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Unless otherwise specified in the policy, Actual Cash Value in California implies Fair Market Value. The Fair Market Value of a product is the dollar amount that a well-informed buyer (under no unusual pressure) wants to pay and a knowledgeable seller (under no uncommon pressure) wants to accept.

Agent

A certified individual or company licensed to sell and service insurance coverage for an insurance provider.

Aggregate Limit

The optimal dollar quantity 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 total policy term.

Agreed Value

An approach of loss appraisal where the insured and the insurance provider list an agreed upon total up to be paid in case of loss. This appraisal approach is most typical in residential or commercial property insurance when insuring important art work, antiques, or timeless vehicles. An expert appraisal is usually needed.

Arbitration Clause

A provision in an insurance coverage that permits the insured and the insurance company to each appoint an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually 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 situation that occurs in a loss when an old piece of residential or commercial property is changed by a brand name new product. The insured is put in a much better financial position than they were before the loss happened, and consequentially might have to pay the difference in rate for the betterment.

Binder

A short-term agreement that provides short-term insurance coverage till the policy can be issued or provided.

Broker

A certified person or company who offers and services insurance authorities in your place.

Broker-agent

A licensed person who can serve as an agent representing one or more insurers, and also as a broker handling one or more insurance providers representing your interests.

Cancellation

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

Claim

Notice to an insurance provider that a loss has actually happened that might 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 total up to be paid under the policy terms.

Claims Made

A liability insurance coverage where coverage uses to claims submitted during the policy period no matter when the loss happened subject to a retroactive creation date.

Coinsurance

An insurance stipulation that defines the quantity of each loss that the business pays according to the quantity of insurance coverage carried, divided by the quantity of insurance coverage needed. This fundamental formula relates to a contracted percentage of protection that must be needed to prevent a coinsurance penalty.

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 businesses, commercial organizations, and professional companies, as contrasted with individual insurance coverage.

Commission

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

Concurrent Causation

Occurs when 2 or more dangers trigger a loss. When only one of these perils is covered by the insurance coverage policy, the court usually rules that the entire loss is covered. Many insurance coverage business have reworded their policies to clarify that just a loss associated to a covered peril is undoubtedly covered.

Conditions

The portion of an insurance coverage contract that sets forth the rights and duties of the insured and the insurance company.

Consequential Bodily Injury

In Workers Compensation, unique circumstances can arise 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 supplied under an insurance coverage policy.

Declarations (DEC) Page

Usually the very first page of an insurance coverage that includes the full legal name of the insurer, the policy number, efficient and expiration dates, premium payable, the amount and kinds of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is accountable to pay before benefits from the insurance coverage are payable.

Depreciation

The actual or accounting recognition of the decline 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 an employee who sustains physical injury on the task as an outcome of utilizing a product and services produced by that employer. The worker 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 .

Earned Premium

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

Endorsement

A written agreement that changes the regards to an insurance coverage policy by including or deducting protection.

Effective Date

The beginning date of an insurance coverage: the date the policy goes in to require.

Exclusion

A legal arrangement in an insurance policy that denies or restricts protection for specific dangers, individuals, residential or commercial property, or areas.

Experience Modification

The change of premium arising from making use of experience ranking. Experience score plans show an insured's previous loss experience (generally from the past three years) and uses this experience to modify and identify the prem

The termination date of protection as suggested on an insurance coverage.

First Party

The policyholder (insured) in an insurance coverage contract.

Flat Cancellation

Cancellation that happens on the policy effective date. No premium charge is made