Click on the first letter of the term.
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The definitions appearing in this Glossary are provided solely for general informational purposes. They are not intended to be complete descriptions of all terms, conditions and exclusions applicable to the products and services defined. As well, in the case of any inconsistency between the definitions in this Glossary and the definitions appearing in the actual policy, the definitions contained in the actual policy shall govern.
These are the three main types of coverage available in an auto insurance policy. Liability pays other people if you’ve injured them or damaged their property. Collision pays to repair damage to your car caused by (what else?) collisions. Comprehensive pays you for your losses due to theft and other calamities that are unrelated to collisions – like damage from hail, fire, vandalism, floods, etc.
Generally refers to:
- the amount of reduction in the value of an insured’s property caused by an insured peril,
- the amount sought through an insured’s claim, or
- the amount paid on behalf of an insured under an insurance contract.
- Term used interchangeably with the word “coverage” to denote the insurance provided under the terms of a policy.
- Term used to indicate the existence of fire-fighting facilities in an area known as a “protected” area.
- A contract of indemnity against liability by which the insurance company procures another insurance to insure it against loss or liability by reason of the original insurance.
- Insurance by one insurance company of all or part of a risk accepted by it with another insurance company which agrees to reimburse the insurance company for the portion of the claim reinsured. The insurance company obtaining the reinsurance is called the “ceding insurance company;” the insurance company issuing the reinsurance is called the “reinsurer.” A reinsurer may, in turn, seek reinsurance on some portion of the risk it has reinsured, a process known as “retrocession.”
- A chance of loss.
- A person or thing insured. (Impaired or substandard risk: An applicant whose physical condition or moral habits do not meet the standard on which the rate is based).
- A person trained in evaluating risks and determining the rates and coverages that will be used for them.
- An agent, especially a life insurance agent, who might qualify as a “field underwriter.” In theory, the agent is supposed to do some underwriting before submitting the case to the home office underwriter; i.e., to make a decision on the basis of facts known to him on whether or not the risk is sound and to report all facts known to him that might affect the risk.
- A rider waiving (excluding) liability for a stated cause of accident or (especially) sickness.
- A provision or rider agreeing to waive (forego) premium payment during a period of disability.
- The giving up or surrender of a right or privilege that is known to exist. It may be effected by the agent, adjuster, or insurance company employee or official orally or in writing.