Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Price of a product is the dollar amount that an educated buyer (under no uncommon pressure) wants to pay and an experienced seller (under no uncommon pressure) is ready to accept.
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Agent
A licensed person or company licensed to sell and service insurance policies for an insurer.
Aggregate Limit
The maximum dollar quantity of protection 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 complete policy term.
Agreed Value
A technique of loss valuation where the insured and the insurance company list an agreed upon total up to be paid in case of loss. This valuation method is most typical in residential or commercial property insurance coverage when guaranteeing valuable art work, antiques, or classic autos. A professional appraisal is usually needed.
Arbitration Clause
A stipulation in an insurance coverage that enables the insured and the insurer to each designate an arbitrator if they can not agree upon a proper claim settlement. Once the arbitrators have actually been selected, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire chooses which declares 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 name new item. The insured is put in a better monetary position than they were before the loss took place, and consequentially may need to pay the difference in cost for the betterment.
Binder
A short-term contract that offers temporary insurance coverage up until the policy can be provided or provided.
Broker
A licensed person or company who sells and services insurance polices in your place.
Broker-agent
A certified person who can act as a representative representing one or more insurance providers, and also as a broker handling several insurance providers representing your interests.
Cancellation
The termination of an in-force insurance agreement by either the insured or the insurer before its normal expiration date.
Claim
Notice to an insurance provider that a loss has actually happened that might be covered under the conditions of the policy.
Claim Adjuster
The individual who examines the damage brought on by a covered loss and determines the total up to be paid under the policy terms.
Claims Made
A liability insurance coverage policy where protection applies to claims submitted throughout the policy period no matter when the loss happened subject to a retroactive inception date.
Coinsurance
An insurance clause that specifies the amount of each loss that the company pays according to the quantity of insurance coverage carried, divided by the amount of insurance required. This basic formula relates to a contracted portion of coverage that should be needed to prevent a coinsurance penalty.
Combined Single Limit
When physical injury liability and residential or commercial property damage liability is expressed as a single amount (limitation) of coverage.
Commercial Lines
Insurance protections for companies, industrial institutions, and expert companies, as contrasted with personal insurance.
Commission
A portion of the policy premium that is paid to an agent by the insurance provider as compensation for the representative's work.
Concurrent Causation
Occurs when two or more dangers trigger a loss. When only one of these dangers is covered by the insurance coverage policy, the court generally rules that the entire loss is covered. Many insurer have reworded their policies to clarify that only a loss credited to a covered danger is undoubtedly covered.
Conditions
The portion of an insurance contract that states the rights and tasks of the insured and the insurer.
Consequential Bodily Injury
In Workers Compensation, special situations can occur when a job-related injury causes some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)
Coverage
Protection that is supplied under an insurance coverage.
Declarations (DEC) Page
Usually the first page of an insurance coverage that consists of the complete legal name of the insurance coverage business, 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 responsible to pay before advantages from the insurance coverage are payable.
Depreciation
The real or accounting acknowledgment of the reduction in worth of residential or commercial property over a time period according to a predetermined schedule.
Dual Capacity
In Workers Compensation, an employer might be accountable 2 methods to a staff member who sustains bodily injury on the job as an outcome of utilizing a service or product produced by that company. The employee is qualified for Workers Compensation benefits and might also take legal action against the employer due to the fact that of the defectiveness of the hurting service or product.
Earned Premium
The part of the policy premium paid by an insured that has actually been assigned to the insurance company's loss experience, costs, and revenue year to date.
Endorsement
A written agreement that changes the regards to an insurance coverage policy by including or deducting coverage.
Effective Date
The starting date of an insurance plan: the date the policy enters to require.
Exclusion
A contractual arrangement in an insurance plan that rejects or restricts coverage for specific dangers, persons, residential or commercial property, or locations.
Experience Modification
The modification of premium resulting from the use of experience rating. Experience ranking strategies reflect an insured's previous loss experience (usually from the previous 3 years) and utilizes this experience to customize and determine the prem
The termination date of protection as suggested on an insurance plan.
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) may apply.
Fraud
An intentionally deceptive act committed to obtain an unjust or illegal advantage. Fraud normally includes financial gain.
Frequency
The number of times a loss occurs.
Hazard
A situation that increases the possibility or possible seriousness of a loss.
Indemnity
In a residential or commercial property and casualty contract, the goal is to bring back an insured to the exact same financial position after the loss that the insured had previous to the loss. In one of the most fundamental sense, indemnity is compensation for a loss.
Independent Adjuster
A person or company that supplies claim adjusting services to different insurance companies on an agreement basis.
Insurable Interest
Any interest (most typically ownership) that a person, company, or corporation has in a topic of insurance such as a company, structure, or automobile, which can be damaged and might cause the person, company, or corporation monetary loss or other concrete deprivation. Generally, an insurable interest should be shown when a policy is released and must exist at the time of loss.
Insurance
An approach of moving danger from an individual, organization, or company to an insurance provider in exchange for the payment of premium. The insurance company devotes to be responsible for covered losses.
Insured
The policyholder(s) entitled to coverage under an insurance policy.
Insurer
The insurance provider who provides insurance coverage and consents to spend for losses and provide covered advantages.
Insuring Agreement
The part of an insurance contract that describes what is covered. The insuring agreement usually states the dangers insured against, the individual(s) and/or residential or commercial property covered, the residential or commercial property locations, and the duration of the agreement.
