Terms of Accident Insurance o There are several kinds of accident insurance, such as collision coverage for autos and accidental death and dismemberment insurance for people. Accident insurance of all kinds is meant to cover losses due to financial liability, bodily injury or death. Like all insurance, accident insurance comes with various conditions, and the terminology involved can be confusing. Loss o Loss is the dollar value of any damage or injury which has happened as a result of an accident. Accident insurance covers a certain amount of loss. Some accident insurance includes catastrophic loss, generally defined as loss resulting from natural disasters like hurricanes and floods. Some members of dangerous professions like firefighting or law enforcement also get catastrophic loss benefits as part of their insurance packages. Accidental Death o Accidental death is defined as a death which comes either as the direct result of an accident or during a period of time right after an accident. For example, you may not immediately die as a result of a car accident, but instead die of your injuries a week after the accident occurs. Under many accident insurance plans, this would still be covered even though the death was not immediate. Limits of Liability o In accident insurance, limits of liability usually refers to how much the insurance company will pay for people injured in the accident. This can be for one person or for multiple victims. Limit of liability is generally a payment cap. If a policy has a limit of liability of $100,000, this is the total amount the insurance company will pay as the result of an accident, whether to one person or to 10 persons. Material Damage o Material damage is the property damage incurred as the result of an accident. These can include collision damage, fire damage or uninsured motorist damage. Accident insurance will have a cap on the amount of loss covered in the case of material damage as well. Medical Adjuster o If you try to claim medical and loss-of-wage benefits because of an accident, you will have to submit your paperwork to a medical adjuster. The adjuster is the person responsible for looking over all bills and lost wage claims in order for the claim to be processed. Funds will not be released without the approval of the medical adjuster. Medical Payments Coverage o If your accident insurance has medical payments coverage, this means it will cover the medical expenses you accumulate as the result of an accident. These payments are, of course, subject to limits and usually stop once they reach a preset limit of liability. Medical payments must also meet certain conditions in order for the insurance company to assume the expenses. Death Benefit o Accident insurance may include death benefits. This money paid to beneficiaries if the person covered the insurance dies. Certain conditions must be met before payment, and an investigation may be held first to determine if the death was truly the result of an accident. These are also sometimes called survivor benefits.