An unexpected, unintended event that caused bodily injury or
Act of God
An event that is caused by the forces of nature, without the
human intervention, and that
could not be prevented by
Actual Cash Value
The fair and reasonable cash price which the property could be sold
in the market in the
ordinary course of business
and not at a forced
A person who settles (adjusts) claims.
The process of determining the amount of a loss Safety offers
three different payment
options. Your Safety agent
can help you select the
one that best meets your needs.
A person who represents an insurance company and sells insurance on
a commission basis.
Frequently referred to as
The determination of the value of property, or of the extent of
Rise in value or price. Increase in worth or value.
Breach of faith, willful failure to respond to plain, well
understood statutory or
contractual obligations; not
prompted by an honest
as to one's rights or duties, but by some interested or sinister
Memorandum of an agreement for insurance which gives temporary
investigation of the risk
and issuance of a formal
policy. A verbal contract of insurance, temporary in nature, but
binding on both parties.
One of two catalogs (the other is the Red Book) used by insurance
companies to assist in
determining the book values
The right, real or alleged, of an individual or corporation to
recover for a loss which may
come within an insured's
One who claims or asserts a right, demand, or claim. The person
making a claim.
Coinsurance is a clause that applies to building and personal
property coverages. The
coinsurance clause protects
an insurance company
when a property is underinsured. If a policy has a coinsurance
clause, a coinsurance
percentage will appear on
the Declarations page of
the policy. The insurance company uses this percentage in a formula
to determine how much to pay
for the property in the
event of a loss.
The insurance company will not pay the full amount of the loss if,
at the time of loss, the
value of the covered
property times the
coinsurance percentage exceeds the limit of insurance for the
The coinsurance clause also reduces the insured's premium, however,
in the event of a loss, the
insured must rely on other
absorb the remainder of the loss him or herself.
Not all property insurance policies contain a coinsurance clause.
Any form of insurance which is required by law.
That portion of the insurance contract which outlines the duties
and responsibilities of both
the insured and the insurer.
The doctrine of negligence which implies that the claimant's
conduct contributed to the
injury or damage as a result
of the claimant's failure
to use the degree of care necessary for his or her own protection.
Under this doctrine, an
individual cannot recover
for his or her damages,
if it is found that the claimant contributed to his or her loss by
as little as one percent.
The guarantee against specific losses provided under the terms of a
policy of insurance.
That part of the policy which shows the critical information about
the insured, operator,
vehicle, coverage amounts,
Frequently referred to as the "policy."
A certain dollar amount specified in some insurance policies beyond
which insurance protection
begins. The insured assumes
the loss up to
the limit of the deductible amount, then the company pays over that
A supplemental agreement attached to an insurance policy for the
purpose of changing its
conditions or altering its
Something not covered by the policy and specifically so stated in
the policy contract.
A principle of insurance which states that the individual should be
restored to the approximate
financial position he or she
was in prior to
A social device where many share the losses of a few by
transferring a portion of
the loss to the insurance
company in exchange for a
The person purchasing the insurance policy from the insurance
Any legally enforceable obligation to do or refrain from doing
something; a duty which
eventually must be
performed; an obligation to
The amounts of protection provided in each specific coverage of an
insurance policy. The amount
is usually expressed in
dollar amounts, but
also can be determined at the time of loss.
The document issued to the insured by the company. The policy
states terms of the
An amount of money paid to an insurance company in return for
One of two catalogs used in determining the book value of
automobiles. The other is
the "Blue Book."
Continuation of an insurance contract beyond the original date of
expiration, by endorsement,
certificate, or new
The property in which an insurance company secures an ownership
interest as a result of
paying a claim for total
loss or damage based on
the actual cash value of the property in its undamaged state or
before the loss occurred.
Driver Insurance Plan)
Massachusetts's point system. This is a program whereby an
operator's driving record
determines an increase or
reduction in insurance
Property damaged to the extent that the cost of repairs exceeds the
actual cash value of the