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| Insures the individual for financial losses, which arise out of the person's responsibilities to others imposed by law or contract. |
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A line of insurance, which historically has included a wide variety of unrelated coverages other than Life and Health. An important coverage in the casualty line is
Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Worker's Compensation and Surety Bonds. |
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| Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party. |
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A document, which is attached to the policy
and modifies or changes the original policy in some way. |
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| An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied. |
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| Insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. |
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| Usually defined to include physical harm, sickness, disease, or death resulting from any of these. |
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| A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use. |
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(1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer.
(2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy. |
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| Something that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss. |
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| A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence. |
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Definition
| In Liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions. |
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| Loss, which is a direct result of a peril. Also includes loss due to efforts to end the peril or unavoidable exposure following a peril. |
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| Loss, typically economic loss, which is a result or consequence of a direct loss. |
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The cost to replace an item of property at the time of loss, less an allowance for depreciation.
Often used to determine amount of reimbursement for a loss (Replacement Cost -Depreciation). |
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Term
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Definition
| The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property. |
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Definition
| A principle of insurance, which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse. |
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| An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant. |
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Definition
| A statute, which states that if there is a total loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid. |
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Definition
| A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value. |
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| A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss. |
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| Loss times the Limit of Insurance divided by the value of the property times the coinsurance percentage = Loss Settlement. |
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Term
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| Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Blanket insurance also refers to a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage. |
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| Property specifically listed and covered for a specific amount. Also called Scheduled coverage. |
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| A deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss. |
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| A deductible, which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy, limits. |
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Term
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Definition
| A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full. |
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| The section of an insurance policy, which states which losses will be indemnified, what property is covered, which perils are insured against. |
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Term
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| In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits. |
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Definition
| A type of policy limit found in liability policies, which limits coverage to a specified total amount for all losses occurring within the policy period. |
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| Rules of law dictate that a person must pay for damages done to another. |
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| The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances. |
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| The transfer to the insurance company of the insured's right to collect for damages. |
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Term
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Definition
| A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. |
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Definition
| Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss. |
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| A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. |
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Term
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| A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a part of the policy. |
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Term
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| Statements an applicant for insurance believes to be true. Does not carry as much force as warranty. |
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Term
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Definition
| The withholding of a material fact from the insurance company. May void the policy. |
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