Insurance Industry Training and Terms

CRM (Customer Relationship Management)

Agency Zoom

AMS (Agency Management System)

AMS360

QQ Catalyst

Momentum (Formerly NowCerts)

Hawksoft

EzLynx

Apex (used by Farmers agents only)

In the insurance industry, both CRM and AMS systems are crucial, but they serve distinct purposes. A CRM (Customer Relationship Management) focuses on managing leads, client communication, and building customer relationships, essentially handling the sales and marketing side of the business. An AMS (Agency Management System), on the other hand, manages the operational aspects of the agency, including policy management, commission tracking, and compliance.  

Farmers Insurance Common Terms-

Apex -  Salesforce AMS/CRM system that Farmers agents use (does not integrate with AgencyZoom)

ABC- Agency Business Consultant

DM- District Manager

What is BAP? 

A business auto policy or BAP is used to insure regular vehicles that are used for business purposes. For example, a company-owned passenger car or truck that an employee drives to a work site could be insured with a BAP, whereas a fleet of trucks would require a commercial auto policy, which is different. 

What is BOP?

A business owners policy or BOP is an insurance policy that covers business owners for both property and casualty (or liability) insurance. For small businesses like sole proprietorships, a BOP can be a convenient and affordable option to make sure they are covered both for property damage (fires and theft, for example) and for liability (injuries occurring on the property or errors and omissions). 

What is CGL? 

The letters CGL commonly mean two things: commercial general liability or comprehensive general liability. 

This is a broad type of policy that covers general risks associated with doing business. Commercial liability insurance is actually inclusive of the risks covered by a comprehensive general liability policy. 

What is comprehensive general liability? 

This type of insurance covers bodily injury and property damage claims arising from a business’s use of contractors, or from tenants. 

What is CIAB?

The Council of Insurance Agents and Brokers or CIAB is a trade association representing the world’s top 200 insurance agencies and brokerages. CIAB is based in Washington, D.C. and lobbies for issues concerning the insurance industry. 

What is CICA? 

The Captive Insurance Companies Association or CICA is a global association dedicated to protecting the interests of captive insurance companies. 

What is CIPR?

The Center for Insurance Policy and Research or CIPR conducts studies, provides data, and educates people on issues that are relevant to the insurance industry. CIPR is a part of the National Association of Insurance Commissioners (NAIC). 

What is CPE? 

Continuing professional education or CE is a requirement to keep an active insurance license. Also known as CE credits, these units of education are earned by taking eligible courses throughout the year. 

What is a CPP? 

A commercial package policy or CPP is a type of business insurance that packages different lines of coverage together. For example, a CPP may include property insurance (covering property damage due to fires and natural disasters); casualty or liability insurance (covering losses due to liability); inland marine (insuring items while in transit across the country); and more. A CPP is customizable and does not have a set list of coverages. 

What is D&O? 

Directors and officers liability insurance is a line of coverage that protects a company from financial loss in the case that a director or officer of the company is liable for damages. It also serves the purpose of funding the defense of a director or officer accused of wrongdoing, although in many cases (fraud, criminal conduct) if the accused is found guilty, the insurance policy will require repayment of the legal costs it covered. 

What is the DOI?

The department of insurance, or division of insurance, also known as DOI is the government entity that regulates the activities of the insurance industry within the state or territory. 

Each state in the U.S., along with each U.S. territory, has its own department of insurance or division of insurance. 

What is EPLI? 

Employment practices liability Insurance or EPLI is a type of coverage for companies that have employees. It specifically covers claims for things related to employment practices, which may include harassment, toxic workplace claims, and wrongful termination lawsuits, among others. 

What is E&O? 

Errors and omissions insurance or E&O is a type of liability policy that protects professional service providers (lawyers or consultants, for example) from the liability they may face if their own error or omission causes harm to a client. E&O policies are also known as professional liability insurance (PLI) and professional indemnity insurance (PII). 

What is E&S?

Excess and surplus lines or E&S is the name for any type of specialty coverage that the general insurance markets don’t cover. There are a large number of E&S coverages, including insuring festivals and events, mobile homes, and daycare centers. 

What is FEMA? 

The Federal Emergency Management Agency or FEMA is a part of the U.S. government that is responsible for helping prevent, mitigate, and rebuild from natural disasters. FEMA administers the National Flood Insurance Program (NFIP), rather than a private insurance company. 

What is IIABA?

Independent Insurance Agents & Brokers of America or IIABA, also known simply as “Big I”, is an association representing the independent agency channel in the United States. The organization provides services, education, and government advocacy for the industry – specifically for independent insurance agents and brokers. 

What is an MGA? 

A managing general agent or MGA is an intermediary between an insurance company (a carrier) and an insurance agent, broker, or producer. While MGAs can appoint agents and sell insurance products, they also take on some of the responsibilities normally associated with a carrier, like underwriting the risk and settling claims.

What is an MGU? 

A managing general underwriter or MGU is similar to a managing general agent (MGA), and typically has a specialized area of coverage. Like MGAs, MGUs also take on some of the roles traditionally associated with insurance carriers. They have the ability to assess risk and underwrite policies. Often, MGUs are considered subject-matter experts in the lines of coverage they work with. 

What is NFIP?

The National Flood Insurance Program or NFIP is a government-run insurance program that provides flood insurance to individuals. Flood insurance is not available from private insurance carriers but is instead administered by the government and backed by the Federal Emergency Management Agency (FEMA). NFIP partners with other insurance companies to help deliver this product to American consumers. 

What is a NPN?

A national producer number or NPN is a unique identifier assigned to each producer, and most business entities (agencies and brokerages). You will need to apply for an NPN when first becoming licensed and know your NPN when renewing your license.

What is NRL?

Nonresident licensing or NRL is the type of insurance license given to producers who do not reside in a state, but who still sell products within it. In order to obtain an NRL, you must first have a valid producer license in your state of residence. 

What is OSHA?

The Occupational Safety & Health Administration or OSHA is an agency of the US government that oversees workplace health and safety regulations. Businesses have to abide by OSHA rules and standards to ensure workplace safety for their employees and contractors. Failure to follow OSHA standards can get a business in trouble legally and lead to insurance claims. 

What is P&C?

Property and casualty insurance or P&C is the type of insurance that protects individuals and businesses from losses associated with property, while also covering liability for damage to others. For example, property insurance would repair your car if it was damaged in an accident, while casualty insurance would pay for the repair of someone else’s car if you were legally responsible for the accident. Generally, property and casualty insurances are bundled together in a single policy, such as an auto policy. 

Accrue – an accrual, or something that accrues, accumulates over time.

Actual cash value (ACV) – the value of insured property at the moment it is lost, as opposed to replacement cost (RC), which is the cost of replacing something old-for-new.

Actuary – a person who calculates risk and probability on behalf of an insurer.

Adjuster – a person who, on behalf of an insurer, investigates the circumstances around a claim and advises how much should be paid out.

Auto insurance – insurance for a vehicle. Depending on the policy, auto insurance can cover damage, loss and personal injury for your vehicle and other vehicles you have an accident with.

Appraisal – the process where insured property is assessed for its value, or the value of any damage, at the time of loss.

Assurance – cover for an event that will definitely happen, like death. This is different to insurance, which is cover for something that may or may not happen.

Asset – any item you own which can be insured, like vehicles or properties.

Bond – a written agreement to repay debt, including the length of time and the amount of interest to be paid.

Broker – a type of financial adviser who recommends insurance products to clients and arranges cover with an insurer.

Claim – a request for compensation made by a policyholder to their insurer when they have suffered loss or damage.

Co-insurance – an arrangement where an insurance policy is shared by multiple insurers.

Commercial insurance – a line of insurance that covers businesses and organisations against unexpected loss.

Contents insurance – a line of insurance that covers consumers when their personal belongings are lost, stolen or damaged.

Cover – the extent to which you’re insured for something as part of your policy.

Deductible – a fee that a policyholder agrees to pay before the insurer pays out for a claim.

Depreciation – a reduction in the value of an item over time, for example due to wear and tear.

Endorsement – an amendment to an insurance policy that extends, removes or changes the nature of the insurance coverage.

Excess – the portion of a claim that a policyholder agrees to pay; the insurer will pay the rest of the claim above the value of the excess.

Exposure – the risk of possible loss arising. Insurers will try to mitigate exposure by discouraging risky behaviour.

First notice of loss (FNOL) – the moment at which a policyholder informs their insurer that they have cause to make a claim.

Hazard – a factor that increases the chance of loss arising. For example, a staircase without a handrail may increase the risk of a personal injury claim, so the lack of a handrail would be a hazard for an insurer.

Health insurance – a line of insurance that insures consumers in the event that they need medication or medical treatment.

Holiday insurance – a line of insurance that insures holidaymakers and travellers against loss, disruption, injury or unforeseen expenses arising from their journey.

Inception – the date insurance cover begins.

Indemnity – the act of compensating somebody else for damage or loss that you cause them.

Insurance – a financial product that covers you against possible loss or damage in return for regular payments called premiums.

Insurtech – a company that provides a technological innovation for the insurance industry. This could involve back-end architecture or a front-end application that consumers can use.

Liability – a line of insurance that covers a policyholder for the cost of compensation arising from their own negligence or error.

Life insurance – a line of insurance that pays a policyholder’s family an agreed sum if they die before the policy expires.

Lines – different categorisations, or types, of insurance

Maturity – when a policy reaches a time limit agreed when it was first taken out.

Mitigation – the process of taking steps to reduce the chance of loss or damage arising.

Moratorium – a temporary suspension of insurance cover in relation to a specific risk.

Mutual – an insurance company that is fully owned by its customers.

Negligence – failure to take proper care when undertaking an activity, which then causes loss or damage to arise.

P&C insurance – a line of insurance that covers property and casualty.

Peril – a cause of damage or injury such as fire, flood or storm.

Pet insurance – a line of insurance that covers the policyholder in the event that their pet requires medication, vaccination or surgery.

Premium – the amount of money paid by a policyholder to an insurer in return for cover.

Policy in force (PIF) - In force is an insurance term that means a policy is currently active and providing insurance coverage in return for premiums paid as agreed. The phrase “in force” refers to the policy at the time it is evaluated. This applies if a policyholder has been paying their insurance as per the payment agreement or has paid their premiums in full.

Reinsurance – the process where insurers buy insurance for themselves, from reinsurance companies, to cover against the possibility of large losses.

Reserves – an amount of money set aside by insurers for unexpected expenses.

Specialty insurance – a line of insurance, usually for businesses, that covers unique or unusual activities not traditionally covered by other policies. Specialty insurance may include marine insurance, cyberattack insurance or insurance against identity theft.

Subrogation – a process where the insurer, acting on behalf of a policyholder who has suffered loss, pursues a third-party who has caused that loss for compensation.

Surety – someone that takes responsibility for another person’s debt or obligations.

Third party – in relation to auto insurance in particular, a person involved in a claim who is neither the policyholder nor the insurer.

Underinsured – a situation where a policyholder is insured for less than the value at risk.

Underwriter – a person who assesses risk on behalf of an insurer and assumes that risk in return for a fee.

Uninsurable – an event or situation which is not covered by any insurance policy because it is either inevitable, unstoppable or unlawful.

Vis major – otherwise known as an ‘act of God’ or ‘force majeure’, an event which could not have been foreseen or prevented such as an earthquake or volcanic eruption.

Pipeline:

A pipeline is a group of stages. 

Stage:

A stage is a column in AgencyZoom that represents a step in the process. 

Lead:

A lead represents a person or persons that the agency can sell insurance or a product to. The lead keeps all the information about this person, their insurance and the activity or conversation the agency or producer has had with this person. 

Contact:

The easiest way to think of a contact is that this is the PERSON themselves. A contact is the PERSON - the person could also be a lead or a customer. So all leads and customers are Contacts! 

Opportunities and Quotes:

An opportunity is the Lead or Customers current insurance policy. 

Example. Mary Martinez is currently insured with State Farm for her Auto Insurance. Her Opportunities is State Farm Auto Insurance. 

A Quote is what the lead is getting from the insurance agency. 

Example: Mary is insured with State Farm for her auto insurance. The agency provided a QUOTE for Auto Insurance with Travelers. Her quote is Travelers Auto Insurance. 

Automation:

This is what Accelerated Automation puts into the CRM for agents. Automation is referancing a campaign that is sent to the lead or customer with a specific message and call to action. It's a sequence of emails, texts and reminders for staff to do things to move the process forward. 

Blue Menu Bar inside a lead:

Top Lead Menu: