Act of God -	An accident or event that is the result of natural causes, without any human intervention or agency, that could not have been prevented by reasonable foresight or care, such as floods, lightning, earthquake, or storms.
Actual Cash Value -	The present-day value of property measured in cash, arrived at by taking the replacement cost and deducting for depreciation brought about by physical wear and tear, and obsolescence.
Additional living expenses -	A form of "extra expense insurance" on dwellings. The insurance company provides additional funds to compensate for the extra costs caused by the interruption, e.g., extra cost of living in a hotel.
Adjacent -	Lying near to, but not in actual contact with. Nearby. Property near the property insured or discussed. Such adjacent property may increase the hazard of loss.
Adjuster, Independent -	An independent professional or organization settling claims for insurance on a fee basis.
Affidavit of Claim -	A form required when a claim is filed. In general it contains the facts on which the claim is based.
Agent -	Representative of the insurer in negotiating, servicing, or effecting insurance contracts; he may be an independent contractor or an employee.
Agent, Independent -	An independent businessman who represents insurance companies under contract in a sales and service capacity and is paid on a commission basis. Sometimes referred to as a "local agent," he is licensed by the state in which he conducts his business.
Binder -	A temporary agreement which obligates the several parties of the contract.
Broker -	An insurance broker ordinarily is a solicitor of insurance who does not represent insurance companies in a capacity as agent but places orders for coverage with companies designated by the insured or with companies of his own choosing.
Cancellation -	The termination of an insurance policy before its expiration by either the insured or the company. The notice necessary before such cancellation becomes effective is almost invariably stated in the insurance contract.
Cancellation, flat -	The cancellation of a policy as of its effective date without a premium charge.
Cancellation, pro rate -	The termination of insurance contract or bond with the premium charge being adjusted in proportion to the time the protection has been enforced.
Catastrophe -	A sudden and severe calamity or disaster. An event which causes a loss of extraordinarily large amount.
Claim Representative -	An individual who acts for the company or the insured in the settlement of claims. He leads to agreement about the amount of a loss and the companyÕs liability.
Claims Reserve -	Those amounts necessary to cover future payments or claims already incurred.
Deductible -	The amount of a loss which the insured has to pay.
Dividend -	In a mutual or participating company, it is the return to the policyholder out of the earnings of the company.
Endorsement -	A provision added to a policy, usually by written or printed form.
Exclusion -	Provision of part of the insurance contract limiting the scope of the coverage. Certain causes and conditions, listed in the policy, which are not covered.
Expiration Date -	The date on which the insurance policy ceases to protect the policyholder.
Extended Coverage -	A clause in an insurance policy or an endorsement of a policy which provides extra or additional coverage for other hazards or risks than those provided for under the basic provisions of the policy.
Firemark -	A medallion or sign on a building indicating which insurance company has insured the building. It was used in the early days of insurance when municipalities did not have fire departments and individual fire insurance companies had their own fire fighting equipment. The mark helped to identify a property for the company and their fire mark would concentrate their attention in protecting properties so identified.
Fraud -	Deception or artifice used to deceive or cheat. In insurance it is understood to be related to misrepresentation and concealment. Proof of willful fraud is grounds for voiding a policy.
Hazard -	A specific situation that introduces, or increases, the probability of occurrence of a loss arising from a peril, or that may influence the extent of a loss.
Inspector -	Individual who performs examinations of risks for purpose of deciding whether to insure it or not.
Loss report -	A written account of a claim or loss suffered by an insured.
Lost Policy Release -	A statement signed by the insured releasing the insurance company from all liability under a lost or mislaid contract of insurance.
Market Value -	The value of assets (stocks, bonds, debentures, real estate, etc.) Based on a current market valuation.
Multi-peril policy -	A policy which is a combination of fire and casualty (or fire, casualty and marine coverages) in a single contract such as the Homeowners policy.
Notice of Loss -	The conditions of the insurance policy, require that any person sustaining a loss against the property insured by the policy shall immediately give notice to the company of such loss.
Policyholder -	The individual in whose name an insurance policy is written. Synonymous with insured.
Premium -	The amount of money which the policyholder agrees to pay to the insurance company for the policy of insurance.
Public Adjuster -	An individual who for a fee with adjust or represent policyholders in presenting their claim to insurance companies.
Replacement Cost -	The cost of replacing the damaged property without deduction for depreciation.
Schedule of Insurance -	The list of individual items covered under one policy.
Schedule of property -	Term applied to a statement which is attached to a policy, setting forth the various items to be insured, and the amounts applying to each and every one of the items in such schedule.
Underwriter -	The individual whose duty it is to determine the acceptability of insurance risks.

 

PRIVACY NOTICE

REPORT A CLAIM

DICTIONARY OF INSURANCE TERMS

CONTACT OUR CUSTOMER SERVICE STAFF

CONTACT OUR CLAIM DEPARTMENT

REQUEST A BROCHURE

SAFETY TIPS