Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Value of an item is the dollar quantity that a knowledgeable purchaser (under no unusual pressure) is prepared to pay and a knowledgeable seller (under no uncommon pressure) wants to accept.

Agent
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A licensed person or organization licensed to sell and service insurance policies for an insurance provider.

Aggregate Limit

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

Agreed Value

A technique of loss appraisal where the guaranteed and the insurance provider list an agreed upon quantity to be paid in case of loss. This evaluation method is most common in residential or commercial property insurance coverage when guaranteeing important art work, antiques, or timeless automobiles. An expert appraisal is usually required.

Arbitration Clause

A stipulation in an insurance plan that permits the insured and the insurance provider to each select an arbitrator if they can not agree upon an appropriate claim settlement. Once the arbitrators have actually been chosen, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire chooses which claims settlement to support. The last decision is binding.

Betterment

A scenario that happens in a loss when an old piece of residential or commercial property is replaced by a brand brand-new product. The insured is put in a better financial position than they were before the loss occurred, and consequentially might have to pay the distinction in price for the betterment.

Binder

A short-term contract that supplies momentary insurance protection up until the policy can be issued or provided.

Broker

A licensed person or company who offers and services insurance cops in your place.

Broker-agent

A certified person who can act as an agent representing several insurance providers, and also as a broker dealing with several insurance providers representing your interests.

Cancellation

The termination of an in-force insurance contract by either the guaranteed 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 conditions of the policy.

Claim Adjuster

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

Claims Made

A liability insurance coverage policy where coverage applies to claims submitted throughout the policy duration anytime the loss took place based on a retroactive beginning date.

Coinsurance

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

Combined Single Limit

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

Commercial Lines

Insurance coverages for organizations, industrial organizations, and expert organizations, as contrasted with individual insurance coverage.

Commission

A part of the policy premium that is paid to a representative by the insurance coverage company as payment for the agent's work.

Concurrent Causation

Occurs when two or more dangers cause a loss. When just one of these hazards is covered by the insurance plan, the court typically rules that the entire loss is covered. Many insurance provider have reworded their policies to clarify that just a loss associated to a covered hazard is undoubtedly covered.

Conditions

The portion of an insurance agreement that states the rights and duties of the insured and the insurance company.

Consequential Bodily Injury

In Workers Compensation, unique scenarios can occur when a work-related injury triggers some sort of non-work related injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary definitions.)

Coverage

Protection that is offered under an insurance coverage.

Declarations (DEC) Page

Usually the first page of an insurance coverage which contains the complete legal name of the insurance provider, the policy number, effective and expiration dates, premium payable, the quantity and types of protection, and the deductibles.

Deductible

The amount of the loss that the insured is accountable to pay before take advantage of the insurance coverage policy are payable.

Depreciation

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

Dual Capacity

In Workers Compensation, a company may be accountable two methods to an employee who sustains bodily injury on the job as a result of using a product and services produced by that company. The worker is eligible for Workers Compensation advantages and may likewise take legal action against the company since of the defectiveness of the hurting services or product.

Earned Premium

The portion of the policy premium paid by a guaranteed that has actually been assigned to the insurer's loss experience, expenses, and profit year to date.

Endorsement

A written agreement that changes the terms of an insurance coverage by including or deducting protection.

Effective Date

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

Exclusion

A legal arrangement in an insurance plan that denies or restricts coverage for certain perils, individuals, residential or commercial property, or areas.

Experience Modification

The change of premium resulting from making use of experience ranking. Experience score plans reflect an insured's past loss experience (generally from the past 3 years) and uses this experience to modify and figure out the prem

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

First Party

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

Flat Cancellation

Cancellation that happens on the policy efficient date. No premium charge is made