Specifics about insurance

Actual Cash Value (acv)
Cost to mend or replace damaged property with materials of like kind and quality, less depreciation

Additional Insured
A person or organization for whom insured status is arranged by endorsement

Aggregate
The maximum amount an insurance company will pay during the policy

Application
A way with the information necessary for an insurer to underwrite and rate a specific policy

Automobile
A land motor vehicle, trailer or semi-trailer done for travel on public roads, not including "mobile equipment"

Basic Limits:
The minimum limits of liability that can be provided by an insured

Binder:
A legal agreement stated on behalf of insurance companies to provide temporary evidence of insurance until a policy can be delivered

Bodily Injury Liability:
Coverage projected to pay claims against the insured if found at fault in an accident causing injury or death. The minimum California state Bodily Injury Liability requirement is currently $15,000/$30,000.

Business Auto Policy:
Auto Policy for businesses that includes auto liability and auto physical injury coverages

Cancellation:
The termination of an insurance policy which is usually before its expiration

Ins Carrier:
The Insurer which carries coverage

Casualty Insurance:
Insurance that covers loss caused by damages to persons and the legal liability chosen on the insured for damage to property of others

Certificate of Insurance:
A document providing evidence that insurance has been bought

Claim:
A request by a policyholder or a claimant for payment under a policy of insurance

Claimant:
The person that presents a claim

Collision Insurance:
Offers for payment to a covered automobile resulting from the striking of another object by a moving vehicle

Commercial General Liability Policy (CGL):
A coverage which safeguards business organizations against liability claims for bodily injury and property damage. Those claims may be the result of events at your place of business, from your business operations, the products or services you make or do, to communications or advertisements your business broadcasts

Comprehensive Auto Coverage:
This covers an automobile for loss or damage for all causes but for those specifically not included

Conditions:
Things agreed upon in an insurance policy that state the rights and the requirements of the insured and the insurer

Contract:
An arrangement between two or more parties with characteristics of mutual acceptance , competent parties, a valid consideration and legal subject

Countersignature:
The signature of a licensed agent or representative on a policy that is needed to formalize the policy

Deductible:
The amount of loss which is covered or absorbed by the insured prior to determining the insurers' liability

Deposit Premium:
The amount of premium needed at the beginning of a policy prior to the actual premium being determined

Insurance depreciation:
The lessening in value of property over a period of time, usually as a result of age, wear and tear, or economic obsolescence

Earned Premium:
The amount of premium that has been used for certain periods of time

Effective Date:
The date on which an insurance binder or policy goes into effect

Endorsement:
A document attached to an insurance policy that changes the original policy provisions

Equipment Floater:
A property insurance coverage for equipment that is often moved from place to place

Estimated Premium:
A preliminary premium amount that could be adjusted based on a variance in exposures

Excess Liability Policy:
A policy that provides additional limits in excess of an underlying liability policy

Exclusion:
A circumstance or peril that is not contemplated by the policy

Expiration:
The ending date of an insurance policy

Flat Cancellation:
The full cancellation of a policy as of the effective date of coverage which needs the return of paid premium in full

Full Coverage:
Any form of insurance that provides payment in full of all losses originated by the perils insured against without applying a deductible or depreciation

General Liability Insurance:
Insurance protecting businesses from most liability exposures other than automobile and professional liability

Insured:
A person or organization, covered by an insurance policy, including the "named insured" and any other parties for whom protection is offered under the policy. Also referred to as a policyholder.

Insurer:
An insurer that provides insurance coverage and other insurance-related services

Lapse:
The termination of an insurance policy due to the failure to pay the premium

Lessee:
The person to whom a lease is granted

Lessor:
The person granting the lease

Liability:
The legal obligation to cover a monetary award for injury or damage caused by one' s negligent or statutorily prohibited action

Lien:
An obligation that can be held by an individual who has an interest in a particular matter or property

Limit of Liability:
The most an Insurer agrees to pay in the case of loss

Loss:
The amount an insurance company pays for damages under the terms of a policy

Loss Payable Clause:
An insurance clause that authorizes loss payments to a person or entity having an insurable interest in the covered property

Loss Ratio:
Percentage of losses incurred against earned premiums

Loss Report: A form showing reported claims which provides information such as the date of occurrence, type of claim, amount paid and amount reserved for each loss Mexico Coverage:
Coverage which is sometimes provided under automobile policies for the operation of an insured motor vehicle within Mexico, usually limited to a stated number of miles from the U.S. border

Minimum Premium:
The lowest amount of premium to be charged for providing a particular insurance coverage

Mobile Equipment:
Equipment such as earth movers, tractors, diggers, farm machinery, forklifts, etc., that even when self-propelled, are not considered as automobiles for insurance purposes

Package Policy: A policy providing several different coverages combined into one policy. Refers to a policy providing both general liability insurance and property insurance

Personal Auto Policy (PAP):
A policy insuring private-passenger autos owned by individuals

Personal Injury:
A General Liability coverage for insurable offenses that originates harm other than bodily injury, such as false arrest, detention or imprisonment, malicious prosecution, wrongful eviction, slander, libel, and invasion of privacy

Personal Injury Protection (PIP):
An automobile insurance coverage obligatory by law in some states. The statutes typically require insurers to provide first-party benefits for medical expenses, loss of income, funeral expenses and similar expenses without regard to fault

Personal Property:
All tangible property not classified as real property such as contents

Policy Fee:
A one-time charge per policy that does not change with the size of the premium

Policy Period:
The term or duration of a policy including the effective and expiration dates

Premium:
The amount of money an insurance company charges to provide coverage in a policy

Pro Rata Cancellation:
The cancellation of an insurance policy with the return premium being the full proportion of premium for the unexpired term of the policy, without penalty for early cancellation

Property Damage:
In the general liability policy, a physical injury to property, resulting in the loss of use

Property Insurance:
First-party insurance for real and personal property against physical loss or damage

Renewal Policy:
A policy issued to renew an expiring policy

Replacement Cost Coverage Endorsement:
A property insurance provision that pays to restore or replace the damaged property without deduction for depreciation.

Return Premium:
The amount of premium due the insured should the actual cost of a policy be less than the insured previously paid

Short-Term Cancellation:
Cancellation of an insurance policy prior to the expiration date in which a penalty in the form of a less than full pro-rata premium refund is allowed

Under insured Motorists Coverage:
Offers coverage for bodily injury, and in some states, property damage, for losses incurred by an insured when an accident is caused by a motorist who does not have sufficient insurance limits

Unearned Premium:
That portion of the policy premium that represents the unexpired policy term

Uninsured Motorists Coverage:
Offers coverage for bodily injury, and in some states, property damage, for losses incurred by an insured when an accident is caused by a motorist who is not insured.

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