Glossary of Insurance Terms -H-

-H-

• Hard Market: That part of the insurance
  sales cycle in which competitive pricing is at a minimum as companies charge
  the premiums necessary to meet their underwriting losses in order to avoid
  insolvency and boost capacity; usually associated with a sharp decline
  in capacity (see “Soft market”).

• 
  Hazard: Condition that creates or increases
  the chance of loss.
• 
  Health Maintenance
  Organization (HMO): An organization that provides a wide range of comprehensive
  health care services for a specified group at a fixed periodic payment.
  The HMO can be sponsored by the government, medical schools, hospitals,
  employers, labor unions, consumer groups, insurance companies, and hospital
  medical plans.
• 
  Hedging: Technique for transferring the risk
  of unfavorable price fluctuations to a speculator by purchasing and selling
  options and futures contracts on an organized exchange.
• 
  High Risk Automobile Insurer:
  Company that specializes in insuring motorists who have poor driving records
  or have been canceled or refused insurance.
• 
  Hold Harmless Clause: Clause
  written into a contract by which one party agrees to release another party
  from all legal liability, such as a retailer who agrees to release the
  manufacturer from legal liability if the product injures someone.
• 
  Homeowners Policy: A package of
  insurance providing home owners with a broad range of property and liability
  coverages.
• 
  Hull Insurance: (1) Class of ocean
  marine insurance that covers physical damage to the ship or vessel insured.
  Typically written on an “all-risks” basis. (2) Physical damage insurance
  on aircraft- similar to collision insurance in an automobile policy.
• 
  Hurricane: A tropical storm marked by extremely
  low barometric pressure and circular winds with a velocity of 75 miles
  an hour or more.