Financial & Insurance Glossary 2026

Debt 1099-C (Cancellation of Debt) The tax form lenders send when they forgive debt you may owe taxes on → Insurance Actual Cash Value (ACV) A claim payout based on replacement cost minus depreciation, so you get less than full replacement → Mortgage Adjustable-Rate Mortgage (ARM) A home loan with a fixed starter rate that later moves up or down with the market → Mortgage Amortization The schedule that shows how each loan payment splits between principal and interest over time → Mortgage Annual Percentage Rate (APR) The yearly cost of your mortgage including fees, not just the interest rate → Insurance At-Fault State States where the driver who caused an accident pays all damages through their liability insurance → Debt Automatic Stay The court order that instantly freezes most collection the moment you file bankruptcy → Solar Avoided Cost The wholesale value a utility saves by not generating or buying power elsewhere → Debt Balance Transfer Moving high-interest card debt to a new card with a low or 0% intro APR to save on interest → Debt Bankruptcy Means Test The income screen that decides whether you qualify for Chapter 7 bankruptcy → Insurance Bodily Injury Liability The auto coverage that pays for injuries you cause to other people in an at-fault accident → Compliance CAN-SPAM Act The federal law setting the ground rules for commercial email and opt-outs → Mortgage Cash-Out Refinance Replace your mortgage with a bigger one and pocket the difference from your home equity → Compliance CCPA / CPRA California's privacy laws letting consumers control how their personal data is used and sold → Debt Cease and Desist Letter (Debt) A written notice that tells a debt collector to stop contacting you under the FDCPA → Debt Chapter 13 Bankruptcy A reorganization bankruptcy that lets you keep your assets and repay debts through a court-approved plan → Debt Chapter 7 Bankruptcy A liquidation bankruptcy that can wipe out most unsecured debts in a few months → Debt Charge-Off When a creditor writes off a debt as uncollectible — but the debt still exists and can be collected → Debt Civil Judgment (Debt) A court ruling confirming you owe a creditor, which can unlock collection tools → Insurance Claims Adjuster The insurance pro who investigates your claim and decides how much gets paid → Mortgage Closing Costs The upfront fees you pay to finalize your mortgage at closing → Mortgage Closing Disclosure The final, 5-page statement of your actual loan terms and closing costs → Debt Collection Account A debt your original creditor charged off and handed to a collection agency to pursue → Insurance Collision Coverage Pays to fix or replace your own car after a crash, no matter who caused it → Solar Community Solar Subscribe to a share of an off-site solar array and earn utility bill credits without installing panels → Insurance Comprehensive Coverage Coverage for vehicle damage from theft, weather, fire, and everything except a collision → Mortgage Conforming Loan Limit The yearly cap on mortgage amounts Fannie Mae and Freddie Mac will buy → Mortgage Conventional Loan A mortgage not backed by a government agency — the most common home loan type → Lead Generation CPL (Cost Per Lead) The price an advertiser pays for each qualified consumer inquiry delivered → Debt Credit Card APR The yearly interest rate you pay on an unpaid credit-card balance → Debt Credit Counseling Nonprofit guidance on budgeting and debt repayment, sometimes through a structured payoff plan → Debt Credit Utilization Ratio How much of your available revolving credit you're actually using, shown as a percentage → Insurance Credit-Based Insurance Score A credit-derived score insurers use to help set your auto and home premiums → Debt Debt Avalanche Method Pay minimums on everything, then attack your highest-interest debt first to save the most on interest → Debt Debt Consolidation Combining multiple debts into one lower-interest payment — without reducing the principal → Debt Debt Management Plan (DMP) A nonprofit-arranged repayment program that consolidates your payments and often lowers your interest → Debt Debt Relief Advance-Fee Rule For-profit debt-relief firms can't charge fees until they've settled at least one of your debts → Debt Debt Settlement Negotiating with creditors to pay less than the full balance — significant savings, real risks → Debt Debt Snowball Method Pay off your smallest debt first to build momentum, then roll that payment to the next → Debt Debt Validation Your right to make a debt collector prove a debt is actually yours and accurate → Insurance Declarations Page The summary page of your insurance policy showing who and what is covered → Insurance Deductible The amount you pay out of pocket before your insurer covers the rest of a claim → Mortgage Discount Points Optional upfront fees you pay at closing to lower your mortgage interest rate → Compliance Do Not Call Registry A federal list that lets you block most telemarketing calls to your phone number → Mortgage DTI (Debt-to-Income) The percentage of your gross income consumed by monthly debt payments — a key loan qualifier → Insurance Dwelling Coverage (Coverage A) The part of your home insurance that pays to repair or rebuild the physical structure → Mortgage Earnest Money A good-faith deposit that shows a home seller you're serious about buying → Insurance Endorsement (Rider) A written change that adds, removes, or modifies coverage on your existing policy → Mortgage Escrow Account A lender-held account that pays your property taxes and homeowners insurance from your mortgage payment → Lead Generation Exclusive vs. Shared Leads How lead pricing and competition differ when a contact goes to one buyer versus several → Debt Exempt Income Income and funds that creditors generally cannot garnish or seize from your bank account → Compliance Express Written Consent The documented permission required before contacting a consumer via automated calls or texts → Debt FCRA (Fair Credit Reporting Act) The federal law that controls how credit bureaus collect, report, and correct your credit data → Debt FDCPA (Fair Debt Collection Practices Act) Federal law that limits how third-party debt collectors can contact and treat you → Solar Feed-in Tariff (FiT) A guaranteed above-market rate paid for every kWh your solar system sends to the grid → Mortgage FHA Loan A government-backed mortgage with low down payments for buyers with moderate credit → Debt FICO Score The most widely used credit score lenders check to gauge how likely you are to repay → Mortgage Fixed-Rate Mortgage A home loan with one locked interest rate for the whole term → Insurance Flood Insurance Separate coverage for flood damage that your standard home policy won't pay for → Insurance FR-44 A high-limit liability filing required in Florida and Virginia after serious driving offenses like DUI → Insurance Full Coverage An informal label for combining liability, collision, and comprehensive coverage → Insurance Gap Insurance Covers the gap between your car's value and what you still owe if it's totaled → Debt Hard Inquiry A credit check from a new application that can dip your score and stays on file about two years → Mortgage HELOC (Home Equity Line of Credit) A revolving credit line secured by your home equity that you draw from as needed → Mortgage Home Appraisal An independent licensed appraiser's opinion of what your home is worth → Mortgage Home Equity Loan A lump-sum second mortgage you repay in fixed monthly payments at a fixed rate → Insurance Homeowners Insurance (HO-3) The most common homeowners policy covering your dwelling on an open-peril basis → Insurance Hurricane Deductible A percentage-based deductible that kicks in only when a hurricane or named storm damages your home → Insurance Insurance Binder Temporary proof of coverage that protects you immediately while your full policy is finalized → Insurance Insurance Premium The amount you pay to keep your insurance coverage active → Insurance Insurance Underwriting How insurers size up your risk to decide if they'll cover you and what you'll pay → Solar Interconnection Agreement The utility contract that lets your solar system legally connect to the grid → Mortgage Jumbo Loan A mortgage that exceeds the FHFA conforming loan limit and can't be bought by Fannie Mae or Freddie Mac → Solar Kilowatt-Hour (kWh) The unit of energy used for electricity billing—one kilowatt of power used for one hour → Solar Kilowatt-Peak (kWp) The rated maximum DC output that describes how big a solar system is → Insurance Lapse in Coverage A gap when your insurance policy becomes inactive due to non-payment or non-renewal → Lead Generation Lead Aggregator A company that collects consumer inquiries from publishers and sells them to buyers → Lead Generation Lead Scoring Rating how likely a consumer inquiry is to convert, using validity, intent, and vertical signals → Insurance Liability Coverage The coverage that pays for damages you cause to others — required in virtually every US state → Mortgage Loan Estimate A standardized 3-page form lenders give you to compare mortgage offers → Insurance Loss of Use Coverage (Coverage D) Pays your extra living costs when a covered loss makes your home unlivable → Mortgage LTV (Loan-to-Value) The percentage of a property's value financed by a mortgage — key to rates and PMI → Insurance Medical Payments Coverage (MedPay) Optional auto coverage that pays medical and funeral costs no matter who caused the crash → Solar Microinverter A panel-level inverter that converts DC to AC right at each solar panel → Debt Minimum Payment The smallest monthly amount your card issuer requires to keep the account current → Solar Monocrystalline Solar Panels High-efficiency solar panels made from single-crystal silicon with a uniform black look → Mortgage Mortgage Forbearance A temporary agreement to pause or reduce your mortgage payments during hardship → Mortgage Mortgage Insurance Premium (MIP) The mortgage insurance you pay on an FHA loan to protect the lender if you default → Mortgage Mortgage Pre-Approval A lender's conditional commitment to lend up to a set amount after verifying your finances → Mortgage Mortgage Pre-Qualification An informal estimate of how much you might borrow, based on details you self-report → Mortgage Mortgage Rate Buydown Paying upfront to lower your mortgage rate, either permanently or temporarily → Mortgage Mortgage Recast Lower your monthly payment by paying down principal without refinancing → Mortgage Mortgage Servicer The company that collects your mortgage payments and manages your escrow account → Solar NABCEP The gold-standard solar installer certification — verify before you sign → Solar NEM 3.0 (Net Billing Tariff) California's solar export rule that pays avoided-cost rates instead of full retail credit → Solar Net Metering The utility billing policy that credits solar owners for surplus electricity sent to the grid → Mortgage NMLS The public registry where every licensed mortgage professional's credentials are verified → Insurance No-Fault State States where your own insurance pays your medical bills first — regardless of who caused the crash → Insurance Non-Owner Car Insurance Liability coverage for drivers who borrow or rent but don't own a car → Compliance One-to-One Consent FCC standard requiring TCPA consent to name each specific seller you agree to hear from → Mortgage Origination Fee A lender charge for processing and underwriting your mortgage, shown on your Loan Estimate → Insurance Other Structures Coverage (Coverage B) Homeowners protection for detached structures like garages, sheds, and fences → Solar Panel Degradation Rate The yearly decline in a solar panel's power output as it ages → Debt Pay-for-Delete Asking a collector to delete a collection account from your credit in exchange for payment → Insurance Personal Injury Protection (PIP) No-fault auto coverage that pays your medical bills and lost wages regardless of who caused the crash → Insurance Personal Property Coverage (Coverage C) The part of your homeowners policy that pays to repair or replace your belongings → Solar Photovoltaic (PV) System A solar electric setup that turns sunlight into usable electricity → Lead Generation Ping Tree The real-time bidding system that matches consumer leads to the highest-paying buyer → Lead Generation Ping-Post A two-step process that auctions anonymized leads before sending full contact details to the winner → Mortgage PITI (Principal, Interest, Taxes, Insurance) The four parts of your monthly mortgage payment that lenders use to judge what you can afford → Mortgage PMI (Private Mortgage Insurance) Lender protection required on low-down-payment conventional loans — until you reach 20% equity → Insurance Policy Non-Renewal When an insurer declines to continue your coverage at the end of its term → Solar Polycrystalline Solar Panels Budget-friendly solar panels made from multiple silicon crystals with slightly lower efficiency → Solar Power Purchase Agreement (PPA) A solar financing arrangement where you buy the electricity, not the panels — no upfront cost, no tax credit → Mortgage Prepayment Penalty A fee some loans charge when you pay off the balance early → Compliance Prior Express Consent The baseline TCPA consent for non-marketing autodialed or prerecorded calls and texts → Insurance Property Damage Liability Auto insurance that pays for damage you cause to other people's property when you're at fault → Mortgage Rate Lock A lender promise to hold your quoted rate while your loan closes → Mortgage Rate-and-Term Refinance Refinancing to change your rate or term without pulling out cash → Debt Re-Aging of Debt When a debt's delinquency date is reset on your credit report, sometimes illegally → Insurance Replacement Cost Value (RCV) Claim payout that covers the full cost to replace property new, with no depreciation taken out → Mortgage Reverse Mortgage A loan that turns home equity into cash for homeowners 62 and older with no required monthly payment → Debt Secured Debt Debt backed by collateral the lender can seize if you stop paying → Debt Soft Inquiry A credit check that does not affect your score → Solar Solar Battery Storage A home battery that banks excess solar power for nighttime, outages, or pricey peak hours → Solar Solar Easement A recorded agreement that protects your property's access to sunlight from being blocked → Solar Solar Inverter The device that converts your panels' DC power into usable AC electricity → Solar Solar Lease A financing deal where a third party owns the panels and you pay fixed monthly rent to use them → Solar Solar Loan Financing that lets you borrow to buy and own your solar panel system outright → Solar Solar Panel Efficiency How much sunlight a solar panel turns into usable electricity → Solar Solar Payback Period How long it takes for energy-bill savings to cover what you paid for solar after incentives → Solar Solar Tax Credit (ITC) The federal residential solar tax credit (Section 25D, IRS) that made solar financially compelling for many US homeowners has expired for systems purchased and installed after December 31, 2025. Homeowners exploring third-party options such as a solar lease or PPA may still benefit indirectly from the 30% commercial credit (Section 48E, IRS), which the installer/owner claims and often passes through as a lower rate, subject to eligibility deadlines. → Insurance SR-22 A filing that proves high-risk drivers carry the minimum required auto insurance → Solar SREC (Solar Renewable Energy Certificate) A tradable credit you earn for every 1,000 kWh your solar system generates → Debt Statute of Limitations on Debt The legal deadline after which a creditor can no longer sue to collect — but the debt still exists → Solar String Inverter A central inverter that converts DC to AC for a whole string of solar panels at once → Insurance Subrogation Your insurer's right to recover from the at-fault party after paying your claim → Compliance TCPA The federal law governing automated calls, texts, and telemarketing consent → Debt Time-Barred Debt Old debt past your state's statute of limitations, which a creditor can no longer sue you to collect → Solar Time-of-Use (TOU) Rate A utility pricing plan where electricity costs more during peak hours and less off-peak → Mortgage Title Insurance A one-time policy that protects against hidden defects in a property's title → Compliance TrustedForm Certificate Third-party proof that a consumer gave consent on a web form at a specific time → Insurance Umbrella Insurance Extra liability coverage that kicks in above your auto and home policy limits → Insurance Underinsured Motorist Coverage Covers the gap when an at-fault driver's liability limits aren't enough to pay your damages → Insurance Uninsured Motorist Coverage Pays your costs when an at-fault driver has no insurance at all → Debt Unsecured Debt Debt with no collateral behind it, like credit cards and medical bills → Insurance Usage-Based Insurance (Telematics) Car insurance priced on how you actually drive, tracked by an app or plug-in device → Mortgage USDA Loan A zero-down government-backed mortgage for eligible rural and suburban buyers → Mortgage VA Loan A government-backed mortgage for eligible veterans with no down payment and no monthly mortgage insurance → Debt Wage Garnishment A court-authorized process that directs your employer to withhold pay for a creditor judgment → Insurance Wind Mitigation Building features that reduce wind damage and can lower your homeowners premium →