Unless otherwise defined in the policy, Actual Cash Value in California indicates Fair Market price. The Fair Market Value of a product is the dollar amount that an experienced purchaser (under no uncommon pressure) wants to pay and a well-informed seller (under no unusual pressure) is ready to accept.

Agent

A licensed person or company licensed to offer and service insurance coverage policies for an insurance provider.

Aggregate Limit

The optimal dollar amount 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 basic aggregate for the total policy term.

Agreed Value

A method of loss assessment where the guaranteed and the insurance company list a concurred upon total up to be paid in case of loss. This evaluation method is most typical in residential or commercial property insurance when guaranteeing valuable art work, antiques, or classic automobiles. A professional appraisal is typically needed.

Arbitration Clause

A provision in an insurance coverage that enables the insured and the insurance provider to each select an arbitrator if they can not concur upon a suitable claim settlement. Once the arbitrators have actually been chosen, they in turn select an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The final decision is binding.

Betterment

A circumstance that occurs in a loss when an old piece of residential or commercial property is replaced by a brand name brand-new product. The insured is put in a much better financial position than they were before the loss happened, and consequentially might need to pay the distinction in price for the betterment.

Binder

A short-term contract that supplies short-term insurance protection till the policy can be provided or delivered.

Broker

A certified person or organization who sells and services insurance cops on your behalf.

Broker-agent

A licensed individual who can serve as an agent representing several insurance providers, and also as a broker handling one or more insurance companies representing your interests.

Cancellation

The termination of an in-force insurance coverage contract by either the insured or the insurance company before its typical expiration date.

Claim

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

Claim Adjuster

The individual who assesses the damage triggered by a covered loss and identifies the total up to be paid under the policy terms.

Claims Made

A liability insurance coverage where coverage uses to claims filed during the policy duration no matter when the loss happened based on a retroactive beginning date.

Coinsurance

An insurance provision that specifies the quantity of each loss that the company pays according to the quantity of insurance brought, divided by the amount of insurance coverage required. This fundamental formula relates to a contracted portion of coverage that must be needed to avoid a coinsurance charge.

Combined Single Limit

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

Commercial Lines

Insurance coverages for businesses, commercial 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 settlement for the agent's work.

Concurrent Causation
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Occurs when two or more dangers trigger a loss. When just one of these perils is covered by the insurance policy, the court usually rules that the whole loss is covered. Many insurance coverage business have reworded their policies to clarify that only a loss credited to a covered peril is certainly covered.

Conditions

The portion of an insurance coverage contract that sets forth the rights and tasks of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, unique scenarios can arise when a work-related injury triggers some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)

Coverage

Protection that is supplied under an insurance policy.

Declarations (DEC) Page

Usually the first page of an insurance coverage which contains the complete legal name of the insurance company, the policy number, efficient and expiration dates, premium payable, the amount and types of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is responsible to pay before take advantage of the insurance plan are payable.

Depreciation

The real or accounting acknowledgment of the decrease in value of residential or commercial property over a time period according to a fixed schedule.

Dual Capacity

In Workers Compensation, an employer may be liable two ways to an employee who incurs bodily injury on the job as an outcome of utilizing a service or product produced by that company. The staff member is eligible for Workers Compensation advantages and may also sue the employer since of the defectiveness of the injuring item or service.

Earned Premium

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

Endorsement

A written agreement that changes the regards to an insurance plan by including or deducting protection.

Effective Date

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

Exclusion

A contractual arrangement in an insurance plan that denies or limits coverage for specific dangers, persons, residential or commercial property, or areas.

Experience Modification

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

The termination date of coverage as indicated on an insurance coverage policy.

First Party

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

Flat Cancellation

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