Declarations

• This part of an insurance bill refers to specific information included in a policyholder's coverage contract. An insurer highlights the "declarations information" on bills to indicate what coverage the policyholder is entitled to. Declarations include the policyholder's name, address, insured property, policy period and amount of insurance coverage.
  
  

Deductible

• As a policyholder, the deductible represents the portion of a claim you pay out of pocket. For example, if your deductible is $1,000 and you incur losses of $10,000 in a car accident, the insurance company pays $9,000, or $10,000 minus $1,000. Choosing a high deductible lowers your insurance premiums.
  
  

Damages

• These represent the amount of loss that a policyholder incurs when a covered event happens. The insurance company generally pays for damages after verifying a claim's validity and deducting the policyholder's deductible.
  
  

Discount

• When an insurance company indicates a discount amount on a policyholder's bill, it deducts that amount from the policyholder's premiums. In other words, the discount reduces the insurance premium. An insurer does so to reward a policyholder who has met specific criteria, such as buying an anti-theft device in auto insurance contracts.
  
  

e-Bill

• This is the electronic version of a paper statement. As a policyholder, you can review this electronic format of your bill online. Check with your insurance company to determine whether you can access your bill electronically.
  
  

Exclusion

• This represents specific events that your insurer does not cover. If any of these events happen, the insurer indicates on the bill that it will not pay for damages resulting from the event. Check with your insurance firm to see which items are covered and which ones are excluded.
  
  

Bodily Injury Liability Coverage

• This represents amounts that an insurer pays for bodily injury or death resulting from an accident for which a policyholder is at fault. The policyholder also receives legal defense, meaning the insurer pays for attorney fees that may arise from potential litigation.
  
  

Advance Beneficiary Notice

• ABN is a term used in medical insurance. This is a notice the hospital or doctor sends a patient before treatment begins. It tells the patient that Medicare will not pay for specific treatments or services. If you have no private insurance, it's important to read advance notices to see whether to have the treatment and how to pay for it.