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Unless otherwise specified 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 knowledgeable buyer (under no unusual pressure) wants to pay and an educated seller (under no unusual pressure) is ready to accept.
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Agent

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

Aggregate Limit

The optimal dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This maximum amount can be figured on a per occurrence basis or as a general aggregate for the complete policy term.

Agreed Value

An approach of loss appraisal where the insured and the insurance company list a concurred upon amount to be paid in case of loss. This valuation technique is most common in residential or commercial property insurance when guaranteeing important artwork, antiques, or classic automobiles. A professional appraisal is typically needed.

Arbitration Clause

A provision in an insurance coverage policy that allows the insured and the insurance company to each appoint an arbitrator if they can not concur upon an appropriate claim settlement. Once the arbitrators have been chosen, 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 circumstance that occurs in a loss when an old piece of residential or commercial property is replaced by a brand new item. The insured is put in a better monetary position than they were before the loss happened, and consequentially may need to pay the distinction in price for the betterment.

Binder

A short-term agreement that offers momentary insurance protection up until the policy can be issued or delivered.

Broker

A certified person or organization who offers and services insurance cops on your behalf.

Broker-agent

A licensed person who can serve as a representative representing several insurance companies, and also as a broker handling one or more insurers representing your interests.

Cancellation

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

Claim

Notice to an insurance provider that a loss has actually occurred that may be covered under the terms of the policy.

Claim Adjuster

The individual who evaluates the damage triggered by a covered loss and figures out the quantity to be paid under the policy terms.

Claims Made

A liability insurance coverage where coverage uses to claims filed during the policy duration no matter when the loss occurred subject to a retroactive beginning date.

Coinsurance

An insurance provision that defines the quantity of each loss that the business pays according to the amount of insurance carried, divided by the amount of insurance coverage needed. This standard formula associates with a contracted portion of protection that should be needed to prevent a coinsurance penalty.

Combined Single Limit

When bodily injury liability and residential or commercial property damage liability is expressed as a single amount (limit) of protection.

Commercial Lines

Insurance coverages for companies, commercial institutions, and professional companies, as contrasted with individual insurance.

Commission

A portion of the policy premium that is paid to an agent by the insurance provider as settlement for the representative's work.

Concurrent Causation

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

Conditions

The portion of an insurance agreement that states the rights and responsibilities of the insured and the insurance provider.

Consequential Bodily Injury

In Workers Compensation, special situations can arise when a work-related injury triggers some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)

Coverage

Protection that is offered under an insurance plan.

Declarations (DEC) Page

Usually the very first page of an insurance coverage which contains the full legal name of the insurance coverage company, the policy number, reliable and expiration dates, premium payable, the amount and types of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is accountable to pay before gain from the insurance policy are .

Depreciation

The actual or accounting recognition of the decline in worth of residential or commercial property over a duration of time according to an established schedule.

Dual Capacity

In Workers Compensation, an employer may be responsible 2 methods to a staff member who sustains bodily injury on the job as an outcome of using a services or product produced by that company. The employee is eligible for Workers Compensation advantages and might likewise take legal action against the employer due to the fact that of the defectiveness of the injuring product or service.

Earned Premium

The portion of the policy premium paid by a guaranteed that has been allocated to the insurer's loss experience, costs, and earnings year to date.

Endorsement

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

Effective Date

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

Exclusion

A contractual arrangement in an insurance plan that denies or limits coverage for particular dangers, persons, residential or commercial property, or places.

Experience Modification

The modification of premium arising from using experience ranking. Experience score strategies show an insured's past loss experience (generally from the previous three years) and utilizes this experience to customize and figure out the prem

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

First Party

The policyholder (insured) in an insurance contract.

Flat Cancellation

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