Unless otherwise specified in the policy, Actual Cash Value in California implies Fair Market price. The Fair Market Price of a product is the dollar quantity that a knowledgeable buyer (under no unusual pressure) is ready to pay and an experienced seller (under no uncommon pressure) wants to accept.
Agent
A certified person or organization authorized to offer and service insurance coverage policies for an insurance coverage business.
Aggregate Limit
The optimal dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This optimum quantity can be figured on a per incident basis or as a general aggregate for the total policy term.
Agreed Value
A method of loss evaluation where the guaranteed and the insurance company list a concurred upon amount to be paid in case of loss. This appraisal approach is most common in residential or commercial property insurance when insuring important artwork, antiques, or classic cars. An expert appraisal is usually required.
Arbitration Clause
A provision in an insurance plan that permits the insured and the insurance provider to each select an arbitrator if they can not concur 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 decision is binding.
Betterment
A scenario that happens in a loss when an old piece of residential or commercial property is changed by a brand brand-new product. The insured is put in a better monetary position than they were before the loss took place, and consequentially might have to pay the distinction in rate for the betterment.
Binder
A short-term agreement that offers short-term insurance protection up until the policy can be provided or delivered.
Broker
A licensed person or company who sells and services insurance coverage authorities in your place.
Broker-agent
A licensed person who can act as an agent representing several insurance companies, and likewise as a broker handling one or more insurance companies representing your interests.
Cancellation
The termination of an in-force insurance agreement by either the guaranteed or the insurer before its typical expiration date.
Claim
Notice to an insurance provider that a loss has actually occurred that may be covered under the terms of the policy.
Claim Adjuster
The person who examines the damage triggered by a covered loss and identifies the amount to be paid under the policy terms.
Claims Made
A liability insurance policy where protection uses to claims submitted during the policy period no matter when the loss happened subject to a retroactive creation date.
Coinsurance
An insurance coverage provision that specifies the quantity of each loss that the business pays according to the amount of insurance carried, divided by the amount of insurance needed. This basic formula connects to a contracted percentage of protection that need to 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 amount (limitation) of coverage.
Commercial Lines
Insurance coverages for services, business institutions, and professional organizations, as contrasted with personal insurance.
Commission
A portion of the policy premium that is paid to a representative by the insurance provider as compensation for the agent's work.
Concurrent Causation
Occurs when two or more dangers trigger a loss. When just one of these perils is covered by the insurance coverage, the court generally rules that the whole loss is covered. Many insurance coverage business have actually reworded their policies to clarify that just a loss associated to a covered hazard is indeed covered.
Conditions
The portion of an insurance agreement that states the rights and responsibilities of the insured and the insurance provider.
Consequential Bodily Injury
In Workers Compensation, unique situations can develop when a work-related injury causes some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary definitions.)
Coverage
Protection that is supplied under an insurance policy.
Declarations (DEC) Page
Usually the very first page of an insurance policy which contains the complete legal name of the insurer, the policy number, effective and expiration dates, premium payable, the amount and kinds of coverage, and the deductibles.
Deductible
The amount of the loss that the insured is responsible to pay before take advantage of the insurance coverage policy are payable.
Depreciation
The real or accounting acknowledgment of the decline in worth of residential or commercial property over an amount of time according to a predetermined schedule.
Dual Capacity
In Workers Compensation, an employer might be liable 2 ways to a worker who incurs physical injury on the job as a result of utilizing a service or product produced by that company. The employee is qualified for Workers Compensation benefits and might also sue the company since of the defectiveness of the injuring services or product.
Earned Premium
The portion of the policy premium paid by an insured that has actually been assigned to the insurance provider's loss experience, expenditures, and revenue year to date.
Endorsement
A written contract that changes the terms of an insurance coverage policy by adding or deducting coverage.
Effective Date
The beginning date of an insurance coverage: the date the policy goes in to require.
Exclusion
A contractual provision in an insurance coverage that rejects or limits coverage for certain hazards, persons, residential or commercial property, or locations.
Experience Modification
The modification of premium resulting from using experience score. Experience score plans show an insured's previous loss experience (usually from the previous three years) and uses this experience to modify and figure out the prem
The termination date of coverage as shown on an insurance coverage.
First Party
The insurance policy holder (insured) in an insurance agreement.
Flat Cancellation
Cancellation that occurs on the policy efficient date. No premium charge is made; nevertheless, other charges (i.e., service) might apply.
Fraud
A purposefully deceptive act committed to get an unreasonable or illegal advantage. Fraud normally includes monetary gain.
Frequency
The number of times a loss happens.
Hazard
A scenario that increases the probability or possible intensity of a loss.
Indemnity
In a residential or commercial property and casualty contract, the objective is to bring back an insured to the exact same monetary position after the loss that the guaranteed had prior to the loss. In the most standard sense, indemnity is compensation for a loss.
Independent Adjuster
An individual or company that supplies claim adjusting services to different insurance companies on an agreement basis.
Insurable Interest
Any interest (most commonly ownership) that a person, business, or corporation has in a subject of insurance such as a service, building, or automobile, which can be harmed and might cause the person, business, or corporation financial loss or other concrete deprivation. Generally, an insurable interest should be shown when a policy is released and should exist at the time of loss.
Insurance
A method of shifting danger from an individual, service, or company to an insurance business in exchange for the payment of premium. The insurance provider devotes to be accountable for covered losses.
Insured
The insurance policy holder(s) entitled to protection under an insurance policy.
Insurer
The insurance coverage company who issues insurance coverage and agrees to pay for losses and offer covered benefits.
Insuring Agreement
The part of an insurance agreement that explains what is covered. The guaranteeing agreement generally specifies the dangers guaranteed against, the individual(s) and/or residential or commercial property covered, the residential or commercial property places, and the duration of the agreement.
