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) wants to pay and a knowledgeable seller (under no uncommon pressure) is prepared to accept.

Agent

A certified person or company authorized to sell and service insurance plan for an insurer.

Aggregate Limit

The optimal dollar quantity of protection in force for a residential or commercial property damage policy or liability policy. This optimum quantity can be figured on a per event basis or as a basic aggregate for the complete policy term.

Agreed Value

An approach of loss valuation where the and the insurer list a concurred upon total up to be paid in case of loss. This valuation technique is most common in residential or commercial property insurance coverage when guaranteeing valuable artwork, antiques, or traditional autos. An expert appraisal is usually required.

Arbitration Clause

A provision in an insurance coverage that enables the insured and the insurance company to each appoint an arbitrator if they can not agree upon an appropriate claim settlement. Once the arbitrators have been chosen, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire decides which claims settlement to support. The final choice is binding.

Betterment

A circumstance that takes place in a loss when an old piece of residential or commercial property is replaced by a brand name new item. The insured is put in a better monetary position than they were before the loss took place, and consequentially might have to pay the difference in price for the betterment.

Binder

A short-term contract that supplies temporary insurance coverage till the policy can be provided or provided.

Broker

A certified individual or organization who sells and services insurance coverage cops on your behalf.

Broker-agent

A certified individual who can function as a representative representing several insurance companies, and also as a broker dealing with one or more insurance companies representing your interests.

Cancellation

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

Claim

Notice to an insurance provider that a loss has actually happened that might be covered under the terms and conditions of the policy.

Claim Adjuster

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

Claims Made

A liability insurance plan where protection uses to claims submitted during the policy duration anytime the loss took place based on a retroactive inception date.

Coinsurance

An insurance stipulation that specifies the amount of each loss that the company pays according to the amount of insurance coverage carried, divided by the amount of insurance required. This standard formula associates with a contracted percentage of protection that should be needed to prevent a coinsurance penalty.

Combined Single Limit

When bodily injury liability and residential or commercial property damage liability is expressed as a single sum (limit) of coverage.

Commercial Lines

Insurance protections for organizations, business institutions, and expert companies, as contrasted with personal insurance.

Commission

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

Concurrent Causation

Occurs when 2 or more dangers trigger a loss. When just one of these perils is covered by the insurance plan, the court generally rules that the entire loss is covered. Many insurance business have reworded their policies to clarify that only a loss associated to a covered peril is certainly covered.

Conditions

The portion of an insurance coverage contract that states the rights and responsibilities of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, unique circumstances can develop when a work-related injury triggers some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)

Coverage

Protection that is supplied under an insurance plan.

Declarations (DEC) Page

Usually the first page of an insurance coverage which contains the complete legal name of the insurer, the policy number, reliable and expiration dates, premium payable, the quantity and kinds of coverage, and the deductibles.

Deductible

The amount of the loss that the insured is responsible to pay before benefits from the insurance plan are payable.

Depreciation

The actual or accounting recognition of the decline in worth of residential or commercial property over an amount of time according to a predetermined schedule.

Dual Capacity

In Workers Compensation, a company may be liable two methods to a worker who sustains bodily injury on the job as a result of utilizing a product and services produced by that company. The staff member is qualified for Workers Compensation advantages and might also sue the employer due to the fact that of the defectiveness of the hurting product and services.

Earned Premium

The portion of the policy premium paid by a guaranteed that has actually been designated to the insurance provider's loss experience, expenses, and revenue year to date.

Endorsement

A written agreement that alters the regards to an insurance plan by adding or deducting protection.

Effective Date

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

Exclusion

A contractual arrangement in an insurance plan that rejects or limits coverage for particular dangers, individuals, residential or commercial property, or areas.

Experience Modification

The modification of premium resulting from the usage of experience score. Experience ranking strategies show an insured's previous loss experience (normally from the past 3 years) and utilizes this experience to modify and determine the prem

The termination date of coverage as indicated on an insurance coverage.

First Party

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

Flat Cancellation

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