Insurance

Basic valuation provision in property policies. ACV is determined by subtracting the depreciation from the property's replacement value.

Individual or business not listed as named insured in declarations, but added by an endorsement. Examples include contractors or distributors.

Coverages included in property policies, which extend beyond the principal policy coverages. Examples included: fire department service charge.

Single amount of insurance that is provided to all locations.

Auto coverage, which insures an auto for a collision with another object or vehicle.

Auto coverage, which insures an auto for fire, theft, earthquake, flood, vandalism, etc. Also known as Other Than Collision.

The initial amount or the first dollar cost paid or absorbed by the insured in the event of a loss.

Losses that are the direct physical result of an insured peril.

Benefits that are payable to an insured.

The individual named in a commercial policy who is responsible for carrying on the day-to-day functions of the insured, such as paying premiums and/or reporting losses.

Deliberate deceit with the intent to take property of another.

Tort option which permits an insured to sue for specific damages plus noneconomic damages such as pain and suffering regardless if the injury was serious or not.

Condition or exposure that increases the possibility of loss (poor housekeeping, bad wiring, etc.)

Risk transfer technique accomplished by the collecting and pooling of premiums to pay future losses.

Auto tort option, which limits the insured's right to sue to specific out-of-pocket expenses, except in cases involving serious injury or death.

The price one would pay based upon free market conditions.

The individual or business named in the policy declarations.

Policy that specifically lists the perils insured against in the policy.

Failure to exercise the care that a reasonable or prudent person would under similar circumstances.

An accident, including continuos or repeated exposure to substantially the same general harmful conditions that result, during the policy period, in bodily injury or property damage.

A cause of loss (i.e. fire, lighting, theft, etc.)

Personal liability policy which provides coverage in two areas: first, losses in excess of the required underlying limits, and second, for other coverages, not provided under underlying policies (i.e. personal injury, slander).

Inland Marine Coverage which insures personal property for all risks of direct physical loss except for war risks, nuclear hazards, wear and tear, deterioration, inherent vice, insects or vermin.

Homeowner Endorsement which provides full replacement cost coverage on personal property in place of actual cash value coverage.

Time period as indicated in the declaration page during which coverages will be provided.

Physical injury to tangible property resulting in loss.

Basic valuation provisions which replaces old damaged property with new replacement property at today's replacement cost, without any deduction for depreciation.

Legal process which permits the insurance company to subrogate against third parties who, because of their negligence, cause the company to pay a claim.

Auto coverage which protects the auto owner in the event a negligent motorist causes an accident and carries limits which are too low to pay what the insured is due.

Auto coverage which protects the auto owner in the event an irresponsible driver (one driver without insurance) causes an accident.

The absence of people from the insured home or building. Generally will not affect a claim settlement.

The absence of both people and furniture from the insured home or building. Vacancy will affect a claim settlement if the building is vacant beyond 30 days for personal policies and 60 days for commercial policies.