Unless otherwise defined in the policy, Actual Cash Value in California indicates Fair Market price. The Fair Market Value of a product is the dollar quantity that a well-informed buyer (under no uncommon pressure) wants to pay and a knowledgeable seller (under no uncommon pressure) is prepared to accept.
Agent
A licensed individual or organization licensed to offer and service insurance coverage for an insurance provider.
Aggregate Limit
The optimal dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This maximum amount can be figured on a per event basis or as a basic aggregate for the total policy term.
Agreed Value
An approach of loss assessment where the insured and the insurance company list a concurred upon amount to be paid in case of loss. This appraisal method is most typical in residential or commercial property insurance when guaranteeing important artwork, antiques, or classic vehicles. An expert appraisal is usually needed.
Arbitration Clause
A provision in an insurance plan that allows the insured and the insurance company to each designate an arbitrator if they can not concur upon an appropriate claim settlement. Once the arbitrators have actually been chosen, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire chooses which claims settlement to support. The final decision is binding.
Betterment
A situation that occurs in a loss when an old piece of residential or commercial property is changed by a brand new product. The insured is put in a much better monetary position than they were before the loss occurred, and consequentially may have to pay the distinction in rate for the improvement.
Binder
A short-term arrangement that offers short-term insurance protection up until the policy can be provided or delivered.
Broker
A certified individual or company who offers and services insurance coverage authorities on your behalf.
Broker-agent
A licensed individual who can act as an agent representing several insurers, and also as a broker dealing with several insurance providers representing your interests.
Cancellation
The termination of an in-force insurance coverage agreement by either the guaranteed or the insurer before its typical expiration date.
Claim
Notice to an insurance coverage company that a loss has occurred that might be covered under the conditions of the policy.
Claim Adjuster
The person who evaluates the damage brought on by a covered loss and determines the amount to be paid under the policy terms.
Claims Made
A liability insurance coverage policy where coverage uses to claims filed throughout the policy period anytime the loss happened based on a retroactive creation date.
Coinsurance
An insurance coverage clause that specifies the amount of each loss that the business pays according to the amount of insurance brought, divided by the amount of insurance required. This fundamental formula associates with a contracted percentage of coverage that should be required to prevent a coinsurance penalty.
Combined Single Limit
When bodily injury liability and residential or commercial property damage liability is revealed as a single sum (limit) of protection.
Commercial Lines
Insurance coverages for businesses, business institutions, and expert organizations, as contrasted with personal insurance coverage.
Commission
A part of the policy premium that is paid to a representative by the insurance provider as settlement for the agent's work.
Concurrent Causation
Occurs when 2 or more hazards cause a loss. When only one of these hazards is covered by the insurance policy, the court generally rules that the entire loss is covered. Many insurance companies have actually reworded their policies to clarify that just a loss credited to a covered hazard is certainly covered.
Conditions
The portion of an insurance agreement that sets forth the rights and responsibilities of the insured and the insurance provider.
Consequential Bodily Injury
In Workers Compensation, special situations can develop when a work-related injury causes some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary definitions.)
Coverage
Protection that is offered under an insurance coverage.
Declarations (DEC) Page
Usually the first page of an insurance coverage that contains the full legal name of the insurance coverage company, the policy number, efficient and expiration dates, premium payable, the amount and kinds of coverage, and the deductibles.
Deductible
The amount of the loss that the insured is accountable to pay before advantages from the insurance plan are payable.
Depreciation
The real or accounting acknowledgment of the decrease in worth of residential or commercial property over a period of time according to an established schedule.
Dual Capacity
In Workers Compensation, an employer may be accountable two ways to an employee who sustains physical injury on the task as an outcome of utilizing a services or product produced by that company. The staff member is qualified for Workers Compensation benefits and may also take legal action against the company because of the defectiveness of the injuring product and services.
Earned Premium
The part of the policy premium paid by an insured that has been allocated to the insurance coverage company's loss experience, expenditures, and profit year to date.
Endorsement
A written contract that alters the regards to an insurance coverage by including or deducting protection.
Effective Date
The starting date of an insurance coverage: the date the policy goes in to force.
Exclusion
A contractual provision in an insurance plan that denies or limits protection for certain hazards, individuals, residential or commercial property, or areas.
Experience Modification
The adjustment of premium arising from the usage of experience score. Experience score plans show an insured's previous loss experience (normally from the previous 3 years) and utilizes this experience to modify and identify the prem
The termination date of coverage as indicated on an insurance coverage.
First Party
The insurance policy holder (insured) in an insurance coverage contract.
Flat Cancellation
Cancellation that occurs on the policy reliable date. No premium charge is made; however, other charges (i.e., service) might apply.
Fraud
A deliberately misleading act committed to obtain an unreasonable or unlawful advantage. Fraud normally involves monetary gain.
Frequency
The variety of times a loss occurs.
Hazard
A scenario that increases the likelihood or potential intensity of a loss.
Indemnity
In a residential or commercial property and casualty contract, the goal is to bring back an insured to the very same monetary position after the loss that the insured had prior to the loss. In one of the most basic sense, indemnity is settlement for a loss.
Independent Adjuster
A person or company that offers claim adjusting services to different insurance companies on an agreement basis.
Insurable Interest
Any interest (most frequently ownership) that a person, business, or corporation has in a topic of insurance such as a service, structure, or automobile, which can be damaged and might cause the individual, business, or corporation monetary loss or other tangible deprivation. Generally, an insurable interest should be demonstrated when a policy is released and should exist at the time of loss.
Insurance
A technique of shifting risk from an individual, company, or company to an insurance business in exchange for the payment of premium. The insurer dedicates to be accountable for covered losses.
Insured
The insurance policy holder(s) entitled to protection under an insurance coverage.
Insurer
The insurance coverage business who issues insurance and consents to pay for losses and offer covered benefits.
Insuring Agreement
The part of an insurance coverage contract that explains what is covered. The guaranteeing agreement usually states the dangers guaranteed versus, the person(s) and/or residential or commercial property covered, the residential or commercial property locations, and the duration of the agreement.
