Term
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Definition
| One who has is charged with the care of the property of another. For example, a garage is bailee of a customer’s ("bailor’s") car (the "bailment") and a jeweler is a bailee of customers’ jewelry while in for repair or appraisal. |
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Term
| Bailees liability insurance |
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Definition
| Insurance covering damage negligently caused by a bailee or employee to goods left in their care. |
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Term
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Definition
| The act of delivering property in trust to another for a limited time and specific purpose. |
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Term
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Definition
| The person delivering property to another in trust. |
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Term
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Definition
| The perils of fire, lightning, and removal of property from premises endangered by those perils as shown in the standard 1943 New York fire policy. |
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Term
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Definition
| Covered perils in a property insurance contract: fire, lightning, windstorm, civil commotion, smoke, hail, aircraft, vehicles, explosion and riot. |
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Term
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Definition
| Sometimes known as windstorm plans or pools, these are plans devised by coastal states to insure the windstorm exposure of coastal properties. The plans operate in a manner similar to a joint underwriting association, with participation by all insurers operating within a state. |
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Term
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Definition
| A term used to express the difference in the value of property before loss and after restoration. |
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Term
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Definition
| An insurer’s agreement, by way of an agent, to provide non-life insurance on the spot, pending issuance of the policy contract. |
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Term
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Definition
| The authority extended to an agent by an insurer to provide insurance, usually on a temporary basis, until a policy can be written. |
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Term
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Definition
| A means of insuring various items of property under one limit of liability. |
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Term
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Definition
| Insurance covering multiple items of property as a group. Covered property may be at one location or several. |
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Term
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Definition
| A term that refers to physical injury, sickness, or disease, or death resulting therefrom. In some jurisdictions "bodily injury" includes emotional injury. |
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Term
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Definition
| Legal obligation that flows from the injury or death of another person. This insurance is commonly limited to bodily injury liability derived by way of negligence, but coverage of liability by way of contract (holding another harmless) is also possible. |
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Term
| Boiler & Machinery Insurance |
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Definition
| Fired vessels, steam generators, mechanical and or electrical objects and turbines, are all examples of "objects" that might be listed for coverage under a boiler and machinery policy. |
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Term
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Definition
| A bond that guarantees the principal’s honesty |
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Term
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Definition
| A surety bond is the financial assumption of responsibility by one or more persons for fulfilling another’s obligations. |
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Term
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Definition
| The accounts written by an agent or company. |
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Term
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Definition
| A written schedule of insureds, premiums, and losses submitted to reinsurers under certain types of reinsurance agreements. |
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Term
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Definition
| Another practice defined as "unfair" under most states’ codes. Such a practice which occurs when someone in the insurance business refuses to do business with someone else until that person complies with certain conditions or concessions. |
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Term
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Definition
| A property insurance designation for coverage that extends beyond the basic named perils |
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Term
| Broad form property damage endorsement |
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Definition
| A commercial general liability endorsement that removes the care, custody, or control exclusion relating to the property of others and replaces it with a less stringent one. |
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Term
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Definition
| One who represents the insured in arranging insurance. A broker may also serve as the agent of an insurance company. Typically, a broker does not have binding authority. |
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Term
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Definition
| A variation of property coverage specifically applicable to construction projects. It is commonly written in an amount to cover the value of the structure when completed. The premium charged takes into account that values at risk increase gradually over the term of the policy. |
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Term
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Definition
| A form of coverage similar to an umbrella, having to do with ocean marine risks |
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Term
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Definition
| A standardized contract for writing liability and property coverage on commercial autos |
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Term
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Definition
| Insurance protecting the income derived from an insured’s business activities when curtailed by a covered peril. |
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Term
| Business Personal Property |
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Definition
| A term relating to "contents" of a commercial enterprise. It may include furniture, fixtures, machinery and equipment as well as stock, all other chattels owned by the insured, and even use interest in building improvements and betterments. |
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Term
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Definition
| A package of property and liability insurance for small and medium size businesses, the BOP owes its origin to the success of the homeowners policy. |
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Term
| Backdated Liability Insurance |
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Definition
| Coverage procured for claims after a loss event has actually happened. This type of coverage is offered when the amount of the claim is very uncertain and potentially long delays in payment may result. |
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Term
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Definition
| Refers to a deductible arrangement under which the deductible under the policy equals the policy limits. |
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Term
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Definition
| A term describing blatantly unfair conduct that exceeds mere negligence by an insurance company. |
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Term
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Definition
| A person or organization to which possession of the property of others has been entrusted, usually for storage, repair, or servicing. |
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Term
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Definition
| A common insurance policy condition that prevents an insurer from being relieved of its obligations in the event of bankruptcy or insolvency of the insured or the insured's estate. |
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Term
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Definition
| An agreement between a ship owner and a charterer (an individual or company chartering a vessel) that essentially gives the charterer complete responsibility for the vessel and its operation over the course of the charter. |
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Term
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Definition
| Under this coverage, the condominium association insures only the bare structure of the individual condominium building; the structure, fixtures, and furnishings of collectively owned areas; and the collectively owned personal property of the association. |
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Term
| Basic Causes of Loss Form |
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Definition
| This form provides coverage for the following named perils: fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. |
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Term
| Basic Extended Reporting Period |
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Definition
| In professional liability policies, this is the extending of the reporting period for 30 to 60 days at no additional charge when the insurer cancels or nonrenews the policy. |
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Term
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Definition
| The minimum limits of liability that can be purchased by an insured. |
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Term
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Definition
| In a retrospective rating plan, the policy standard (or subject) premium multiplied by the basic premium factor or basic premium ratio. |
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Term
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Definition
| An aggregate loss limit (or deductible) applicable to multiple lines of coverage. |
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Term
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Definition
| deductible is a single retained limit designed to fund losses from multiple risks |
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Term
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Definition
| Excess liability insurance that attaches once retained losses for several lines of coverage (e.g., workers compensation and general liability) reach a certain specified level. |
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Term
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Definition
| A provision found in professional liability policies stating that only one deductible (or retention) applies per wrongful act, regardless of the number of claims resulting from that act. |
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Term
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Definition
| A limitation provision, used most frequently in products liability and umbrella liability policies, that places coverage for all claims arising out of defective products produced in a single manufacturing run (or batch) within a single occurrence limit. |
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Term
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Definition
| The expected value of unfavorable deviations of a random variable from a specified target level. |
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Term
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Definition
| A person named by the insured to receive the proceeds or benefits accruing under a life policy. |
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Term
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Definition
| Compensation for loss and other services provided by insurers under terms of insurance contracts. |
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Term
| Benefits Payable Exclusion |
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Definition
| A standard exclusion in fiduciary liability policies precluding coverage for claims involving payment of benefits owed to a claimant, if monies are available within the plan to make such a payment. |
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Term
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Definition
| The rating system developed and published annually by A.M. Best Company that indicates the financial condition of insurers. |
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Term
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Definition
| A provision, often found in the physical damage section of automobile insurance policies, which stipulates that if the repair or replacement of the damaged parts results in better than "like kind or quality," the insurers will not pay for this net improvement. |
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Term
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Definition
| This clause is designed to preserve the concept of indemnity so the insured does not profit from the loss when the circumstances are such that it is impossible for the insurer to repair or replace the property without bettering the insured's position. |
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Term
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Definition
| Usually refers to situations in which the issues of liability and damages are separated and tried independently. |
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Term
| bilateral extended reporting period provision |
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Definition
| An extended reporting provision found in a claims-made policy that allows the insured to purchase an extended reporting period (ERP) if either the insured or the insurer decides to cancel or nonrenew the policy. |
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Term
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Definition
| A document that serves both as a receipt for goods being shipped and a contract defining the extent of the transporter's liability. |
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Term
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Definition
| A legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued. |
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Term
| Black Lungs Benefits Act of 1973 |
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Definition
| This legislation, Title IV of the Federal Coal Mine Safety and Health Act (FCMS&HA) of 1969, and its various amendments provide coverage for mine workers whose exposure to coal dust has resulted in total disability or death due to chronic lung disease. The act grants coverage to address medical treatment and lost wages of the worker in the case of total disability and death benefits to the survivors and dependents in the event of death. |
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Term
| Blanket Additional Insured Endorsement |
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Definition
| An endorsement sometimes attached to liability insurance policies that automatically grants insured status to a person or organization that the named insured is required by contract to add as an insured. |
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Term
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Definition
| A single limit of insurance that applies over more than one location or more than one category of property coverage, or both. |
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Term
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Definition
| The regulatory report filed by life, accident, and health insurers in the United States, named for its cover. |
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Term
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Definition
| The most common type of watercraft policy for individuals and families. This policy combines property, liability, medical payments, and uninsured boatowners coverage. |
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Term
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Definition
| Liability insurance term that includes bodily harm, sickness, or disease, including resulting death. |
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Term
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Definition
| A three-party contract in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed. |
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Term
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Definition
| The process by which bonds are written. |
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Term
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Definition
| A report providing premium or loss data with respect to identified specific risks. This report is periodically furnished to a reinsurer by the ceding insurers or reinsurers. |
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Term
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Definition
| A person, organization, or property of doubtful underwriting quality. |
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Term
| Bornhuetter-Ferguson technique |
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Definition
| An actuarial technique for developing losses to estimate their ultimate amount. |
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Term
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Definition
| this rule applies when an express or implied contract of hire exists between the special employer and the injured worker, the worker is engaged primarily in work for the special employer, and the special employer controls the details of the work. |
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Term
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Definition
| common law legal doctrine stipulating that if an employer (usually referred to in this rule as the special employer) borrows a worker from another employer (usually referred to in this rule as the general employer), the special employer can be held liable for the borrowed employee's actions, despite the fact that a permanent employee-employer relationship does not exist. |
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Term
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Definition
| The consumer confidence, loyalty, and favorable reputation that a business's product or service has earned in the marketplace. |
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Term
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Definition
| Rebuilding consumer confidence and loyalty in a business or product following a product tampering, contamination, or similar event. |
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Term
| Brands and Labels Endorsement |
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Definition
| A property insurance endorsement that grants permission for the insured to remove labels from damaged goods or mark the items as "salvage," provided the goods are not damaged in the process. |
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Term
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Definition
| Failure to live up to the conditions or warranties contained in a contract. |
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Term
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Definition
| A material failure to fulfill one's contractual obligationsIn some cases, most notably construction defect claims, this has led to extensive litigation over what constitutes a breach of contract versus ordinary negligence. |
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Term
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Definition
| The point at which layers of losses within a captive or risk retention group (RRG) are differentiated as being either "primary" or "excess" losses. |
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Term
| Broad Causes of Loss Form |
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Definition
| provides named perils coverage for the perils insured against in the basic causes of loss form (fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, volcanic action), plus the following additional perils: falling objects; weight of snow, ice, or sleet; water damage (in the form of leakage from appliances); and collapse from specified causes. |
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Term
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Definition
| A valuation rule that has evolved in some states and does not adhere to the principle that the traditional measure of actual cash value (ACV) (replacement cost less depreciation) is the sole measure of value at the time of loss. |
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Term
| Broad Form Contractual liability Insurance |
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Definition
| Contractual liability insurance that covers liability transferred in a wide variety of business contracts. |
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Term
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Definition
| An insurance intermediary who/that represents the insured rather than the insurer. |
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Term
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Definition
| An insurance company department that aids brokers in placing business, frequently on a worldwide basis. |
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Term
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Definition
| Reinsurers that write business through reinsurance intermediaries. |
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Term
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Definition
| Any layer of insurance (or risk retention) that resides between the primary (burning) layer and the excess layers. |
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Term
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Definition
| A property insurance policy that is designed to cover property in the course of construction. |
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Term
| Building Ordinance Coverage |
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Definition
| Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings. |
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Term
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Definition
| The rate charged for property insurance on a building as opposed to the rate charged for property insurance on the contents of a building. |
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Term
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Definition
| A type of conduct in which one person harasses another person over a time period, in a workplace environment. |
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Term
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Definition
| The standard by which a fact or a claim must be proven to prevail. |
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Term
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Definition
| Theft of property from within a premises by a person who unlawfully enters or exits from the premises. |
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Term
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Definition
| A commercial auto policy that includes auto liability and auto physical damage coverages; other coverages are available by endorsement. |
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Term
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Definition
| A written document summarizing steps to take in the event of a disaster—manmade or natural—assessing the business's ability to recover from the loss event and subsequent business interruption. |
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Term
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Definition
| Commercial property insurance covering loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations. |
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Term
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Definition
| A risk of loss so closely tied to an insured's way of doing business that it is considered not to be an appropriate subject of insurance coverage; such risks are typically addressed as overhead (i.e., the cost of the loss is included in the price of the business's products or services) or as a subject for loss control. |
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Term
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Definition
| A classification by vehicle usage, used in classifying commercial vehicles. |
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Term
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Definition
| A deductible contained in the basic policy that may be removed by paying additional premium when full coverage is required. |
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Term
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Definition
| A contract among members of a firm that provides for the continuation of the business through an agreement by which each principal agrees that, in the event of his or her death, his or her estate will sell its interest back to the business entity for a predetermined amount. |
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Term
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Definition
| A clause in property insurance policies prohibiting the insured from abandoning damaged property to the insurer for repair or disposal. |
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Term
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Definition
| The act or process of diminishing the presence of a pollutant (e.g., asbestos or lead) in either degree or intensity. |
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Term
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Definition
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Term
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Definition
| an event that must cause bodily injury (BI) or property damage (PD) to trigger coverage. |
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Term
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Definition
| When an insurer accepts from an agent, broker, or the insured—whose account is otherwise satisfactory—one or more lines of coverage that would ordinarily be declined if considered strictly on the merits of the individual risk. |
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Term
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Definition
| A monthly statement to the insurer by its agent showing policy numbers, premiums written, return premiums, commissions, and net amount due to or from the insurer. |
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Term
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Definition
| Process in which a state passes all the National Association of Insurance Commissioners (NAIC) model acts and otherwise passes muster; commercial insurers domiciled there will be acceptable security in other states. |
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Term
| Accredited Adviser in Insurance |
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Definition
| Professional designation resulting from a joint effort of the Insurance Institute of America (IIA) and the Independent Insurance Agents of America (IIAA). |
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Term
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Definition
| In property-casualty (P&C) insurance, refers to the total combined risks that could be involved in a single loss event (involving one or more insured perils). |
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Term
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Definition
| Direct costs an insurer incurs to "acquire" the premium |
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Term
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Definition
| In reinsurance contracts, a provision that is included to avoid the situation where multiple reinsurers are all part of the same dispute and each wants to appoint its own arbitrator. |
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Term
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Definition
| An accident or event resulting from natural causes, without human intervention or agency, and one that could not have been prevented by reasonable foresight or care—for example, floods, lightning, earthquake, or storms. |
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Term
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Definition
| This is a peril terminology found in ocean and inland marine policies. |
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Term
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Definition
| the cost to repair or replace the damaged property, minus depreciation |
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Term
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Definition
| The damaged property's "fair market value" |
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Term
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Definition
| An individual who computes statistics relating to insurance, typically estimating loss reserves and developing premium rates. |
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Term
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Definition
| A person or organization not automatically included as an insured under an insurance policy of another but for whom the named insured desires or is required to provide a certain degree of protection under its insurance policy. |
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Term
| Additional Insured Endorsement |
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Definition
| Policy endorsement used to add coverage for additional insureds by name |
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Term
| Additional Living Expense Coverage |
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Definition
| This coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured's normal expenses prior to the loss. |
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Term
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Definition
| A person or organization, other than the first named insured, identified as an insured in the policy declarations or an addendum to the policy declarations. |
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Term
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Definition
| Contract issued by one party that does not require signature by the other party to be valid. |
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Term
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Definition
| One who settles insurance claims. |
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Term
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Definition
| In liability insurance, the this person coordinates the insured's defense and participates in settlement negotiations. |
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Term
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Definition
| All areas of law relating to maritime activity, including personal injury (PI) liability, property damage (PD) liability, and maritime contracts. |
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Term
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Definition
| Assets whose value is included in the annual statement of an insurer to the state commissioner of insurance |
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Term
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Definition
| A company licensed or authorized to sell insurance to the general public. |
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Term
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Definition
| licensed on a state-by-state basis and differentiated from surplus lines insurers, |
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Term
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Definition
| Insurance written by an insurer licensed to do business in the state or country in which the insured exposure is located. |
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Term
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Definition
| An insurer licensed to do business in the state or country in which the insured exposure is located. |
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Term
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Definition
| An imbalance in an exposure group created when persons who perceive a high probability of loss for themselves seek to buy insurance to a much greater degree than those who perceive a low probability of loss. |
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Term
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Definition
| insures the following offenses in connection with the insured's advertising of its goods or services: libel, slander, invasion of privacy, copyright infringement, and misappropriation of advertising ideas. |
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Term
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Definition
| An endorsement developed by a rating bureau and distributed to member insurers but not filed with the state insurance departments on behalf of the member insurers. |
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Term
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Definition
| Insurance companies linked together through common ownership or interlocking directorates. |
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Term
| Age Discrimination in Employment Act |
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Definition
| A law that prohibits the making of employment decisions (e.g., hiring, promotion) based on age. |
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Term
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Definition
| An office where insurance is sold. It may be directed toward property and liability insurance, life and health insurance, or both. |
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Term
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Definition
| written contract stipulating the arrangement between an insurance agency and the insurer it represents. |
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Term
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Definition
| Important details such as ownership of renewals, commission percentages, and duties and responsibilities of each party are usually spelled out in this agreement. |
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Term
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Definition
| the legal representatives of insurers, rather than policyholders, with the right to perform certain acts on behalf of the insurers they represent, such as to bind coverage. |
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Term
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Definition
| The individual or company authorized to represent an insured in the purchase, servicing, and maintenance of insurance coverage with a designated insurer. |
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Term
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Definition
| A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually a year. |
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Term
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Definition
| The maximum amount the insured can pay as deductibles over a specified period, typically 1 year. |
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Term
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Definition
| Provides coverage once the total claims for an annual period exceed a predetermined retention amount. |
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Term
| Aggregate Excess of Loss Reinsurance |
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Definition
| A form of reinsurance that stipulates participation by the reinsurer when aggregate excess losses for the primary insurer exceed a certain stated retention level. |
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Term
| Aggregate Limit of Liability |
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Definition
| An insurance contract provision limiting the maximum liability of an insurer for a series of losses in a given time period |
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Term
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Definition
| A commercial property insurance provision that suspends the coinsurance clause until a specified expiration date. |
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Term
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Definition
| An agreement concerned with an uncertain event that provides for unequal transfer of value between the parties. |
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Term
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Definition
| Premises that have been sold or given away to another or abandoned. |
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Term
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Definition
| An insurer domiciled in and licensed under the laws of a country outside a given jurisdiction. |
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Term
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Definition
| Unsupported assertions that each party to a dispute intends to prove. |
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Term
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Definition
| the condominium association master policy covers all real property in a residential condominium structure, including fixtures in individual units and any structural improvements, betterments, or additions that the individual unit owner has made. |
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Term
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Definition
| This provides coverage to replace a condominium unit to the condition it was in at the time of the loss. |
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Term
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Definition
| In workers compensation insurance, expenses associated with handling a specific claim other than payments for medical or indemnity benefits |
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Term
| allocated loss adjustment expense (ALAE) |
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Definition
| Loss adjustment expenses that are assignable or allocable to specific claims. Fees paid to outside attorneys, experts, and investigators used to defend claims are examples |
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Term
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Definition
| The assignment to individual policies of the obligation to defend or indemnify an insured when injury or damage has occurred during a succession of policy periods. |
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Term
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Definition
| Property insurance covering loss arising from any fortuitous cause except those that are specifically excluded |
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Term
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Definition
| The ratings are often used to determine the claims-paying ability, suitability, service record, and financial stability of insurance companies. |
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Term
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Definition
| A term commonly used in risk financing to refer to one of a number of risk funding that provide coverages or services outside the realm of that provided by most traditional property-casualty (P&C) insurers. |
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Term
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Definition
| One of three cases decided in January 1991 in which premiums paid to wholly owned insurance companies were deemed deductible expenses. Substantial unrelated business, among other tests, was critical. |
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Term
| American Institute for Chartered Property Casualty Underwriters |
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Definition
| An independent nonprofit organization providing educational programs and professional certification to people engaged in the property-casualty (P&C) insurance industry. |
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Term
| Annual Aggregate Deductible |
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Definition
| The amount by which a loss or applicable coverage limit is reduced in order to determine the amount of the insured's recovery. |
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Term
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Definition
| A yearly report required by the state insurance commissioner detailing an insurer's income, expenses, assets, and liabilities, along with other pertinent data. |
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Term
|
Definition
| The recipient of periodic payments made over a specified period. |
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Term
|
Definition
| A stream of periodic payments made over a specified period. |
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Term
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Definition
| A law that defines the scope of legal liability that one party may transfer to another in a contract. |
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Term
|
Definition
| A legal doctrine applied in connection with estoppel stating that an agent has whatever power a reasonable person would assume that agent to have. |
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Term
|
Definition
| The submission of a decision to a higher court for its review and possible reversal. |
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Term
|
Definition
| A form providing the insurer with certain information necessary to underwrite a given risk. |
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Term
|
Definition
| Under an excess liability policy, the practice of specifying a retention amount that applies on a different basis to different types of covered loss. |
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Term
|
Definition
| Involves the question of "how much" each of two or more policies covering a risk, which sustained a loss, will contribute to that loss. |
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Term
|
Definition
| Property insurance provision allowing either the insurer or the insured to demand a binding appraisal of damaged property in the event of a dispute as to its value and establishing the required appraisal procedure. |
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Term
|
Definition
| Acceptance of a given risk by an insurer because the underwriting standards of the insurer have been met. |
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Term
|
Definition
| The underwriter develops these rates on an individual risk basis, according to what the underwriter believes is an equitable rate commensurate with risk involved. |
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Term
|
Definition
| Judgment rates that do not have loss experience statistics as a foundation for their development. |
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Term
|
Definition
| Referral of a dispute to an impartial third party chosen by the parties in the dispute who agree in advance to abide by the arbitrator's award issued after a hearing at which both parties have a chance to be heard. |
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Term
|
Definition
| Language providing a means of resolving differences between a reinsurer and the reinsured (or an insurer and an insured) without litigation. |
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Term
|
Definition
| An insurer retaining the right to assess additional charges above initial premium when those premiums are shown to be inadequate to cover the costs of operation. |
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Term
|
Definition
| The receiver of policy rights through an assignment. |
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Term
|
Definition
| A method of providing insurance required by state insurance codes for those risks that are unacceptable in the normal insurance market. |
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Term
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Definition
| A transfer of legal rights under, or interest in, an insurance policy to another party. |
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Term
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Definition
| The amount of risk accepted by a reinsurer |
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Term
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Definition
| If a person knows the consequences of a particular act and voluntarily accepts that risk, he or she is solely responsible for any resulting injury. |
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Term
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Definition
| Numbers used to denote to what category of autos a commercial auto policy's various coverages will apply. |
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Term
| Automatic Additional Insured Endorsement |
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Definition
| This is sometimes attached to liability insurance policies that automatically grants insured status to a person or organization that the named insured is required by contract to add as an insured. |
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Term
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Definition
| Persons or organizations that are provided with insured status by the terms of an unendorsed policy. |
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Term
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Definition
| A single rate applying to property at more than one location that is a weighted average of the individual rates applicable to each location. |
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Term
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Definition
| A risk management technique whereby risk of loss is prevented in its entirety by not engaging in activities that present the risk. |
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Term
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Definition
| Experience developed on premium and incurred loss transactions occurring during the 12 calendar months beginning January 1, irrespective of the effective dates of the policies on which these transactions took place and irrespective of the dates of the accidents from which the loss transaction arose. |
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Term
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Definition
| Refers to the fact that most insurance contracts can be terminated by the insurer or the insured at any time. |
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Term
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Definition
| Refers to an insurer's cancellation and reissuance of the same policy. |
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Term
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Definition
| The termination of an insurance policy or bond, before its expiration, by either the insured or the insurer. |
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Term
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Definition
| The largest amount of insurance or reinsurance available from a company or from the market in general. |
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Term
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Definition
| An insurance company that has as its primary purpose the financing of the risks of its owners or participants. |
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Term
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Definition
| Typically licensed under special purpose insurer laws and operated under a different regulatory system than commercial insurers. |
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Term
| Carriage of Goods by Sea Act (COGSA) of 1936 |
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Definition
| this Act contains a laundry list of 17 causes of loss for which the carrier or vessel is not liable as long as the carrier exercised reasonable steps to make the ship seaworthy and to handle/stow goods responsibly. |
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Term
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Definition
| An insurance or reinsurance company that insures or "carries" the insurance or reinsurance. |
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Term
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Definition
| The practice employed by risk-taking entities (underwriters) to justify granting coverage to and reducing premiums for firms that may not normally qualify under the insurer's written standards. . |
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Term
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Definition
| The amount of cash available to the insured in an individual life insurance policy when the insured cancels and surrenders the policy. |
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Term
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Definition
| Insurance that is primarily concerned with the losses caused by injuries to persons and legal liability imposed on the insured for such injury or for damage to property of others. |
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Term
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Definition
| A severe loss characterized by extreme force and/or sizable financial loss. |
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Term
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Definition
| A prepared strategy detailing how a particular organization will respond to a disaster. |
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Term
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Definition
| Loss in excess of the working layer, usually of such magnitude as to be difficult to predict and therefore rarely self-insured or retained. |
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Term
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Definition
| The perils that can bring about or trigger loss or damage. Can be direct (the action immediately precedes the loss) or indirect (part of an uninterrupted chain of events leading to the loss). |
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Term
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Definition
| When a company reinsures its liability with another. |
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Term
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Definition
| The insurer that cedes all or part of the insurance or reinsurance it has written to a reinsurer. |
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Term
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Definition
| An entity that is provided with an insurance certificate as evidence of the insurance maintained by another entity. |
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Term
| Certificate of Compliance |
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Definition
| Statement issued by an insurance department or other regulatory authority confirming that an insurer is in compliance with applicable statute and regulation. |
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Term
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Definition
| A document providing evidence that certain general types of insurance coverages and limits have been purchased by the party required to furnish the certificate. |
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Term
| Certified Act of Terrorism |
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Definition
| A terrorist act that is eligible for coverage under the Terrorism Risk Insurance Act (TRIA). |
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Term
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Definition
| An independent education and designation program designed for professionals in risk management and related fields. |
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Term
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Definition
| The person making a claim. |
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Term
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Definition
| A policy providing coverage that is triggered when a claim is made against the insured during the policy period, regardless of when the wrongful act that gave rise to the claim took place. |
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Term
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Definition
| A liability insurance policy that is triggered at the time a claim is paid, rather than at the time a claim is first reported |
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Term
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Definition
| An amount of money set aside to meet future payments associated with claims incurred but not yet settled at the time of a given date. |
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Term
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Definition
| Group of insureds who have similar exposures and experience and are grouped together for rating purposes. |
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Term
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Definition
| The system of establishing classes for rating purposes. |
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Term
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Definition
| Refers to an industry classification according to the perils insured and the exposure. The purpose is to group homogeneous risks for purposes of rate development. |
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Term
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Definition
| A section of a policy contract, or of an endorsement attached to it, dealing with a particular subject in the contract |
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Term
| Coincidental Excess Coverage |
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Definition
| The term coincidental excess coverage refers to the insurance provided by what would otherwise be a primary policy but contains an "excess" type other insurance clause stating that, with respect to a particular set of circumstances only, the policy is providing excess coverage. |
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Term
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Definition
| A property insurance provision that penalizes the insured's loss recovery if the limit of insurance purchased by the insured is not at least equal to a specified percentage (commonly 80 percent) of the value of the insured property. |
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Term
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Definition
| A form of automobile insurance that provides for reimbursement for loss to a covered automobile due to its colliding with another vehicle or object or the overturn of the automobile. |
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Term
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Definition
| The sum of two ratios, one calculated by dividing incurred losses plus loss adjustment expense (LAE) by earned premiums (the calendar year loss ratio), and the other calculated by dividing all other expenses by either written or earned premiums |
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Term
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Definition
| Insurance lines used to cover commercial risks as opposed to personal lines, which cover personal risks. |
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Term
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Definition
| Unwritten law derived from court case decisions based on custom and precedent. It is contrasted to statutory law. |
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Term
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Definition
| The rule used in negligence cases in some states that provides for computing both the plaintiff's and the defendant's negligence, with the plaintiff's damages being reduced by a percentage representing the degree of his or her contributing fault. If the plaintiff's negligence is found to be greater than the defendant's, the plaintiff will receive nothing. |
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Term
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Definition
| An injury or illness that meets the statutory standard and qualifies an employee to receive workers compensation benefits. |
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Term
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Definition
| A method of rating insurance premiums on a singular rate developed to apply to all coverages according to a selected exposure basis. |
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Term
| compulsory insurance requirements (international insurance) |
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Definition
| The requirement that foreign countries impose on businesses to purchase certain types of insurance coverage to operate in the countryFrequently, these coverages must be purchased from an admitted insurer in the host country or from the foreign government itself. |
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Term
| Commercial Property Program |
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Definition
| A portfolio of coverage forms, policywriting procedures, and rating rules for insuring the property loss exposures of business entities. |
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Term
| commercial property conditions form (ISO) |
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Definition
| this form (CP 00 90) establishes the policy provisions with respect to the following issues: concealment, misrepresentation, and fraud; |
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Term
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Definition
| A certain percentage of premium produced that is retained as compensation by insurance agents and brokers. |
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Term
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Definition
| The title of the head of most state insurance departments. |
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Term
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Definition
| An accident in which two or more persons are injured. |
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Term
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Definition
| Rating based on the experience of a community in which the insureds reside, with reference to age, sex, occupation, or health. |
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Term
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Definition
| Under a general liability policy, work of the insured that has been completed as called for in a contract, or work completed at a single job site under a contract involving multiple job sites, or work that has been put to its intended use. |
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Term
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Definition
| A willful act of holding back information that may be pertinent to the issuance of an insurance policy even though the insured was not asked about that particular subject. |
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Term
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Definition
| Actions taken to address the loss of a specific key process or resource, such as a critical piece of equipment. |
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Term
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Definition
| Secondary beneficiary who receives policy benefits if the primary beneficiary predeceases the named insured under a life insurance policy. |
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Term
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Definition
| This is offered intact to one party by another under circumstances requiring the second party to accept or reject the contract in total without having the opportunity to bargain over the wording. |
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Term
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Definition
| Negligence of a plaintiff constituting a partial cause or aggravation of his or her injury. |
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Term
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Definition
| A termination provision in a reinsurance contract under which the reinsurer is not liable for losses taking place after the date of termination. |
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