Progressive Insurance | Brand Guidelines

earned car year

A situation that occurs when a vehicle has been insured for 12 months.

earned premium

A portion of the premium that we earn for each policy. For example, if a customer buys a six-month policy for $600, we earn $3.33 ($600/180 days) each day of the policy. After 60 days, we've collected $200 in “earned premium.” The remaining $400 is “unearned premium.”

Earned Time Benefit

The former name for our time-off program for employees. See "Paid Time Off."

earnings per share

An amount of money each share of common stock earns. It's calculated as: a company's profits (minus taxes, bond interest and preferred stock payments) divided by the number of outstanding shares of common stock.

ease of use

The term used to describe an important part of Commercial Lines' value proposition.

economic loss

An amount of money lost due to the death or disability of a wage earner, or from property damage. It includes the loss of income, medical expenses, funeral expenses, the cost of restoring or replacing property and legal expenses. It does not include non-monetary losses, such as pain caused by an injury.

effective date

The date that insurance coverage starts. Also known as the “inception date.”

EFT Discount

The savings earned for choosing an electronic funds transfer (EFT) payment plan.

Electronic Funds Transfer

A process in which a customer makes a payment by automatic withdrawal from their bank account.

endorsement

A change to a policy's coverage, terms or conditions that a customer calls in or makes online. Also, the document that explains the changes. Sometimes called a “rider.”

escheatable property

Unclaimed money—such as checks never cashed by customers, claimants or employees—that must be turned over to the state after a certain length of time set by state law.

escheatment

Turning over unclaimed or abandoned property to the state, usually when the owner dies without a will.

E-signature Discount

The savings earned for choosing to buy a policy direct and signing new business documents online.

evidence of insurance

A written or printed statement showing the applicability and effectiveness of insurance coverages

excess liability coverage

Extra insurance to cover liability beyond the limits of another policy.

excess of loss

A type of reinsurance by which an insurer covers a loss up to a certain amount. Above that amount, the insurer and reinsurer share the loss.

Excluded Driver Surcharge

A charge a customer pays for having excluded drivers on a policy. An excluded driver is someone either may not drive the vehicle or may drive the vehicle but is insured by another company.

exclusions

Risks, people, property, classes, or locations that an insurance policy doesn't cover.

exclusive agent

See “captive agent.”

expense ratio

A percentage of each premium dollar that we use to pay expenses, such as customer service and sales salaries, advertising, agent commission, technology, and other non-claims expenses.

exposure

Possibility of loss.

face sheet note

See “claim note.”

facultative reinsurance

A type of insurance policy that an insurance company buys to protect itself from big claims on unusual or especially large policies—such as coverage for jumbo jets or oil rigs.

feature

Each type of coverage on a claim (e.g., bodily injury, personal injury, and collision could all be “features” of one claim).

feature owner

The person assigned to handle a specific feature of a claim.

file owner

A claims representative who oversees a claim and is responsible for closing it. Every claim must have one. Also called a “claim owner.”

financial reserves

A sum of money we set aside to pay for losses that have already been recorded but not fully paid.

financial responsibility

See “credit.”

flat acquisition cost

An amount of money required to attract a new Direct customer and write his or her new policy. This includes advertising, contact center and Internet costs. It varies by market tier, based on allocation of expenses and policy life expectancy.

ForAgentsOnly.com

A secure website where our agents and brokers quote and sell new policies, process changes on existing policies, access customer policies and read news and information about Progressive.

For-Hire Livery

For-Hire Livery (or simply, Livery) is our Commercial Auto program for risks offering for-hire passenger transportation.

For-Hire Specialty

The name for our program that covers work trucks, like coal haulers, dirt, sand and gravel haulers, or log haulers, focused on specific niches or hauling for others.

For-Hire Transportation

The name for our program that covers freight trucks, like expeditors, household movers, and owner-operators, that haul goods for others.

frequency

A factor used to calculate premium rates. It’s the number of times a loss occurs.

full coverage

A type of policy that protects against both liability and physical damage.

full-time equivalent

Unit of measure for headcount and productivity. Two half-time employees equal one full-time equivalent.

Gainshare

The money distributed as part of our Gainsharing program.

Gainsharing

A program that financially rewards our employees for good business performance and motivates them to work together to achieve business goals. Each employee has a Gainshare target percentage (a certain percentage), with payouts from zero to two times a target percent each year, based on profitability and growth in policies in force.

gap insurance

An insurance coverage that pays the difference between a car’s actual cash value when it is stolen or wrecked and the amount the customer owes the leasing or finance company. We do not sell “gap insurance.” Instead, we sell Loan/Lease coverage, in which we cap the payout at 25% over ACV. So, if a car's ACV is $10,000, we'd pay $12,500, regardless of how much the customer owes the finance company.

garaging location

The ZIP code where an insured vehicle is parked when not in use. It's usually the same as the customer's home address.

general damages

A type of damages that have no set dollar amount (e.g., pain and suffering and disfigurement). A person can be awarded money for general damages, over and above special damages.

Generally Accepted Accounting Principles

The standard guidelines that publicly held companies use to prepare and present financial statements to the Securities and Exchange Commission (SEC).

generic auto parts

See “non-OEM.”

good risk

A driver with a less-than-average chance of filing a claim.

Good Student Discount

The savings earned by drivers who reach a specific level of academic achievement. The levels include top 20% of class, B-average, 3.0 grade-point average, honor roll/dean’s list, or top-20th percentile ranking on the SAT or other standardized college entrance test.

graduated driver license

A type of license for young drivers. It restricts certain activities, such as night driving, while they improve their driving skills.

gross vehicle weight rating

The vehicle's total weight, including the vehicle itself, fuel, passengers, cargo, and miscellaneous items.

gross written premium

The total premium insurers earn before subtracting reinsurance and commissions.

Hardworking Insurance®

A Progressive incentive program that encourages agents to sell Commercial Auto insurance products.

head of claims

The title of the Progressive employee who oversees our claims operations in Australia.

hold harmless

An agreement whereby one party or organization relieves another of liability by taking the obligation upon themselves.

Homeowner Discount

The savings earned when the primary residence is a home, townhome or condominium.

homeowners coverage

An insurance policy that provides property and personal liability coverages for homeowners.

homeowners insurance

A type of insurance that customers purchase to be reimbursed for losses to their house, garage, and other structures on their property and personal possessions due to windstorm, fire, theft, or other perils. Customers must buy additional coverage for flood or earthquake damage separately.

HomeQuote Explorer®

The quoting system used to sell home insurance policies. The system generates quotes from Progressive and its affiliates, as well as policy quotes from other companies.

HRexpress

Our website for HR-related information—including HR forms, job opportunities, and Employee Self Service—which gives employees access to their own HR information.

Human Resources Service Center

A group that provides Human Resources support for employees.

Immediate Response® vehicle

The name for the white SUVs that claims reps drive to provide in-person, local claims service to customers.

inception date

The date that the insurance coverage starts.

incurred but not reported

A claim not filed until long after a loss takes place. For example, asbestos-related diseases do not show up until decades after asbestos exposure. Workers' compensation claims often unfold over time. We regularly adjust reserves for such losses as new information becomes available.

incurred losses

A type of loss that includes all claims that have been paid and reserved in a particular reporting period.

indemnify

To provide financial compensation for losses.

indemnity

The payment for replacement or repair of a person’s property.

independent agent

A self-employed agent who is paid on commission and represents several insurance companies.

indexing

A method insurance companies use to exchange information about the injury history of a claimant or customer.

indication

An analysis tool used to calculate whether a rate change is needed in a state to meet our combined ratio goals. The analysis looks at premiums, losses, and trends in the state. A negative indication would show that rates are overpriced in a state. A positive indication would show rates are underpriced in the state.

indirect damage

A type of damage caused by a collision, but not in the area of impact (e.g., cracks in the rear glass after a frontal collision).

Inexperienced Operator Surcharge

A charge paid by drivers age 19 and older with less than one year of driving experience.

initial payment

The portion of the premium customers pay when they buy a policy, with the rest to be paid later. Previously called a “down payment.”

insurable interest

When loss of or damage to property would cause financial or other hardship for someone. Insurance companies must determine “insurable interest” before they provide a customer an insurance policy.

insurance policy

A contract in which an insurer agrees to pay for certain types of an insured's losses, in exchange for a fee.

insured

A person or company covered by an insurance policy.

insurer

The company that issues an insurance policy agreeing to pay for certain types of an insured's losses.

insuring agreement

The part of an insurance policy that explains what the insurer will cover in case of loss.

Integrated Agency Quoting

A new agency quoting application, known externally as Portfolio Quoting, where agents can have multiple products in a single quote.

internet business

The portion of our Direct business that is sold and serviced on progressive.com.

Internet Discount

The savings earned for choosing to service the policy at progressive.com rather than by phone.

in-vault

A group of items stored in a bank vault and covered under a valuable articles policy. The customer generally pays a lower premium for storing items in a vault.

investigation

A process in which a claims representative determines how damage occurred. It may include gathering facts about an accident and checking the damage on other cars or property.

IT Support Center

The call center that handles computer system questions from Progressive employees.

Law of Large Numbers

A theorem within the probability theory that the more units of a group (e.g., sport utility vehicles, 55-year-old married men) insured, the more accurate the predictions of loss. This law, also known as the Law of Averages, is the basis of the insurance business.

Length of Residency

The length of time the customer lived at their current address prior to their policy’s inception. This factor is used to help determine the appropriate rate for a customer when they don’t have proof of prior insurance.

leniency

lessors risk A type of insurance for owners of commercial property, which protects the owner against property loss, damage, and injury claims.

liability

A legal responsibility or obligation.

liability insurance

A type of insurance that covers the amount a customer must pay for bodily injury they cause someone else or property damage.

liability losses

The financial loss a person suffers related to paying someone back after damaging his or her property.

Liability-Only policy

A type of policy that doesn't include physical damage coverage (i.e., comprehensive or collision).

lien

The right to keep another’s property until he or she has paid the debt.

lienholder

A person or business that has the right to keep another’s property until the owner has paid their debt.

lifetime earned premium

The amount of underwriting profit we earn or expect to earn over the lifetime of a policy, a group of policies or a whole book of business.

lifetime underwriting profit

The amount of underwriting profit we earn or expect to earn over the lifetime of a policy, a group of policies, or a whole book of business.

limits

The maximum amount of money insurance companies will pay for a claim on an insurance policy. Companies include the limits on the policy's declarations page.

line coverage

The amount of insurance coverage purchased or provided for a certain risk, such as bodily injury, property damage, or collision.

Loan/Lease Payoff coverage

A type of gap insurance in which we pay up to 25% over the actual cash value towards the amount a customer owes the lender if we declare the vehicle a total loss.

loss

A reduction in the quality or value of an item, or a legal liability.

loss adjustment expense

The amount we pay for investigating and settling insurance claims, including claims reps' salaries, building leases, company vehicles and legal fees.

loss adjustment expense ratio

The percentage of premium needed to pay loss adjustment expense over a given time period.

loss adjustment expense reserves

The money set aside to cover the estimated costs of investigating and settling new or current claims, including salaries, building leases, company vehicle, and legal fees.

loss of use

A situation that occurs when a customer can no longer use his or her property. We generally provide coverage for things like rental cars.

loss payee

The person (or business) we pay in the event of a loss. Sometimes called a “lienholder,” which is usually the bank that holds the loan on the vehicle.

loss ratio

The percentage of premium used to pay claims, over a given period of time, not including loss adjustment expenses.

loss reserve development

A situation in which we settle a claim for an amount different than the money reserved. An “adverse development” is when we settle a claim for more than the money reserved. A “favorable development” is when we settle a claim for less than the money reserved.

loss reserves

An amount of money set aside to pay current and future claims.

loss reserving

The process in which actuaries determine the amount of money to set aside to pay current and future claims.

Making Our Auto Customers Feel More at Home®

An advertising tagline we have used to promote our Progressive Home Advantage product since 2008.

manufactured home

A motor vehicle built on a truck or bus chassis with living quarters for recreational travel.

MapPro

A feature on The Highway that helps employees find emergency maps, conference rooms, training rooms, desks, and other locations in our buildings.

mediation

A procedure in which a third party attempts to resolve a conflict between two parties.

Medical Payments

A coverage with which we pay a customer for medical or funeral expenses as the result of an accident, regardless of who’s at fault.

Minor Child Discount

The savings earned for having a child age 18 or younger listed as a rated driver, along with a minimum level of policy tenure (tenure varies by state).

mobile home

A large house trailer that can be moved, but is typically parked in one place. It’s connected to utilities and used as permanent housing. We offer various coverages through our Special Lines business group, including primary, seasonal, or rental mobile home insurance.

Mobile Home Owner Discount

The savings earned for owning a mobile home.

monoline

Describes a business that focuses on one specific financial area, such as a “single line” of insurance written without other coverages.

moratorium

A temporary stop to normal business activity, often in response to a natural disaster that requires people to evacuate an area or results in a loss of power, water, or mail service. A moratorium is state-mandated and can apply to billing, application of fees, policy renewals, or other business activities, depending on the disaster.

motor vehicle report

A report that gives a person's complete driving history. We use it to help determine a customer's premium.

motorcycle

A two-wheeled vehicle that is powered by a motor and has no pedals.

Multi Car Discount

The savings earned for having more than one vehicle on their Progressive policy.

Multi Policy Discount

The savings earned for having multiple Progressive policies, such as a Personal Auto policy and a Boat policy.

My Site

A central location on The Highway for employees to view and manage documents, links, colleagues, and other information. It’s also a way for employees to share information about themselves and their expertise, projects, and reporting relationships. It consists of two tabs: My Home and My Profile.

MyNews

A type of targeted company news stories available to employees on The Highway. Our Communications group targets news based on an employee's location, position, or business group.

Name Your Price® tool

A tool on progressive.com that customers use to choose what they'd like to pay. After providing the basic information for a quote, customers move a slider bar to the price they prefer and view the coverage package they could get.

named insured

The person or organization covered by and responsible for a policy. Their name is the first name listed as an insured on a policy's declarations page.

Named Operator policy

A type of liability protection for customers who don’t own or regularly drive a personal vehicle.

Named Peril coverage

A type of homeowner’s policy that insures only against specific causes of loss, such as wind or flooding.

National Association of Insurance Commissioners

An organization for state insurance regulators that helps develop laws and regulations as well as guides states in upholding them.

National Catastrophe Response Team

The Claims group that leads our efforts in catastrophe-stricken areas, assisting customers affected by hurricanes, hailstorms, and other events, and helping local claims offices respond promptly when call volume increases after these events.

negligence

The failure to use reasonable care, resulting in injury or damage.

Net Promoter® Score

A customer satisfaction measurement based on a customer’s likelihood to refer a company to a friend, family member or work colleague. NPS was developed by Bain and Company, and is used by hundreds of companies, including Progressive.

net written premium

The total premium received over a given period of time after subtracting reinsurance and commissions.

network body shops

The repair shops we recommend because of the quality and reliability of their work. We guarantee the work done by these shops for as long as the customer owns or leases the vehicle.

Network Telecom Operations Center

A part of our IT department that handles telephone issues, including call routing.

new hire orientation

An online training course to help new hires learn about working at Progressive.

New Prospect within a six-month period

A measurement used to evaluate the effectiveness of advertising and marketing. The figure represents the number of customers who have completed a quote with Progressive in the previous six months. Customers who quote more than once in the six-month period are only counted the first time.

NewsWire

Company news stories available only to employees on The Highway.

no-fault insurance

A type of auto insurance coverage that pays for each driver’s injuries, regardless of who caused the accident. The availability of no-fault insurance varies from state to state. Often referred to as personal injury protection (PIP).

non-acquisition expense ratio

The percentage of premium that we put toward expenses other than acquisition (for example, advertising, agent commissions) and paying claims (loss costs and loss adjustment expenses).

Non-agency Expense Ratio

Expense Ratio less advertising and agent commissions.

Noncontinuous Insurance Surcharge

A charge paid by drivers who allow their coverage to lapse.

non-OEM

Describes auto parts that don't have the brand name of an original equipment manufacturer (OEM), such as Ford or General Motors. “Non-OEM” is the preferred term for “generic auto parts” or “aftermarket parts.”

nonstandard auto

Refers to a segment of customers who are a higher risk due to their poor driving record.

occasional driver

A person who drives the vehicles on the policy less than half of the time they’re driven.

occasional operator status

A status given to a driver who isn’t the primary named insured, but who has access to all vehicles on the policy.

occurrence

An event, or ongoing situation, that causes damage over an extended time. An “occurrence” is different than an “accident,” in which damage happens immediately at a certain time and place.

off balance

A process during a rate revision in which any rate or discount changes are calculated against the entire book of business to determine the cost of the change.

online performance support system

An online help system used by our Agency Services group until 2003. It has been replaced by Auto Help and Special Lines Help.

online service

The section of progressive.com that customers use to find information about their policy or make changes.

Organizational Effectiveness Survey

An annual survey for employees to give their opinions on the company, including job satisfaction, work group effectiveness, career growth and development, communications, and recognition, as well as compensation and benefits.

original equipment manufacturer

A company that originally made a vehicle and/or its parts (e.g., Ford, General Motors). “OEM parts” have the brand name of the OEM and are the opposite of “non-OEM,” “generic auto parts” or “aftermarket parts.”

other structures coverage

A part of a homeowners policy that covers additional buildings on the property, generally for 10% to 20% of the home’s coverage amount.

Ownership Workbench

A computer application used by our customer service representatives.

Paid In Full Discount

A discount for customers who pay their premium all at once.

paid loss adjustment expense

The money already paid to cover costs of investigating and settling claims, including salaries, office space and legal fees. This doesn’t include money paid to settle the claim.

Paid Time Off

The name of our time-off program for employees. Employees use their Paid Time Off (PTO) hours for vacation, illness, family obligations, and other types of personal time off.

Paperless Discount

The savings earned for choosing to receive policy documents by email rather than conventional mail.

Parent Connection

The Progressive ERG with a goal to continue to make Progressive a destination employer for working parents.

partial loss

A type of loss in which the property is not completely destroyed or unusable. It can also be a loss that doesn’t reach the policy's maximum insurance limit.

Passive Restraint Discount

The savings earned by customers whose vehicles have passive restraint safety devices, such as airbags.

performance evaluation

An assessment of how well an employee has met his or her job objectives.

peril

The cause of a loss, such as hail, fire or theft.

Personal Injury Protection

A coverage in which we pay for medical bills and—in some states— other living expenses while a customer heals if he or she is unable to work after an accident, no matter who is at fault. PIP is often referred to as “no-fault insurance.”

Personal Lines

A Progressive business division that includes automobile, boat, RV, and all other types of Special Lines insurance we offer, excluding Commercial Auto.

Personal Lines Agency Servicing

Personal Lines Agency Servicing

Personal Lines Isolated State Team

A team of contact center reps in Austin and Tampa that focus on supporting policy servicing for customers in New York, North Carolina, New Jersey, and Massachusetts. The reps become experts in the more complex insurance regulations of these states.

personal watercraft

A type of boat that a rider sits or stands on rather than in. They're usually shorter than 16 feet and often referred to by brand names, such as Jet Ski® and WaveRunner®. We cover these through our Special Lines group.

Pet Injury coverage

A coverage in which we pay up to $1,000 in expenses related to the death or injury of a customer’s dog or cat in an accident. Customers can get Pet Injury coverage on all private passenger auto, boat, Commercial Auto, and RV policies with Collision coverage.

PhonePro

The phone directory on The Highway.

physical damage coverage

A type of insurance coverage with which we pay for damage to a customer’s vehicle due to collision or other causes, including weather, theft, falling objects, explosions and riots.

policy contract

Document that says the customer will pay a premium (money) to the insurance company. In exchange, the insurance company will pay for certain losses caused or suffered by the customer and others named in the document.

policy expiration date

The date when an insurance policy expires. Customers can find this on the policy's declarations page, insurance identification card or recent cancellation notice.

policy in force

A status indicating that the insurance policy is active.

policy life expectancy

An estimate of how long a policy will be in force before a customer cancels or doesn't renew it. It is a key measure of retention.

quota share

The way insurers and reinsurers divide premiums and losses.

quote

An estimate of how much a customer would pay in premium for an insurance policy.

rate

The price we charge customers for each unit of coverage, including fees. We base rates on the loss experience for customers with similar characteristics. State departments of insurance regulate the rates we charge.

rate revision

A process in which we update rates and change underwriting rules, contracts, forms or attachments. We must notify the department of insurance in each state when we make rate revisions.

rate revision reporting

A process in which we evaluate how a rate revision is performing. During the reporting process, the rate revision is segmented out of the entire state book of business and product managers can see if the rate revision is resulting in the desired profitability.

Real-time Operations Command Center

An internal team that makes sure customer calls are routed and transferred to contact center representatives with the correct skill sets.

recreational vehicle

A type of vehicle that we insure through our Special Lines division. These vehicles combine transportation and temporary living quarters for recreation, camping, and travel. There are two categories of RVs: travel trailers and motor homes.

region

A geographic area used to divide our Claims, Agency Distribution, and Personal Lines business areas.

reinsurance

A type of insurance that one insurance company buys from another to share risk. A reinsurer gets part of the premium that an insurer originally gets from a customer and helps pay for claims on the policy.

release

A document that gives up certain rights of the person who signs it. A release is common to the insurance industry and very important to the Claims department.

renewal rate

The percentage of policies that renew compared to the number of policies that we write.

rental reimbursement

A type of coverage in which we pay for a customer’s rental car while his or her vehicle is being repaired. We’ll pay for 30 days of rental, up to the maximum per-day amount the customer chooses. Customers can purchase this coverage if he or she has Comprehensive or Collision coverage.

replacement cost

The cost to replace damaged property with materials of like kind and quality, without any deduction for depreciation.

reserve

An amount of money set aside to pay for future claims.

retention

Our ability to keep a customer as a Progressive policyholder.

return on equity

A measure of the profitability of a business in relation to the equity.

return on investment

A financial metric, expressed as a ratio or percentage, used to value the efficiency of an investment.

rider

An addition to an insurance policy that changes the coverage or terms. Also called an “endorsement.”

risk

The possibility of having an accident or claim.

roadside assistance

A coverage in which we pay for repairs or towing services when a customer’s vehicle breaks down due to mechanical or electrical issues like a dead battery, a flat tire, or a lock-out, or if the customer runs out of gas.

roll out

(verb) To introduce a new service, product, functionality, or technology.

rollout

(noun) The introduction of something new (e.g., service, product, functionality).

safety scorecards

One of the vehicle tracking tools included in the Snapshot ProView program.

salary change request

The process managers use to request a salary increase for an employee after his or her performance evaluation.

Sales and Service

A group within Progressive that focuses on all non-claims customer contact. We have these groups within our Personal and Commercial Lines divisions.

salvage

Damaged property, such as a totaled vehicle, that we take ownership of after paying a claim. We sell the salvage property, when possible, to recoup some of the cost of the claim.

second named insured

A person or organization listed second on a policy's coverage summary. A second named insured, often a member of the named insured’s household, can make changes to the policy and have the same coverage as the named insured.

second party

The insurer.

Segway® Personal Transporter

A self-balancing, rechargeable personal transportation device. Our Special Lines group writes policies for Segways.

server-based rating

The online technology that our independent agents use to quote, sell and service policies on ForAgentsOnly.com, on progressive.com/agent.com, and with comparative rating programs.

Service

The group within our Commercial Lines organization who services policies for our agents and customers.

Service Center

A Progressive location where we manage the auto repair process for our customers, providing our “concierge level of claims service.”

servicing

The act of changing or endorsing a policy.

settlement

The resolution of a claim.

severity

The dollar amount of a claim.

side-by-side

A small off-road vehicle with four or more wheels designed for utility or recreational use, also known as a utility terrain vehicle (UTV). We insure these through our Special Lines division.

Signature Agent®

An independent agent or broker who meets a goal of selling an average of one preferred policy per week and is enrolled in our Progressive Signature Agent program.

single interest

A type of insurance that protects only one of the parties with interest in a property (e.g., the mortgagee but not the mortgager, or the seller but not the buyer of merchandise).

Small Business Insurance

Our title for the group of coverages that protects a small business from financial damages from accidents, property damage, professional errors, workers compensation claims, and other situations, and includes Businessowners Policy, General Liability, Workers' Comp, Professional Liability, and more.

Small Fleet

Our Commercial Auto program for risks with at least 10 power units up to 40 units total (power units plus trailers).

Smart Haul®

The Smart Haul® telematics program offers savings for For-Hire Specialty and For-Hire Transportation that use an electronic logging device (ELD).

Smart Haul® + Dashcam

The Smart Haul® + Dashcam program offers savings for truckers that use an electronic logging device (ELD) and a qualifying dashcam.

Smart Trip

The Smart Trip telematics pilot offered savings for Business Auto and Contractor risks. It was replaced by Snapshot ProView®.

Snapshot Discount®

The discount a customer can earn in the Snapshot program.

Snapshot ProView®

Snapshot ProView® is our telematics program for Business Auto, Contractor, and Tow risks. It's also available for For-Hire Specialty and For-Hire Trucking risks not required to have an electronic logging device (ELD).

Snapshot®

Our usage-based insurance program in which customers can earn a discount based on their personal driving habits.

Snow Plow Surcharge

A charge a customer pays for equipping a personal-use vehicle with a snowplow.

sole proprietor

A business owned by one individual who is the sole investor of money into the business. Usually the sole owner acts as the manager of the business.

special damages

An amount of money paid to an injured party for lost income, property damage, medical expenses and other losses.

Special Investigations Unit

The group at Progressive that investigates cases of possible insurance fraud.

special investigator

A member of the Special Investigations Unit.

Special Lines

The business unit at Progressive that insures motorcycles, ATVs, RVs, boats, personal watercraft, snowmobiles, and Segways.

spread of risk

Ensuring the company doesn't have too much risk in any one area, so it can avoid financial disaster from any one event.

SR-22 filing

A form issued by an insurance company to a state's Department of Motor Vehicles (DMV) verifying that a driver has at least the state minimum limits of liability coverage.

SR-22 Surcharge

A charge a driver pays Progressive when the state requires us to file an SR-22 on that driver’s behalf.

standard auto

Refers to policies sold to customers with average driving records.

standard insurance

See “standard auto.”

state claims manager

The Progressive employee responsible for all claims service in a particular state.

stated amount policy

An insurance policy based on the dollar value the customer places on the vehicle, instead of actual cash value.

stated amount vehicle

A vehicle, usually a classic or collectible car, covered by a stated amount policy.

statutory accounting principles

The rules we use for reporting our finances to regulators such as in the Annual Statement.

STEM Progress℠

A Progressive initiative that gives employees the opportunity to support science, technology, engineering, and math (STEM) education in our local communities. This initiative is a part of our Social Responsibility program.

Strategic Alliances

The group at Progressive that works with other companies, groups, or multi-state agents to sell our insurance policies.

subrogation

The process that we use to get reimbursement for the cost of a claim by the person or company legally liable for it.

surplus

The amount of money left over after an insurer subtracts its liabilities from its assets.

system diary

A note or follow-up reminder automatically created in ClaimStation for claims reps.

team site

A type of internal site used to share documents, calendars and work requests. On the site, employees can also use collaboration tools like wikis and discussion boards. Site owners can limit access to the site based on the content.

The Prog Shop

The site to purchase a variety of Progressive-branded merchandise.

The Progressive Group of Insurance Companies

The formal name for our whole organization used externally on first reference in financial documents, legal disclaimers and press releases.

The Progressive Insurance Foundation

A foundation established in 2001 with the goal of giving back to local communities by supporting charities Progressive employees support.

The Progressive Way

A resource that includes Our Code of Business Conduct and Ethics along with Our Workplace Policies.

theory of probability

The study of how likely it is that something will happen. Probability helps insurance companies determine risk and group customers by risk, enabling many to bear the losses of a few.

third party

A person other than the customer or the insurance company.

total loss

A vehicle that is so badly damaged that repair costs would exceed the value of the vehicle or property.

tow

A coverage that covers commercial vehicles like tow trucks, wreckers, and rollbacks.

towing and labor

A type of coverage that reimburses customers for services after an emergency breakdown.

travel trailer

A type of recreational vehicle that is towed by a car, van, or truck. Also called a “towable RV.” Travel trailers include fifth-wheel trailers, conventional trailers, pop-up tent trailers, and mounted truck campers.

treaty reinsurance

A type of reinsurance in which an insurer agrees to transfer certain kinds of policies to the reinsurer and the reinsurer agrees to accept them.

trend

A factor used to adjust insurance rates to accommodate rising inflation, medical costs, car part prices and other costs.

Truck Tips®

A customer marketing campaign, introduced in 2008 by our Commercial Lines group, which included Web banners, billboards and radio ads. We are still using a Truck Tips print campaign.

Umbrella

A type of coverage in which we provide additional limits over other existing liability coverages.

Unallocated Loss Adjustment Expense

A type of claim processing cost (e.g., claims rep salaries) that we cannot link to any one claim.

underinsured

A situation in which a customer, or the other person involved in an accident, doesn't have enough insurance to properly repair or replace insured items.

underwriter

A Progressive employee who evaluates customers' insurance applications, decides whether to accept them, and processes them.

underwriting

The process of examining insurance risks, accepting or declining them, and determining how to rate those that are accepted.

underwriting expense ratio

The cost of examining insurance risks and performing underwriting activities. To calculate, we divide underwriting expenses by earned premium.

underwriting manual

The booklet of underwriting rules for our products.

underwriting profit/loss

The amount of money we earn or lose from providing insurance coverage.

underwriting tiers

The categories of risk used by underwriters to determine each customer's insurance rate.

unearned premium

The portion of premium that a customer has paid but we haven't yet earned. Customers pay premiums in advance, but we don't earn all of it until we’ve provided coverage for the entire policy period. If a customer cancels a policy before it expires, we would need to pay back any unearned premium.

Uninsured Motorist Property Damage

A type of coverage in which we pay to repair damage to a customer’s vehicle caused by a driver who doesn’t have insurance. This coverage is available in select states.

Uninsured/Underinsured Bodily Injury

A type of coverage in which we pay for damages customers incur, including medical expenses and lost wages when they are in an accident caused by a driver who has no insurance or not enough insurance to cover these expenses.

unverifiable driving record

A driving record that cannot be verified by a state's bureau of motor vehicles (e.g., for new drivers, for new state residents).

usage-based insurance

A type of insurance product, such as Snapshot, which gives customers discounts based on their driving behavior.

user diary

A note or follow-up reminder that a claims rep makes in ClaimStation.

valuable articles coverage

A type of insurance coverage for jewelry, collectibles, fine art, rare books, and other valuables that can be specifically described and priced.

vandalism

The deliberate damage to property.

vehicle identification number

The serial number on a car, which identifies its make, model and year. Vehicle identification numbers (VINs) have 17 characters.

Vendor Quoting Agent Rates

The application independent agents use to quote Progressive products through third-party quoting systems.

vesting

A process in which an employee gains the right to the company-made contributions to a 401(k) plan, whether or not he or she stays at Progressive.

VIN Etching Discount

The savings earned by customers who have their vehicle’s VIN etched on the windshield, door glass and rear window. Etching is a theft-prevention tactic.

Violation Immunity®

A benefit of the Progressive Auto Advantage Package in which customers can have minor moving and speeding violations waived on their policies.

voice over internet protocol

A technology that uses the internet for communication services including voice and fax.

watercraft

A generic term for boats and other vessels that travel on water. Our Special Lines group insures these vehicles.

web-based training

An internet tool we use to roll out training to new hires and current employees.

We've Got Simple Covered®

An advertising tagline used in marketing for our Progressive Direct product in Australia beginning in 2010.

wiki

A website that a community of users can add to or update on their own.

win-win settlement

An agreement that satisfies everyone involved.

workers’ compensation

A coverage that provides income, medical payments, rehabilitation, death and survivor payments to workers injured while on the job.

Workforce Management

A group within the Personal Lines contact center responsible for scheduling reps and making sure the centers have the optimal number of reps available to handle calls and process inventory.

written premium

The amount that a customer pays to own an insurance policy for a full policy period.