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Unless otherwise specified in the policy, Value in California suggests Fair Market price. The Fair Market Value of an item is the dollar amount that an experienced buyer (under no unusual pressure) wants to pay and a well-informed seller (under no unusual pressure) wants to accept.

Agent

A licensed person or organization authorized to sell and service insurance coverage policies for an insurance provider.

Aggregate Limit

The maximum dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This maximum quantity can be figured on a per incident basis or as a basic aggregate for the total policy term.

Agreed Value

A method of loss evaluation where the guaranteed and the insurer list a concurred upon total up to be paid in case of loss. This appraisal technique is most typical in residential or commercial property insurance coverage when insuring valuable artwork, antiques, or timeless cars. An expert appraisal is normally needed.

Arbitration Clause

A provision in an insurance coverage that allows the insured and the insurer to each select an arbitrator if they can not agree upon a proper claim settlement. Once the arbitrators have been picked, they in turn select an independent umpire. If the arbitrators disagree, then the umpire chooses which declares settlement to support. The last choice is binding.

Betterment

A scenario that occurs in a loss when an old piece of residential or commercial property is replaced by a brand new item. The insured is put in a better financial position than they were before the loss occurred, and consequentially might need to pay the difference in rate for the improvement.

Binder

A short-term agreement that supplies short-term insurance coverage up until the policy can be released or provided.

Broker

A certified person or company who sells and services insurance cops in your place.

Broker-agent

A certified person who can act as a representative representing one or more insurers, and also as a broker dealing with several insurance providers representing your interests.

Cancellation

The termination of an in-force insurance coverage agreement by either the guaranteed or the insurer before its typical expiration date.

Claim

Notice to an insurer that a loss has taken place that may be covered under the terms and conditions of the policy.

Claim Adjuster

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

Claims Made

A liability insurance plan where coverage uses to claims filed during the policy duration anytime the loss occurred subject to a retroactive creation date.

Coinsurance

An insurance coverage clause that defines the amount of each loss that the company pays according to the quantity of insurance coverage brought, divided by the amount of insurance required. This standard formula relates to a contracted percentage of protection that should be needed to prevent a coinsurance penalty.

Combined Single Limit

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

Commercial Lines

Insurance coverages for businesses, commercial institutions, and expert companies, as contrasted with individual insurance coverage.

Commission

A portion of the policy premium that is paid to an agent by the insurer as compensation for the agent's work.

Concurrent Causation

Occurs when two or more dangers cause a loss. When just one of these hazards is covered by the insurance coverage, the court normally rules that the entire loss is covered. Many insurance business have reworded their policies to clarify that just a loss associated to a covered peril is certainly covered.

Conditions

The part of an insurance coverage contract that sets forth the rights and tasks of the insured and the insurance provider.

Consequential Bodily Injury

In Workers Compensation, unique circumstances 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 provided under an insurance plan.

Declarations (DEC) Page

Usually the first page of an insurance policy which contains the full legal name of the insurer, the policy number, reliable and expiration dates, premium payable, the quantity and types of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is accountable to pay before gain from the insurance plan are payable.

Depreciation

The real or accounting recognition of the reduction in value of residential or commercial property over an amount of time according to an established schedule.

Dual Capacity

In Workers Compensation, a company might be accountable two ways to a staff member who sustains bodily injury on the job as an outcome of utilizing a services or product produced by that employer. The worker is qualified for Workers Compensation advantages and might likewise sue the employer since of the defectiveness of the injuring product and services.

Earned Premium

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

Endorsement

A written agreement that changes the regards to an insurance coverage by adding or deducting protection.

Effective Date

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

Exclusion

A contractual arrangement in an insurance coverage that denies or restricts coverage for specific perils, individuals, residential or commercial property, or places.

Experience Modification

The adjustment of premium resulting from the usage of experience ranking. Experience rating strategies reflect an insured's past loss experience (normally from the previous three years) and uses this experience to customize and determine the prem

The termination date of protection as suggested on an insurance coverage.

First Party

The insurance policy holder (insured) in an insurance contract.

Flat Cancellation

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