Unless otherwise specified in the policy, Actual Cash Value in California means Fair Market Value. The Fair Market Value of an item is the dollar amount that an experienced purchaser (under no unusual pressure) is prepared to pay and an educated seller (under no unusual pressure) wants to accept.
Agent
A licensed person or organization authorized to offer and service insurance policies for an insurance company.
Aggregate Limit
The optimal dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This optimum amount can be figured on a per event basis or as a general aggregate for the complete policy term.
Agreed Value
A method of loss evaluation where the guaranteed and the insurer list a concurred upon total up to be paid in case of loss. This assessment approach is most typical in residential or commercial property insurance when insuring important artwork, antiques, or timeless vehicles. A professional appraisal is typically needed.
Arbitration Clause
A clause in an insurance coverage that allows the insured and the insurer to each designate an arbitrator if they can not agree upon an appropriate claim settlement. Once the arbitrators have been picked, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The decision is binding.
Betterment
A circumstance that takes place in a loss when an old piece of residential or commercial property is changed by a brand brand-new item. The insured is put in a much better financial position than they were before the loss occurred, and consequentially might have to pay the difference in price for the improvement.
Binder
A short-term agreement that offers temporary insurance coverage until the policy can be released or provided.
Broker
A licensed individual or company who sells and services insurance coverage cops in your place.
Broker-agent
A licensed person who can function as a representative representing one or more insurers, and likewise as a broker handling several insurance providers representing your interests.
Cancellation
The termination of an in-force insurance agreement by either the guaranteed or the insurance provider before its regular expiration date.
Claim
Notice to an insurance provider that a loss has actually happened that may be covered under the terms of the policy.
Claim Adjuster
The person who evaluates the damage brought on by a covered loss and figures out the amount to be paid under the policy terms.
Claims Made
A liability insurance plan where protection uses to claims filed during the policy duration no matter when the loss took place based on a retroactive beginning date.
Coinsurance
An insurance stipulation that defines the quantity of each loss that the company pays according to the quantity of insurance carried, divided by the quantity of insurance required. This standard formula associates with a contracted portion of coverage that must be required to avoid a coinsurance charge.
Combined Single Limit
When physical injury liability and residential or commercial property damage liability is expressed as a single amount (limitation) of protection.
Commercial Lines
Insurance coverages for companies, commercial organizations, and professional companies, as contrasted with personal insurance.
Commission
A portion of the policy premium that is paid to a representative by the insurance business as compensation for the representative's work.
Concurrent Causation
Occurs when 2 or more dangers trigger a loss. When only one of these hazards is covered by the insurance coverage policy, the court usually rules that the entire loss is covered. Many insurance companies have reworded their policies to clarify that only a loss attributed to a covered hazard is undoubtedly covered.
Conditions
The part of an insurance coverage contract that sets forth the rights and tasks of the insured and the insurance company.
Consequential Bodily Injury
In Workers Compensation, special scenarios can arise when a work-related injury causes some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)
Coverage
Protection that is provided under an insurance plan.
Declarations (DEC) Page
Usually the very first page of an insurance plan which contains the full legal name of the insurance provider, the policy number, reliable and expiration dates, premium payable, the amount and kinds of coverage, and the deductibles.
Deductible
The quantity of the loss that the insured is accountable to pay before take advantage of 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 liable 2 ways to an employee who sustains physical injury on the task as an outcome of using a product or service produced by that company. The employee is qualified for Workers Compensation benefits and might also sue the company since of the defectiveness of the hurting product and services.
Earned Premium
The part of the policy premium paid by a guaranteed that has been designated to the insurance company's loss experience, costs, and profit year to date.
Endorsement
A written agreement that alters the terms of an insurance coverage by including or subtracting coverage.
Effective Date
The starting date of an insurance coverage: the date the policy enters to require.
Exclusion
A legal provision in an insurance coverage that rejects or restricts protection for certain hazards, individuals, residential or commercial property, or locations.
Experience Modification
The change of premium arising from the usage of experience rating. Experience score plans reflect an insured's previous loss experience (usually from the previous 3 years) and uses this experience to customize and determine the prem
The termination date of coverage as suggested on an insurance coverage.
First Party
The insurance policy holder (insured) in an insurance agreement.
Flat Cancellation
Cancellation that happens on the policy effective date. No premium charge is made; nevertheless, other charges (i.e., service) may use.
Fraud
An intentionally deceptive act devoted to acquire an unjust or unlawful advantage. Fraud usually includes financial gain.
Frequency
The variety of times a loss takes place.
Hazard
A circumstance that increases the probability or prospective severity of a loss.
Indemnity
In a residential or commercial property and casualty agreement, the goal is to restore an insured to the same financial position after the loss that the insured had prior to the loss. In the many fundamental sense, indemnity is payment for a loss.
Independent Adjuster
A person or company that provides claim adjusting services to various insurance companies on an agreement basis.
Insurable Interest
Any interest (most commonly ownership) that an individual, business, or corporation has in a subject of insurance such as a company, building, or car, which can be harmed and may trigger the individual, business, or corporation financial loss or other concrete deprivation. Generally, an insurable interest must be demonstrated when a policy is issued and should exist at the time of loss.
Insurance
A technique of shifting risk from a person, organization, or company to an insurance coverage company in exchange for the payment of premium. The insurance provider commits to be accountable for covered losses.
Insured
The insurance policy holder(s) entitled to protection under an insurance coverage.
Insurer
The insurance business who provides insurance and concurs to pay for losses and provide covered advantages.
Insuring Agreement
The part of an insurance agreement that describes what is covered. The insuring contract generally states the perils guaranteed versus, the individual(s) and/or residential or commercial property covered, the residential or commercial property locations, and the duration of the agreement.
