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Definition
| A contract that meets all of the requirements to be enforceable. |
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| Something of value or bargained for and exchanged by the parties to a contract. |
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| The principle that insurance policies should provide a benefit no greater than the loss suffered by an insured. |
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| A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss. |
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| An intentional failure to disclose a material fact. |
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Term
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| A false statement of a material fact on which a party relies. |
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Term
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Definition
| In insurance, a fact that would affect the insurer’s decision to provide or maintain insurance or to settle a claim. |
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Definition
| A contract that one or more parties must perform only under certain conditions. |
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Definition
| An insurance form that meets the needs of many policyholders and is therefore printed in bulk for future use. |
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Term
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Definition
| An insurance form that is drafted according to terms negotiated between a specific insured (or group of insureds) and an insurer. |
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Definition
| A component of a CPP or a monoline policy that contains the policy provisions relating to a particular line of business, such as commercial property or commercial general liability; consists of the coverage part’s declarations page, one or more coverage forms, applicable endorsements, and in some cases a general provisions form. |
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Term
| Declarations page (declarations, or dec.) |
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Definition
| An insurance policy information page or pages providing specific details about the insured and the subject of the insurance. |
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Term
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Definition
| A document that amends an insurance policy. |
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Term
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Definition
| Any phrase or clause in an insurance policy that describes the policy’s coverages, exclusions, limits, conditions, or other features. |
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Definition
| Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item. |
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Term
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Definition
| A statement in an insurance policy that the insurer will, under described circumstances, make a loss payment or provide a service. |
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Definition
| Any provision in an insurance policy that qualifies an otherwise enforceable promise of the insurer. |
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| A policy provision that eliminates coverage for specified exposures. |
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Term
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Definition
| A policy designed to cover property that floats, or moves, from location to location. |
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Term
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Definition
| A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils. |
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Term
| Special form, or open perils policy |
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Definition
| A policy that provides coverage for any direct loss to property unless the loss is caused by a peril specifically excluded. |
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Term
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Definition
| Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn. |
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Term
| Other than collision (OTC) coverage |
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Definition
| Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded. |
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Term
| Specified causes of loss coverage |
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Definition
| Coverage for direct and accidental loss caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or loss resulting from the sinking, burning, collision, or derailment of a conveyance transporting the covered auto. |
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Term
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Definition
| A reduction in the value of property that results directly and often immediately from damage to that property. |
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Term
| Time element loss (indirect loss) |
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Definition
| A loss that arises as a result of damage to property, other than the direct loss to the property. |
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Term
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Definition
| The difference between revenues (such as money received for goods or services) and expenses (such as money paid for merchandise, rent, and insurance). |
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Term
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Definition
| Expenses, in addition to ordinary expenses, that an organization incurs to mitigate the effects of a business interruption. |
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Term
| Additional living expense |
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Definition
| A coverage in homeowners policies that indemnifies the insured for the additional expenses that are incurred following a covered property loss so that the household can maintain its normal standard of living while the dwelling is being restored. |
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Term
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Definition
| A person, corporation, partnership, or other entity identified as an insured party in an insurance policy’s declarations page. |
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Term
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Definition
| A party entitled to share in whatever loss payment an insured receives. |
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Term
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Definition
| A portion of a covered loss that is not paid by the insurer. |
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Term
| Insurance-to-value provision |
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Definition
| A provision in property insurance policies that encourages insureds to purchase an amount of insurance that is equal to, or close to, the value of the covered property. |
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Term
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Definition
| An insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced. |
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Term
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Definition
| Physical injury to a person, including sickness, disease, and death. |
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Term
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Definition
| Physical injury to, destruction of, or loss of use of tangible property. |
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Term
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Definition
| Injury, other than bodily injury, arising from intentional torts such as libel, slander, or invasion of privacy. |
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Term
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Definition
| A legally binding contract between the parties to a dispute that embodies their agreement, obligates each to fulfill the agreement, and releases both parties from further obligation to one another that relates to the dispute. |
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Term
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Definition
| Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured’s earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer’s request. |
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Term
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Definition
| Interest that may accrue on damages before a judgment has been rendered. |
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Term
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Definition
| Interest that may accrue on damages after a judgment has been entered in a court and before the money is paid. |
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Term
| Medical payments coverage |
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Definition
| Coverage that pays necessary medical expenses incurred within a specified period by a claimant (and in certain policies, by an insured) for a covered injury, regardless of whether the insured was at fault. |
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Term
| Occurrence basis coverage |
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Definition
| Coverage that is triggered by the actual happening of bodily injury or property damage during the policy period. |
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Term
| Claims-made coverage form |
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Definition
| A coverage form that provides coverage for bodily injury or property damage that is claimed during the policy period. |
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Term
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Definition
| The date on or after which bodily injury or property damage must occur (or a personal and advertising injury offense must be committed) in order to be covered. |
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Term
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Definition
| The maximum amount an insurer will pay for injury to any one person for a covered loss. |
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Term
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Definition
| The maximum amount an insurer will pay for all covered losses from a single occurrence, regardless of the number of persons injured or the number of parties claiming property damage. |
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Term
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Definition
| The maximum amount an insurer will pay for all covered losses during the covered policy period. |
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Term
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Definition
| Separate limits for bodily injury and property damage liability coverage. |
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Term
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Definition
| A single limit of liability for the combined total of bodily injury and property damage from any one accident or occurrence. |
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