K - GLOSSARY - Key Person Insurance: A type of life insurance policy that a company purchases on a key executive's life. The company is the beneficiary of the policy and pays the premiums. This insurance is used to offset costs and financial losses that may occur from the death of a key individual. - Knock-for-Knock Agreement: An arrangement between insurance companies where each insurer pays for the damages to their policyholder's vehicle, regardless of who was at fault in an accident. This simplifies the claims process and reduces legal costs. - Known Loss: A loss or damage that has already occurred before the insurance policy was purchased. Insurance policies generally do not cover known losses as they are considered pre-existing conditions. - Kidnap and Ransom Insurance: A specialized policy designed to protect individuals and corporations operating in high-risk areas, covering financial losses related to kidnapping, extortion, and ransom payments. - Kinetic Energy Exclusion: A clause in some insurance policies that excludes coverage for damages caused by kinetic energy, such as those resulting from certain types of explosions or impacts.