Follow Alexandra Linkedin Facebook
Email Alexandra Email
Other
Feb 24, 2020

Policy Forms And What They Mean

Sponsored Content provided by Alexandra Lysik - Agency Owner, Cavik Insurance

Insurance Agents are always throwing around insurance jargon, from the words “dec page” to “deductible” to “DL123”, but what do these words really mean? What kind of forms do we actually need for quoting and referencing current coverage? A lot of insureds ask me if they can send these forms, but these must be sent by the agent. This month, let’s dive into a short version of our insurance wordings, and make those terms much more understandable.
 
The word “dec page” is actually short for declarations page. A declarations page will outline the policy coverages, such as limits of coverage and any applicable deductibles that you as the insured are responsible for. This page will also provide your policy number, effective dates of the policy, and carrier information. On homeowners policies, the declarations page also shows any listed mortgage companies or additional interests. This is probably the most important piece of documentation to keep on file for any questions, or showing proof of insurance. I would recommend having a folder of your insurance policy declarations pages for reference and if necessary, use for filing a claim.
 
Speaking of deductibles, that’s another tricky one. On automobile policies, the deductible applies to your physical damage coverage, or when your vehicle is damaged and it’s your responsibility to complete repairs. Typically, you will have a deductible for comprehensive coverage and collision coverage. When there is a claim, this amount will be kept out of the final pay out or be due at time of pick up of the repaired vehicle. For homeowners policies, the deductible is what the carrier will keep from your final claim payout estimate. On the coast, there are usually two deductibles; one that applies to all other perils (fire, theft, lightning, water damage, smoke) the other applies to wind/hail damage. Always make sure to check your policy deductibles to make sure they are reasonable and affordable during times of crisis.
 
A DL123, similar to an FS1 form, is a form in North Carolina that the DMV requires as showing proof of active liability insurance. To be specific, the DL123 form provides proof of coverage for a driver; a lot of my clients who are parents of teens ask for this when they take their teens to the driving test. Having on hand before you go is always helpful in moving that process along. For the FS1 form, these request for forms usually come through a letter in the mail from the DMV. This “termination of liability insurance” letter can be rescinded by your agent sending the FS1 form as proof of active insurance. Reasons insureds receive this letter is due to change in carriers, addition or replacement of a vehicle, or changes in policy information.
 
For our commercial clients, the biggest form requested is the certificate of insurance. This form can provide proof of commercial general liability, workers compensation, commercial auto, and many other types of coverages. This form shows the insureds name, the person (listed as certificate holder) requesting the proof of insurance, effective dates, and limits of coverage. The Certificate of insurance (also known as a COI) can also reflect any optional coverages and endorsements that have been added and may be required by the certificate holder. These forms are either generated by the agent or carrier, depending on each carrier guidelines. If you are requesting a COI from a business, make sure the effective dates are in line with the project date needed to ensure current coverage is active.
 
Insurance forms are usually standard, but can have very important information listed. Keeping a record of these forms, if possible, will provide the basic information on your policies. However, if you ever have any questions on either personal or commercial policy forms, reach out to your agent. We are here to help, and can make that “jargon” seem like poetry.
 
Alexandra Lysik is a licensed Property and Casualty Insurance Agent in North Carolina and South Carolina. Her independent insurance agency, Cavik Insurance, helps people save money and receive free insurance reviews to make sure they have the right coverage for auto, home, condo, umbrella, boat and all lines of commercial insurance. For more information visit www.cavikinsurance.com.
 
 
 
 

Cavikinsurancelogo 92719113217
Ico insights

INSIGHTS

SPONSORS' CONTENT
Headshot 6272430314

The Disease That Limits Growth

Amy Sullivan - Lumina Business Solutions, LLC
Untitleddesign13 162533932

Who You Hire to Sell Your Business Might Be the Most Important Decision You Make

Tully Ryan - Murphy Business Sales
2022052 75 142344351

Elevating Wilmington: Why a New, Taller Bridge is Essential for Our Progress

Natalie English - Wilmington Chamber of Commerce

Trending News

Tech Wilmington: Upcoming Events Calendar

Staff Reports - May 21, 2025

Next Glass Comes Back For Downtown Refill

Emma Dill - May 19, 2025

Army Corps Recommends Minimum Height For Cape Fear Memorial Bridge Replacement

Emma Dill - May 21, 2025

LS3P Announces Employee Recognitions

Staff Reports - May 20, 2025

Edwards Promoted To City's Corporate Affairs Director

Staff Reports - May 20, 2025

In The Current Issue

CEA Emerging Company Winner: A Patient Way To Boost Research

Synaptigen launched officially in December, taking its name from synaptogenesis, the process of forming new synapses....


Connecting To Carnivorous Plants

The Stanley Rehder Carnivorous Plant Garden is the legacy of George Stanley Rehder (1922-2012), who was known around Wilmington as “The Flyt...


Projects Give Town A Sand Infusion

Town officials said the improved channel will enhance navigation for both commercial and recreational boaters, along with the advantages of...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season