What is meant by Password/ID Code ?

Generally, these terms refer to a word or series of numbers that identifies you as an authorized user of the system at the protected premises. In the event of an alarm or incident, the monitoring company will call the protected premises and ask for this password or code. If the phone call isn't answered in a timely manner (usually 4-5 rings) or gets interrupted, or an invalid password is stated, even nothing is said; the central station will usually hang up the phone and contact the authorities.

Keep in mind, the use of a password/ID code is to lower the likelihood of a false alarm dispatch. All authorized users of the system, or those of suitable title (in a business) should have knowledge of the password, or even better, their own issued.

Passwords and ID codes can usually be anything within reason, but general rules of thumb apply, such as:

Not a user's code for disarming the system
A single easily understood word, usually 9 letters or less.
Something that is unique and easily remembered, such as a pet's name, parent's street name, etc.
You shouldn't use something like a telephone number or personal sensitive information.