Actual Cash Value (ACV)
Cost to replace property with new property of like kind and quality less depreciation.
Combined Single Limit
One limit
... [Show More] per occurrence is what we pay up to
Split limit
What we pay up to per person and per occurrence
Deductible
What the customer will have to pay; we cover everything else
Declarations Page (Dec Page)
The basic information about a policy:
Who - names of insurer and insured
What - description of insured property
Where - address and legal description of insured property
When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Depreciation
Amount taken off for wear and tear
Earned Premium
The amount of the premium for which the policy protection has been given.
Risk
A chance or uncertainty of loss
endorsement
Something you can add/change on policy; car, kid, etc
lapse
The insured did not pay so is not covered; will effect renewal
Named driver exclusion
Excluded from coverage and covered cars; cannot drive as they would be considered 1st party coverage
Coverage A
Building and structures
Coverage B
Other structures (such as a detached garage, workshop, swimming pools, fences and gazebos)
Coverage C
personal property
Coverage D
Loss of use
Coverage E
personal liability
Coverage F
Medical Payments
Personal Umbrella Policy
provides protection against a catastrophic lawsuit or judgment
What is covered through PUP?
Liability (property damage and bodily injury [excess])
Other- Personal Injury (libel & slander)
Dwelling Components
Construction of dwelling
inflation protection
A rider in some insurance policies that automatically raises the benefit amount or the maximum daily or annual payments, based on the rate of inflation, in order to ensure that the amount of coverage remains adequate over time.
Market Value
the price at which property would sell
named peril basis
Covered for everything named on policy
open peril basis
It's covered for any loss unless it is specifically excluded
Replacement Cost
The cost to repair or replace property using new materials of like kind and quality with no deduction for depreciation.
Scheduled Personal Property
endorsement - provides broader coverage for personal jewelry, furs, cameras, musical instruments, silverware, fine arts, golf equipment, and stamp/coin collections. must be insured on full value basis.
Special Limit
Covered up to a certain amount
unscheduled personal property
Property not specifically listed in the policy
bodily injury liability
insurance that covers physical injuries caused by a vehicle accident for which you are responsible
property damage liability
insurance that protects a driver against claims if the insured's car damages someone else's property and the insured is at fault
comprehensive
Covers theft, hitting an animal, weather, fire, etc.
Collision
Hitting something; colliding with another object or people
medical payments coverage
pays medical expenses for the driver and any passengers riding in the car at the time of the accident
Personal Injury Protection (PIP)
coverage for medical, hospital, and funeral costs of the insured and passengers in the event of an auto accident
uninsured/underinsured
protection against damages caused by a motorist with no or insufficient insurance
Other Common Coverages
Rental Car
Towing and labor
New car added protection
Loan/lease protection
Ride sharing coverage
Individual Rating Factors
Driving record
Credit
Usage
Coverages you choose
Group Rating Factors
Gender
Location
Age
Type of vehicle
Rating
Standard categories that insurance companies use to decide level of risk that an insured represents. Determines premium cost based on exposure.
First Notice of Loss
initial report made to an insurance provider following a loss, theft, or damage of an insured asset.
Mitigation
the action of reducing the severity, seriousness, or painfulness of something [Show Less]