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Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market Value. The Fair Market Value of a product is the dollar amount that a well-informed purchaser (under no uncommon pressure) is ready to pay and an experienced seller (under no uncommon pressure) is willing to accept.

Agent
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A certified person or organization authorized to offer and service insurance coverage policies for an insurance company.

Aggregate Limit

The maximum dollar quantity 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 basic aggregate for the total policy term.

Agreed Value

An approach of loss appraisal where the guaranteed and the insurance company list a concurred upon quantity to be paid in case of loss. This assessment technique is most typical in residential or commercial property insurance coverage when insuring important art work, antiques, or classic automobiles. An expert appraisal is normally needed.

Arbitration Clause

A stipulation in an insurance plan that allows the insured and the insurer to each appoint an arbitrator if they can not agree upon a proper claim settlement. Once the arbitrators have been picked, they in turn designate an independent umpire. If the arbitrators disagree, then the umpire chooses 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 replaced by a brand new product. The insured is put in a much better monetary position than they were before the loss happened, and consequentially may need to pay the distinction in cost for the improvement.

Binder

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

Broker

A licensed person or organization who sells and services insurance coverage polices in your place.

Broker-agent

A certified person who can act as an agent representing several insurers, and likewise as a broker dealing with one or more insurers representing your interests.

Cancellation

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

Claim

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

Claim Adjuster

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

Claims Made

A liability insurance plan where protection applies to claims filed during the policy duration anytime the loss happened subject to a retroactive creation date.

Coinsurance

An insurance clause that specifies the quantity of each loss that the business pays according to the quantity of insurance brought, divided by the amount of insurance coverage needed. This standard formula relates to a contracted percentage of protection that need to be required to avoid a coinsurance penalty.

Combined Single Limit

When physical injury liability and residential or commercial property damage liability is revealed as a single sum (limitation) of protection.

Commercial Lines

Insurance coverages for companies, industrial institutions, and expert companies, as contrasted with personal insurance coverage.

Commission

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

Concurrent Causation

Occurs when 2 or more perils trigger a loss. When just one of these dangers is covered by the insurance coverage policy, the court typically rules that the whole loss is covered. Many insurance provider have actually reworded their policies to clarify that only a loss associated to a covered hazard is indeed 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 scenarios can emerge when a work-related injury causes some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)

Coverage

Protection that is provided under an insurance policy.

Declarations (DEC) Page

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

Deductible

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

Depreciation

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

Dual Capacity

In Workers Compensation, a company might be accountable 2 ways to a staff member who incurs bodily injury on the job as an outcome of utilizing a product or service produced by that employer. The staff member is eligible for Workers Compensation advantages and may likewise sue the company due to the fact that of the defectiveness of the injuring service or product.

Earned Premium

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

Endorsement

A written agreement that changes the terms of an insurance coverage policy by including or deducting coverage.

Effective Date

The starting date of an insurance plan: the date the policy enters to require.

Exclusion

A contractual arrangement in an insurance coverage that rejects or limits protection for specific hazards, persons, residential or commercial property, or places.

Experience Modification

The change of premium resulting from using experience rating. Experience rating plans show an insured's past loss experience (normally from the previous 3 years) and utilizes this experience to modify and determine the prem

The date of coverage as indicated on an insurance plan.

First Party

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

Flat Cancellation

Cancellation that occurs on the policy effective date. No premium charge is made; however, other charges (i.e., service) might apply.

Fraud

A deliberately misleading act committed to get an unjust or unlawful benefit. Fraud normally includes financial gain.

Frequency

The variety of times a loss takes place.

Hazard

A situation that increases the likelihood or potential severity of a loss.

Indemnity

In a residential or commercial property and casualty contract, the goal is to bring back a guaranteed to the very same financial position after the loss that the guaranteed had previous to the loss. In the a lot of basic sense, indemnity is settlement for a loss.

Independent Adjuster

An individual or organization that supplies claim adjusting services to various insurance companies on an agreement basis.

Insurable Interest

Any interest (most typically ownership) that a person, business, or corporation has in a topic of insurance coverage such as an organization, building, or car, which can be harmed and might cause the individual, business, or corporation financial loss or other tangible deprivation. Generally, an insurable interest should be demonstrated when a policy is released and should exist at the time of loss.

Insurance

A method of shifting risk from a person, service, or organization to an insurance coverage company in exchange for the payment of premium. The insurance provider commits to be accountable for covered losses.

Insured

The policyholder(s) entitled to protection under an insurance plan.

Insurer

The insurer who issues insurance coverage and consents to spend for losses and offer covered advantages.

Insuring Agreement

The portion of an insurance agreement that describes what is covered. The guaranteeing agreement usually states the hazards guaranteed versus, the individual(s) and/or residential or commercial property covered, the residential or commercial property places, and the duration of the contract.