Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market Value. The Fair Market Value of a product is the dollar amount that a knowledgeable buyer (under no uncommon pressure) wants to pay and an experienced seller (under no unusual pressure) is ready to accept.
Agent
A certified individual or company authorized to offer and service insurance plan 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 occurrence basis or as a general aggregate for the total policy term.
Agreed Value
A technique of loss valuation where the guaranteed and the insurance company list an agreed upon total up to be paid in case of loss. This assessment method is most typical in residential or commercial property insurance coverage when guaranteeing valuable art work, antiques, or classic vehicles. An expert appraisal is typically needed.
Arbitration Clause
A clause in an insurance plan that allows the insured and the insurance company to each designate an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually been selected, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The last 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 much better monetary position than they were before the loss took place, and consequentially may need to pay the distinction in price for the improvement.
Binder
A short-term contract that provides momentary insurance protection until the policy can be released or delivered.
Broker
A licensed person or company who offers and services insurance coverage cops on your behalf.
Broker-agent
A licensed individual who can act as an agent representing several insurers, and also as a broker dealing with several insurers representing your interests.
Cancellation
The termination of an in-force insurance agreement by either the guaranteed or the insurance company before its regular expiration date.
Claim
Notice to an insurer 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 figures out the amount to be paid under the policy terms.
Claims Made
A liability insurance coverage where protection applies to claims submitted throughout the policy duration no matter when the loss took place based on a retroactive creation date.
Coinsurance
An insurance clause that specifies the amount of each loss that the company pays according to the amount of insurance coverage brought, divided by the amount of insurance required. This fundamental formula associates with a contracted portion of coverage that need to be required to prevent a coinsurance charge.
Combined Single Limit
When physical injury liability and residential or commercial property damage liability is revealed as a single amount (limitation) of coverage.
Commercial Lines
Insurance coverages for organizations, business institutions, and expert organizations, as contrasted with individual insurance coverage.
Commission
A part 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 2 or more dangers cause a loss. When only one of these dangers is covered by the insurance coverage, the court generally rules that the whole loss is covered. Many insurance provider have actually reworded their policies to clarify that just a loss attributed to a covered danger is certainly covered.
Conditions
The part of an insurance coverage contract that states the rights and tasks of the insured and the insurer.
Consequential Bodily Injury
In Workers Compensation, unique scenarios can arise when a job-related injury causes some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)
Coverage
Protection that is provided under an insurance coverage.
Declarations (DEC) Page
Usually the first page of an insurance coverage which contains the full legal name of the insurance company, the policy number, effective and expiration dates, premium payable, the amount and types of protection, and the deductibles.
Deductible
The amount of the loss that the insured is responsible to pay before gain from the insurance plan are payable.
Depreciation
The real or accounting recognition of the decline in value of residential or commercial property over a duration of time according to an established schedule.
Dual Capacity
In Workers Compensation, an employer may be responsible two methods to a staff member who sustains bodily injury on the task as a result of using a product or service produced by that company. The worker is qualified for Workers Compensation benefits and may likewise sue the company due to the fact that of the defectiveness of the injuring services or product.
Earned Premium
The part of the policy premium paid by a guaranteed that has been designated to the insurance provider's loss experience, expenditures, and profit year to date.
Endorsement
A written agreement that alters the terms of an insurance coverage policy by including or deducting coverage.
Effective Date
The starting date of an insurance policy: the date the policy goes in to require.
Exclusion
A legal arrangement in an insurance plan that denies or restricts protection for certain perils, individuals, residential or commercial property, or places.
Experience Modification
The modification of premium arising from making use of experience rating. Experience rating plans reflect an insured's previous loss experience (normally from the past three years) and utilizes this experience to modify and figure out the prem
The termination date of coverage as suggested on an insurance policy.
First Party
The insurance policy holder (insured) in an insurance agreement.
Flat Cancellation
Cancellation that happens on the policy efficient date. No premium charge is made; nevertheless, other charges (i.e., service) might use.
Fraud
An intentionally misleading act committed to acquire an unreasonable or unlawful benefit. Fraud generally includes monetary gain.
Frequency
The number of times a loss takes place.
Hazard
A circumstance that increases the likelihood or prospective severity of a loss.
Indemnity
In a residential or commercial property and casualty agreement, the objective is to restore a guaranteed to the exact same financial position after the loss that the guaranteed had previous to the loss. In one of the most fundamental sense, indemnity is compensation for a loss.
Independent Adjuster
An individual or organization that supplies claim adjusting services to various insurance providers on an agreement basis.
Insurable Interest
Any interest (most frequently ownership) that a person, company, or corporation has in a topic of insurance coverage such as a company, structure, or auto, which can be harmed and may cause the individual, business, or corporation financial loss or other concrete deprivation. Generally, an insurable interest needs to be demonstrated when a policy is provided and need to exist at the time of loss.
Insurance
A method of moving danger from an individual, organization, or company to an insurance coverage business in exchange for the payment of premium. The insurance provider commits to be responsible for covered losses.
Insured
The policyholder(s) entitled to protection under an insurance policy.
Insurer
The insurer who issues insurance and agrees to spend for losses and provide covered benefits.
Insuring Agreement
The portion of an insurance coverage agreement that describes what is covered. The guaranteeing agreement typically states the dangers insured against, the individual(s) and/or residential or commercial property covered, the residential or commercial property areas, and the period of the contract.
