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Actual Cash Value
An amount equivalent to the fair market value of the stolen or
damaged property immediately preceding the loss.
Admitted Company
An insurance company authorized to do business in
California.
Agent
A licensed person or organization authorized to sell
insurance by an insurance company.
Automobile Insurance
Coverage on the risks associated with driving or owning an
automobile. It can include collision, liability, comprehensive,
medical and uninsured motorist coverage's.
Binder
A temporary or preliminary agreement which provides coverage until
a policy can be
written or delivered.
Bodily Injury
Any physical injury to a person. The purpose of
liability insurance is to cover bodily injury to a third party
resulting from the negligent or intentional acts of an insured.
Broker
A licensed person or organization paid by you to look for
insurance on your behalf.
Burglary
Coverage against loss as a result of forced entry into
premises.
Cancellation
The termination of insurance coverage during the
policy period.
Claim
Notice to an insurer that under the terms of a
policy, a loss maybe covered.
Collision (Auto)
Reimburses you for damage to your automobile
sustained in a collision with another car or with any other
object, movable or fixed.
Collision Deductible Waiver
This coverage waves your collision deductible if you are hit by a
negligent uninsured motorist.
Common
Carrier Liability
Coverage for transportation firms
that must carry any customer's goods so long as the customer is
willing to pay. Examples include trucking companies, bus lines,
and airlines.
Comprehensive (Auto)
Provides coverage for any direct and
accidental loss of, or damage to, any covered automobile and its
normal equipment, to include but not limited fire, theft or
malicious mischief.
Decline
The company refuses to accept the request for insurance
coverage.
Deductible
The amount of the loss which the insured is
responsible for paying before the insurance company pays. You may
choose a higher deductible to lower your premium.
Depreciation
A decrease in value due to age, wear and tear, etc.
Disability
Health insurance that provides income payments to
the insured when income is interrupted or terminated because of
illness, sickness, or accident.
Endorsement
Amendment to the policy used to add or delete
coverage. Also referred to as “rider.”
Exclusion
Certain causes and conditions, listed in the
policy, which are not covered.
Expiration Date
The date on which the policy ends.
Fire Insurance
Coverage for loss of or damage to a building and/or
contents due to fire.
Grace Period
A period (usually 31 days) after the premium due
date, during which are overdue premium may be paid without
penalty. The policy remains in force throughout this period.
Health Insurance
A policy that will pay specifics sums for
medical expenses or treatments.
Homeowner Insurance
An elective combination of coverage's for the
risks of owning a home. Can include losses due to fire, burglary,
and vandalism.
Insured
The policyholder – the person's) protected in case of a
loss or claim.
Insurer
The insurance company
Liability Insurance
Coverage for all sums that the insured becomes
legally obligated to pay because of bodily injury or property
damage.
Life Insurance
A policy that will pay a specified sum to
beneficiaries upon the death of insured.
Limit
Maximum amount a policy will pay either overall or under a
particular coverage.
Marine Insurance
Coverage for goods in transit and the vehicles
of transportation on water, land, and air.
Material Misrepresentation
The policyholder / applicant makes a
false statement of any material fact on his/her application. For
instance, the policyholder puts false information regarding the
location where the vehicle is garaged.
Mortgage Insurance
Life insurance that pays the balance of a
mortgage of the mortgager dies.
Peril
The cause of a possible loss. For example, fire, theft, or hail.
Policy
The written contract of insurance.
Policy Limit
The maximum amount a policy will pay, either overall or under a
particular coverage.
Premium
The amount of money an insurance company charges for
insurance coverage.
Premium Financing
A policyholder contracts with a lender to pay
the insurance premium on his/her behalf. The policyholder agrees
to repay the lender for the cost of premium, plus interest and
fees.
Property Damage
Damage to another person’s property. The purpose
of liability insurance is to cover property damage to third party
resulting from the negligent or intentional acts of an insured.
Quote
An estimate of the cost of insurance, based on
supplied to an insurance company by the applicant.
Replacement Cost
The cost to repair or replace an insured item.
Some insurance only pays actual cash or market value of the item
at the time of the loss, not what would cost to fix or replace it.
Replacement Cost
The full cost to repair or replace the damaged
property with no deductible, or deprecation.
Reinstatement
The restoring of a lapsed policy to full force and effect.
Rider
Usually known as an endorsement, a rider is an
amendment to the policy to add or delete coverage.
Short-Rate Cancellation
When the policy is terminated prior to
the expiration date at the policy holder’s request. Earned premium
charged would be more than the pro-rata earned premium. Generally,
the return premium would be approximately 90 percent of the
pro-rata return premium.
Surcharge
An extra charge applied by the insurer.
Surrender
To terminate or cancel a life insurance policy before
the maturity date.
Title Insurance
Coverage for losses if a land title is not free and
clear of defects that was unknown when the title insurance was
written.
Underwriting
The process of selecting applicants for insurance
and classifying them according to their degrees of insurability so
that the appropriate premium may be charged. The process includes
rejection of unacceptable.
Waiting Period
A period of time set forth in a policy which must
pass before some or all coverage's begin.
Workers Compensation Coverage
Coverage providing four types of
benefits for employee job-related injuries or diseases as a matter
of right (without regard to fault). |
