Term
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Definition
| A sudden unexpected and unintended event causing injury or damage |
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Term
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Definition
| (ACV) An item's replacement cost minus depreciation |
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Term
| Additional (Supplementary) Payments |
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Definition
| In casualty policies, payments in addition to the policy limits for all expenses the insurer incurs; all reasonable expenses the insured incurs at the insurer's request to assist in the investigation or defense of a claim or suit; cost of bail bonds to release attachments; costs taxed against the insured; prejudgement interest awarded against the insurer; and interest that accrues after entry of a judgement. |
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Term
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Definition
| The maximum limit of liability for all claims during the policy period |
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Term
| Assignment (transfer of your rights and duties under this policy) |
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Definition
| An insured cannot transfer (assign) ownership of a property or casualty insurance policy to another without written consent of the insurer. |
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Term
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Definition
| Liability for Bodily Injury, sickness or disease sustained by a person, including death resulting from these at any time, caused by an occurence. |
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Term
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Definition
| Taking property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit. |
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Term
| Business Income Coverage Form |
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Definition
| Pays for loss of business income during the period of restoration while operations are suspended due to a direct physical loss of or damage to property at the insured premises, caused by a covered cause of loss. |
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Term
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Definition
| A multi-line package policy in a simplified form that provides property, liability, and other coverage extensions. |
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Term
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Definition
| Termination of an insurance policy before the end of the policy period by the insured or insurer. |
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Term
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Definition
| A document used to provide proof of the existence of a policy and coverage. |
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Term
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Definition
| Covers liability claims that are first made during the policy period for an accident or occurence that took place after a retroactive date and before the end of the policy period. |
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Term
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Definition
| Obligates the insured to pay part of a loss if the coverage provided in the policy is less than a percentage of the value of the property at the time of loss. |
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Term
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Definition
| applies to loss due to the upset of a covered auto or its impact with another vehicle or object. |
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Term
| Commercial General Liability |
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Definition
| Part of the commercial package policy that provides liability coverage on a business. |
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Term
| Commercial Package Policy (CPP) |
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Definition
| Policy consisting of Common Policy Declarations and Common Policy Conditions, plus one or more coverage parts including: boiler and machinery, commercial auto, commercial general liability, commercial inland marine, commercial property, crime and farm. |
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Term
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Definition
| Clauses or provisions in a policy that specify the rules of conduct for the insured and the insurer. |
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Term
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Definition
| The willful withholding of material information in order to deceive another person. |
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Term
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Definition
| Liability for damages an insured has as a result of a contractual hold harmless agreement (wherein a person assumes liability for certain occurences, relieving another of the liability.) |
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Term
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Definition
| In crime insurance, this is the insured, or any of his partners or employees, while having care and custody of property inside the premises, except for a person while acting as a watchperson or guard. |
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Term
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Definition
| Statements made by the insured about the particular risk being insured. |
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Term
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Definition
| A specified dollar amount or percentage of covered loss that the insured must pay for each occurence before the insurer is liable for payment for a loss. |
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Term
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Definition
| The insured pays an advance premium (deposit premium) at the beginning of the policy period. At the end of the policy period, the insured's records are audited by the insurer to determine the final premium owed. The insured then pays or is refunded the difference. |
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Term
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Definition
| Following a property insurance loss, an insured has the following duties, designed to limit the insurer's loss: promptly notify the insurer or agent, protect the property from further damage, keep an accurate record of repair expenditures, prepare an inventory of damaged personal property, exhibit damaged property, provide the insurer with requested records, submit to an examination, and submit a signed sworn proof of loss. |
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Term
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Definition
| A property insurance policy designed to cover buildings for individuals and families. It is personal lines coverage that does not include liability coverage unless endorsed. |
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Term
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Definition
| Insurance that covers losses resulting from damage done by an earthquake. Can be purchased as a separate policy, as an endorsement to a homeowners or dwelling policy, or as a covered cause of loss to most types of commercial policies. In can cover buildings and personal property. |
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Term
| Employers Liability Coverage |
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Definition
| Covers an employer's liabilityfor an employee's accidental or bodily injury or bodily injury by disease, in situations not covered by workers compensation laws. |
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Term
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Definition
| Provides boiler and machinery coverage, for loss due to breakdopwn of equipment built to operate under internal pressure or vacuum, electrical or mechanical equipment used to generate, transmit or use energy, and communication equipment and computer equipment. |
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Term
| Errors and Omissions Insurance (E & O) |
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Definition
| A professional Liability coverage that covers the insured against errors or omissions in the performance of his professional duties. |
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Term
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Definition
| Specify what the insurance company will not cover in terms of types of property, perils or losses. Policies will exclude perils because they are not insurable or because the basic premium does not cover the additional risk exposure or because other more specialized contracts more adequately provide coverage. |
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Term
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Definition
| Provisions which extend coverage, without an additional premium, to property not otherwise covered in the policy. |
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Term
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Definition
| Extra expense incurred to continue operations at the premise or temporary location during the period of restoration. |
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Term
| Fair Credit Reporting Act |
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Definition
| A federal law designed to protect the privacy of consumer report information and to guarantee that the information supplied by credit reporting agencies is as accurate as possible. The FCRA requires an insurer to the applicant's consent before obtaining medical information, provide the applicant with a written disclosure within three days after requesting an investigative consumer report, and provide the applicant with a notice when they take an adverse action. |
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Term
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Definition
| Applies to damages resulting from bodily injury or property damage caused by a covered accident and resulting from garage operations. |
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Term
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Definition
| Liability for damage to property in the care, custody, and control of the insured. Businesses that service, repair, park, or store customers' vehicles left in their care need this coverage to insure their legal liability. |
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Term
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Definition
| A person hired specifically to have care and custody of property inside the premises and who has no other duties. |
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Term
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Definition
| A condition that creates or increases the chance of loss from Peril. |
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Term
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Definition
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Term
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Definition
| a physical characteristic that increases the probability of a loss. |
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Term
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Definition
| Relates to a person's sense of right and wrong. It is a condition or personal habit that increases the probablity of a loss. |
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Term
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Definition
| relates to a person's attitude, as reflected in his personal and business habits. It is a condition related to carelessness or indifference. |
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Term
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Definition
| Any auto the named insured hires, leases, rents, or borrows. |
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Term
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Definition
| A package of insurance coverage designed specifically for the homeowner. Includes both property and liability coverages. |
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Term
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Definition
| The principle of indemnity holds that an insured should not make profit, but should be placed in the same financial condition he was in before the loss. |
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Term
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Definition
| Vicarious liability a person has for acts of hired independent contractors. |
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Term
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Definition
| Covers four classes of property: domestic shipments, means of transportation or communication, personal property floater risks and commercial property floater risks. |
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Term
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Definition
| An interest that might result in financial loss. To receive payment on a property insurance claim, an insured must have an insurable interest in the subject of the insurance at the time a covered loss occurs. |
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Term
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Definition
| A contract in which an insurer agrees to indemnify an insured (pay the amount the insured loses) or pay a specified amount in the event of a covered loss. |
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Term
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Definition
| A type of contract or agreement necessary to the insured's business, which usually includes a "hold harmless" provision. The insured's liability policy will provide coverage for the liability assumed in an insured contract but not in other contracts. |
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Term
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Definition
| Any person covered by the policy |
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Term
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Definition
| A person named as an insured by the policy declarations. |
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Term
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Definition
| A person who exercises the rights and duties as a representative of all named insureds. |
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Term
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Definition
| Persons added to the policy, because they have inadequate or no coverage of their own and could be liable for acts of the named insured or could create liability for the named insured. |
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Term
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Definition
| The agreement in which the insurance company promises to pay for a loss resulting from any of the perils covered by the contract. |
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Term
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Definition
| Legal responsibility for one's actions that result in injury, death, or property damage. |
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Term
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Definition
| The limits on the amount of insurance provided in the policy |
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Term
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Definition
| Property Insurance policies provide that the insurer will pay no more than the insurable interest of the insured, or the cost to repair or replace, or the value of the property, or the limit of liability (limit of insurance) specified in the policy. |
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Term
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Definition
| A single amount of insurance on a specific item at a specific location. |
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Term
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Definition
| A schedule of limits for a number of specific items at one or more location. |
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Term
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Definition
| A single limit of insurance to cover all items at one or more locations. |
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Term
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Definition
| Damage or injury caused by peril results in a loss |
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Term
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Definition
| Physical damage to the property or the actual loss of the property |
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Term
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Definition
| or Consequential loss. Loss resulting from a direct loss. The loss of business or increased expense caused indirectly by a direct loss. |
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Term
| Loss Settlement Provisions |
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Definition
| Following an occurence covered by a liability insurance policy, the insured is required to promptly give written notice describing the accident to the insurer or agent, promptly forward all notices or legal papers relating to the accident and cooperate with the insurer in the investigation of a claim or suit. |
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Term
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Definition
| In insurance, a fact that would have caused the insurer or agent, promptly forward all notices or legal papers relating to the accident and cooperate with the insurer in the investigation of a claim or suit. |
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Term
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Definition
| The insured, or any of his partners or employees, while having care and custody of property outside the premises. |
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Term
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Definition
| A mortgage clause in a property insurance policy protects the interest of a mortgagee who has a lien on the property. It provides for payment to the mortgagee as well as the insured, based on their interests in the property. |
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Term
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Definition
| A disappearance of property without any possibility of determining the cause of the disappearance. |
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Term
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Definition
| The failure to act as an ordinary, reasonable and prudent person would in the same or similar circumstances. |
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Term
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Definition
| An insurer's decision not to extend a policy past its expiration date or not renew the policy for an additional period after the current policy expires. |
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Term
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Definition
| Any auto the named insured does not own, lease, rent, hire or borrow. |
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Term
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Definition
| Notice to the insurer that payment is requested for a covered loss, subject to all of the conditions and exclusions of the policy. |
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Term
| Obligations of the Insurance Company |
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Definition
| Following a loss, the insurance company has a duty to give the insured written notice of its intent to repair, or pay for the cost of repairing or replacing the damaged property; pay the insured or another person entitled to payment within the period following receipt of proof of loss, as set forth in the policy. |
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Term
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Definition
| The person in a surety bond for whom work is to be done. He is in effect the insured. |
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Term
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Definition
| The person in a surety bond who has an obligation to perform. Also called the principle. |
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Term
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Definition
| An accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results in bodily injury or property damage. |
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Term
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Definition
| A general liability form providing coverage only if the loss or claim occurs during the policy period, as opposed to a claims-made form. |
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Term
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Definition
| Covers imports and exports against hazards involved in shipping transportation on navigable waters. |
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Term
| Other insurance provisions |
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Definition
| Limits the insurer's liability when more than one insurance policy covers the same loss so the insured cannot profit by collecting the full amount of the loss from more than one insurer. May provide for coverage to be prorated; provided on a promary/excess basis; or provided on a contribtion-by-equal-shares basis. |
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Term
| Other than collision coverage |
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Definition
| Often called "comprehensive" coverage. Applies to any direct and accidental loss not caused by collision. |
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Term
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Definition
| Any auto owned or acquired during the policy period. |
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Term
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Definition
| The limit of liability for all damages, whether property damage or bodily injury, resulting from one occurence. |
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Term
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Definition
| The limit of liability that applies to each individual injured. |
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Term
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Definition
| The occurence that causes a loss. |
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Term
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Definition
Named Peril Policies,
Open Peril Policies |
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Term
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Definition
| List (name) the specific perils insured against. |
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Term
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Definition
| Provide the most comprehensive coverage. Insure against direct loss except from those perils specifically excluded. |
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Term
| Personal Injury Liability |
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Definition
| Liability for injury other than bodily injury caused by an offense arising out of the conduct of the insured's business, such as false arrest, malicious prosecution, wrongful entry, slander or libel. |
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Term
| Personal Injury Protection |
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Definition
| Automobile medical coverage to individuals injured in an accident, regardless of fault. |
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Term
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Definition
| Liability for accidents occurring on the insured's business premises or as a result of the insured's business operations at someone else's premises. |
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Term
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Definition
| The person in a surety bond who is supposed to do something. Also called an obligor. |
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Term
| Products and Completed Operations |
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Definition
| Liability for bodily injury and property damage arising out of the insured's product or work when the product is out of the insured's possession and the occurence takes place away from any premises owned or rented by the insured. |
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Term
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Definition
| Injury arising out of the insured's malpractice, errors or mistakes, or those of a person for whom he is legally responsible, in conducting his profession. |
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Term
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Definition
| A warranted, legal form used by the insured to submit loss information to the insurer. |
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Term
| Property Damage Liability |
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Definition
| Liability for physical injury to, or loss of use of, tangible property belonging to another caused by an occurence. |
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Term
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Definition
| The actual event which starts an unbroken chain of events leading to a loss or further losses. |
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Term
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Definition
| The cost to repair or replace a damaged item with new materials of like kind and quality, regardless of the amount of depreciation (wear and tear) the item has suffered. |
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Term
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Definition
| A statement considered to be true to the best knowledge of the person making it. |
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Term
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Definition
| The earliest date a general liability occurence could take place and be covered under a claims-made form. |
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Term
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Definition
| The uncertainty regarding a loss. |
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Term
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Definition
| The Possibility of either a loss or no loss. The is insurable. |
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Term
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Definition
| The possibility of loss or gain. Not insurable. |
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Term
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Definition
| The taking of property from a person by causing or threatening to cause that person bodily harm. |
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Term
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Definition
| The unlawful taking of property from within a locked safe or vault by unlawfully entering it, as evidenced by marks of forcible entry. |
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Term
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Definition
| One limit for all liability losses resulting from a single occurence. |
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Term
| Sources of Insurability Information |
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Definition
| Sources include the application filled out by the applicant; reports, opinions, and recommendations of the agent; inspection or engineering reports on the applicants property; insuring reporting and rating organizations and reports of consumer credit agencies and other financial reference services. |
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Term
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Definition
| Separate limits per occurence for bodily injury and/or property damage. |
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Term
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Definition
| Transfer of any rights the insured has to collect damages from the person responsible for a loss to the insurer after settlement of a claim. |
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Term
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Definition
| The insurance company issuing a surety bond. It guarantees that the work will be done or the obligee will be indemnified for his loss. |
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Term
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Definition
| A guarantee that a specific obligation will be fulfilled. A three-party contract, as it involves a principle (obligor), and obligee ( the insured) and the surety (the insurance company). |
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Term
| Temporary Substitute Auto |
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Definition
| An auto or retailer not owned by the named insured while being used as a temporary substitute for a covered auto is out of normal use due to breakdown, repair, servicing, loss or destruction. |
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Term
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Definition
| Any act of stealing, including robbery, burglary, embezzlement, forgery, etc. |
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Term
| Umbrella Liability Insurance |
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Definition
| A broad type of liability insurance policy that provides coverage for losses payable that exceed the underlying insurance contract. Written on both commercial and personal policies. |
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Term
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Definition
| The term applying to a building that has no people or contents (eg, the tenants have moved out and the building is bare until is rerented.) |
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Term
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Definition
| A statement that a person promises to be true; if it is not absolutely true, the policy can be voided or its coverage can be suspended. |
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Term
| Workers Compensation Insurance |
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Definition
| Covers the employer's liability for accidental injury during the policy period and for bodily injury by disease caused or aggravated by employment conditions during the policy period. It covers all benefits by the workers compensation laws in the states listed in the declarations. |
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Term
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Definition
(DP 00 01) automatically covers direct physical loss to covered property caused by the following perils:
Fire, lightning, internal explosion (explosion of water heater, furnace, stove, etc. in a covered building containing covered personal property.) |
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Term
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Definition
Can be added for an additional premium.
Windstorm, aircraft, riot or civil commotion, vehicles, volcanic eruption, explosion, smoke. (WHARVVES) |
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