Term
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Definition
| Liability that arises from an extremely dangerous situation. Absolute Liability is often found in cases involving explosives. Also known as "strict" liability. EX: You are absolutely liable if you keep a wild animal as a pet. |
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Term
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Definition
| A sudden and unexpected event, occurring at a specific time and place |
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Term
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Definition
| The cost to replace an item of property at the time of a loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost minus Depreciation) |
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Term
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Definition
| A person, firm, or corporation other than the Named Insured on a policy, or a lender named in a mortgage clause, who is protected against loss by the terms of the policy |
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Term
| Additional Living Expenses |
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Definition
| A coverage designed to reimburse the insured for an increase in living expenses neessitaed by loss to the dwelling. This Indirect Loss must be the result of Direct Loss by a covered Peril |
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Term
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Definition
| Represents the insurance company and acts for the company in working on agreements as to the amount of a loss and the liability of the company |
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Term
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Definition
| A company that meets the state insurance department's standards and is authorized by the Director to do business in the State |
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Term
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Definition
| An individual appointed by an inurance company to solicit, negotiate effect, or countersign insurance contracts on its behalf |
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Term
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Definition
| A type of policy limit found in Liability policies that limits coverage to a specified total amount for all losses occurring within the policy period |
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Term
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Definition
| An insurance company incorporated in a country other than the United States |
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Term
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Definition
| Property coverages that are closely associated with and frequently sold with fire insurance: Dwelling Building and Contents form, Earthquake insurance, Sprinkler Leakage, etc. |
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Term
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Definition
| Insurance protecting the insured from loss arising from any peril other than those specifically excluded by name. This contrasts with named peril insurance, which names the peril or perils insured against. |
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Term
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Definition
| A questionnaire that is filled out by an agent and the prospect seeking insurance. The form contains rating and underwriting information. The applicant is expected to make representations by answering questions to the best of his or her knowledge (truthfully) |
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Term
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Definition
| If the insured and insurer cannot agree on the amount of loss, either may demand an appraisal. Each party will pay its own appraiser and share equally the expenses of the appraisal, as well as an umpire selected by the appraisers, if needed. Agreement by any two of the three will be binding |
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Term
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Definition
| A structure belonging to the insured structure, such as a tool shed. Appurenant structures are provided for the Homeowners policy and other Dwellings policies. This coverage is often called Other Structures or Out Buildings |
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Term
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Definition
| There are some applicants that underwriters do not care to insure, but because of state law or otherwishe, must be provided protection. To become authorized, a Casualty company must agree to participate in the Assigned Risk Pool and take its turn prociding Auto insurance to high-risk drivers. Also known as the auto insurance "plan" |
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Term
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Definition
| A survey of the financial records of the insured conducted to determine exposures, limits, etc. which are needed to calculate the premium. The initial premium is only a deposit |
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Term
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Definition
| A person who has temporary custody of property belonging to another person. An example of a bailee: the dry cleaners |
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Term
| Bailee's Customers Policy |
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Definition
| Insurance obtained by a bailee, to cover loss or damage to customers' property in the bailee's custody, without regard to liability |
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Term
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Definition
| Binders and other temporary insurance contracts may be made orally or in writing. Each binder is deemed to include all usual terms of the policy for which it was given, plus endorsements. Life or Disability insurance utilized conditional receipts instead of binders |
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Term
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Definition
| Fidelity bond that specifies a single limit of Liability applicable to each employee involved in a loss |
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Term
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Definition
| Usually defined to include bodily harm, sickness, disease, including required care, loss of services and resulting death |
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Term
| Boiler and Machinery Policy |
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Definition
| Insurance that covers the insured against loss (Liability and Physical Damage) arising out of the use of steam boilers or other machinery. May be written as a separate policy or as a part of a Commercial Package Policy |
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Term
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Definition
| An obligation of theinsurance company to protect one against financial loss caused by the accidents of others |
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Term
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Definition
| One who represents an insured in the solicitation, negotiation, or procurement of contracrs of insurance, and who may rener services incidental to those function. Brokers may also be licensed as agents |
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Term
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Definition
| As it is defined in Crime insurance policies, it is the unlawful taking of property by forced entry into the premises, or exit from the premises, while the premises are closed for business. There must be visible evidence of forced entry or exit |
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Term
| Businessowners Policy (BOP) |
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Definition
| A commercial package policy designed for certain types of small businesses, combining Property and Liability coverages. Very similar to a Commercial Package Policy (CPP) |
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Term
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Definition
| Termination of contract of insurance in force mid-term (rather than at the renewal date) by voluntary act of the insurace company or insured, effected in accordance with provision in the contract or by mutual agreement |
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Term
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Definition
| A type of insurance that is primarily concerned with losses caused by injury to persons and legal liability imposed upon the insured for such injury or damage to property of others |
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Term
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Definition
| In Property insurance, a clause under which the insured is required to carry a certain percentage of the replacement cost of the property in order to have a replacement cost coverage and partial losses paid in full. Coinsurance on personal lines policies is 80%. The coinsurance clause is also called the 80% clause |
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Term
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Definition
| In Property insurance, a clause under which the insured shares in losses to the extent that she in underinsured at the time of the loss |
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Term
| Commercial Package Policy (CPP) |
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Definition
| A multi-peril, multiline policy that provides a broad spectrum of Property and Casualty coverages for businesses. In addition to required basic Property and Liability insurance, the insured may add additional Marine, Boiler and MAchinery, Glass, Crime, Business Auto or Farm coverages |
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Term
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Definition
| Doctrine that a defendant is liable only for the amount of damages allocated to that defendant in direct proportion to the defendant's percentage of fault (if not 51% or more at fault, defendant is not held liable) |
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Term
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Definition
| A state fund writing Workers Compensation insurance in competition with private insurers |
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Term
| Comprehensive Personal Liability |
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Definition
| Nonbusiness Liability exposure of individuals who are insured under this policy. Comprehensive Liability coverage first became available as a separate policy, but was eventually incoporated into Homeowners policies |
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Term
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Definition
| Any form of insurance which is required by law. In many states, for example, automobile bodily injury liability insurance is compulsory for all owners of automobiles |
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Term
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Definition
| The withholding of material facts by an applicant for insurance, which materially affects an insurance risk or loss. May void the policy |
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Term
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Definition
| The portion of an insurance contract that sets forth the rights and duties of the Insured and the insurance company |
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Term
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Definition
| Indirect losses that occur as a "consequence" of a direct loss. Includes Time-Element coverages, such as coverage for rental value |
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Term
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Definition
| A characteristic of a legal contract: the thing of value exchanged for the performance promised in the contract. In insurance, the applicant's answers and the policy premium paid constitute the consideration |
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Term
| Contingent Business Income |
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Definition
| A Time-Element coverage that protects the insured against Indirect Loss that results because of a Direct Loss to a supplier business, subcontractor or manufacturer location |
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Term
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Definition
| A legal agreement between two parties promising a certain performance in exchange for a certain consideration. To hold up in court, conrtacts must contain four required elements: Consideration, Offer, Acceptance and Legal Purpose (COAL). Parties to the contract must also have Legal Capacity |
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Term
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Definition
| Provides coverage against liability arising out of an insured's contractual obligations |
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Term
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Definition
| The signature of a licensed agent, which, in most states, must appear on the policy to validate the contract |
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Term
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Definition
| In Crime insurance, a custodian is the insured or a regular employee or a partner of the insured who has care or control of property within the premises. The term custodian does not include watchman, porter or janitor |
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Term
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Definition
| A coverage provided in many Property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a Peril insured against |
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Term
| Declarations Page (Dec Sheet) |
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Definition
| A portion of the insurance contract that contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured |
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Term
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Definition
| Either expressed as a dollar amount or percentage that the insured must py before the insurer will pay anything on a covered claim. The deductible is usually per loss. After the insured pays the deductible, the insurance company pays the remainder of the covered loss, up to the policy limits |
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Term
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Definition
| Decrease in the value of property over a period of time due to use, wear and tear, and obsolescence |
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Term
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Definition
| Loss that is a direct result of a peril, such as fire |
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Term
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Definition
| An insurance company that sells its policies through licensed agents who represent he insurer exclusively, rather than through independent local agents, who represent several insurance companies. Direct writing producers are also called "Exclusive" or "captive" producers |
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Term
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Definition
| The return of part of the premium paid for a participating policy |
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Term
| Domestic Insurance Company |
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Definition
| An insurance company formed under the laws of the state in which the insurance is written |
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Term
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Definition
| That portion of the premium for which policy protection has already been given during the now-expired portion of the policy term |
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Term
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Definition
| The date on which an insurance policy or bond goes into effect and from which protection is furnished |
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Term
| Employers Liability Coverage |
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Definition
| Coverage provided under a Workers Compensation policy to cover the employer's liability arising out of employee's work-related injuries |
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Term
| Employers Nonownership Liability |
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Definition
| Provides coverage to an employer for liability arising out of an employee's use of his own auto in the employer's business. May be included under a Business Auto Policy if added to a Commercial General Liability |
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Term
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Definition
| A document, agreed to by both parties, that is attached to the policy and modifies or changes the original policy in some way. No change to a policy may become effective until approved by a company officer |
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Term
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Definition
| A Professional Liability coverage that protects the insured against liability for committing an error or omission in performance of professional duties |
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Term
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Definition
| Causes, conditions, or property listed in the policy that are not covered and for which no benefits are payable |
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Term
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Definition
| A Boiler and Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs. Ex: overtime, express transportation charges |
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Term
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Definition
| The loss record of an insured, a class of coverage, or an insurance company |
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Term
| Extended Coverage Endorsment (ECE) |
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Definition
| A specific endorsement, attached to a standard Fire policy, usually providing coverage for windstorm, hail, explosion, riot, civil commotion, aircraft, vehicular damage, volcanic eruption and smoke damage |
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Term
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Definition
| A time-element coverage for additional expenses incurred by the insured business to continue operations following a Direct Loss by a Peril insured against |
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Term
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Definition
| Fair Access to Insurance Requirement. A program established by law that makes Property insurance available and affordable to insureds who might otherwise be uninsurable because of "environmental hazards" |
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Term
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Definition
| A federally administered program that makes crime insurance available and affordable to risks that might otherwise have found coverage difficult to obtian |
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Term
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Definition
| A class of bonds that guarantees an employee's honest discharge of duty |
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Term
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Definition
| A person who occupies a position of special trust and confidence. For example, one handling or supervising the affairs or funds of another. Insurance producers are considered to be fiduciaries |
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Term
| Financial Responsibility Laws |
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Definition
| State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state |
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Term
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Definition
| Combustion, sufficient to produce a spark, flame, or glow, that is hostile(not in a place where it is intended) A friendly fire could be a fire in a fireplace or the flame on your gas stove |
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Term
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Definition
1) Contract that indemnifies an insured for loss caused by the destruction of the insured propert resulting from fire
2) The field of insurance that provides policies on the insured property for a variety of Perils, including Fire |
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Term
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Definition
| Protection that follows moveable property, covering it wherever it may be, rather than applying only at a fixed location, such as a Personal Articles Floater (PAF) |
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Term
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Definition
| Insurance designed to reimburse propert owners for loss due to flood or to flood-related erosion. Administered through the Federal Insurance Administration, but marketed through independent agents |
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Term
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Definition
| An intentional misrepresentation or false statement intended to deceive the insurer and induce it to part with something of value or to surrender a legal right. May void a policy |
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Term
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Definition
| A policy that provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc) Including coverage for Liability, Physical Damage, and Garagekeepers Losses arising out of owned, nonowned, and hired autos |
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Term
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Definition
| A coverage that is part of the Garage policy. Covers a garage risk's Legal Liablity for customers' autos in the care, custody, or control od the garage. At the insured's options, can also apply without regard to fault, for an additional premium |
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Term
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Definition
| An individual appointed by an insurer to administer its business in a given territory. A GA is responsible for building the agency and service force. Compensation is on a commission basis, although there may be additional expense allowances. Often called a Managing General Agent (MGA) |
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Term
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Definition
| Anything that increases the seriousness of a loss or increase the likelihood that a loss will ocur (risk) due to a Peril. For example: improperly stored combustiblee materials, worn tires, intentional abuse to insured property, unsafe structural changes |
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Term
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Definition
| A contractual agrrangement wereby one party assumes the Liability inherent in a situation, thereby relieving the other party of responsibility. Typically foundi n contracts such as leases, sidetrack agreements, and easements |
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Term
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Definition
| In Ocean Marine and Aviation insurance, insurance against physicial damage to plane or ship |
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Term
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Definition
| A category of the Inland and Ocean Marine Nationwide Definition which is made up of risks eligible for Marine insurance |
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Term
| Improvements and Betterments |
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Definition
| Additions or changes made by an insured to a building that may or may not be owned by him or her. Cost arising from these changes may enahnce values and thereby require special insurance consideration |
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Term
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Definition
| Insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss. The intent is to cover the amount of the actual loss only and to avoid paying amounts that allow someone to profit from a los situation. This is known as Principle of Indemnity |
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Term
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Definition
| Loss that is a result or consequence of a Direct Loss |
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Term
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Definition
A condition or defect that exists within property from the beginning and is a tendency of the property itself.
Ex: milk to sour. Insurance policies usually exclude inherent vice |
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Term
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Definition
| A form of insurance originally designed as an extension of Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property |
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Term
| Instrumentalities of Transportation and Communication |
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Definition
| A category of the Nationwide Definition that includes several different classes of Inland Marine, including bridges, tunnels, pipelines, etc |
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Term
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Definition
| Acceptability of an applicant for insurance to the insurance company |
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Term
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Definition
| A social device that protects people against certain types of financial losses by transferring pure risk from individuals to an insurer, who agrees (for a consideration) to indemnify or pay a specified amount for losses suffered by the insured |
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Term
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Definition
| Common title for head of state department of insurance (called "Director" in some states). Insurance is regulated by state law. The Commissioner's job is to protect the insurance buying public by administering state insurance laws and regulations. The Commissioner does not make the laws; he or she enforces them |
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Term
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Definition
| A contract, a legal document, which establishes the terms of agreement between the insurer and insured |
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Term
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Definition
| The party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits, or render service |
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Term
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Definition
| The insurance compan assuming risk and agreeing to pay claims or provide services |
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Term
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Definition
| The section of an insurance policy that states which losses will be indemnified, what property is covered, which perils are insured against. Also known as the Insuring Clause |
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Term
| Insurance Services Office (ISO) |
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Definition
| An organization made up of member companies that analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also develops and files standardized policy forms on behalf of members |
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Term
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Definition
| A voluntary action to rid the ship of cargo in order to prevent further damage or peril |
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Term
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Definition
| An insurance company bases its rates on a homogeneous group. Risks are not usually considered insurable unless the insurer has a large enough base of previous loss experience to be able to accurately project future losses. It is the Law of Large Numbers that makes accurate predictions of similar risks possible |
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Term
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Definition
| Broadly, any legally enforceable obligation. The term is most commonly used in a money-related sense |
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Term
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Definition
| Insures the individual for financial losses that may arise out of the person's responsibilities to others imposed by law or contract |
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Term
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Definition
| The amount of money the insurance company will pay for a particular loss, or for loss during a period of time |
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Term
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Definition
| A voluntary association of individuals, or groups of individuals, who agree to share in insurance contracts. Each individual or "syndicate" is individually responssible for the amounts of insurance it writes. Also known as "Surplus Lines" |
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Term
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Definition
An unpredictable reduction in the quality, quantity, or value of something.
Ex: bodily injury, disease, property damage, physical disapperance of property, incurred expenses, death, etc |
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Term
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Definition
| The percentage of losses to premiums, usually losses incurred to premiums earned |
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Term
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Definition
| A form Professional Liability insurance used to insure professionals including physicians, dentists and druggists against their Liability for professional misconduct or lack of ordinary skill |
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Term
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Definition
| A form of insrance primarily designed to cover property in transport over land or sea |
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Term
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Definition
| A fact that, had the company known it, would have caused it to decline the risk or include entirely different provisions than those currently included |
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Term
| Mercantile Open Stock Burglary Policy |
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Definition
| Crime policy that covers the insured's merchandise, furniture, fixtures, and equipment against burglary |
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Term
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Definition
| In Crime insurance, any regular employee of the insured, who has care or control of the property outside the premises. Also includes the insured, a partner, or an officer |
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Term
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Definition
| The use of written or oral statements of the insured or insurance company misrepresenting the risk, terms, coverages, benefits, privileges, or estimated future dividends of any policy |
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Term
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Definition
| A state insurance plan that prohibits competition by private carriers, e.g. Workers Compensation fund in some states |
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Term
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Definition
| A condition of morals or habits that increases the probability of a loss from a peril. Generally, a Moral Hazard is presented by a dishonest person |
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Term
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Definition
| Hazard created by an individual's tendency to contribute to a loss through his or her own irresponsible actions or carelessness |
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Term
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Definition
| Rights granted to a mortgagee (lender), under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property |
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Term
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Definition
| Technically, an insurance policy that insures against more than one peril. More commonly, an insurance policy that provides coverage against both Property and Casualty perils |
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Term
| Mutual Insurance Company (Insurer) |
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Definition
| An incorporated insurance company, without capital stock, whose governing body is elected by the policyholders. The policyholders own the company and they might share in the success of the company through dividends |
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Term
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Definition
| Vanishing of property with no known explanation |
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Term
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Definition
| Any person, firm, or corporation, or any member thereof, specifically designated by name as insured(s) n a policy, as distinguished from the others who, though unnamed, are protected under some circumstances |
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Term
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Definition
| Policies that insure against only the perils named, contrary to All-Risk policies. Sometimes called Specified Peril policies |
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Term
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Definition
| Fidelity bond that covers each employee name in the policy schedule for the amount listed in the schedule |
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Term
| National Flood Insurance Program |
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Definition
| The federal government's program to provide Flood insurance at subsidized rates |
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Term
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Definition
| A document designed to categorize and classify risks eligible for Ocean or Inland Marine insurance |
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Term
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Definition
| Failure to use that degree of care that an ordinary person of reasonable prudence would use under the same given circumstances. Negligence may be constituted by acts of either omission, commission or both |
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Term
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Definition
| A form of Automobile insurance mandated by law in many states whereby an insurance company reimburses its insured for auto losses, regardless of fault, and without resort to subrogation |
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Term
| Nonowners Automobile Liability Insurance |
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Definition
| Protection for the policyholder against claims for bodily injury and property damage liability caused by his/her employees or others using autos not owned or hired by the insured while conducting business. A Named Nonowner policy protects an individual who drives only borrowed or rented cars |
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Term
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Definition
| An agent licensed in a state in which he or she is not a resident |
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Term
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Definition
| In bonds, the party to whom the principal makes the promise, and for whose protection the bond is being written |
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Term
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Definition
| Impairment of health caused by continued exposure to conditions inherent in a person's occupation or a disease caused by or resulting from the nature of an employment |
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Term
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Definition
| Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, and Liability coverage (Protection and Indemnity) |
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Term
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Definition
| The existence of another contract covering the same interest and Perils. Sometimes called Pro Rata Liability, because the insurers pay claims according to the proportion of premiums paid to each. (Remember, you can't collect in total more than you lost) |
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Term
| Owners And Contractors Protective Liability |
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Definition
| Part of a commercial general liability policy that protects an owner or general contractor against liability arising out of the acts of contractors or subcontractors. It is also known as "independent contractors liability" coverage |
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Term
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Definition
| A clause found in various Property insurance contracts that states that when part of a set is damaged or destroyed, the insured is not entitled to reimbursement for the entire set. Policies provide various methods for determining the amount of reimbursement. Fine Arts floaters do not contain the clause |
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Term
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Definition
A loss that does not either:
1) completely destroy or render worthless the insured property, or
2) exhaust the insurance applying thereto |
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Term
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Definition
| A Surety Bond that guarantees a job will be completed by the contractor according to contract specifications |
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Term
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Definition
| Cause of a potential loss. An insurance policy may name the perils insured against, or it may be an All-Risk form: one that insures against all Perils not specifically excluded in the policy |
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Term
| Personal Articles Floater (PAF) |
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Definition
| Personal Inland Marine insurance that provide All-Risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, gold equipment, fine arts, stamp collections and coin collections |
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Term
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Definition
| Easy-to-read auto policy that provides broad coverage for both owned and nonowned autos that are used, maintained, and/or operated by the insured and family |
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Term
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Definition
| Liability coverage for third-party claims for damages that are other than physical, such as libel, slander, false arrest, wrongful eviction, invasion of privacy, etc |
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Term
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Definition
| Insurance coverages intended to protect individuals and their families |
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Term
| Personal Property Floater |
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Definition
| Personal Inland Marine floater that provides All-Risk coverage on unscheduled personal property |
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Term
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Definition
| A form of Ocean Marine insurance available to individuals who own large boats. Provides both Hull and Protection and Indemnity insurance |
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Term
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Definition
| In Auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody, or control |
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Term
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Definition
| The material, structural, or operational features of the risk itself, apart from the morale or moral hazards of persons owning or managing it |
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Term
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Definition
| The written contract effecting insurance or the certificate thereof by whatever name called, and papers attached thereto and made a part thereof |
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Term
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Definition
| Fidelity Bond that lists covered job categories, each with a separate amount of insurance, rather than the individuals holding those positions. New employees hired in a scheduled position are automatically covered |
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Term
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Definition
1) Consideration for the insurance
2) Periodic payment made to keep a policy in force |
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Term
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Definition
| In Bonds, the party who promises to do (or not to do) a specific thing |
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Term
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Definition
| Ordinary cars, station wagons and jeeps, utility autos (pickups, panel trucks, and delivery vans not used commercially), and utility trailers designed to be pulled by a private passenger auto |
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Term
| Products And Completed Operations |
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Definition
| A form of General Liability insurance that covers a company against liability arising out of its products (a manufacturer) or its completed operations (a contractor or architect) |
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Term
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Definition
| Liability arising out of the rendering or failure to render services of a professional nature |
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Term
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Definition
| A formal statement by the insured to the insurance company regarding a loss. The purpose is to place before the company sufficient information concerning the loss to enable it to determine its liability under the policy |
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Term
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Definition
| A type of loss covered under many Liability contracts. Includes the insured's liability for damage to property of others or loss of use of other's property |
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Term
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Definition
| Insurance that indemnifies a person with an interest in property for its loss |
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Term
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Definition
| The termination of a contract with premium charge being adjusted in proportion to the exact time the protection has been in force. All unearned premium is returned |
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Term
| Pro Rata Liability Clause |
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Definition
| Clause in a Fire Policy that provides a method of sharing loss when more than one policy is applicable. Each company covers no more than its share. Also known as the Other Insurance Clause |
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Term
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Definition
| In Ocean Marine insurance, a form of Liability insurance |
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Term
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Definition
| A risk in which there is no chance of gain, only loss |
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Term
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Definition
| The per-unit cost of insurance |
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Term
| Rates and Premiums, Setting |
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Definition
| The chance of loss (risk) is a combination of the probable frequency of loss and the probable severity of loss, based on accumulated data for similar risks. In the absence of reasonably accurate projections of potential losses, insurance companies would have no basis for setting rates and premiums |
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Term
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Definition
| Giving or offering a benefit other than those specified in the policy to induce a customer to buy insurance |
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Term
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Definition
| An unincorporated group of subscribers that exchange insurance responsibilities with other members, managed by an attorney-in-fact |
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Term
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Definition
Process of removing property for the purpose of preserving it from a Peril insured against. Property contracts provide coverage for loss to property during removal.
Ex. During a fire, you remove your furniture from your dwelling, exposing it to other risks |
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Term
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Definition
| The continuation in full force and effect of a policy that is about to expire |
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Term
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Definition
| An indirect Property coverage available under the Dwelling and Homeowners policies, also available with certain Commercial contracts, that reimburses the insured for rents lost when rented property is damaged by a Peril insured against |
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Term
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Definition
| The cost of replacing property without deduction for depreciation |
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Term
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Definition
| Facts that the applicant represents as true and accurate to the best of her knowledge and belief |
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Term
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Definition
| In an Umbrella Liability policy, the amount the insured must pay for a loss not covered by an underlying policy, before the Umbrella will begin to cover losses |
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Term
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Definition
| The uncertainty of loss that exists whenever more than one outcome is possible. (In the area of life insurance, death is certain but time of death is uncertain) |
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Term
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Definition
| In Crime insurance, the forcible and felonious taking of property by violence or threat of violence from a messenger or custodian |
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Term
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Definition
| A Crime insurance policy that is designed to cover burglary of property from a safe or the felonious removal of the entire safe from the premises |
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Term
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Definition
| Property taken over by an insurance company to reduce its loss. The company may dispose of salvage property as it wishes, but on request and proper reimbursement, may return it to the insured |
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Term
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Definition
| A fund established under Workers Compensation laws in most states to help pay any increased compensation that may result when an employee with a previous injury is injured again |
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Term
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Definition
| A percentage penalty charged on insurance, canceled by the insured, before the end of the policy period. Return premium is calculated on a Short-Rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses |
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Term
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Definition
| A representative who helps an agent or broker solicit insurance and collect premiums. A solicitor may neither bind nor countersign policies |
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Term
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Definition
| Policies that insure against only the Perils named, contrary to All-Risk policies which cover all perils except those that are excluded. Sometimes called Named Peril policies |
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Term
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Definition
| A risk that may result in a loss or gain. Gambling is a speculative risk. Insurance companies insure pure risk, not speculative risk |
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Term
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Definition
| Insurance contract written to insure an item of property for a specific amount of insurance. Used in insuring hard-to-value items, such as fine arts |
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Term
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Definition
| An incorporated company with capital divided into shares and owned by the shareholders. Profits are shared by the stockholders. Policyholders are NOT entitled to share in company profits |
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Term
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Definition
| The transfer to the insurance company of the insured's right to collect for damages. After paying a claim, the company stands in the place of the insured in suing the negligent party, thus preventing the insured from collecting twice |
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Term
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Definition
| Found in most Liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's Limit of Liability. Included are first aid, bond premiums, accrued interest on judgments, etc |
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Term
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Definition
| The party (often the insurance company) that agrees to be responsible for loss which may result if the principal does not keep his promise |
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Term
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Definition
| A bond that guarantees that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party. Note that in a Surety Bond, there are three parties: the Principal, who has agreed to perform the obligation; he obligee, from whose benefit the Bond is written, and the Surety, the insurer that provides the bond in consideration for the premium paid |
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Term
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Definition
| A voluntary association of individuals, or groups of individuals, who agree to share in insurance contracts. Each individual or "syndicate" is individually responsible for the amounts of insurance it writes. Also known as a "Lloyd's Association" |
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Term
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Definition
| Any act of stealing. Theft includes larceny, burglary, and robbery |
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Term
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Definition
| Provides protection for Indirect Loss that occurs when, following a Direct property loss, there is a time lapse before the property can be used again. Includes Business Income, Contingent Business Income and Extra Expense |
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Term
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Definition
| An Inland Marine transportation policy, similar to the Annual Transit policy, but designed to cover a specific shipment |
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Term
| Underinsured Motorist Coverage (UIM) |
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Definition
| Coverage on an Auto policy that stacks coverage for an insured onto inadequate coverage of an individual who negligently caused injury to that insured |
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Term
| Umbrella Liability Policy |
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Definition
| Provides broad coverage for an insured's liability over and above liability covered by underlying contracts or retention limits |
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Term
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Definition
| The process of evaluating a risk for the purpose of issuing insurance coverage with a proper premium |
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