Term
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| Forms that have been filed by Insurance Services Office, Inc. to the individual insurance departments for approval. |
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Term
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| A potential cause of loss. Accident, fire, and theft are common perils. |
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| Anything that increases the seriousness of a loss or increases the likelihood that a loss will occur. |
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| A loss that is a direct consequence of a particular peril. Fire damage to an apartment building is an example of a direct loss. |
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Term
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| A loss that is a result of a covered peril but is not caused directly and immediately by that peril. The loss of rental income as a result of an apartment fire. |
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Term
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| if the insurer pays a loss on behalf of the insured, the insurer is entitled to the salvage to reduce the claim. |
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| The insured cannot simply abandon the property to the insurance company in exchange for the full-insured value. |
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Term
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| A loss settlement condition that states that if part of a pair or set is lost or damaged, the loss will be valued as a fair proportion of the total value of the set, giving consideration to the importance of the damaged article to the set.The insurer is NOT required to pay for the value of the whole set. |
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| The cost the insured agrees to bear of an insured loss. |
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| Means the building is void of contents and people. The building is not being used. |
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Term
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| Means the premises are void of people. |
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Term
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Definition
| An insurance policy cannot be assigned to another party without the consent of the insurance company. |
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Term
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Definition
| A clause in property/casualty insurance contracts which states tha if the policy or endorsement forms are broadened and o additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage. |
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Term
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| Insurance binders serve as temporary evidence that coverage is in effect until the policy is issued. |
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Term
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Definition
| In cases where more than one policy is in force, the primary policy pays first. |
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Term
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| An insurance policy that pays benefits only when coverage under other applicable insurance policies have become exhausted. |
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Term
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Definition
| A sudden and uforseen event resulting in a financial loss. |
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Term
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Definition
| a sudden and unforeseen event resulting in financial loss. May also be a continuous or repeated exposure to an event that results in a financial loss. |
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Term
| APPRAISAL AND ARBITRATION |
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Definition
| Policies may contain one or both of these clauses to facilitate an agreement when the insured and the insurer cannot agree on the value of a claim. |
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Term
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Definition
| When the dispute involves a property claim, both parties select and appraiser to determine the value of the loss. The appraisers choose an umpire.The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. |
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Term
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Definition
| This clause usually appears in automobile policies to resolve liability disputes for bodily injury and/or property damage. |
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Term
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Definition
| This clause is used when the insurer has paid a covered claim on behalf of the insured that is caused by another party.The insurance company is entitle to the insured's right of recovery from the negligent party. |
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Term
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Definition
| Some policies are primary and some are excess depending on the wording in the insurance contract. The clause specifies the obligations of the insurance carrier when other coverage is in force. |
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Term
| CERTIFICATES OF INSURANCE |
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Definition
| A certificate contains a general summary of the coverage.The auto ID card is an example of a certificate of insurance. |
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Term
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Definition
| In most states it means that any person who has contact with an insured involving insurance matters should be licensed.Personnel that quote, sell, service, offer advice, explain coverage, or adjust claims would normally be required to be licensed. |
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Term
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Definition
| The principle of indemnity assumes that a claimant should only be restored to the approximate financial condition that existed prior to the loss, no better or no worse. |
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Term
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Definition
| An event that, in a natural and continuous sequence, produces a loss.If a fire should occur, followed by smoke and water damage, the entire loss is considered to have been caused by the peril of fire. |
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Term
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Definition
| A form completed by the claimant listing the property that has been either lost or damaged due to a covered loss. |
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Term
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Definition
| Language that is vague and creates doubt.Ambiguity in the policy provisions will usually be resolved by the courts in favor of the insured. |
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Term
| CONTRIBUTION BY EQUAL SHARES |
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Definition
| Calls for all insurers to contribute equally up to the limit of the policy having the smallest limit, whereupon that company stops paying.The other companies share in the remainder of the loss until the loss is paid in full or until all policy limits are exhausted. |
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Term
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Definition
| Situation that exists when the same property is covered by more than one policy, but the policies are not identical as to the extent of coverage provided. |
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