Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Value of a product is the dollar quantity that a well-informed buyer (under no unusual pressure) is prepared to pay and a well-informed seller (under no uncommon pressure) is ready to accept.

Agent

A certified person or organization authorized to sell and service insurance policies for an insurance provider.

Aggregate Limit

The maximum dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This optimum 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 guaranteed and the insurer list an agreed upon quantity to be paid in case of loss. This appraisal method is most common in residential or commercial property insurance when guaranteeing important art work, antiques, or timeless automobiles. A professional appraisal is typically required.

Arbitration Clause

A clause in an insurance plan that permits the insured and the insurance provider to each select an arbitrator if they can not agree upon a suitable claim settlement. Once the arbitrators have actually been picked, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire decides which claims settlement to support. The last choice is binding.

Betterment

A scenario that occurs in a loss when an old piece of residential or commercial property is changed by a brand name new product. The insured is put in a much better monetary position than they were before the loss took place, and consequentially might have to pay the difference in price for the betterment.

Binder

A short-term arrangement that provides temporary insurance coverage till the policy can be released or delivered.

Broker

A licensed individual or organization who offers and services insurance coverage cops in your place.

Broker-agent

A certified individual who can serve as a representative representing several 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 or the insurance provider before its normal expiration date.

Claim

Notice to an insurance provider that a loss has occurred that may be covered under the conditions 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 policy where coverage applies to claims submitted during the policy duration no matter when the loss took place subject to a retroactive creation date.

Coinsurance

An insurance clause that defines the quantity of each loss that the company pays according to the amount of insurance brought, divided by the quantity of insurance required. This standard formula relates to a contracted percentage of coverage that need to be needed to avoid a coinsurance charge.

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, business institutions, and expert organizations, as contrasted with personal insurance.

Commission

A part of the policy premium that is paid to a representative by the insurance coverage business as settlement for the agent's work.

Concurrent Causation

Occurs when 2 or more hazards trigger a loss. When just one of these dangers is covered by the insurance policy, the court normally rules that the entire loss is covered. Many insurance provider have reworded their policies to clarify that just a loss credited to a covered hazard is undoubtedly covered.

Conditions

The part of an insurance coverage agreement that states the rights and responsibilities of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, unique circumstances can emerge 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 provided under an insurance coverage policy.

Declarations (DEC) Page

Usually the very first page of an insurance policy which contains the full legal name of the insurance provider, the policy number, effective and expiration dates, premium payable, the quantity and types of protection, and the deductibles.

Deductible

The amount of the loss that the insured is accountable to pay before gain from the insurance plan are payable.

Depreciation

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

Dual Capacity

In Workers Compensation, a company may be accountable 2 methods to a staff member who incurs physical injury on the task as a result of using a product or service produced by that employer. The staff member is qualified for Workers Compensation advantages and may also take legal action against the employer due to the fact that of the defectiveness of the injuring service or product.

Earned Premium

The part of the policy premium paid by a guaranteed that has actually been designated to the insurer's loss experience, costs, and earnings year to date.

Endorsement

A written arrangement that changes the terms of an insurance policy by including or subtracting protection.

Effective Date

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

Exclusion

A legal arrangement in an insurance coverage that denies or limits protection for specific perils, individuals, residential or commercial property, or locations.

Experience Modification

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

The termination date of coverage as suggested on an insurance plan.

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 use.

Fraud

A deliberately deceptive act devoted to obtain an unfair or unlawful benefit. Fraud generally involves monetary gain.

Frequency

The variety 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 objective is to bring back a guaranteed to the very same financial position after the loss that the guaranteed had prior to the loss. In one of the most basic sense, indemnity is compensation for a loss.

Independent Adjuster

A person or company that offers claim adjusting services to various insurers on an agreement basis.

Insurable Interest

Any interest (most frequently ownership) that an individual, business, or corporation has in a subject of insurance such as a business, structure, or car, which can be harmed and might trigger the individual, company, or corporation financial loss or other concrete deprivation. Generally, an insurable interest must be demonstrated when a policy is released and should exist at the time of loss.

Insurance

An approach of moving risk from an individual, company, or company to an insurer 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 plan.

Insurer

The insurance provider who issues insurance coverage and consents to pay for losses and supply covered benefits.

Insuring Agreement

The part of an insurance agreement that explains what is covered. The guaranteeing agreement typically specifies the hazards guaranteed against, the person(s) and/or residential or commercial property covered, the residential or commercial property areas, and the period of the agreement.