Common Insurance Acronyms Guidebook

Dealing with insurance companies involves a lot of confusing terms and insurance acronyms. Don’t be intimidated! Refer to our list of common insurance acronyms here to decipher your policy, claims letters, and more from all manner of insurance companies. Use this list when talking to agents and shopping for insurance quotes online.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Written by

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 5, 2020

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Rather than talking to us in a normal, human language, insurance companies seem to derive joy from speaking in a strange language of acronyms. This language, if it can be called a language, can be confusing. You may feel like you need a translator. The following list will, hopefully, be a help to you if you should have to be involved in an insurance discussion.


ACSR – Accredited Customer Service Representative

ARM – Associate in Risk Management

ARM-P – Associate in Risk Management for Public Entities

ASOP – Actuarial Statement of Practice


BAP – business auto policy

BCBSA – Blue Cross and Blue Shield Association

BI – bodily injury

BOP – business owners policy


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&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


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


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


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


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)


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


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


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


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


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


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


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


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


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


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


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


WC – Workers Compensation

WCRI – Workers Compensation Research Institute


YRCT – yearly renewable convertible term

YRT – yearly renewable term

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