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Unless otherwise specified 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 knowledgeable buyer (under no unusual pressure) is prepared to pay and an experienced seller (under no uncommon pressure) is willing to accept.

Agent

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

Aggregate Limit

The optimal dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This maximum amount can be figured on a per incident basis or as a general aggregate for the complete policy term.

Agreed Value

A method of loss valuation where the guaranteed and the insurance provider list a concurred upon total up to be paid in case of loss. This appraisal method is most common in residential or commercial property insurance when insuring important artwork, antiques, or classic autos. An expert appraisal is typically needed.

Arbitration Clause

A provision in an insurance policy that permits the insured and the insurance company to each select an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually been picked, they in turn select 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 occurs 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 financial position than they were before the loss took place, and consequentially might need to pay the difference in rate for the improvement.

Binder

A short-term agreement that supplies short-term until the policy can be issued or delivered.

Broker

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

Broker-agent

A certified person who can act as an agent representing one or more insurers, and likewise as a broker dealing with several insurers representing your interests.

Cancellation

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

Claim

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

Claim Adjuster

The person who evaluates the damage brought on by a covered loss and identifies the quantity to be paid under the policy terms.

Claims Made

A liability insurance coverage where coverage applies to claims submitted throughout the policy duration anytime the loss happened subject to a retroactive inception date.

Coinsurance

An insurance provision that defines the amount of each loss that the company pays according to the amount of insurance carried, divided by the amount of insurance required. This standard formula associates with a contracted portion of coverage that should be needed to prevent a coinsurance charge.

Combined Single Limit

When physical injury liability and residential or commercial property damage liability is expressed as a single sum (limit) of protection.

Commercial Lines

Insurance coverages for services, commercial institutions, and expert organizations, as contrasted with individual insurance coverage.

Commission

A part of the policy premium that is paid to an agent 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 hazards is covered by the insurance plan, the court normally rules that the entire loss is covered. Many insurer have actually reworded their policies to clarify that just a loss associated to a covered hazard is indeed covered.

Conditions

The part of an insurance contract that states the rights and duties of the insured and the insurance company.

Consequential Bodily Injury

In Workers Compensation, special situations can develop 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 very first page of an insurance policy which contains the complete legal name of the insurance provider, the policy number, effective and expiration dates, premium payable, the amount and kinds of protection, and the deductibles.

Deductible

The amount 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 value of residential or commercial property over a duration of time according to a fixed schedule.

Dual Capacity

In Workers Compensation, a company might be responsible two methods to an employee who incurs physical injury on the task as an outcome of using a product and services produced by that employer. The employee is eligible for Workers Compensation advantages and might also take legal action against the company due to the fact that of the defectiveness of the hurting product or service.

Earned Premium

The part of the policy premium paid by a guaranteed that has been allocated to the insurance provider's loss experience, expenses, and profit year to date.

Endorsement

A written contract that changes the terms of an insurance plan by including or deducting coverage.

Effective Date

The starting date of an insurance coverage: the date the policy enters to require.

Exclusion

A legal provision in an insurance coverage that rejects or limits coverage for specific perils, individuals, residential or commercial property, or places.

Experience Modification

The change of premium arising from making use of experience score. Experience ranking plans show an insured's previous loss experience (normally from the past 3 years) and uses this experience to modify 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 takes location on the policy reliable date. No premium charge is made