Unless otherwise specified in the policy, Actual Cash Value in California indicates Fair Market Value. The Fair Market Value of an item is the dollar quantity that an experienced buyer (under no pressure) is ready to pay and a knowledgeable seller (under no unusual pressure) wants to accept.
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Agent
A certified person or organization licensed to sell and service insurance coverage policies 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 amount can be figured on a per occurrence basis or as a basic aggregate for the complete policy term.
Agreed Value
A method of loss valuation where the guaranteed and the insurance provider list an agreed upon total up to be paid in case of loss. This evaluation approach is most common in residential or commercial property insurance coverage when insuring valuable artwork, antiques, or classic cars. A professional appraisal is usually needed.
Arbitration Clause
A provision in an insurance plan that enables the insured and the insurance company to each select an arbitrator if they can not concur upon an appropriate claim settlement. Once the arbitrators have been chosen, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire decides which claims settlement to support. The decision is binding.
Betterment
A situation that occurs in a loss when an old piece of residential or commercial property is replaced by a brand brand-new item. The insured is put in a much better monetary position than they were before the loss took place, and consequentially might need to pay the difference in cost for the improvement.
Binder
A short-term contract that supplies momentary insurance protection till the policy can be provided or provided.
Broker
A certified person or organization who offers and services insurance coverage cops in your place.
Broker-agent
A licensed person who can serve as a representative 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 coverage agreement by either the insured or the insurer before its typical expiration date.
Claim
Notice to an insurance company that a loss has occurred that may be covered under the conditions of the policy.
Claim Adjuster
The individual who evaluates the damage triggered by a covered loss and figures out the amount to be paid under the policy terms.
Claims Made
A liability insurance policy where protection applies to claims filed throughout the policy period no matter when the loss happened subject to a retroactive beginning date.
Coinsurance
An insurance provision that defines the quantity of each loss that the company pays according to the quantity of insurance coverage brought, divided by the amount of insurance coverage required. This basic formula connects to a contracted percentage of coverage that must be needed 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 protections for organizations, commercial organizations, and expert companies, as contrasted with personal insurance.
Commission
A portion of the policy premium that is paid to an agent by the insurance company as payment for the agent's work.
Concurrent Causation
Occurs when two or more hazards trigger a loss. When only one of these perils is covered by the insurance coverage, the court typically rules that the entire loss is covered. Many insurance provider have reworded their policies to clarify that only a loss credited to a covered danger is certainly covered.
Conditions
The portion of an insurance contract that sets forth the rights and tasks of the insured and the insurance company.
Consequential Bodily Injury
In Workers Compensation, special circumstances 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 offered under an insurance policy.
Declarations (DEC) Page
Usually the very first page of an insurance coverage that consists of the complete legal name of the insurer, the policy number, reliable and expiration dates, premium payable, the quantity and types of protection, and the deductibles.
Deductible
The quantity of the loss that the insured is responsible to pay before gain from the insurance coverage policy are payable.
Depreciation
The real or accounting recognition of the decline in value of residential or commercial property over an amount of time according to a predetermined schedule.
Dual Capacity
In Workers Compensation, a company may be liable two ways to a worker who incurs physical injury on the job as a result of using a service or product produced by that employer. The employee 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 product and services.
Earned Premium
The part of the policy premium paid by a guaranteed that has been assigned to the insurer's loss experience, costs, and earnings year to date.
Endorsement
A written contract that alters the regards to an insurance plan by including or deducting coverage.
Effective Date
The beginning date of an insurance coverage policy: the date the policy goes in to require.
Exclusion
A contractual provision in an insurance coverage policy that denies or restricts coverage for certain perils, persons, residential or commercial property, or locations.
Experience Modification
The change of premium resulting from making use of experience rating. Experience rating plans reflect an insured's past loss experience (generally from the previous three years) and utilizes this experience to customize and determine the prem
The termination date of coverage as indicated on an insurance coverage.
First Party
The policyholder (insured) in an insurance agreement.
Flat Cancellation
Cancellation that occurs on the policy effective date. No premium charge is made
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Commercial Insurance Guide
Hermelinda Llanas edited this page 1 week ago