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Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Price of a product is the dollar quantity that a (under no unusual pressure) wants to pay and a well-informed seller (under no unusual pressure) wants to accept.

Agent

A licensed individual or organization authorized to sell and service insurance plan for an insurance provider.

Aggregate Limit

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

Agreed Value

An approach of loss assessment where the guaranteed and the insurance company list a concurred upon quantity to be paid in case of loss. This valuation method is most common in residential or commercial property insurance coverage when insuring important art work, antiques, or timeless vehicles. An expert appraisal is typically needed.

Arbitration Clause

A stipulation in an insurance coverage that permits the insured and the insurer to each appoint an arbitrator if they can not agree upon a suitable claim settlement. Once the arbitrators have been selected, they in turn select an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The final decision is binding.

Betterment

A situation that happens in a loss when an old piece of residential or commercial property is changed by a brand new item. The insured is put in a better monetary position than they were before the loss occurred, and consequentially might need to pay the difference in price for the improvement.

Binder

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

Broker

A certified person or organization who offers and services insurance coverage polices in your place.

Broker-agent

A licensed individual who can serve as a representative representing one or more insurers, and likewise as a broker dealing with one or more insurers representing your interests.

Cancellation

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

Claim

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

Claim Adjuster

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

Claims Made

A liability insurance coverage where protection uses to claims filed during the policy duration anytime the loss occurred subject to a retroactive beginning date.

Coinsurance

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

Combined Single Limit

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

Commercial Lines

Insurance protections for companies, business organizations, and professional organizations, as contrasted with individual insurance.

Commission

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

Concurrent Causation

Occurs when two or more hazards cause a loss. When only one of these perils is covered by the insurance plan, the court usually rules that the entire loss is covered. Many insurance companies have actually reworded their policies to clarify that just a loss credited to a covered peril is undoubtedly covered.

Conditions

The part of an insurance coverage agreement that sets forth the rights and responsibilities of the insured and the insurance company.

Consequential Bodily Injury

In Workers Compensation, unique situations can develop when a work-related injury triggers some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and Third Party Over glossary meanings.)

Coverage

Protection that is offered under an insurance coverage.

Declarations (DEC) Page

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

Deductible

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

Depreciation

The real or accounting recognition of the decrease in worth of residential or commercial property over an amount of time according to a predetermined schedule.

Dual Capacity

In Workers Compensation, an employer might be liable 2 methods to an employee who incurs bodily injury on the task as a result of utilizing a product or service produced by that employer. The worker is eligible for Workers Compensation advantages and might also take legal action against the company due to the fact that of the defectiveness of the hurting product or service.

Earned Premium

The portion of the policy premium paid by an insured that has been designated to the insurer's loss experience, expenditures, and profit year to date.

Endorsement

A written arrangement that alters the terms of an insurance coverage by adding or deducting coverage.

Effective Date

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

Exclusion

A contractual provision in an insurance coverage policy that denies or restricts coverage for certain dangers, persons, residential or commercial property, or areas.

Experience Modification

The modification of premium resulting from the use of experience ranking. Experience ranking plans reflect an insured's previous loss experience (usually from the past three years) and utilizes this experience to modify and identify the prem

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

First Party

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

Flat Cancellation

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