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

Agent
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A licensed individual or to offer and service insurance coverage 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 amount can be figured on a per occurrence basis or as a general aggregate for the complete policy term.

Agreed Value

A technique of loss assessment where the insured and the insurance company list a concurred upon total up to be paid in case of loss. This appraisal method is most typical in residential or commercial property insurance when guaranteeing valuable artwork, antiques, or timeless automobiles. A professional appraisal is normally needed.

Arbitration Clause

A clause in an insurance plan that allows the insured and the insurance company to each select an arbitrator if they can not agree upon an appropriate claim settlement. Once the arbitrators have actually been chosen, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire decides which declares 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 brand-new item. The insured is put in a much better monetary position than they were before the loss happened, and consequentially might need to pay the difference in rate for the improvement.

Binder

A short-term arrangement that supplies momentary insurance protection until the policy can be issued or provided.

Broker

A certified individual or company who sells and services insurance coverage authorities on your behalf.

Broker-agent

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

Cancellation

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

Claim

Notice to an insurer that a loss has taken place that might be covered under the conditions of the policy.

Claim Adjuster

The individual who assesses the damage caused by a covered loss and figures out the total up to be paid under the policy terms.

Claims Made

A liability insurance policy where coverage applies to claims filed throughout the policy period no matter when the loss took place subject to a retroactive creation date.

Coinsurance

An insurance coverage provision that specifies the amount of each loss that the company pays according to the quantity of insurance carried, divided by the quantity of insurance needed. This basic formula connects to a contracted percentage of coverage that need to 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 amount (limitation) of coverage.

Commercial Lines

Insurance protections for organizations, industrial organizations, and professional organizations, as contrasted with personal insurance coverage.

Commission

A portion of the policy premium that is paid to a representative by the insurer as compensation for the agent's work.

Concurrent Causation

Occurs when 2 or more perils trigger a loss. When just one of these perils is covered by the insurance coverage, the court generally rules that the entire loss is covered. Many insurance provider have actually reworded their policies to clarify that just a loss credited to a covered hazard is undoubtedly covered.

Conditions

The portion 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 circumstances can emerge 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 definitions.)

Coverage

Protection that is supplied under an insurance coverage policy.

Declarations (DEC) Page

Usually the very first page of an insurance policy that includes the full legal name of the insurer, the policy number, effective and expiration dates, premium payable, the quantity and types of coverage, and the deductibles.

Deductible

The amount of the loss that the insured is accountable to pay before take advantage of the insurance coverage policy are payable.

Depreciation

The actual or accounting acknowledgment of the decrease in worth of residential or commercial property over a time period according to a fixed schedule.

Dual Capacity

In Workers Compensation, an employer might be liable 2 ways to a staff member who incurs physical injury on the job as an outcome of utilizing a product or service produced by that employer. The staff member is qualified for Workers Compensation benefits and may likewise take legal action against the employer because of the defectiveness of the injuring services or product.

Earned Premium

The portion of the policy premium paid by an insured that has been assigned to the insurance provider's loss experience, expenses, and earnings year to date.

Endorsement

A written contract that changes the terms of an insurance coverage policy by adding or subtracting protection.

Effective Date

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

Exclusion

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

Experience Modification

The adjustment of premium resulting from the usage of experience rating. Experience rating strategies reflect an insured's previous loss experience (normally from the previous three years) and uses this experience to customize and determine the prem

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

First Party

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

Flat Cancellation

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