Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market Value. The Fair Market Value of an item is the dollar quantity that a well-informed purchaser (under no uncommon pressure) is ready to pay and an educated seller (under no uncommon pressure) wants to accept.
Agent
A certified individual or company authorized to sell and service insurance plan for an insurer.
Aggregate Limit
The optimal dollar quantity of coverage in force for a residential or commercial property damage policy or liability policy. This optimum amount can be figured on a per incident basis or as a basic aggregate for the complete policy term.
Agreed Value
A method of loss evaluation where the insured and the insurer list a concurred upon amount to be paid in case of loss. This appraisal approach is most typical in residential or commercial property insurance when insuring valuable artwork, antiques, or classic autos. An expert appraisal is typically required.
Arbitration Clause
A stipulation in an insurance plan that allows the insured and the insurer to each appoint an arbitrator if they can not concur upon an appropriate claim settlement. Once the arbitrators have been chosen, 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 situation that takes place in a loss when an old piece of residential or commercial property is changed by a brand name brand-new item. The insured is put in a much better financial position than they were before the loss occurred, and consequentially may have to pay the distinction in cost for the improvement.
Binder
A short-term contract that provides temporary insurance coverage until the policy can be released or provided.
Broker
A licensed person or company who offers and services insurance authorities in your place.
Broker-agent
A certified individual who can function as an agent representing one or more insurance companies, and also as a broker dealing with one or more insurers representing your interests.
Cancellation
The termination of an in-force insurance coverage agreement by either the insured or the insurance provider before its normal expiration date.
Claim
Notice to an insurer that a loss has actually occurred that might be covered under the terms of the policy.
Claim Adjuster
The person who examines the damage triggered by a covered loss and determines the total up to be paid under the policy terms.
Claims Made
A liability insurance coverage policy where coverage applies to claims filed throughout the policy duration anytime the loss took place based on a retroactive inception date.
Coinsurance
An insurance stipulation that specifies the amount of each loss that the business pays according to the amount of insurance coverage carried, divided by the quantity of insurance required. This basic formula relates to a contracted percentage of coverage that need to be required to avoid a coinsurance penalty.
Combined Single Limit
When physical injury liability and residential or commercial property damage liability is revealed as a single sum (limit) of coverage.
Commercial Lines
Insurance protections for services, industrial institutions, and professional companies, 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 hazards cause a loss. When just one of these dangers is covered by the insurance coverage, the court generally rules that the entire loss is covered. Many insurance provider have actually reworded their policies to clarify that just a loss attributed to a covered peril is certainly covered.
Conditions
The part of an insurance coverage contract that sets forth the rights and responsibilities of the insured and the insurance company.
Consequential Bodily Injury
In Workers Compensation, special situations can emerge when a job-related injury triggers 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 policy.
Declarations (DEC) Page
Usually the first page of an insurance policy that includes the full legal name of the insurer, the policy number, reliable and expiration dates, premium payable, the amount and kinds of protection, and the deductibles.
Deductible
The quantity of the loss that the insured is responsible to pay before advantages from the insurance plan are payable.
Depreciation
The actual or accounting acknowledgment of the reduction in worth of residential or commercial property over an amount of time according to a fixed schedule.
Dual Capacity
In Workers Compensation, a company may be responsible 2 methods to an employee who incurs physical injury on the job as a result of using a product and services produced by that company. The employee is eligible for Workers Compensation benefits and may also sue the employer since of the defectiveness of the injuring product or service.
Earned Premium
The portion of the policy premium paid by an insured that has been designated to the insurance coverage business's loss experience, costs, and revenue year to date.
Endorsement
A written contract that changes the terms of an insurance plan by adding or deducting protection.
Effective Date
The beginning date of an insurance coverage: the date the policy goes in to force.
Exclusion
A contractual arrangement in an insurance plan that rejects or restricts coverage for specific dangers, individuals, residential or commercial property, or locations.
Experience Modification
The change of premium arising from making use of experience ranking. Experience ranking plans reflect an insured's previous loss experience (typically from the previous three years) and uses this experience to customize and identify the prem
The termination date of coverage as indicated on an insurance policy.
First Party
The insurance policy holder (insured) in an insurance contract.
Flat Cancellation
Cancellation that takes location on the policy reliable date. No premium charge is made; however, other charges (i.e., service) may apply.
Fraud
A purposefully deceptive act devoted to obtain an unjust or unlawful benefit. Fraud usually includes monetary gain.
Frequency
The number of times a loss occurs.
Hazard
A circumstance that increases the possibility or prospective severity of a loss.
Indemnity
In a residential or commercial property and casualty agreement, the objective is to restore an insured to the exact same financial position after the loss that the insured had previous to the loss. In one of the most basic sense, indemnity is payment for a loss.
Independent Adjuster
A person or company that offers claim adjusting services to different insurance providers on a contract basis.
Insurable Interest
Any interest (most frequently ownership) that an individual, business, or corporation has in a topic of insurance coverage such as a service, structure, or auto, which can be harmed and might cause the individual, company, or corporation monetary loss or other tangible deprivation. Generally, an insurable interest should be shown when a policy is issued and should exist at the time of loss.
Insurance
A technique of shifting risk from an individual, business, or company to an insurance provider in exchange for the payment of premium. The insurance coverage company dedicates to be accountable for covered losses.
Insured
The insurance policy holder(s) entitled to coverage under an insurance policy.
Insurer
The insurance business who issues insurance coverage and accepts spend for losses and supply covered advantages.
Insuring Agreement
The portion of an insurance coverage agreement that describes what is covered. The guaranteeing contract usually mentions the dangers guaranteed against, the individual(s) and/or residential or commercial property covered, the residential or commercial property areas, and the duration of the contract.
