Unless otherwise specified in the policy, Actual Cash Value in California implies Fair Market Value. The Fair Market Value of a product is the dollar amount that an educated buyer (under no uncommon pressure) wants to pay and an experienced seller (under no unusual pressure) wants to accept.
Agent
A certified person or organization licensed to offer and service insurance policies for an insurer.
Aggregate Limit
The optimal dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This maximum amount can be figured on a per occurrence basis or as a general aggregate for the total policy term.
Agreed Value
A method of loss assessment where the insured and the insurance provider list a concurred upon quantity to be paid in case of loss. This evaluation technique is most common in residential or commercial property insurance when insuring valuable artwork, antiques, or traditional autos. A professional appraisal is usually needed.
Arbitration Clause
A stipulation in an insurance coverage that permits the insured and the insurance company to each appoint an arbitrator if they can not agree upon a proper claim settlement. Once the arbitrators have actually been picked, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire chooses which claims settlement to support. The last choice is binding.
Betterment
A scenario that occurs in a loss when an old piece of residential or commercial property is replaced by a brand name new item. The insured is put in a much better monetary position than they were before the loss happened, and consequentially might need to pay the distinction in cost for the betterment.
Binder
A short-term agreement that provides momentary insurance coverage until the policy can be issued or delivered.
Broker
A certified individual or organization who offers and services insurance cops on your behalf.
Broker-agent
A licensed individual who can serve as an agent representing one or more insurance providers, and also as a broker handling several insurance providers representing your interests.
Cancellation
The termination of an in-force insurance coverage contract by either the guaranteed or the insurance company before its typical expiration date.
Claim
Notice to an insurer that a loss has actually occurred that may be covered under the conditions of the policy.
Claim Adjuster
The person who evaluates the damage triggered by a covered loss and identifies the total up to be paid under the policy terms.
Claims Made
A liability insurance plan where protection applies to claims filed throughout the policy period no matter when the loss happened based on a retroactive inception date.
Coinsurance
An insurance clause that defines the amount of each loss that the business pays according to the amount of insurance coverage brought, divided by the quantity of insurance needed. This standard formula connects to a contracted percentage of protection that must be needed to avoid a coinsurance penalty.
Combined Single Limit
When physical injury liability and residential or commercial property damage liability is expressed as a single sum (limitation) of protection.
Commercial Lines
Insurance coverages for services, commercial institutions, and expert companies, as contrasted with individual insurance coverage.
Commission
A part of the policy premium that is paid to a representative by the insurance company as payment for the agent's work.
Concurrent Causation
Occurs when two or more perils trigger a loss. When only one of these hazards is covered by the insurance coverage, the court normally rules that the whole loss is covered. Many insurer have reworded their policies to clarify that just a loss associated to a covered danger is indeed covered.
Conditions
The part of an insurance coverage agreement that states the rights and responsibilities of the insured and the insurance company.
Consequential Bodily Injury
In Workers Compensation, unique circumstances can occur when a job-related injury triggers some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)
Coverage
Protection that is offered under an insurance plan.
Declarations (DEC) Page
Usually the first page of an insurance policy that contains the complete legal name of the insurance coverage company, the policy number, effective and expiration dates, premium payable, the quantity and types of protection, and the deductibles.
Deductible
The quantity of the loss that the insured is accountable to pay before gain from the insurance coverage policy are payable.
Depreciation
The real or accounting acknowledgment of the reduction in value of residential or commercial property over a time period according to an established schedule.
Dual Capacity
In Workers Compensation, a company may be accountable 2 ways to a staff member who sustains physical injury on the task as a result of using an item or service produced by that company. The employee is eligible for Workers Compensation advantages and might also take legal action against the employer due to the fact that of the defectiveness of the hurting product and services.
Earned Premium
The portion of the policy premium paid by an insured that has been assigned to the insurer's loss experience, expenditures, and revenue year to date.
Endorsement
A written arrangement that alters the regards to an insurance plan by adding or deducting coverage.
Effective Date
The starting date of an insurance plan: the date the policy enters to require.
Exclusion
A contractual arrangement in an insurance coverage that denies or restricts protection for specific dangers, individuals, residential or commercial property, or locations.
Experience Modification
The modification of premium arising from the use of experience ranking. Experience ranking plans show an insured's past loss experience (generally from the previous 3 years) and uses this experience to customize and figure out the prem
The termination date of protection as shown on an insurance coverage.
First Party
The insurance policy holder (insured) in an insurance coverage agreement.
Flat Cancellation
Cancellation that happens on the policy effective date. No premium charge is made; nevertheless, other charges (i.e., service) might apply.
Fraud
A deliberately misleading act devoted to acquire an unfair or illegal benefit. Fraud generally includes financial gain.
Frequency
The number of times a loss happens.
Hazard
A situation that increases the likelihood or prospective intensity of a loss.
Indemnity
In a residential or commercial property and casualty contract, the objective is to bring back an insured to the same financial position after the loss that the guaranteed had previous to the loss. In one of the most basic sense, indemnity is compensation for a loss.
Independent Adjuster
An individual or company that offers claim adjusting services to various insurance providers on a contract basis.
Insurable Interest
Any interest (most typically ownership) that a person, company, or corporation has in a subject of insurance such as a company, building, or vehicle, which can be damaged and may cause the individual, business, or corporation financial loss or other concrete deprivation. Generally, an insurable interest must be shown when a policy is provided and must exist at the time of loss.
Insurance
An approach of moving risk from an individual, organization, or company to an insurance coverage 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 coverage under an insurance policy.
Insurer
The insurer who provides insurance coverage and agrees to pay for losses and offer covered advantages.
Insuring Agreement
The part of an insurance agreement that explains what is covered. The insuring contract typically states the perils guaranteed versus, the individual(s) and/or residential or commercial property covered, the residential or commercial property locations, and the duration of the contract.
