a contagious disease that spreads rapidly and widely and that is identified as an epidemic by The Centers for Disease Control and Prevention (CDC).
Exotic Vehicles
Expensive cars that may not be covered by a policy, including cars such as Alfa Romeo, Aston Martin, Auburn, Avanti, Bentley, Bertone, BMC/Leyland, BMW M Series, Bradley, Bricklin, Cosworth, Citroen, Clenet, De Lorean, Excalibre, Ferrari, Fiat, Iso, Jaguar, Jensen Healy, Lamborghini, Lancia, Lotus, Maserati, Morgan, Pantera, Panther, Pininfarina, Rolls Royce, Rover, Stutz, Sterling, Triumph, TVR, Yugo, Corvette, Mercedes Benz, Porsche, and MG. If you are renting a car on this list or similar to cars on this list, you should contact the provider before purchasing the policy.

F

Family Member
Your dependent, son or daughter (including adopted and those who are in the process of becoming adopted, foster, step or in-law), domestic partner's son or daughter (including adopted and those who are in the process of becoming adopted, foster, step or in-law), brother or sister (including step or in-law), parent (including step or in-law), grandparent (including step or in-law), grandchild (including adopted and those who are in the process of becoming adopted, foster or step), aunt, uncle, niece, nephew, guardian, or ward.
Financial Insolvency
The total cessation or complete suspension of operations due to insolvency, with or without the filing of a bankruptcy petition, whether voluntary or involuntary, by a tour operator, cruise line, airline, rental car company, hotel, condominium, railroad, motor coach company, or other supplier of travel services which is duly licensed in the state(s) of operation other than the entity or the person, organization, agency or firm from whom you directly purchased or paid for your covered trip. There is no coverage for the total cessation or complete suspension of operations for losses caused by fraud or negligent misrepresentation by the supplier of travel services.

H

Hazard
(a) Any delay of a common carrier (including inclement weather); (b) any delay by a traffic accident en route to a departure, in which you or a traveling companion is not directly involved; (c) any delay due to lost or stolen passports, travel documents or money, quarantine, hijacking, unannounced strike, natural disaster, civil commotion or riot; (d) a closed roadway causing cessation of travel to the destination of the trip (substantiated by the department of transportation, state police, etc.).
Hospital
A facility that (a) holds a valid license if it is required by the law; (b) operates primarily for the care and treatment of sick or injured persons as in-patients; (c) has a staff of one or more physicians available at all times; (d) provides twenty-four (24)-hour nursing service and has at least one registered professional nurse on duty or call; (e) has organized diagnostic and surgical facilities, either on the premises or in facilities available to the hospital on a prearranged basis; and (f) is not, except incidentally, a clinic, nursing home, rest home, or convalescent home for the aged, or similar institution.
Host at Destination
A person with whom you are sharing pre-arranged overnight accommodations at the host's usual principal place of residence.

I

Illness
Sickness, infirmity or disease. It doesn't include conditions you already had or knew about when you purchased your plan.
Inclement Weather
Any severe weather condition that delays the scheduled arrival or departure of a common carrier.
Injury
Bodily harm caused by an accident which: 1) occurs while your coverage is in effect under the plan; and 2) requires examination and treatment by a physician. The Injury must be the direct cause of loss and must be independent of all other causes and must not be caused by, or result from, sickness.
Insured
An eligible person who arranges a covered trip, and pays any required plan payment.
Inpatient
Someone who receives medical or dental treatment while registered as a bed patient in a hospital or other licensed provider. Room and board is charged for the patient's stay, in addition to charges for medical treatment and care.

L

Land/Sea Arrangements
Any activities undertaken by you while in the individual coverage term.
Loss
Injury or damage sustained by you in consequence of happening of one or more of the occurrences against which the company has undertaken to indemnify you.

M

Maximum Benefit
The largest total amount of covered expenses that the company will pay for your covered losses.
Medical Condition
A physical condition you have, or have symptoms of, that you:
  • have seen or been advised to see a doctor about
  • have symptoms of that would cause a prudent person to see a doctor
  • are taking prescribed medication for
Medically Necessary
Treatment that's appropriate for your illness or injury, consistent with your symptoms, and that can safely be provided to you. It meets the standards of good medical practice and isn't for your convenience or the provider's convenience.

N

Natural disaster
A large-scale extreme weather or environmental event that damages property, disrupts transportation, or endangers people. Examples include: earthquake, fire, flood, hurricane, or volcanic eruption.

O

Outpatient
Someone who receives medical or dental treatment but doesn't have to stay at a hospital for overnight care.

P

Pandemic
An epidemic over a wide geographic area that affects a large portion of the population.
Physician
A licensed practitioner of medical, surgical or dental services acting within the scope of his or her license. The treating physician may not be you, a traveling companion, or a family member.
Pre-Existing Condition
Any injury, sickness or condition of you, or your traveling companion, your family member booked to travel with you for which within the 60-180 period prior to the effective date of Trip Cancellation coverage under the policy (a) first manifested itself or exhibited symptoms which would have caused one to seek diagnosis, care or treatment; (b) required taking prescribed drugs or medicine, unless the condition for which the prescribed drug or medicine is taken remains controlled without any change in the required prescription; or (c) required medical treatment or treatment was recommended by a physician. The Pre-Existing Conditions exclusion is waived for you if you enroll in the plan at the time you pay the deposit required for the trip (or within 10-30 days of the initial deposit) and you purchase the coverage under the plan for the full cost of the trip.

Q

Quarantine
Mandatory isolation or restrictions on where you can go, intended to stop a contagious disease from spreading.

R

Reasonable and Customary Costs
What customers would usually be charged for a specific service in a particular geographic area. The charges are appropriate to the availability of the service, and of skilled and licensed service providers.
Refund
Cash or a credit or voucher for future travel that you get from a travel agent, tour operator, airline, cruise line or other travel supplier, or any credit, recovery or reimbursement you get from your employer, another insurance company, a credit card issuer or any other entity.

S

Scheduled Departure Date
The date on which you are originally scheduled to leave on the trip.
Scheduled Return Date
The date on which you are originally scheduled to return to the point of origin or to a different final destination.
Severe Weather
Hazardous weather conditions, like fog, a hailstorm or severe rainstorm, a blizzard, or an ice storm.
Sickness
An illness or disease which is diagnosed or treated by a physician after the effective date of insurance and while you are covered under the policy.
Strike
Any unannounced labor disagreement that interferes with the normal departure and arrival of a common carrier.
Subrogation
Steps the travel insurance company takes, after paying a claim, to collect from other available sources such as other insurance plans or travel suppliers.

T

Travel Supplier
A travel agent, tour operator, airline, cruise line or other travel service provider.
Traveling Companion
A person booked to accompany you on your trip. A group or tour leader is not considered a traveling companion unless you are sharing room accommodations with the group or tour leader.
Trip
Prepaid land or sea arrangements and shall include flight connections to join or depart such land or sea arrangements provided such flights are scheduled to commence within one day of the land or sea arrangements.

U

Unlawful acts
Felonies committed by you, a traveling companion, or a family member, even if the family member isn't covered by your plan.
Uninhabitable
A natural disaster, fire, flood, burglary, or vandalism causes enough damage to make a reasonable person find their home unfit for use.
Written by on 9/17/13.
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