Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Price of an item is the dollar quantity that a well-informed buyer (under no uncommon pressure) wants to pay and an educated seller (under no unusual pressure) wants to accept.

Agent

A licensed person or company licensed to sell and service insurance policies for an insurer.

Aggregate Limit

The maximum dollar amount of coverage 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 appraisal where the guaranteed and the insurance provider list a concurred upon quantity to be paid in case of loss. This evaluation method is most typical in residential or commercial property insurance coverage when guaranteeing important artwork, antiques, or classic cars. A professional appraisal is typically required.

Arbitration Clause

A clause in an insurance coverage that permits the insured and the insurer to each designate an arbitrator if they can not concur upon an appropriate claim settlement. Once the arbitrators have been picked, they in turn select an independent umpire. If the arbitrators disagree, then the umpire decides which claims settlement to support. The decision is binding.

Betterment

A circumstance that occurs in a loss when an old piece of residential or commercial property is by a brand name brand-new product. The insured is put in a better monetary position than they were before the loss occurred, and consequentially may have to pay the difference in rate for the improvement.

Binder

A short-term contract that supplies short-lived insurance protection till the policy can be issued or provided.

Broker

A licensed person or organization who offers and services insurance coverage cops in your place.

Broker-agent

A certified individual who can function as an agent representing one or more insurers, and also as a broker handling several insurance companies representing your interests.

Cancellation

The termination of an in-force insurance agreement by either the guaranteed or the insurer before its regular expiration date.

Claim

Notice to an insurer that a loss has actually occurred that might be covered under the terms of the policy.

Claim Adjuster

The person who examines 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 coverage where coverage applies to claims submitted during the policy duration no matter when the loss took place based on a retroactive beginning date.

Coinsurance

An insurance coverage clause that specifies the amount of each loss that the company pays according to the quantity of insurance coverage carried, divided by the quantity of insurance needed. This standard formula connects to a contracted portion of coverage that must be needed to avoid 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 coverage.

Commercial Lines

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

Commission

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

Concurrent Causation

Occurs when 2 or more perils cause a loss. When just one of these hazards is covered by the insurance coverage policy, the court usually rules that the entire loss is covered. Many insurance coverage business have actually reworded their policies to clarify that only a loss attributed to a covered hazard is indeed covered.

Conditions

The part of an insurance coverage agreement that sets forth the rights and tasks of the insured and the insurer.

Consequential Bodily Injury

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

Coverage

Protection that is offered under an insurance coverage.

Declarations (DEC) Page

Usually the first page of an insurance policy that contains the complete 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 amount of the loss that the insured is accountable to pay before take advantage of the insurance coverage are payable.

Depreciation

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

Dual Capacity

In Workers Compensation, a company might be liable 2 methods to a worker who sustains bodily injury on the job as an outcome of using a service or product produced by that company. The worker is qualified for Workers Compensation advantages and may likewise take legal action against the company because of the defectiveness of the injuring product and services.

Earned Premium

The part of the policy premium paid by an insured that has been allocated to the insurer's loss experience, costs, and earnings year to date.

Endorsement

A written agreement 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 require.

Exclusion

A legal provision in an insurance plan that rejects or limits protection for specific perils, persons, residential or commercial property, or areas.

Experience Modification

The adjustment of premium arising from using experience ranking. Experience rating plans reflect an insured's past loss experience (typically from the past 3 years) and utilizes this experience to customize and identify the prem

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

First Party

The policyholder (insured) in an insurance coverage contract.

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