Glossary


Accident - fortuitous even, unforeseen and unintended
Act of God - flood, earthquake or other accident that is without human intervention
Actual Cash Value - replacement value less its depreciation
Additional Insured - person other then named insured who is protected under the contract
Adjuster - an individual representing an insurer working on agreements for the amount of a loss and liability of the company
All Risk - insurance against loss or damage to property arising from any cause, except specifically excluded
Appraisal - survey of property made to determin its insurable value or amount of loss sustained
Assurance - same as Insurance
Assured - same as insured
Assurer - same as insurer
Audit - survey of insureds books

Bodily Injury Liability
- liability which may arise from injury or death of another person
Broker - one who represents an insured in solicitation, negotiation, or procurement of insurance

Coinsurance
- clause in which insured shares in losses to the extent that he or she is underinsured at the time of loss
Collision - physical damage protection for the insureds automobiles for damage resulting from collision with another object
Commission - portion of premium retained by agent as compensation for sales and service
Comprehensive - physical damage coverage for losses by fire, theft, vandalism, etc..
Compulsory Insurance - any form of insurance which is required by law
Coverage - scope of the protection provided under a contract of insurance

Deductible
- clause in policy that the first given number of dollars or percentage of expenses will not be covered.
Depreciation - decrease in value of property due to use, wear, tear and obsolescence
Double Indemnity - payment of twice the basic benefit in event of loss resulting from specified causes or under specified cirumstances

Effective Date
- date on which an insurance policy or bond goes into effect
Exclusions - causes, conditions or property listed in policy which are not covered

Hazard
- anything that increases the seriousness of loss or increases likelihood that a loss will occur due to peril

Indemnify
- to restore victim of loss in whole or part by payment, repair or replacement
Insurance - device that protects people and businesses against certain losses by transferring risks from one to many
Insurance Claim - demand for payment of loss which may be covered by policy
Insurance Policy - a legal document which establishes the terms of the agreement between insurer and insured
Insured - person or business covered by insurance that pay premiums to the insurer in exchange for protection from loss
Insurer - insurance company assuming risks and agreeing to play claims

Lapse
- termination of a policy for failure to pay the premium
Loss - any reduction in quality, quantity or value of something

Package Policy
- insurance policy including two or more types of coverages in the same contract
Peril - cause of potential loss(fire, flood, theft)
Personal Property Floater - broad policy covering all personal property world-wide

Rider
- amendment to a policy that either expands or decreases benefits or excludes certain conditions from coverage
Risk - uncertainty about loss that exists whenever more than one outcome is possible

Subrogation
- legal process by which an insurance company seeks to regain all or part of the amount paid to the insured from a third party who is responsible for the loss

Umbrella Liability Policy
- liability policy designed to provide liability protection above and beyond that provided by standard policy
Underwriter - person trained in evaluating risks and determining the rates and coverages that will be used for them



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