blogspot.com
Unless otherwise specified in the policy, Actual Cash Value in California implies Fair Market price. The Fair Market Value of an item is the dollar quantity that an experienced purchaser (under no uncommon pressure) is prepared to pay and a knowledgeable seller (under no uncommon pressure) is willing to accept.

Agent

A certified individual or company licensed to offer and service insurance coverage policies for an insurer.

Aggregate Limit

The maximum dollar quantity 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 technique of loss appraisal where the guaranteed and the insurer list an agreed upon quantity to be paid in case of loss. This appraisal approach is most common in residential or commercial property insurance coverage when guaranteeing valuable artwork, antiques, or traditional cars. A professional appraisal is normally needed.

Arbitration Clause

A clause in an insurance coverage that allows the insured and the insurer to each appoint an arbitrator if they can not agree upon a proper claim settlement. Once the arbitrators have actually been chosen, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire chooses which declares settlement to support. The final decision is binding.

Betterment

A situation that occurs in a loss when an old piece of residential or commercial property is changed by a brand brand-new item. The insured is put in a much better monetary position than they were before the loss took place, and consequentially might have to pay the difference in rate for the betterment.

Binder

A short-term contract that supplies short-term insurance coverage until the policy can be released or delivered.

Broker

A certified person or company who offers and services insurance polices in your place.

Broker-agent

A certified individual who can act as an agent representing one or more insurance companies, and also as a broker handling one or more insurance companies representing your interests.

Cancellation

The termination of an in-force insurance coverage contract by either the insured or the insurance company before its normal expiration date.

Claim

Notice to an insurance provider that a loss has happened that might be covered under the terms and conditions of the policy.

Claim Adjuster

The person who evaluates the damage triggered by a covered loss and figures out the total up to be paid under the policy terms.

Claims Made

A liability insurance plan where protection uses to claims filed during the policy duration no matter when the loss occurred subject to a retroactive creation date.

Coinsurance

An insurance stipulation that specifies the quantity of each loss that the company pays according to the amount of insurance coverage brought, divided by the quantity of insurance required. This standard formula connects to a contracted percentage of protection that must be needed to avoid a coinsurance penalty.

Combined Single Limit

When bodily injury liability and residential or commercial property damage liability is revealed as a single sum (limitation) of protection.

Commercial Lines

Insurance coverages for businesses, industrial organizations, and professional organizations, as contrasted with individual insurance.

Commission

A part of the policy premium that is paid to an agent by the insurer as settlement for the representative's work.

Concurrent Causation

Occurs when two or more perils trigger a loss. When only one of these perils is covered by the insurance policy, the court normally rules that the whole loss is covered. Many insurer have reworded their policies to clarify that only a loss credited to a covered danger is certainly covered.

Conditions

The part of an insurance agreement that sets forth the rights and responsibilities of the insured and the insurance provider.

Consequential Bodily Injury

In Workers Compensation, unique situations can arise when a work-related injury triggers some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)

Coverage

Protection that is supplied under an insurance coverage.

Declarations (DEC) Page

Usually the first page of an insurance plan which contains the full legal name of the insurance provider, the policy number, effective and expiration dates, premium payable, the quantity and types of coverage, and the deductibles.

Deductible

The quantity of the loss that the insured is accountable to pay before take advantage of the insurance coverage are payable.

Depreciation

The real or accounting recognition of the decrease in worth of residential or commercial property over a period of time according to a fixed schedule.

Dual Capacity

In Workers Compensation, an employer might be liable two methods to a worker who incurs bodily injury on the job as a result of using a product or service produced by that company. The employee is eligible for Workers Compensation advantages and might also sue the employer because of the defectiveness of the injuring service or product.

Earned Premium

The portion of the policy premium paid by a guaranteed that has actually been assigned to the insurance provider's loss experience, expenditures, and earnings year to date.

Endorsement

A written contract that changes the terms of an insurance coverage by adding or subtracting coverage.

Effective Date

The starting date of an insurance plan: the date the policy goes in to force.

Exclusion

A legal arrangement in an insurance coverage policy that rejects or limits coverage for particular dangers, individuals, residential or commercial property, or locations.

Experience Modification

The change of premium arising from making use of experience rating. Experience rating strategies reflect an insured's past loss experience (usually from the past three years) and utilizes this experience to modify and identify the prem

The termination date of coverage as indicated on an insurance coverage.

First Party

The policyholder (insured) in an insurance agreement.

Flat Cancellation

Cancellation that occurs on the policy efficient date. No premium charge is made