Incontestable clause
A clause in a policy providing that after a policy has been in effect for a given length of time (two or three years), the insurer shall not be able to contest the statements contained in the application. A health insurance provision also states that after that time no claim shall be denied or reduced on the grounds that a condition not excluded by name at the time of issue existed prior to the effective date. In life policies, if an insured lied as to the condition of his health at the time the policy was taken out, that lie could not be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause.
Indemnity
A type of insurance in which the insured pays for services at the time they are received, submits bills and copies of paid receipts to the insurance company, and the insurance company reimburses the insured for a set portion of the covered health care expenses.
Independent agent
An independent agent represents several different insurance companies and searches the market for the best place for a client's business.
Independent review
An appeal process in which a health care professional with no connections to an enrollee's health plan reviews a dispute over whether treatment is medically necessary or experimental.
Individual Practice Association (IPA)
An association of physicians that contracts with a health maintenance organization, limited service health organization, or preferred provider plan to provide health care services.
In-Network
A provider, hospital, pharmacy, or other facility is "in-network" when it has contractually accepted the health insurance company's terms and conditions for payment of services.
Instrumental activities of daily living
Basic functional activities necessary for you to remain in your home, such as meal preparation, shopping, light housekeeping, laundry, telephoning, and handling money and paying bills.
Insurability
Acceptability by the insurance company of an applicant for insurance.
Insurable interest
A condition in which the person applying for an insurance policy and the person who is to receive the policy benefit will suffer an emotional and financial loss if the event insured against occurs. Without the presence of insurable interest, an insurance contract is not formed for a lawful purpose and, thus, is void from the start.
Insurance
A formal device for reducing the chance of loss by transferring the risks of several individual entities to insurance companies.
Insurance to value
Insurance written in an amount approximating the value of the property insured.
Insured
The party covered by an insurance arrangement, to whom an insurance company agrees to indemnify for losses, provide benefits, or render services.
Intermediate care
Less intensive care than skilled nursing care. Its definition may vary from policy to policy. It usually includes assistance with activities of daily living with the availability of any on-duty registered nurse.
Issue age
Premiums are set at the age you are when you buy the policy and will not increase because you get older. Premiums may increase for other reasons.

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