Unless otherwise specified in the policy, Actual Cash Value in California suggests Fair Market Value. The Fair Market Price of an item is the dollar amount that an experienced buyer (under no unusual pressure) is willing to pay and a well-informed seller (under no unusual pressure) wants to accept.

Agent
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A certified person or company licensed to sell and service insurance coverage for an insurance provider.

Aggregate Limit

The maximum dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This maximum quantity can be figured on a per incident basis or as a general aggregate for the total policy term.

Agreed Value

An approach of loss valuation where the guaranteed and the insurance provider list a concurred upon quantity to be paid in case of loss. This valuation technique is most common in residential or commercial property insurance coverage when insuring valuable art work, antiques, or traditional cars. A professional appraisal is usually needed.

Arbitration Clause

A stipulation in an insurance policy that allows the insured and the insurance company to each select an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually been selected, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire chooses which declares settlement to support. The final choice is binding.

Betterment

A circumstance that happens in a loss when an old piece of residential or commercial property is replaced by a brand brand-new product. The insured is put in a much better financial position than they were before the loss happened, and consequentially might need to pay the distinction in price for the improvement.

Binder

A short-term contract that offers short-term insurance protection up until the policy can be provided or provided.

Broker

A licensed individual or organization who offers and services insurance polices on your behalf.

Broker-agent

A licensed individual who can act as a representative representing several insurers, and also as a broker handling several insurers representing your interests.

Cancellation

The termination of an in-force insurance contract by either the insured or the insurance company before its typical expiration date.

Claim

Notice to an insurance provider that a loss has occurred that may be covered under the conditions of the policy.

Claim Adjuster

The individual who evaluates the damage brought on by a covered loss and identifies the amount to be paid under the policy terms.

Claims Made

A liability insurance coverage policy where coverage uses to claims filed during the policy period anytime the loss happened based on a retroactive beginning date.

Coinsurance

An insurance coverage provision that specifies the amount of each loss that the business pays according to the quantity of insurance brought, by the amount of insurance coverage required. This basic formula connects to a contracted portion of coverage that must be needed to prevent a coinsurance charge.

Combined Single Limit

When physical injury liability and residential or commercial property damage liability is revealed as a single sum (limitation) of protection.

Commercial Lines

Insurance protections for businesses, industrial institutions, and professional companies, as contrasted with individual insurance coverage.

Commission

A part of the policy premium that is paid to an agent by the insurance provider as settlement for the representative's work.

Concurrent Causation

Occurs when 2 or more dangers trigger a loss. When only one of these perils is covered by the insurance plan, the court usually rules that the entire loss is covered. Many insurer have actually reworded their policies to clarify that only a loss attributed to a covered peril is undoubtedly covered.

Conditions

The portion of an insurance agreement that states the rights and duties of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, unique situations can develop when a job-related injury causes some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)

Coverage

Protection that is supplied under an insurance coverage.

Declarations (DEC) Page

Usually the very first page of an insurance plan that contains the full legal name of the insurance coverage company, the policy number, reliable and expiration dates, premium payable, the amount and types of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is accountable to pay before advantages from the insurance coverage are payable.

Depreciation

The real or accounting recognition of the reduction in worth of residential or commercial property over a time period according to a fixed schedule.

Dual Capacity

In Workers Compensation, an employer may be accountable two methods to an employee who sustains physical injury on the task as an outcome of using a service or product produced by that company. The staff member is qualified for Workers Compensation benefits and might also sue the company because of the defectiveness of the hurting service or product.

Earned Premium

The part of the policy premium paid by an insured that has actually been assigned to the insurance coverage business's loss experience, expenses, and revenue year to date.

Endorsement

A written contract that alters the terms of an insurance policy by including or subtracting protection.

Effective Date

The beginning date of an insurance policy: the date the policy goes in to force.

Exclusion

A legal arrangement in an insurance coverage that denies or limits protection for particular perils, persons, residential or commercial property, or places.

Experience Modification

The modification of premium arising from using experience score. Experience ranking strategies reflect an insured's past loss experience (generally from the past 3 years) and uses this experience to modify and determine the prem

The termination date of protection as suggested on an insurance plan.

First Party

The insurance policy holder (insured) in an insurance coverage contract.

Flat Cancellation

Cancellation that occurs on the policy effective date. No premium charge is made