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Unless otherwise specified 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 knowledgeable purchaser (under no uncommon pressure) is willing to pay and an educated seller (under no unusual pressure) wants to accept.

Agent
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A licensed person or organization licensed to offer and service insurance plan for an insurance provider.

Aggregate Limit

The maximum 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 event basis or as a general aggregate for the total policy term.

Agreed Value

An approach of loss valuation where the insured and the insurer list a concurred upon total up to be paid in case of loss. This valuation technique is most common in or commercial property insurance coverage when insuring important art work, antiques, or traditional cars. An expert appraisal is usually needed.

Arbitration Clause

A provision in an insurance coverage 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 been picked, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire decides which claims settlement to support. The decision is binding.

Betterment

A circumstance that happens 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 better monetary position than they were before the loss took place, and consequentially might need to pay the difference in price for the improvement.

Binder

A short-term arrangement that supplies short-term insurance coverage till the policy can be released or delivered.

Broker

A certified individual or organization who offers and services insurance authorities on your behalf.

Broker-agent

A licensed person who can function as an agent representing several insurance companies, and also as a broker dealing with several insurers representing your interests.

Cancellation

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

Claim

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

Claim Adjuster

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

Claims Made

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

Coinsurance

An insurance coverage provision that specifies the quantity of each loss that the business pays according to the amount of insurance coverage carried, divided by the quantity of insurance needed. This basic formula relates to a contracted percentage of coverage that must be needed to avoid a coinsurance penalty.

Combined Single Limit

When bodily injury liability and residential or commercial property damage liability is revealed as a single sum (limit) of coverage.

Commercial Lines

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

Commission

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

Concurrent Causation

Occurs when two or more dangers trigger a loss. When only one of these hazards is covered by the insurance plan, the court generally 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 danger is indeed covered.

Conditions

The part of an insurance coverage contract that states the rights and tasks of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, special circumstances can occur when a work-related injury causes 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 plan.

Declarations (DEC) Page

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

Deductible

The quantity of the loss that the insured is accountable to pay before take advantage of the insurance plan are payable.

Depreciation

The actual or accounting recognition of the decrease in value of residential or commercial property over an amount of time according to an established schedule.

Dual Capacity

In Workers Compensation, an employer might be responsible 2 methods to an employee who incurs bodily injury on the task as a result of using a service or product produced by that employer. The employee is qualified for Workers Compensation advantages and might likewise sue the company due to the fact that of the defectiveness of the hurting product and services.

Earned Premium

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

Endorsement

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

Effective Date

The beginning date of an insurance plan: the date the policy enters to force.

Exclusion

A contractual provision in an insurance policy that denies or limits coverage for specific hazards, persons, residential or commercial property, or locations.

Experience Modification

The change of premium resulting from making use of experience ranking. Experience score strategies show an insured's past loss experience (normally from the past three years) and uses this experience to modify and determine the prem

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

First Party

The policyholder (insured) in an insurance coverage contract.

Flat Cancellation

Cancellation that happens on the policy reliable date. No premium charge is made; however, other charges (i.e., service) may use.

Fraud

An intentionally deceptive act committed to acquire an unreasonable or illegal benefit. Fraud normally includes monetary gain.

Frequency

The variety of times a loss takes place.

Hazard

A circumstance that increases the likelihood or prospective seriousness of a loss.

Indemnity

In a residential or commercial property and casualty contract, the goal is to restore a guaranteed to the exact same monetary position after the loss that the guaranteed had prior to the loss. In the most basic sense, indemnity is settlement for a loss.

Independent Adjuster

A person or company that supplies claim adjusting services to various insurance providers on a contract basis.

Insurable Interest

Any interest (most commonly ownership) that an individual, company, or corporation has in a subject of insurance such as a service, structure, or car, which can be harmed and may cause the individual, business, or corporation financial loss or other concrete deprivation. Generally, an insurable interest must be shown when a policy is issued and should exist at the time of loss.

Insurance

A technique of shifting danger from a person, service, or company to an insurance provider in exchange for the payment of premium. The insurer commits to be responsible for covered losses.

Insured

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

Insurer

The insurance provider who releases insurance coverage and agrees to spend for losses and offer covered advantages.

Insuring Agreement

The part of an insurance coverage contract that explains what is covered. The guaranteeing agreement typically states the dangers guaranteed against, the individual(s) and/or residential or commercial property covered, the residential or commercial property locations, and the duration of the contract.