Log In 
Search 
A
Actual Cash Value
The cost to replace an item as new, minus its decrease in value due to age and use or condition.
Additional Insured
A person or company other than the primary policyholder who has a financial interest in the covered property. For example, a family member or lending institution could be added to a policy as an additional insured.
Adjuster
An adjuster is responsible for investigating and settling claims.
Automatic Payments
Scheduled premium charges to a policyholder’s bank account or credit card each time their NC Farm Bureau Insurance bill is due. This process is initiated through the Customer Portal.
B
Bodily Injury (Liability) Coverage
Coverage for physical injury, death, or damages to other people due to an auto accident caused by you. North Carolina motorists are required to have Bodily Injury Coverage.
C
Cancellation
When insurance coverage is terminated by the policyholder or the insurance company prior to the end of the policy period. An insurance company may cancel a policy due to non-payment of bills, or for Underwriting reasons such as claims frequency, driving records, missing Underwriting information, etc.
Collision Coverage
Insurance protection for the insured vehicle, provided regardless of fault, from losses resulting from the insured vehicle colliding with another vehicle, object, or the vehicle tipping or rolling over.
Comprehensive Coverage
Insurance coverage for damage caused by accidents other than collision, i.e. hail, theft, fire, contact with an animal, glass breakage, etc. Motorcycles are not eligible for comprehensive coverage; see FCV coverage.
Consent to Rate
In order to provide auto physical damage coverage or residential property coverage to applicants with a high risk profile, an insurance company may require the prospective customer to pay higher rates than approved by the North Carolina Rate Bureau.
Coverage A (Dwelling), Homeowners Policies
Covers your home and all structures attached to it at the insured location, such as a garage or screened-in porch.
Coverage B (Other Structures), Homeowners Policies
Provides insurance for structures, such as an out building, not attached to your home.
Coverage C (Personal Property), Homeowners Policies
Protects personal belongings such as furniture, electronics, clothing, dishes, etc. Policy includes special limits on certain items and perils.
Coverage D (Additional Living Expenses), Homeowners Policies
Coverage for expenses above your normal living costs if your home is damaged by an event specified in your insurance policy and your home is unlivable. Additional Living Expenses may cover housing, meals, and storage for example.
Coverage E (Personal Liability), Homeowners Policies
Provides coverage for damages that you may be legally responsible for as a result of an incident that occurs at your home. (For example, if someone falls at your house.)
Coverage F (Medical Payments to Others), Homeowners Policies
Pays for the reasonable medical expenses of others (who do not live in your household) for injuries that occur on your property regardless of fault.
Covered Loss (es)
A specified event or events for which an insurance company promises to compensate the policyholder if the event occurs and is not otherwise excluded.
Customer Portal
The secure portion of the NC Farm Bureau Insurance website created for policyholders to access and pay bills, view policy documents such as declarations and Proof of Insurance cards, file claims, and to submit change requests.
D
Declaration
Insurance document that includes your name and address, the effective and expiration dates of your policy, a description of what is being insured, the specific coverages provided under the policy, and the premium charged for each.
Deductible
In the event of a covered loss, the deductible is the out-of-pocket cost that the policyholder must incur when compensation is paid by the insurance company.
Driver License Points
North Carolina motorists may be penalized with points on their driving record for motor vehicle violations. For example, many speeding infractions are three points. An individual's license may be suspended if they accumulate 12 points within a three year period. This is not the same as Insurance points.
Dwelling
Your home or residence.
E
E-Bill
An electronic version of your bill that you can review online. This option is available via the NCFB Customer Portal accessible from this website. E-Bill is available for any policy, on any payment plan.
Earned Premium
The premium amount owed to the insurance company for each day that coverage is in force. If your policy is in force for more days than you have paid, then earned premium is owed.
EFT
Electronic Funds Transfer is the automatic deduction of the insurance premium amount due, from a designated bank account. This process is initiated through the local NC Farm Bureau office.
Endorsement
An amendment to your insurance policy’s original terms.
Exclusion
A policy provision which eliminates or restricts coverage under the insurance policy.
Expiration
The specified date and time when an insurance policy is no longer active. Depending on the type of policy, a renewal notice may generate prior to the end of the current policy term. If the bill is unpaid, coverage will automatically end on the expiration date of the current term.
F
FCV Coverage
Motorcycles are not eligible for comprehensive coverage and instead may have coverage added for Fire, Theft, Vandalism, and Combined Additional Coverages. Notably, contact with an animal is not covered under FCV coverages, but under collision coverage for motorcycles.
I
Insurable Interest
A person or organization that has a financial interest in the property. This could be the mortgage company for your home, or the lending institution if your vehicle is financed.
Insurance Points (Auto Policies)
Part of North Carolina’s Safe Driver Insurance Plan, motorists who are at fault for accidents and moving violations are assigned points that cause surcharges to be added to their insurance policy. This is not the same as Driver License points.
Insured
A person or organization covered by an insurance policy.
L
Liability Insurance
Pays for damages covered under the policy that the policyholder may be legally responsible for as the result of an insured’s negligence. Liability insurance may cover bodily injury, property damage, or both.
Lienholder
A person or organization, such as the lender for your vehicle, with a financial interest in the insured property.
Limits of Liability
The maximum amount that an insurance company will pay for a valid claim based on the coverage terms of the insurance policy.
Loss of Use
Compensation for the inability to use property that has been damaged by specific events named in your insurance policy (i.e., fire, lightning, vandalism, etc.).
Loss Payee
A person or organization, such as the lender for your vehicle, with a financial interest in the insured property.
M
Medical Payments Coverage (Auto Policies)
Pays for reasonable medical and funeral expenses incurred due to an auto accident, regardless of fault. “Med Pay” covers injuries sustained by you and passengers in your vehicle, or a vehicle driven by you. Med Pay also provides coverage for you if you are the occupant in another vehicle, or are struck by a vehicle.
Minimum Writing Premium
The minimum acceptable premium for which an insurance company will write a policy.
Mortgagee
An entity that lends money to a borrower for the purchase of purchasing real estate, giving them a financial interest in the insured property.
N
NCIUA
The North Carolina Insurance Underwriting Association writes windstorm and hail policies for property owners in coastal areas whose homeowners policies do not include this coverage. In addition, for prospective policyholders living in a coastal county, the NCIUA may be an option for those who are unable to obtain a Homeowner or Commercial Property policy through NC Farm Bureau Insurance or another insurance carrier.
NCJUA
The North Carolina Joint Underwriters Association provides insurance coverage for prospective policyholders who are unable to obtain a Dwelling or Commercial Property policy through NCFB or another insurance carrier.
P
Peril
A danger or hazard, such as a car collision or house fire that can cause a loss. Your insurance policy will specify the perils that you are insured against.
Personal Liability Coverage
Provides coverage for damages that the policyholder may be legally responsible for as a result of accidents occurring at the insured’s residence. (For example, if someone falls in your home.)
Personal Property Coverage
Protects your personal belongings. For homeowner policies, this would be furniture, electronics, clothing, dishes, etc. Policy includes special limits on certain items such as jewelry for the peril of Theft.
Policy Jacket
Insurance document, specific to the type of policy you have (such as personal auto or homeowners) that explains the terms of the contract and the insurance language used. Where a declaration is personalized to your unique policy situation, the policy jacket is a blanket form.
Policy Term
The length of time, designated by the policy effective and expiration dates, that your insurance coverage is in force. The most common policy periods are 6 months (for auto) and 12 months (for homeowners). Business auto policies could be 6 or 12 months.
Property Damage Coverage
Pays for damages resulting from an accident caused by the policyholder or other covered drivers. Along with Bodily Injury Coverage, North Carolina motorists are required to have Property Damage Coverage.
Pro-Rata Cancellation
Pro-Rata cancellations occur when the insurance company cancels your policy. The premium for the policy term is adjusted for the length of time that the policy was actually in force and as a result, a refund may be sent to the policyholder.
R
Recoupment
A surcharge mandated by the North Carolina Department of Insurance designed to offset a portion of the premium income lost by the Reinsurance Facility.
Reinstatement
Reinstating a policy makes it active again after it has canceled or expired, provided it meets the specific requirements for reinstatement.
Reinsurance Facility/RF Auto Policies
Because North Carolina requires motorists to have auto liability insurance, the state created the Reinsurance Facility for drivers who cannot obtain liability insurance in the marketplace. When a driver does not meet an insurance company’s guidelines for coverage, the company places their policy with the Reinsurance Facility instead of assuming the risk. The original company issues the policy, but the payment for coverage is sent to the Reinsurance Facility.
Replacement Cost
The cost to replace an insured item with a new one. (This is instead of replacing the item on the basis of actual cash value.)
S
Short Rate Cancellations
Short Rate Cancellations may occur when the policyholder cancels the policy mid-term, depending on the type of policy. A surcharge is assessed for the early cancellation.
U
Uninsured Motorist Bodily Injury (Auto Policies)
Coverage for the policyholder and passengers of their vehicle for bodily injury caused by the driver of an uninsured vehicle who is at fault and legally liable.
Uninsured Motorist Property Damage (Auto Policies)
Insurance that covers your vehicle when damage is caused by the driver of an uninsured vehicle who is at fault and legally liable.
Uninsured/Underinsured Motorist Bodily Injury (Auto Policies)
Coverage for the policyholder and passengers of their vehicle for bodily injury caused by the driver of an uninsured or inadequately insured vehicle who is at fault and legally liable.