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From Standard Fire Policy: The option is solely that of the company. A loss which is made more costly than would normally be expected because of extenuating circumstances such as sub-zero weather, heavy rain, faulty or delayed alarm, traffic congestion, etc. An event which occurs by chance: The cause of an occurrence which is unexpected and unintentional; a fortuitous cause.
A Line of insurance accepted by a company which otherwise would be rejected strictly as an accommodation to a good agent. An acronym for Agency-Company Organization for Research and Development, a coalition of agents, companies and rating organizations with the purpose of standardizing forms and procedures. Its functions are now performed by a corporation of the same name with headquarters in New Jersey. A detailed statement, usually prepared by the agent, of business written by him for a particular company as of the end of each month.
An event which is the result of action of natural forces over which man has little or no control: The cost measured in terms of money to replace or restore any item of property at the time of the loss, less depreciation except where "Replacement Value" is covered. See also Depreciation, Replacement Value and Stated Amount. An individual, partnership or corporation, other than the actual named insured, who has an insurable interest. Should the employee become involved in an accident while on company business, the employer would most likely be named in any action for recovery by an injured party.
Coverage D in the Homeowners Policy. The money, above and beyond normal living expenses, which becomes necessary in the event of a loss covered by the policy. A fire loss covered by a Homeowners Policy so damages the home that it is uninhabitable for three weeks.
Normal activities of the family eating, sleeping, laundry, etc. As a result, they must eat out, live in a motel, send out laundry and so on. Additional Living Expenses coverage supplies the extra money up to the policy limits, and only the additional amount required to live under these conditions, as opposed to living under normal conditions. Structures are "Adjoining" when they are physically separated, but are connected or touching.
An individual who negotiates on behalf of an insurance company with all parties concerned following a loss to determine the proper settlement of any claim s. An Independent Adjuster is an individual who adjusts losses for insurance companies, but is paid on a fee basis, and is not an employee of any insurance company. An adjuster who is employed full time by an insurance company is known as a Staff Adjuster.
A Public Adjuster is one who, for a fee, negotiates with an insurance company or companies on behalf of the insured s in the event of a loss. Courts of law having jurisdiction over ocean marine matters.
Legal differences are settled by Courts of Admiralty under rules, procedures and precedents which differ considerably from those of other courts. Their area concerns matters of happenings at sea, marine insurance contracts and settlements of disputes arising from interpretations of provisions of maritime contracts, insurance or otherwise. A company licensed by a state under the laws of the state, but whose home office is located in another state or country. See also Alien, Foreign or Domestic Company.
The practice by insureds of purchasing insurance protection against only those exposures or perils which they believe will most likely cause a loss. When large number of insureds bought only selective types of certain coverages although some of these certainly got burnedthe result was that a disproportionate number of poorer risks were more heavily insured for certain exposures than the better risks which insured "across the board.
This is not to mention the additional cost of issuing and servicing the many individual policies. Rate or premium schedule promulgated by a rating bureau which may or may not be adopted by a subscribing company, at its option. An additional charge or increase in rates used in some insurance group contracts to cover exposures due to correctible hazardous conditions as an incentive to remove such conditions to eliminate the surcharge.
A grouping of motor vehicles based on model year for the purpose of automobile physical damage insurance rating. A contract between an insurance company and an agent spelling out all the conditions upon which the agreement is based, covering the rights and the obligations of both the company and the agent.
An individual, partnership or corporation licensed by the state to act for a particular company or companies in soliciting, negotiation, effecting and servicing insurance contracts. By the terms of his contract and bylaw, he is, in many cases, the company. See also Captive Agent under Direct Writer, Broker, General Agent, Special Agent, State Agent, and Local Agent.
Lines of insurance which are allied to Property Insurance, such as Water Damage, Rain Insurance, Business Interruption or Sprinkler Leakage, etc.
Term generally found in Inland Marine insurance indicating coverage for losses caused by perils not specifically excluded in the policy. Automobile Comprehensive coverage could be considered "All Risk. The system of selling and servicing insurance by means of independent agents who may represent more than one company, and who derive their income from commissions on insurance sold.
For contrast, see Direct Writer. An organization which supports and promotes insurance education and encourages professionalism establishing standards to that end. Those qualified who successfully pass the examinations prepared and conducted by the institute are awarded the designation "Chartered Property and Casualty Underwriter" CPCU. It is equal to the "CLU" and "CPA" designations awarded in life insurance and public accounting, respectively. The form containing the data may vary from state to state, by must include the particulars spelled out by the supervising authority of the state in which the company is licensed.
A motor vehicle of the private passenger type which is 25 or more years old, maintained solely for use in exhibitions, parades, club activities and occasionally used for other purposes. A written statement based on information supplied by a prospective insured, giving full details concerning the risk as may be required by the company and upon which the company relies in rating and underwriting.
In some forms of insurance, the application becomes an integral part of the policy. The determination of the extent to which each applicable policy must share in a loss when two or more policies cover the same loss. The portion of the loss paid by the sharing policy is called its "Contribution. Determination of the insurable value of any given property.
Also, determination of the extent of financial loss or damage. A clause in some policies Fire, for example provides for an appraisal by impartial experts to determine the amount of damage or loss.
The terms of the policy provide that such appraisal must be made on demand of either the insured or the insurance company. Appraisals of property to be insured may be required by the insurance company prior to the issuance of the policy, and may constitute a part of the policy, when issued. A condition in a property policy which provides for see arbitration in the event of a disagreement between the company and the insured as to the amount of a loss. Either party has the right to request an appraisal; each appraiser is paid by the party selecting him, and other expenses for the see umpire, if one is necessary, are shared equally by the company and the insured.
Term indicates meeting or exceeding a set standard, such as "Approved Roof," "Approved Fire Hydrant," etc. Most policies provide the mechanics for resolving disputes between the insured and the company when the amount of a loss cannot be agreed upon.
The usual procedure is for each party to choose a qualified disinterested person, both of whom in turn select a third party as "umpire. Term used in ocean marine referring to persons who steal or rob by violence or force.
Included as a "Specified Peril" in marine policies. Excludes loss as a result of petty thievery or pilferage. Owned property, real and personal, including money, accounts receivable and other evidences of debt. Liquid assets are those which are readily available cash, negotiable instruments to pay obligations. The assignment of risks is based on the proportionate share of premiums written in the voluntary market by the participating companies.
Those undesirable risks are politely referred to as the "Residual Market. The written transfer of interest legal rights in an insurance policy from one Party to another, in most cases only with the consent of the insuring company. The legal transfer of rights or obligations from one party to another. The designation of a participating company in a "pool" agreement.
Liability other than Legal Liability--see "Liability Insurance" which is assumed by contract or other agreement. Liability assumed by the insured results in exposures which are excluded under most liability policies.
See Contractual Liability Insurance. Basic liability policies do not contemplate exposures beyond the policy provisions created by liability assumed by contract between the insured and another party. Liability protection of this nature may be obtained by see Contractual Liability insurance for an additional premium. One of the defenses which may be used by the party being sued for negligence is that the claimant assumed the risk of suffering injury when he was or should have been aware that he was exposing himself to injury when he took action or failed to take action.
An individual who has been given authority by another to act in his behalf in certain specifically defined transactions. See also Power of Attorney. An object or situation which normally would not be considered dangerous such as an abandoned refrigerator but could cause injury or death to one such as a child who is "attracted" to it as a plaything. Such policies are called "Audit Policies," and sometimes "Automatic Policies.
Provides increase in amount of insurance to cover added or transferred property automatically within limits. Insured is required to report such property additions within 60 days and pay a pro rata additional premium from date of acquisition. Coverage is usually available only to Government, Hospital or Educational Institutions. Most policies provide automatic reinstatement of the original amount of insurance without payment or additional premium after payment of a loss and effective upon the restoration of the property involved in the loss.
This provision affords coverage for removal of property from one location to another, pro rata at each location. Property in transit is limited to amount provided by the policy for property away from the original premises. Coverage is limited to 30 days from date of removal. Not to be confused with see Pro Rata Distribution Clause.
See Physical Damage, Automobile; Medical Payments, Automobile; Comprehensive Coverage, Automobile; Family Automobile Policy, Basic Automobile Policy. An average rate or premium is a rate applying to several 2 or more items under a blanket policy which is generally determined from the average of values and the published rates applicable to each item of property covered. Based on a percentage of the average weekly wage of the worker, the amount of compensation is subject to a minimum and maximum.
Determination is made by formula according to the law of the state in which the claim is made. Under "No-Fault" reparations, weekly benefits for work loss are also based on a percentage of income prior to the date of the claim. A bond which guarantees the court appearance of a person to answer a legal summons. If the person fails to appear, the bondsman or bonding company the "surety" must pay the amount of the bond to the court.
See definition of "Bond. One who assumes possession, but not ownership, of goods in accordance with an expressed or implied contract, usually for the purpose of servicing, storage or transportation of such goods. In assuming custody the bailee becomes legally liable for the property. Furniture Movers, Laundries, Dry Cleaners Upholsterers, T. When ownership of an automobile is by other than an individual or by husband and wife, or is classified as a "Commercial" vehicle, the Basic Automobile Policy BAP must be used.
This policy is in many ways not as broad as the Family Automobile Policy FAP or the Personal Automobile Policy PAP. The latter makes no mention of other family members resident in the same household. There is limited coverage also on non-owned automobiles, and the addition of the Broad Form Drive Other Car Coverage is recommended.
An amount of liability insurance for which the minimum premium is charged. If the insured wishes a larger amount, this is called "Increased Limits," and a percentage "Factor" of the minimum rate or premium is charged in addition to the minimum premium. As used in No-Fault Automobile Plans, these are benefits reimbursing persons suffering economic loss through injury arising out of the ownership, maintenance, or use of a private passenger motor vehicle. When large quantities of data items of original entry such as invoices, credit memos, payments, etc.
This procedure is know as "batch processing. A "Pool" plan similar to the fair plans and the auto assigned risk plans, underwritten by all companies writing fire insurance, to provide fire and extended coverage for risks with high exposure in the so-called "Hurricane Belt.
Eligibility requires that the property to be certified complies with wind resistance standards according to the Southern Standard Building Code. A system of classifying the intensity of wind based on "Gale Force" in miles per hour: The usual dictionary definition of this word is at odds with its meaning in insurance. Most dictionaries describe "benefit" as profit, advantage, or privilege. A basic principle of insurance is that an individual should not end up in a better financial or physical including property condition as a result of a loss than before.
A bond required of a contractor who bids for work which is to be awarded to the lowest bidder. The bond is forfeited in the event the contract is awarded to him and he fails to enter into such contract.
See definition of Bond; Performance Bond. See also Bailee and Common Carrier. A legal written or oral agreement issued by either an agent or a company, limited in term to a specific number of days, to effect immediate insurance in cases where sufficient information or time prevents a policy from being issued.
A binder should include all pertinent information available, state the type of insurance, the limits, the perils insured against and when issued by agent designate the insurance carrier. Oral binders, although legally binding within the limits of the agency agreement, are dangerous, and should be executed without delay, with-copy to company in which the risk is bound. A policy which covers two or more items under a single amount e.
See also Specific Insurance and Pro Rata Distribution Clauses.
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An inland marine policy covering the property of a merchant, wholesaler or manufacturer, including property of others while in his custody, property on consignment, property sold but not delivered.
The policy covers against loss by most hazards including transportation. Auto Liability Insurance for the independent truckman who leases his equipment to trucking firms. Operation of a tractor without a trailer is know as "bobtailing;" operation of a tractor with an empty trailer is called "dead heading.
The term "Bodily Injury" includes sickness or disease including death at any time resulting there from, sustained by any person or persons, caused by accident and arising out of one or more of the hazards insured against in the policy.
Protection against liability imposed bylaw on the insured for bodily injury as described above, to any person except employees. A combination of liability and physical damage insurance covering loss arising from the operation of boilers, pressure vessels, mechanical and electrical equipment and machinery.
Coverage may be written on a "Named Perils" or an "All-Risk" basis, and may be extended to include business interruption and consequential damage. Simply stated, the Surety guarantees to the Obligee the satisfactory performance of the Principal. An expression of long standing meaning all insurance accounts of a particular agent, producer, marketing representative, general agent division office or other similar category.
Sometimes referred to simply as "book," the term is usually preceded by an adjective. A list itemizing in detail a usually large number of transactions, documents or policies. When a large number of such items is sent to another company or department, a Bordereau usually accompanies it for transmittal and checking purposes.
Term indicating a more comprehensive form of coverage as opposed to a "Limited" form. Examples are "Broad Form Personal Theft" and "Broad Form Storekeepers" policies. See also Dwelling Forms. An agent or broker designated in writing by the insured to examine or copy the make-up of a rate, to apply for a specific rating or re-rating because of changes in occupancy or to inquire as to the effect on a rate of proposed changes in the physical condition or use of the property.
Rating Bureaus will generally not cooperate with a broker or agent who is not designated in writing by the insured as his broker or agent "of record. Insurance against loss to builders, including machinery and equipment, in the course of construction, and to materials incidental to construction. Includes -coins, but does not take into consideration their value as coins. A form of umbrella liability where the principal exposure is "wet" marine involving the operation of vessels and the use of docking facilities.
The obligation on the part of the insured to prove he sustained a covered loss and to provide evidence supporting the amount of his claim. The obligation on the part of the alleged injured party the plaintiff that a third party the defendant is the proximate cause of his injury or loss; Criminal: The obligation on the part of the state through the prosecutor to justify the action against the accused by providing the charge.
Unlawful entry into premises by actual force and violence, evidence of which must be in the form of visible marks made by tools, explosives, chemicals or electricity. See also Premises and Theft. Indemnifies the insured for loss of income caused by interruption of business operations as a result of fire or other insured perils. Also called "Use and Occupancy" insurance. See also Extra Expense Insurance, Time Element, and Gross Earnings Form.
Term commonly used to refer to an exclusion of certain coverage in a policy which the company may be willing to eliminate upon payment of an additional premium.
Termination of an insurance policy before the end of the stated period. There are only three ways in which cancellation can be effected: Surrender of the original policy by the insured, or 2. Written Notice to the insured and mortgagee, if any by the company or agent, or 3. Cancellation of a policy as of its inception date with no premium charge.
In some cases the company is entitled to a fee called a "Minimum Rentention" to cover the cost of processing the policy.
Cancellation at the request of the insured, with the return premium credit less than proportional to the unexpired term. Cancellation by or at the request of the company or the agent, with the return premium credit proportional to the unexpired term.
An insurance company owned by a single interest or a combination of similar interests who control the stock with the purpose of obtaining insurance coverage for its business operations at a lower cost than the market offers. It may be a Non-Admitted Company, Non-Resident or Foreign, and under special circumstances may supply reinsurance to a self-insurer or a Domestic Company. A type of insurance covering "Goods and Merchandise in Transit" by ship, motor carrier, rail or air.
Forms vary greatly with regard to exclusions and limitations, and are generally tailored to the individual risk. Common exclusions are what might be expected: Cargo insurance may be written on either a specified named perils or an all-risk basis. It is used to pay direct obligations of the bank, to disburse the proceeds of a loan to the borrower or to credit his account. It is also sold to customers for domestic remittances where a personal check may not be acceptable to the payee. A broad, loose term denoting generally those classes of insurance concerned with losses due to legal liability to third -persons, and also such lines as Accident and Health, Bonds, etc.
Burglary and Robbery, for example, have always been, and still are, considered "Casualty" lines, and yet, because they involve loss to property and are considered "First Party" situations between company and insuredsuch losses could be classified under the "Property Insurance" category without much argument. For purposes of ready understanding and assignment and apportionment under the see "Guiding Principles" for losses involving overlapping coverages, however, the traditional terms and definitions of "Property" and "Casualty" are retained.
In line with this, a burglary loss is still considered a "Casualty" loss. A severe loss usually covering a relatively wide area, such as one resulting from a hurricane, tornado, conflagration, flood, etc. See also Shock Loss and Umbrella Policy.
A display screen much like a television screen which shows data "called up" by a terminal keyboard, Sometimes called a "Display Screen" or simply "Screen," but mostly referred to as a "CAT. This unit is the heart of the computer, without which no processing could be done. There are three basic parts in the Central Processing Unit: Evidence of insurance, usually in the form of a certified copy of the policy.
Also, a description of specific details of the property covered under a "Master" or "Open" policy. The certificate usually carries with it the obligation on the part of the insurance company to notify the holder of the certificate in the event of a change in the terms or the cancellation of the policy. A description of insurance in force does not bear this obligation is often referred to as a "Memorandum of Insurance.
By its certification, the bank immediately transfers the amount of the certified check into its own funds to guarantee payment of the check when it is presented for payment.
A special service provided by the United States Postal Service. For insurance purposes, Certified Mail is considered legal proof of mailing, as to the date and the addressee. When this class of mail is brought to the sending post office, it is numbered and recorded, with a receipt given to the mailer. The mail is then treated just as other First Class Mail until it reaches the delivering post office, which then records it before giving it to the carrier for delivery. The mail, on delivery, must be signed for by the addressee or someone acting for the addressee.
This receipt is then kept on file at the delivering post office so that evidence of delivery may be available at a later date if necessary. For an additional charge, the Postal Service will obtain and return to the sender a "Return Receipt" which shows the date of delivery and the person signing. If the certified mail is to be signed for only by the addressee, with return receipt, the mail is marked "Restricted Delivery," and an additional charge is made for this service.
See also Registered Mail. When the use or occupancy of a building is changed e. Failure to notify could result in voiding of policy coverage. If the company is notified and the change results in an increase in exposure, the company has the option of cancelling or adjusting the premium to reflect the increase.
The insured may also request an adjustment of premium if he feels that the change results in a decrease in exposure. A professional designation awarded to those who have completed the prescribed examinations and have satisfied the experience requirements of the American College of Life Underwriters.
Comparable to the professional level of see Chartered Property and Casualty Underwriter CPCU and Certified Public Accountant CPA. A professional designation awarded to those who have the required experience and have passed the prescribed examinations. Program is under the auspices of the American Institute for Property and Liability -Underwriters. A mortgage on movable or personal property as opposed to real property land and buildings.
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See also Encumbrance, Lien and Mortgage. Insurance designed to protect a lending institution bank, savings and loan association, credit union, etc. A sheet accompanying manual pages which are replacements or additions to existing pages. Lists page number s of the manual page sedition or effective date s and frequently includes a brief explanation of the important changes. These "checking slips" should be filed together in the front of the manual or section after changes have been made for later reference and "checking.
Under Fire Insurance, any order by a civil public authority to destroy insured property to prevent or retard the spread of fire provided such fire, even though not on the premises, originated from a peril not excluded under the policy is covered. Under Business Interruption, Homeowners Additional Living Expenses and Rent and Rental Value, denial of access to insured property by Civil Authorities for inspection purposes, etc.
Under Transportation Insurance, Common Carrier is not responsible for delay occasioned by order of Civil Authority.
A legal action to recover money, property, rights or privileges by one party from another, claiming injury or damages. See Tort; Criminal Action. A serious and prolonged disorder of and by a number of people. When coverage for this hazard is provided, it includes coverage of riot, riot attending a strike, and in most forms coverage includes direct loss from pilferage and looting occurring during and at the immediate location of the riot or civil commotion.
A request for indemnification. A request for indemnification for a loss involving only the insured and his insurance company. A request for indemnification of a loss by other than the insured a "Third Party" for damages alleged to have been caused by the insured. The term "Claim" also is used to refer to the estimated amount of the loss. An individual who is charged with the examination, investigation and evaluation of claims in process. Working closely with the adjuster in procedures, they agree on the amount of reserves to be set aside for pending claims.
A periodic review of the claims of an agency particularly whose which have draft authority. Bonding companies require these audits, and they may even be conducted by the state insurance department when such action is indicated. A term used to indicate an established category into which a person, risk, degree of protection, operation or other division is placed for the purposes of determining premium or underwriting decision.
Term usually applied to an automobile which is not old enough to qualify as an "Antique Automobile" but by reason of its make, model, year and condition, has appreciably increased in market value. See Antique Automobile; Appreciation. A meeting of the buyer and the seller for the purpose of transfer of title of real property from one to the other. As a general rule, each party is represented by his own attorney, although, "closings" are frequently held in the offices of attorneys who specialize in this type of transaction, in which case the interests of all parties concerned are protected.
At this time all mortgage arrangements, title search, insurance, etc. A computer language most widely used in business data processing. It is an acronym for Common Business Oriented Language. A number digit or series of numbers representing the various characteristics of a risk, such as type of policy, class of occupancy, degree of protection, driver class, etc. Enables information to be computerized for statistical analysis, billing and retrieval for actuarial and other purposes.
An arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. You should be able to understand it on the fourth or fifth reading. An insured or an insurance company required to share in a loss under a conisurance agreement. The colliding of the automobile, stationary or moving, with any other object, stationary or moving.
Term also includes overturning "upset" of the insured automobile whether or not any other object is involved. A policy which provides protection against two or more hazards of both property and liability. Dates back to the days when companies were chartered to write only property or liability Casualty lines but not both. Homeowners form is an example of a present day "combination policy. An automobile physical damage coverage which may be written only in connection with Fire or Fire Theft coverage, and then only for a like amount.
As compared to see Comprehensive Coverage, which is an all-risk type of insurance, Combined Additional Coverage protects only from specified perils of Windstorm, Hail, Earthquake, Explosion, Riot or Civil Commotion, or the forced landing of any aircraft or of its parts or equipment, Flood or Rising Waters, External Discharge or Leakage of Water except loss resulting from rain, snow or sleet whether driven by a wind or not.
A new automobile physical damage coverage designed to include all perils currently under comprehensive and collision for commercial automobiles. It is aimed at eliminating any confusion which might exist as to whether a loss is covered under comprehensive or collision. The new coverage is available for most commercial auto risks.
It is not available for garage dealers because of the special theft, mischief and vandalism deductibles which apply in dealer risks. Obviously, a common deductible must apply equally to both exposures when writing this combined coverage.
A chemical change producing heat and light caused spontaneously or from an external source. Fire is always the result of combustion. But combustion does not always cause fire. A general reference to all of the various forms of insurance designed for the protection of business operations and property exposures, as opposed to those of individuals. This classification includes all types of buses, liveries, taxicabs, ambulances, law enforcement vehicles and special or mobile land vehicles e.
The percentage of the total premium which is retained by the agent or broker in payment for his services. That portion of the Return Premium see Premium based on the original rate of Commission which the agent must contrib ute in the event of cancellation of reduction in the rate or amount of insurance.
If a policy runs its full term, then his commission is a percentage of the full premium for the period. If the policy is cancelled during its term, then his commission is a percentage of the premium which is earned while the policy is in force. In short, Earned Commission is the difference between Full Commission and Return Commission. The state official who is charged with the responsibility of enforcing state insurance laws.
Known in some states as Director or Superintendent of Insurance. A trucking concern which carries merchandise for a fee, and which cannot, under the law, refuse to accept shipments from anyone who wishes to use its services.
The common carrier may limit the type of merchandise he carries to that which he is especially equipped or accustomed to carry, may refuse to carry certain items such as dangerous materials or perishables, and he may operate within a specifically limited area, but other than these limitations, he must offer his services to the general public. If any delay or loss is not caused by any of the above, the Common Carrier is liable.
The detailed description of the merchandise to be carried and contract between the shipper and the carrier is known as the "Bill of Lading," although this, or a receipt or copy of any other agreement is not necessary to make the Common Carrier liable for a loss. A Private or Contract Carrier transports merchandise only for those with whom it has made prior agreements.
That part of general law which has gained general acceptance in the United States and Great Britain by reason of custom and usage, and by decisions handed down by courts over the years.
Common Law differs from Statutory Law in that the latter has come into existence through enactment into statutes by state and federal legislative bodies. An agreed amount to be paid to an injured party, usually periodically over a definite or an indefinite period of time, depending on the nature and extent of the injuries. Payment is usually made in installments, but may sometimes be made in a lump sum. See also Structured Settlement. Liability coverage for contractors to cover losses occurring after operations installations, servicing, etc.
See also Product Liability Insurance. A bond required by the bank or other lender who supplied a construction mortgage. The bond guarantees that the mortgagor will use money along with some of his own for the purpose intended, i.
Differs from "Performance Bond" in that the "Principal" is not necessarily the party doing the construction. A single rate arrived at based on units of payroll, sales, receipts, inventory, admissions, etc. See also Average Rate. The word "Comprehensive" in insurance is used to mean coverage is afforded for all risks of loss within the general scope of the policy except those specifically excluded. To put it another way, a "Comprehensive" policy covers any loss under the Insuring Agreement, except those specifically excluded in the policy.
Covers any and all physical damage to the insured automobile with the exception of loss caused by collision or upset, mechanical or electrical breakdown, or wear and tear. Any damage or loss e. Coverage may be written either on a Full or a Deductible basis. See also Combined Additional Coverage; Collision and Physical Damage-Automobile.
A general liability policy which is comprehensive in nature, i. Also automatically covers new hazards or locations. Although the Standard Glass Policy is generally used to cover plate glass, the Comprehensive Glass Policy may be extended to cover almost every type of glass manufactured.
It is also used to cover Residence Glass. Except for Residence Glass and certain large risks, each piece commonly called "light" must be scheduled. That is each "light" must be described in the policy as to its type, dimensions and position in the building. Even glass signs, lamps and such items as glass bricks may be covered under the Comprehensive Glass Policy. The usual exclusions are: See also Residence Glass Policy, Retention Fifty Percent and Two-Plate Rider Agreement.
This coverage is now rarely written as a separate policy as it is now largely incorporated in the Homeowners forms, and was designed for risks now eligible for the latter form. Comprehensive Personal Liability protects the insured or spouse, resident relatives of either, and any other person under 21 in the care of the insured both on the insured premises and elsewhere for liability for bodily injury and property damage.
With respect to those coverages, it is a "single limit" policy. Premises Medical Payments is also afforded without regard to liability of the insured, but does not extend to those persons listed with the insured above, and is restricted to those injuries of an accidental nature. See Single Limit Policy. Coverage extends beyond the insured premises to personal acts anywhere, and to premises in which the insured is temporarily residing. As with all liability policies, there are restrictions as well as optional extensions of coverage.
Only a study of the contract will afford all of the "ifs," "ands" and "buts. Policy providing broad coverage. So broad, in fact, that it means, in effect: Any type of insurance which is required by law, and for which penalties are levied for non-compliance.
Deliberate failure to disclose a material fact or facts whether asked or not when obtaining insurance or in the filing of a claim. Existing or occurring together; refers to coincidence in time and events so clearly related that one seems attendant on the other s.
Insurance under two or more policies which are identical in terms, but may vary in amounts or date. Non-Concurrent Insurance is also insurance under two or more policies which may or may not differ in amounts or dates, but also differ in other features as well, principally in forms or coverages. Non-Concurrency can create serious difficulties in the settlement of losses, and should be avoided.
That part of an insurance policy which sets forth the terms of agreement under which insurance is undertaken. These are examples of "Conditions" found in an insurance policy. A Representation is a statement of fact or condition made by or for an insured which is made a part of the policy and which, even though in error or untrue, will not jeopardize coverage unless it is material. A multiple unit building or group of buildings featuring individual ownership of single units, wherein each owner has, in addition, a proportional interest in the balance of the total property owned jointly by all the unit owners.
Indirect loss or damage resulting from fire or other peril covered by the policy. Windstorm blows tree down damaging electrical wires running to a food freezer, causing food spoilage. Business Interruption Insurance covers "consequential" losses such as "Extra Expenses," "Rental Value," "Profits and Commissions" and "Tuition Fees," among others. This type of insurance contrasts with the "Direct Loss or Damage" forms. Payment of money, giving of service s or property or anything else of value or a combination of these by one party to another, in return for something else of value agreed to by the other party or parties.
See also Contract, Party. When the cost to repair or salvage damaged property equals or exceeds the total value of the property at the time of the loss even though the loss is not "total" as we usually understand it it is, in effect "total," and is called a "Constructive Total Loss. A commission, in addition to the commission, which an agent receives as a result of an agreement with the company as a reward for a lower than average loss ration.
Liability resulting from negligence of persons not employees engaged by the insured to perform certain jobs. Term often used to mean an insurance policy. In general, a Contract is a written agreement between one who offers something a service, indemnification, property, etc. In order to meet the necessary requirements of a legal contract the agreement must meet five conditions - It must be: A bond guaranteeing satisfactory performance of a contractor of a construction contract, and payment of all labor and materials in connection with the specified project.
See discussion under Bond. See also Hold-Harmless Agreement. Essentially the same as see Embezzlement except that Conversion generally refers to property rather than money. Term is also used in Life Insurance to denote a change in one form of life protection to another. A legal entity made up of individuals which is granted a charter by the state. Each member becomes a "shareholder" to the extent of his investment, and his personal liability for the debts and obligations of the corporation is limited to the degree of his investment.
A condition of a sales agreement of merchandise wherein the purchaser agrees to pay the cost, insurance and freight charges in connection with the shipping of the goods to their destination. Similar to a Binder issued by a reinsurance company in favor of a Primary Carrier as evidence of reinsurance. Insurance, an insurance policy, or the extent of protection in type, limit or amount afforded by an insurance policy. A report containing information about an individual his personal habits, credit rating, family and job situation, etc.
Inspection Report a report on the physical condition, "housekeeping," neighborhood, protection and construction of the property and Mercantile Report on the moral and financial status, usually of a business organization are terms which in recent years have come to be used interchangeably with Credit Report. A crime is broadly speaking an act or an omission in violation of the law. A criminal action is brought against the person accused of a crime which does not only damage or injure another person See "Civil Action" but is of such a nature that it is a crime against society as a whole, the public in general or, as we refer to it, "The State.
See also Civil Action, Felony, and Misdemeanor. Also, see a lawyer. The sum claimed for damages allegedly sustained as a result of the act or failure to act of another party. The word "damages" as used in insurance is very broad, and may include loss as a result of injury, malfeasancemalpractice, errors and omissions, acts of God, etc. Compensatory Damages are damages which demand indemnification for measured loss. Punitive Damages are those which are awarded by the court as punishment for the negligent act which caused the loss.
See discussion under Injury. In the sense in which the term is used today, Data Processing often referred to as "EDP"--for Electronic Data Processing is a system of high speed manipulation of facts, made possible by a Computer System option one binary touch consists of a see Central Processing Unit CPU stock investment guru app, the "brain," to which are connected various devices for entering information input into the CPU, and extracting processed information from it output.
A computer system has two main functions: Also known as the "Analytic System. Dean, Chief Engineer of the New England Insurance Rating Association, how to profit from hurricane sandy on debits bulls make money bears make money but pigs just get slaughtered credits applied to the basic rate.
Adjustments are made in consideration of grade of fire protection, construction and height, housekeeping, nature of occupancy, density or neighborhood, etc. This clause, included as an "Additional Coverage" in policies covering property, provides for expense, up to a specified amount, of removal of debris resulting from damage caused by a covered loss.
Information given by the insured on the basis of which a policy is issued: Name, address, nature, location and description of risk, coverage, amounts or limits, etc. Also included are the numbers and edition stock trade software freeware of the endorsements which are attached and become a part of the policy.
The effective and expiration dates, the name of the insurance company and agent and the policy number are also shown.
An agreed amount which, in the event of a covered loss, the insured must pay before the company pays the balance of the loss up to the limits of the policy. See also Disappearing Deductible. A written agreement under seal by which real property is conveyed title is transferred from one party to another. To damage, or to attempt to damage, the reputation of a person or group of persons by evil or false reports. See also Libel and Slander. The method s adopted by a person or other legal entity against legal proceedings have been taken, for the purpose of disputing charges of wrong-doing.
All liability policies provide for the defense of the insured against any suit charging injury or damages, even if such charges are false and groundless.
The company also agrees to pay, in addition to the limit s afforded, all costs of such defense. It is important to note, however, that the injuries or damages alleged in the claim must be of the type that would be covered by the policy if the charge could be proven.
If not, the company has no obligation for defense. Method of annual payment of a three-year policy. Annual payments not including Homeowners and Minimum Fire and some other Iines are calculated by multiplying the three-year rate usually 2. The premium thus obtained is the annual premium payment subject to the Minimum Premium rule. Most policies are now "annualized. If the insured elects to pay three years in advance, he may protect himself against any interim rate or premium increase during the three-year period.
He may, however, prefer to have the policy issued for a three-year period, paying annually DPP. In electing this method, he is charged for the second and third annual premiums which are in effect at the time they become due. This method of premium payment is called Annualization. Today most policies are for a one-year period only. Fire and Homeowners policies exclude indemnification for demolition of undamaged portions of a building by reason of "any local of state ordinance or law regulation construction, repair or demolition.
The initial premium paid under an installment payment plan or see Deferred Premium Payment Plan D. The estimated premium paid under an audit policy when the actual premium, cannot be determined until after the policy has expired. The allowance taken for age, wear and tear and obsolescence of any item, consideration being made of the probable useful life the item may have had.
It is important to remember that the depreciation factor is applied to the replacement value at the time of the loss and not to the original cost new of the item. A rate or premium, usually lower, which differs from the standard rate or premium filed with the state insurance department having jurisdiction. In many states "File and Use" laws have been passed, under which a company may simply file a schedule of rates, and proceed to use them.
They will remain in use unless the Commissioner of Insurance contests them. In these forex turbo scalper rita lasker, the bureaus issue rate schedules on an "advisory" basis.
A form of insurance protection usually written for large industrial or commercial property risk in order to cover gaps in the standard coverage. Usually tailored to meet the particular needs of the insured. Normally the responsibility of Inland Marine Departments, the contract may be written separately or may be included in the basic policy by proper endorsement.
Can include -Water Damage, Flood, Collapse, Earthquake, Landslide and other accidental occurrences not contemplated in the original contract. A System whereby the company bills the insured direct for renewal premiums, and the insured remits directly to the company, or pays the agent, who in turn sends the full premium payment on to the company.
In most cases under Direct Billing, the agent performs his usual functions, such as claim reporting and other services. Damage caused directly by a peril insured against under the policy. Under "Consequential Damage or Loss" abovethe damage done by the tree to the electrical wiring is "Direct Damage," while the damage done to the food in the freezer is Consequential or Indirect damage. An insurance company which sells insurance directly to the insured without benefit either to the company or to the insured of the services of an independent agent.
A term in general use describing an employee of a Direct Writer who is engaged in a sales capacity. Also applies to a person who sells insurance for a Direct Writer on a commission basis, and who, by terms of his contract, cannot effect or service insurance for any other company. Directors and officers of corporations may be held personally liable for damages resulting from negligent or wrongful acts even though acting in the name of the corporation.
This insurance protects these individuals and reimburses the corporation and sometimes even the individual directors and officers for necessary legal expenses incurred for defense. Usually written with a high deductible. There are varying degrees of disability: Partial or total; temporary or permanent. A deductible which is reduced as the loss increases until, at a given point, the deductible ceases or "Disappears" entirely.
See Superseded Suretyship Rider and Bond. When a bond expires, there may have been a loss during its term which has not yet come to light. A period of time can be allowed under the terms of the bond followed expiration or cancellation to allow the insured to "discover" his loss. The time allowed is called the "discovery period. A device connected to a computer system by cable or microwaves with a screen "CAT" and keyboard used for input and output of data.
A share tag archives free binary options demo account no deposit the profits if any usually arrived at as a percentage of the premium earned by a given policy at its termination, which is returned to the policyholder of a Mutual or a Stock Participating company.
Dividends are paid in accordance with the dividend rate in effect as of the termination of the policy, and can never be guaranteed in advance. In the event of cancellation of a policy during its term, the dividend is figured on the earned premium see "Premium"and is known as the earned dividend.
Dividends may also be declared from time to time to stockholders in a Capital Stock Company out of earnings. See Mutual, Stock Participating and Capital Stock companies.
A wall, usually of brick, masonry or stone, which separates two sections of a building, runs from the basement floor through the roof and above and has no openings. Sometimes called a "Fire Wall," this construction makes possible lower fire rates for the two -sections. Similar to a check, except that the bank upon which it is drawn is authorized to transfer funds to cover the draft only after the maker e. The authority given to an agent or adjuster to issue drafts in payment of losses.
This authority is limited as to types of claims and amounts paid. Laws which old cattle market hereford address special liability for damages or injuries arising out innerer wert und zeitwert von optionen the sale of liquor.
Coverage for this exposure is excluded under mustafa forex online rates usual liability. The private passenger automobile policy provides protection for the insured when driving automobiles other than the one s described in the policy.
This extension in coverage is limited in that it excludes operation of owned vehicles and those which are furnished for the regular use of the insured. In addition to the regular forms for Dwelling Building s and Contents, Office Furniture, Fixtures, Instruments and Supplies in buildings otherwise designed and occupied solely for dwelling purposes, there are two forms commonly used for dwellings: An All-Risk coverage for dwellings not contents and excludes only specified exposures.
Under the above forms, Dwellings designed for occupancy by more than 4 families or subject to farm rates are not eligible. Also, these forms are not recommended if property otherwise qualifies for Homeowners policy.
A type of business interruption insurance for small mercantile and non-manufacturing businesses which is a relatively simple form, and requires no coinsurance. It provides payments for loss of business during a shut-down period while the damaged property is being repaired, and is a simplified version of the Gross Earnings form. The face amount of the policy therefore, should be at least six, four or three times the monthly needs, depending on the limitation selected.
See also Business Interruption, Gross Earnings Form and Time Element. The date and hour at which an insurance gta san andreas cheats ps2 more money or endorsement goes into force.
The Standard Fire Policy provides that insurance takes effect "at Noon, Standard Time at the Location of the property involved. Most policies covering real or personal property become effective at This arrangement was suitable a few years ago when by charter, companies were permitted to write either Property or Casualty Insurance, but not both types.
When statutes permitting companies to write both property and casualty lines in a single policy, the definition of "Effective Time" became a problem. Since that time, multi-line multiple-peril policies with a common effective time have been approved in practically all states. The fraudulent appropriation of property usually money to which the individual has been entrusted.
Although this usually means an employee, it also could be an attorney, an attorney-in-fact, one -who has power of attorney, or any other fiduciary. Conversion has the same meaning, but is restricted to property rather than money. The right of government to appropriate private real property for public use; to confiscate or condemn any property for the common good. When the property taken results 99 5 minute binary options trading strategy a necessary public benefit, the owner is entitled to fair compensation.
Ruger pc9 replacement stock common law doctrine placing legal liability on the employer for injuries to his employees. In such cases the employee is free to take legal action against his employer for recovery.
The limit applies per occurrence, with no separate limit per person. Property real and for personal to which the owner does not have complete and clear legal title is said to be "encumbered. A printed or otherwise written or typed statement attached to and made a part of an insurance policy, amending, clarifying, restricting or expanding the declarations or conditions of the policy. Changing circumstances often require that alterations be made to an existing insurance contract.
Addition or elimination of a mortgagee or loss payee, change in coverage or limits, change of victorian trading co greeting cards or basis of rating are just a few of the many changes which are made possible by the use of an endorsement.
Were it not for endorsements, the alternative would be cancellation of the existing policy and issuance of a replacement to accomplish changes. This would be going from bad to worse, or much more worse. A "Rider" accomplishes the same purpose, but applies to bonding, health and accident and life insurance.
The two terms have, unfortunately, been often used interchangeably. A unit recognized as being responsible under the law for its his, her, their acts or omissions which may affect the physical, mental or financial condition of another entity. An individual, a partnership, a corporation or association is considered an "Entity" under the law. Term used in insurance describing personal movable property owned by a business, not including items of inventory or supplies.
Similar to Experience, Merit and Retrospective Rating, but usually 2016 f150 fx4 5.0 review on the very large risks for those insureds with better than average experience. Coverage for liability resulting from errors or omissions in the performance of professional duties other than medical see Malpractice.
Applicable as a general rule to professional business activities such as banking, accounting, law, insurance and real estate. With regard to insurance, covers loss occasioned by failure, whether by error or omission, to have adequate or valid insurance in force, including failure to renew without prior notice to the insured. A deed or any instrument of property or an amount of money as part of an agreement which is entrusted to a third party the "Escrowee" or "Escrow Agent" to be held by him until certain obligations of one of the parties to the agreement are fulfilled, at which time the deed, instrument or money is given to that party.
A legal term referring to the prevention of a party from making. An ocean marine agreement under which the seller is responsible for all charges involving delivery of goods including duty to the designated port of entry. Under this agreement seller must also provide and pay for marine insurance including War Risk and is and remains responsible for the goods after delivery to the named port until the buyer or his authorized agent not his insurance agent takes physical control of the goods or until the time stipulated in the agreement expires, whichever comes first.
Payment by an insurance company of a loss for which it is not obligated to pay under the policy. This is sometimes done because of an error, oversight or misunderstanding on the part of the company, the agent or the insured.
Payment is made entirely at the discretion of the company for various reasons, among which may be: An ocean marine contract under which the seller agrees to deliver goods to a designated location warehouse, etc. On the agreed date or upon the expiration of the period of time specified, the goods become the responsibility of the buyer, whether or not he or his authorized agent takes physical possession.
An agreement in ocean marine under which the buyer is responsible under a purchase agreement for transportation, insurance, duties and all other expenses involved, from the premises of the seller to the final destination of the goods. Term generally used to refer to property not covered by a policy but which may be added by endorsement.
Any domestically licensed agent or broker may legally accept a commission for the placement of enforex sevilla a risk. See Non-Admitted Company, Voluntary Market, Residual Market.
Insurance which pays only after the amount of a loss exceeds a previously agreed amount which may or may not be insured under another primary policy or policies. An excess policy does not contribute in the event of a loss and until applicable primary insurance is exhausted, and where other excess insurance exists, it euro currency in indian rupees only its proportionate share of such excess loss.
See also Primary Insurance, Reinsurance and Retrocession. A reinsurance contract under which an insurance company may make certain that it does not exceed a predetermined net loss ratio. Specific reference to exposure scondition ssituation s.
An amount added to the premium charged on small policies to help cover the cost national westminster bank currency exchange rates handling such policies. The charge depends on the total policy premium developed, rather than the classification of the risk.
See also Loss Constant. The record of the ratio of premiums to losses of a given insured, agent, area, class of coverage, company, or the industry as a whole. Forex trading projects system of estimating rating based on loss experience of an industry.
Also known as "Merit Rating" or "Judgment Rating. The date and time on which insurance protection under a given policy is scheduled to cease. See discussion under Effective Date. This term is generally not specifically defined in insurance policies except for exclusions see below. A definition widely accepted by the courts is that an explosion is evidenced by a sudden and violent bursting and breaking or expansion of a container caused by an internal force or pressure, with material going outward from the center and usually accompanied by a noise.
The following are not considered "explosions" for insurance purposes: A condition, material, activity or situation, or the proximity to any of these, which creates or increases the possibility of a loss. Also, the measure of such possibility. Two risks may be insured against the same exposures or hazardsbut the possibility of loss may be far greater in one type of construction, operation, materials handled, etc. The greater exposure to loss should determine the rate or premium charged and certainly should be a factor in deciding the acceptability of the risk.
Exposure is also defined as the source of possible loss--wind, fire, explosion, earthquake, etc. The terms Exposure and Hazard are often used interchangeably with the word "Peril. Extends the coverage of a fire policy which covers for fire and lightning only to include loss due to Windstorm, Hail, Explosion, Riot, Riot attending a strike, Civil Commotion, Damage by Aircraft, Motor Vehicles or Smoke Damage.
The endorsement excludes Vandalism and Malicious Mischief which may be added by endorsement for an additional premium. The Extended Coverage Endorsement does not apply to a standard fire policy unless a specific additional premium is charged; it must be written for the same amount as the fire policy; it must apply to all items covered by the policy and it does not act to increase the amount of insurance afforded by the policy to which the endorsement is attached. A "Time Element" form of insurance which helps to pay for loss due to suspension of operations caused by a covered hazard.
It is designed to pay for the "extra expenses" involved in continuing operations with a minimum of interruption until such time as the damaged premises can be repaired or a different usable premises can be obtained.
Unlike "Business Interruption" coverage, which pays for loss due to suspension of operations, Extra Expense Insurance enables a business to continue necessary operations health care facilities, laundries, newspaper publishing, etc.
A transcript of the information shown on the see Daily Report, plus claim and loss history information. An electronic, electromechanical system for high-speed transmission and reproduction of exact copies of documents of any kind letters, contracts, engineering drawings, etc. A number multiplicand used to multiply base premiums or rates to arrive at the proper premium for a higher or lower exposure than the base or norm.
Examples are factors to increase limits from basic limits from basic limits shown in the manual, and the "Territorial Factors" or "Multipliers" used in rating Plate Glass. A Factor is also used in the Revised Classification and Rating Plans e. In the latter, it is arrived at by the combination of the "Primary" factor and the "Secondary" factor which adds, subtracts or is 0.
Not to be confused with see Increment. In general business use, "Factor" refers to one who acts for another in certain transactions, such as discounting accounts receivable. See also Increment, and Surcharge. A type of reinsurance agreement under which -each risk is specifically reinsured under a separate agreement. Since each item for reinsurance is treated as a separate proposal, subject to acceptance or rejection by the assuming carrier, the method has been largely replaced by "Treaty Basis.
Fair Access To Insurance Requirements". A federally funded reinsurance plan designed to increase the availability of property insurance in areas prone to riot damage. Property insurance not including automobile, farm or manufacturing risks for home and business owners is made available in eligible urban areas when such coverage is not available through normal channels. Designation of the broad private passenger automobile policy developed from the National Standard Liability Policy which, for example, did not cover the operation of non-owned automobiles except by endorsement or a separate policy.
The new policy not only included such operation automatically with certain exceptions but is broader in other respects. In order to qualify for the Family or Personal Auto Policy, the risk must meet certain eligibility requirements.
Excluded are commercial vehicles except pickup, panel delivery and jeep-type vehicles not customarily used for commercial purposes other than ranching or farmingpublic or livery conveyances, motorcycles, three-wheeled vehicles, scooters or others not designated for use on public highways. See also Basic Automobile Policy. An act allowing persons to bring legal action against the federal government for injuries or damages in cases where the government could be held liable were it an individual or other legal entity.
A crime regarded under the law as especially vicious, punishable by death or imprisonment. A person or corporation appointed in trust to act for another, particularly with regard to monetary or legal matters. A conservator for an incompetent person or an executor or an administrator of an estate all binary options brokers us regulated by cftc examples of a "Fiduciary.
An agreement by which a lending institution will advance the full premium to the insurance company and accept prearranged periodic payments from the insured. The payment plan is arranged with a down payment and subsequent payments so that premiums paid are always ahead of the cancellation table, and the lender, by contract, has the right to require cancellation.
All states except Massachusetts and Puerto Rico which have compulsory automobile insurance have some form of automobile financial responsibility laws which require that owners and operators of motor vehicles give some proof that they are able to pay for injuries to others or damage done by reason of the operation of the motor vehicle. These laws generally operate after one or more of the following: Failure to provide Proof of Financial Responsibility will result in license suspension.
Proof is usually required for a period of 3 years but can be as long as 5 years. By far the easiest and practice trading oil futures contract evidence of Financial Responsibility is to have an automobile liability insurance policy with adequate limits in force at the time of the accident, or at the time Proof is required.
Most states have reciprocal agreements regarding suspension of license for failure to provide Proof of Financial Responsibility in the event of involvement in an out-of-state accident.
Proof of Financial Responsibility is often called Evidence of Financial Responsibility. Merchandise of a manufacturer which has been completely processed and is ready for sale as opposed to "goods in process. From an insurance standpoint a fire must be: A fire located in and confined to a place where it is supposed to be, such as in a burner, stove, fireplace or etrade currency exchange rate. A fire which escapes its intended original container, or which originates elsewhere, and does damage to property.
The Standard Fire Insurance Policy reimburses the insured up to the specified amount for all direct loss by fire, lightening, and by removal from premises property endangered by the perils insured against in the policy. This is of course a simple statement of what the fire insurance policy does.
There are standard restrictions and limitations. Briefly, these are as follows: The policy will not pay for: More than the extent of the actual cash value ACV of the property at the time of the loss; 2.
The above is only a brief summary of the provisions and limitations of the Standard Fire Policy. The limitations described here may be covered by endorsements or other insurance by payment of an additional premium. Refers to noncombustible materials used in construction of buildings and parts of buildings to prevent the spread of fire and to minimize its effect.
Also refers to items other than buildings, e. Term used in fire insurance before any credits for coinsurance are applied. Rate used by insured if he does not want to carry insurance to value or near value, and still avoid becoming a coinsurer in the event of a loss. Most all insurance companies are averse to writing flat rate policies. A risk having five or more self-propelled vehicles of any type is eligible for the Automobile Fleet Plan.
A Fleet Reduction Factor discount begins with the sixth vehicle, but does not apply to any vehicles rated under the Long Haul Trucking Rule, nor to any vehicles which are not owned by the insured.
Most fleets are written on a "Reporting Form" basis, which automatically covers newly purchased or licensed vehicles, and allows credit for unlicensed or sold vehicles. A premium is estimated the "Advance" or "Deposit" premium based on the equipment owned and operated by the insured at the inception of the policy, and at the end of the policy term, the policy is "audited" american express forex card india login determine the actual premium earned for the exposure.
Credits for suspension See "Suspension--Automobile" are allowed except on vehicles for which a certificate of Financial Responsibility has been filed. The approach is to convert into mathematical formula, by means of average number of syllables per word, average number of words per sentence and with credits given for so-called "personal" words such as "you", "we," "they," etc. Random samples of word segments are taken from the text to be rated and scored, and the results are entered into the formula.
The test "score" is determined from this equation, and ranges in scale from the simplest--probably "Da-da" and "ma-ma" down to the lower the score being the more difficult to understand an example of which might be Bill Buckley having a conversation with himself.
Following are typical score ranges: Most legislation has required insurance and other consumer contracts to score a 45 or higher grade to be acceptable. The range is described by Flesch as "difficult" or see above the academic or scholarly level.
A policy designed to cover personal as opposed to real property which is moving or can readily be moved, such as jewelry, musical instruments, coin and stamp collections, etc. These are generally written on an all-risk, world-wide basis, except cibc online stock trading canada some are restricted to the United States and Canada.
See also All-Risk and Inland Marine. Dealers in "high ticket" items such as automobiles or expensive appliances frequently borrow money, using as collateral the items "on the floor," i. Insurance taken out by the bank or finance company for its interest alone or together with the dealer on these items is called "Floor Plan" insurance.
This type of insurance is written on a "Reporting Form" basis. An insurance company doing business in a given state whose home office is located in another state or country. See also Domestic, Admitted and Allen company. The falsifying of any writing with fraudulent intent.
Alteration--Changing the amount or the name of a payee or an endorse ment on a negotable instrument check, etc. A printed endorsement attached to a policy which restricts, broadens, clarifies or otherwise modifies policy coverage. Term is also used to refer kuwait stock exchange opening hours the basic policy, its type and the "Declarations" made a part thereof.
A marine concept providing that no payment shall be made unless a loss exceeds an agreed amount the "Franchise"in which case the company pays the full amount of the loss from the first dollar on.
This differs from "Deductible" where only the excess of the beginner forex traders amount is paid by the company in the event of a loss. It differs also from the "Disappearing Deductible" in that it makes no payment at all until the "Franchise" is reached, and then the company pays the full amount. See Deductible and Disappearing Deductible.
Proof of fraud voids an insurance policy. In order to establish fraud, the following elements must be proven: An Ocean Marine term referring to an agreement under which the seller is responsible for goods sold until goods are at "along side" the transporting vessel. Under the terms of this Ocean Marine agreement, total destruction of a cargo would be covered no matter the cause, but partial losses would not be covered unless caused by one of the designated perils of the sea.
American Conditions usually relate to on-deck cargo. Basically the same as American Conditions, but broader in that the policy will pay partial losses whether caused by designated perils of the sea or losses after such occurrence even if they are in no way directly traceable to whatever peril of the sea might have caused sta je forex forum loss.
Bank nifty options lot size Conditions generally have to do with below-deck cargo. Originally an ocean marine term, now meaning any condition of sale of goods where the seller is responsible until the merchandise is placed "on board" the truck, ship, freight car, aircraft or other conveyance, at which time the burden of risk shifts to the purchaser.
Also means that the purchaser is responsible for the cost of transportation from that point. Destination" holds the seller responsible until the goods are safely at the designated location specified by the purchaser, and the seller pays the cost of transportation to that place. Term indicating policy pays in full for all losses caused by perils insured against from the first dollar.
Also used to describe a policy which includes all coverages against all hazards possible to insure even though it may include "deductible" or coinsurance features. An automobile policy, for example, with every available coverage regardless of any deductible or limit is referred to as having "Full Coverage," since there is no other coverage which can be written on it.
Despite the use of this term, there is no such animal as a "Full Coverage" policy. Some are broader in scope than others see "Comprehensive" and "All-Risk"but there is no insurance policy written which can be made to cover all possibilities of all losses, having no restrictions or conditions whatsoever.
A condition in most reporting form policies whereby the insured is penalized in the event of a loss if it is determined that the insured has reported lower values than actually existed.
An inland marine form covering all-risks worldwide for scheduled personal furs, including garments trimmed with fur representing their principal value.
Other common "floaters" cover such things as jewelry, cameras, musical instruments, silverware and the like. See also All Risk, Floater and Inland Marine. From an insurance standpoint, the contents of a building except machinery, goods in the process of manufacture, goods held as a bailee or merchandise for sale or held for sale.
This insurance is designed to cover wholesale and retail dealers whose stock consists of furs and garments trimmed with fur. It does not cover those who deal exclusively in raw or dressed skins or those who manufacture for the wholesale or retail trade. Department stores with fur departments are eligible for this coverage, however.
Many of the above exclusions may be removed by endorsement for additional premium. It does not cover furs or fur items which are the property of the furrier. In some cases of see Umbrella Liability, the primary carrier is unwilling to write underlying limits adequate to meet the limits provided by the Umbrella coverage, thereby leaving a "gap" in coverage between the upper limits the primary carrier is willing to provide and the Umbrella minimum requirements.
It is possible to procure in the specialty market "buffer layer" the gap created by this situation--sometimes akin to the procedure described under "Retrocession," except that the third "Layer" of the cake is placed between the bottom and the top layers. Since it is a legal liability policy, it is designed to protect the insured only for those losses for which the law would hold him responsible.
A commercial automobile form designed to cover the legal liability of automobile dealers, repair shops, service stations, etc. In general, the policy covers premises liability, product liability, including completed operations and liability for defective workmanship if resulting damage occurs after the property is no longer in charge of the insured.
An employer, for example, is the garnishee of an employee whose salary has been attached. An agent who has an exclusive contract with a company covering a specific territory, and who, to all intents and purposes, acts as a branch office for the company is called a "General Agent. Also, sometimes refers to an agent who has a liberal form of commission non compensatory stock option plan characteristics with the company and does solicit direct business.
See also Agent, Special Agent, Local Agent and State Agent. The principal in maritime law that all interests hull owners, cargo owners, charterees and shippers share in any sacrifice for the good of all. A good example would be the jettisoning of a part of the cargo in order to save the ship and the balance of the cargo. Particular Average refers to loss which affects only a particular interest, as opposed to "General Average" in which all interests are involved.
Term in general use referring to lines of insurance other than automobile and property insurance. Many companies allow a discount on automobile insurance for students who maintain high scholastic grades, since there appears to be a high correlation between academic achievement and good driving experience. The period of time, after the date a premium is due, during which a policy will continue in force.
Usually used in life insurance, meaning a period of time varying from 28 to 31 days following the premium due date during which the policy remains in force even though the premium has not been paid. This very simple form is popular with small mercantile and non-manufacturing service businesses. The amount of insurance a company has on a single tradeking option fees. The "Net Line" is the same thing, with the amount of reinsurance, if any, deducted.
A state fund maintained through assessments contributions by insurance companies which are set aside to satisfy claimants and insureds of an insurance company which may become insolvent. The fund may be set up in advance to be prepared for any insolvency, or it may be created by assessment of the other companies after an insolvency has occurred.
Legislated in about half the states, "Guest High point 9mm carbine folding stock restrict the right of recovery for injury sustained by guests passengers in the vehicle other than the driver in automobiles by placing upon the guest the burden of proof of "Gross Negligence" of the driver.
Some statutes even require that proof of gross negligence include "willful and wanton misconduct" by the driver. The operation of "Guest Laws" can be affected by the relationship between the owner or driver and the passenger: Prior to the establishment of these "Guiding Principles. With the advent of combination multi-peril policies Homeowners, for example where all coverages are written by one company in the same policy, there are fewer problems in this area, but they do occur, and they can be serious.
A computer term referring to the electric, electronic or mechanical components or any combination of these which are part of a computer system, such as see Central Processing Unit CPUtapes and disks, optical or magnetic character readers, card readers and punchers, interpreters and sorters, and any other part of the system which could be called "tangible.
This insurance is designed to protect an insured against losses resulting from the operation of rented or hired automobiles. The individual who has a regular automobile policy is covered under the "Drive other Cars" coverage for hired cars only when they are not regularly or frequently used. A Business which hires automobiles is covered as an additional insured stockland christmas trading hours townsville the automobile liability policy in the name of the owner of the hired car.
The exposure here is that there may be no insurance or sufficient insurance on the hired car. In both the above cases, hired car coverage may be added by endorsement to the -regular automobile policy. Hired car coverage is excess over any other valid and collectible insurance under which how to profit from hurricane sandy insured is entitled to collect, and does not cover automobiles owned by or registered in the name of the named insured, or an executive officer or partner of the insured.
In addition, there is no coverage for the operation of any automobile owned by or registered in the name of an employer or agent of the insured who is given any allowance of any kind for the use of such automobile. A contract in which one party agrees to assume the legal liability to "hold him harmless" of another party for damages sustained by still another third party.
Certain agreements municipal ordinance requirements, except when involving work done for the municipality; elevator or escalator maintenance; easement agreements and lease of premises, etc. Any other type of "Hold-Harmless" agreement should be covered by a Contractual Liability policy.
This is practically always required by a General Contractor in a sub-contract with a Sub-Contractor. Reimburses the golfer who hits the once-in-a-lifetime hole-in-one, and then gets hit himself to pick up the tab for a round of booze for everyone who happens to be at the club at the time.
This vital insurance protection enables the lucky one to enjoy himself on his day of glory. Although there are other "Package" Homeowners refined sunflower oil price trend on stock market for beginners game market, the Homeowners Policy Program developed and filed by the Insurance Service Office ISO is much more generally in use than the others.
Since most other plans are very similar, the information that follows, based on the ISO Program, is a good general guide to the scope of coverages under this form. The Homeowners Policy is a property insurance contract which incorporates see Comprehensive Personal Liability coverage. With respect to direct physical damage to dwelling buildings and contents, there are five forms: HO-1 Basic FormHO-2 Broad FormHO-3 Special FormHO-5 Comprehensive Form and HO-8 Modified Coverage Form.
There are two additional forms: HO-4 Contents Broad Form, commonly known as "Tenants Form" and HO-6 Condominium Unit-Owners Formwhich are designed to cover contents only plus Liability.
All seven Homeowners forms cover property losses on either a "named" smoke, theft, falling objects, etc. The following is a brief guide to the coverages afforded under the Homeowners forms.
The number in parentheses is the number of "named" perils covered in the form. All building losses are settled on a "replacement cost" basis except HO8 provided the coinsurance requirement is met no coinsurance requirement for HO Contents losses in all forms are settled on the basis of "actual cash value," although a number of states have approved optional "Replacement Cost" endorsements for contents.
See Replacement Cost Endorsement. Many endorsements are available to fit the needs of the individual insured e. The term includes "Fixtures" items attached to the building which are the property of the tenant which can be removed without damage to the building.
Superseded Standards
The wallpaper you put on yourself? The degree of care, maintenance and cleanliness of a premises or operation. An important consideration in underwriting a risk. Although warranties in law are generally thought of as those made by the seller which they arethose made in an insurance transaction are also those representations made by the purchaser. In insurance, however, the emphasis is on statements warranties made by the purchaser upon which the contract of insurance relies.
A warranty need not be spoken or written to be legally binding. An inference which is not specifically expressed in any way may result in an "implied warranty. Let us say you want to insure your Mercedes Benz for full coverage comprehensive and collision. The agent will not ask you if there is an engine in the car, so you do not tell him there is none. It is assumed implied that there is an engine in the vehicle. It is also implied that the boat you are insuring is not at the bottom of the lake, or that there are no firemen battling the blaze at your home while you are taking out a fire policy.
Fixtures, alterations, additions or installations made a part of the building by or at the expense of the tenant or lessee. Such "Improvements and Betterments" painting, etc.
In ocean marine, a clause which extends the policy to cover losses caused by bursting boilers, breakage of shafts, latent defects in machinery, hull or equipment, and faulty navigation or management. Named after a ship of the same name involved in a lawsuit in An increase; an additional amount added, sometimes expressed as a percentage of the premium or the rate.
See also Surcharge, Factor. Insurance company french election effect on stock market india claims which have been paid or for which reserves have been set up.
The statement of Incurred Losses usually covers a fixed period of time one year, three years, etc. The amount of the reserves shown at the beginning of the period is then subtracted. The resulting figure is the amount of "Incurred Losses.
The restoration of individual, individuals or other entity to approximately the same economic condition as prior to any loss. Sometimes, because of applicable deductibles, coinsurance or other factors, such restoration may not be complete, but the principle of indemnification does not permit the person or persons suffering a loss to be better off after a loss than before.
A licensed individual who represents two or more insurance companies for whom he sells and services policies, and whose income is derived solely on commissions. Compare Captive Agent under Direct Writer and Broker.
Term referring to the technological approach to recognition, evaluation and control of environmental factors originating in or from the workplace, including conditions which may cause sickness, impaired health or well-being or discomfort and inefficiency among workers or others in the area of such factors.
These may take many forms, among which are dust, fumes, irritating liquids, gases, vapors, mists or toxic waste. Radiation, noise, vibration or extremes of temperature or pressure are also among these factors.
Industrial Hygiene also includes studies of stress resulting from boredom, monotony, worry, work pressures and fatigue. The Industrial Hygienist is charged with recognizing and minimizing or, ideally, eliminating the conditions which result in adverse effects. Refers to an intrinsic or innate characteristic or condition of an article which, for no apparent reason, will cause fading, cracking or even disintegration, which cannot be traced to any outside influence. Pearls will lose their luster, opals will suddenly shatter, or furs will crack or split, all evidently due to some condition in the article itself.
A form of insurance designed to cover moving or moveable property, so-called because it has its origins in ocean "wet" marineprobably the oldest form of property insurance. Since such property was known as "Floating Property," inland marine policies are frequently referred to as "Floaters.
Most of the property reaching this country from Europe continued on its journey through the Erie and many other canals by barge, hence "Inland Marine" became a natural designation for such insurance. See also All-Risk, Floater and Ocean Marine. Any device card reader, magnetic tape or disk units, console typewriter terminal, etc.
An installment payment of premium other than the initial or "Deposit" premium under an installment premium plan. A written document detailing the terms of a legal agreement between two or more parties, spelling out the specific rights and obligations of each party. See also Contract and Consideration. In the definition of insurance, we see that any loss in order to be paid must be measurable in terms of money. If a loss occurs, therefore, which cannot be translated in such measurable terms suffered by an individual or individuals, it then follows that he has not had a financial loss which can be attributed to the accident or occurrence, and he therefore has no "insurable interest" in the event.
You may have a particular sentimental fondness for the Leaning Tower of Pisa, but, should it fall on its face, you would have to show a loss measurable in terms of money in order to prove you had an "insurable interest" in it. You cannot purchase insurance on property or persons with yourself as beneficiary in whose condition or state of well being you have no "insurable interest.
Such loss must be measurable in terms of money. As you can see from the above, insurance is almost the exact opposite of gambling. A gambler places a bet thereby voluntarily exposing himself to loss with the hope of monetary gain. On the Other hand, an insured who is faced with an involuntary exposure to loss pays a fee--the "premium"--in order to reduce or eliminate such exposure.
A franchised arrangement for independent insurance agencies which provide for an independent contractor to work as an associate of the individual agency in servicing accounts, thereby freeing the principal s to pursue the larger and more lucrative accounts. The franchise agreement, in addition to providing increased visibility through group advertising, also enables the agency to participate in the benefits in training, etc.
It is similar to franchises now operating nationwide in the real estate field. A clearing house for property and casualty insurance information supported by a great many stock and mutual insurance companies.
Its main purpose is to provide information to both the public and the industry for better understanding of the operation and functions of this important sector of the economy. The written contract of insurance, including all endorsements attached. Endorsements usually include the wording: Among these are statistical, actuarial and advisory support based on its broad access to the experience of its many supporting member and subscriber companies.
A voluntary, non-profit association, it also designs policy and endorsement forms for all classes of insurance in this field and provides manuals for rates and rules.
The person s or other legal entity on behalf of whom an insurance company agrees to pay benefits or to indemnify for losses in the event of certain occurrences as described in the policy. There are a number of different types of insurers, definitions of which may be found elsewhere in the text: Admitted, Alien, Domestic, Foreign, Mutual, Stock, Stock-Participating, Reciprocal, Reinsurance, etc.
The portion of the insurance policy which sets forth the terms under which the insurance company agrees to indemnify the insured for loss suffered from specified perils or to pay benefits upon the occurrence of certain events as described.
In brief, the agreements describe the conditions under which the company will identify the insured in event of a loss. The part of the insurance policy which spells out the basic agreement between the company and the insured. A local insurance agent who is a member of Independent Insurance Agents of America IIAAformerly the National Association of Insurance Agents, the so-called "Stock" Association.
Since insurance companies use various makes of computers, a problem of communication for producers, insurance department and rating organizations arises when it is necessary to intercommunicate. The producer, for example, in the near future would possibly have need for more than one terminal if he represented several companies which had systems which differed from on another. Adaptable interfacing devices are now available which bring about compatibility. The earnings of an insurance company from investments such as stocks, bonds, real estate and mortgages.
The manner in which these funds may be invested is governed strictly by guidelines set by the state regulatory agencies insurance departments which require that a certain percentage of their premium income be held in liquid reserve for payment of claims.
The investment of remaining available funds is also strictly regulated as to the percentages allowed to be used for investing in various categories. An individual on premises owned or in the care, custody or control of the owner or lessee, who is on or in the premises at the expresses or implied permission of such owner or lessee or agent, for business of mutual benefit to both parties. A high degree of care is imposed by law on the owner or controller to see that the condition of the premises is such as to minimize the possibility of injury to the "invitee.
A listing sent to a purchaser containing a description of the merchandise, and sometimes the method of shipment, the unit cost and the terms.
Also, a notice of charges made for services rendered or a combination of both. An all-risk worldwide coverage contract for scheduled personal jewelry. May be issued as a separate policy or added as an endorsement to an existing policy. A machine with a typewriter-like keyboard which punches rectangular holes in a card, enabling an operator to record data from see Source Documents resulting in a standard code pattern so that the data may be "read" into the computer for processing or storage.
For the most part Key-Punch now means the direct recording of data into the computer memory, key-punch cards are used little if ever. See also Burglary, Robbery, Theft, Embezzlement and Conversion. An intrinsic defect which is not apparent in a product, and which may later make itself known with perhaps dire results.
A weakness, for example, which develops in the hardening process in the fabrication of a steel drive shaft may cause the entire shaft to break under heavy strain or prolonged use. The theory that the occurrence of events resulting in loss is the end product of pure chance, and not of the willful or deliberate action or lack of action by any individual or group of individuals.
The larger the number of risks or exposures, the more accurate the estimate of the occurrence of such events. See also Actuary, Insurance and Probability, Theory Of. Such termination would require the tenant to move to other quarters, most likely at an increased rental. The difference in the new rental and the old is made up for by this type of insurance. Agency copy of the original invoice, usually ontaining space for premium payments, commissions to sub-agents, etc. A Lessor Landlord grants a lease of occupancy written permission to occupy to a Lessee Tenant.
Form is based on the assumption that the insured is not responsible for the care and maintenance of such buildings, and carries a lower rate than would otherwise apply. A letter or other communication form, etc. Insurance under the terms of which the company agrees to pay a third party for bodily injury or property damage on behalf of the insured who may be held legally liable because of negligence.
Legal Liability is that which is imposed by law; Assumed or Contractual Liability is that which is assumed by agreement. Simply stated, being obliged or held responsible for penalty, expense or burden, either imposed by law or assumed by agreement or contract. The defaming of another by written or otherwise published word. Slander is also defamation, but by word of mouth orally; spoken. Both terms are subject to interpretation under law, but, generally speaking, in either case malicious intent must be shown.
Relatively recent court decisions have in some instances denied the right of redress to well known public figures. Strangely enough, it has not always been necessary to prove that the charges themselves are false. A clause attached to some policies Homeowners, for example which provides that if, during the term of the policy, any endorsements are authorized, or filings or regulations are made which would broaden or extend the coverage afforded without additional charge, such broadenings or extensions automatically apply to the policy in force without the attachment of the pertinent endorsement s.
This eliminates the need to issue thousands of endorsements to existing policies when a broadening provision is adopted. Conversely, filings or regulations made after the policy is in force which would restrict or otherwise limit coverage originally offorded may not be applied to such policy during its term. There is an exception to this rule, however, where subsequent premium payments on a policy written on a see Deferred Premium Plan may be subject to increase in rate or premium in effect at the due date of such subsequent installment s.
By the same token, a decrease in rate or premium would also be reflected in the subsequent installment s. A legal claim against real or personal property which guarantees satisfaction of some obligation usually monetary. He files the lien to make sure the property cannot be sold or otherwise disposed of unless and until he has been paid for his labor and materials.
See also Encumbrance and Mortgage. A charge of electricity generated by nature, as opposed to a short circuit which is caused by electrical current artificially generated. This term refers to the maximum amount s an insurance company is obliged to pay in the event of a loss. In most policies covering for liability for Bodily Injury, two limits are provided: Property Damage is written with one limit per occurrence, subject sometimes to "Aggregate Limit--see below.
When you hear the expression, " and 5," or a similar expression, the first two figures given refer to the Bodily Injury limits in thousands as described above; the third refers to the Property Damage limit, also in thousands. Single limits are becoming more common on Automobile Insurance Policies as of the printing of this publication.
A form of automobile physical damage insurance which covers only when the insured is free of fault. Type of policy which specifically limits the kind s of losses covered. See Broad Form and All-Risk. A corporation organized to supervise a group of underwriters who underwrite nearly every kind of insurance risk.
Individual participating underwriters usually have an agreement which limits their liability for losses, and must make deposits with the organization from time to time as evidence of their financial responsibility. A flat charge or percentage added to the regular premium to provide for extra expenses or profits, or to compensate for special conditions or situations in a risk or class of risk.
Most minimum fire premiums now contain a "loading" charge. Often applies in Inland Marine insurance. An agent whose function is described generally under the definition of "Agent. A term loosely used. Generally speaking, it refers to 1 the amount for which an insurance company becomes liable if the event insured against occurs, or 2 the event itself. The word Loss is used in property insurance to refer to damage or injury sustained by the insured the so-called "First Party" claim.
See also Consequential Loss and Constructive Total Loss. See also Expense Constant. A service maintained by the National Board of Fire Underwriters which supplies insurance companies with the names of persons who have been suspected or convicted of arson, or who have in some way been connected with fires of suspicious origin. A clause providing for payment of loss to someone other than the insured who has an insurable interest in the property involved.
Generally used for property other than real estate. As a general rule, when a loss occurs, payment is made to the order of the insured and the Loss Payee. As the term implies, this is work done by independent consulting organizations or by a department within an insurance company involving inspection of large risks with a view to eliminating conditions which might cause accidents or other types of losses.
The relationship of losses in dollars to premiums in dollars, expresses in terms of percentage. Other comparisons are also referred to as "Loss Ratios," such as Earned Premiums to incurred Losses; Written Premiums to Paid Losses, etc.
See also Incurred Losses and Experience. A report to the company describing a loss involving an insured. Should be made promptly, even if all details may not be immediately available. A report of loss by an insured to the agent is considered a report to the company. Many policies also require a report to the police or "proper authority" within a time limit specified in terms of hours; others within a "reasonable time. An estimate of the amount of money an insurance company expects it may have to pay for reported loss.
This amount of money is set aside as a "reserve" as soon as possible after receipt of the loss report. When stock certificates, bonds, insurance policies, government checks, certificates of indebtedness or of deposits, etc. A Lost Instrument Bond supplies this guarantee to the issuer.
A document which, when signed by the insured and, when named in the policy, the mortgageelegally effects the cancellation of a policy in the event it cannot be located. A computer technique used in reading numbers of a specific size and configuration which are printed in an ink mixed with finely ground iron powder which can be magnetized and read by special reading devices.
This method is used primarily by the sorting and recording of the millions of checks processed daily, a job which would be totally impossible if left to manual handling. See also Optical-Character Recognition--"OCR". Willful damage to or destruction of property with malice. Vandalism results in the same damage, but the malicious intent is somehow absent, or unproved.
Although the definitions are historically different "Vandalism" at one time referred to damage done to works of art, for examplethe two terms are used almost interchangeably today. Failure to exercise the degree of skill which could normally and reasonably be expected of a professional person.
Improper or illegal treatment, as in medicine or surgery, including omission of indicated treatment. Unlawful or wrongful action, especially by a public official. Failure to perform an act required by law; improper performance of a lawful act. A type of insurance required by statute but more in the vein of pointing to an imposed rule. Stops short of definite implication that severe penalties for non-compliance will result.
In this case it is possible for an individual to operate a motor vehicle without insurance--that is unless he becomes involved in an accident or is charged with a violation. If it happens, the penalties range depending on the state anywhere from a small fine and a slap on the wrist to a heavy fine and a requirement to file evidence of financial responsibility.
In states with "mandatory" laws, some risk categories repair garages, public or livery services, taxi and other similar services which require special licenses to operate, must show evidence of insurance or financial responsibility with the motor vehicle department in order to obtain and maintain their licenses to operate. See also Compulsory Insurance, Financial Responsibility. A book containing rules and rates covering a particular field of insurance Fire, Plate Glass, Inland Marine, etc.
It is usually published by a rating bureau having jurisdiction, an insurance company to cover a special program, or a private publisher such as SIMPLA-FAX, which publishes digests of rules and pre-figured premiums and rates.
Rates set forth as the basic cost of units of insurance as shown in the particular manual spromulgated by Rating Organizations having jurisdiction, or by a company itself. These rates or premiums are usually subject to modification by surcharges or credits for increased amounts or limits, or above or below average exposure to loss.
Contrast to Judgment or Experience Rates. This form is generally used for an insured whose operations away from owned or rented premises are substantial, such as a heating, plumbing or electrical contractor. Premium is usually based on payroll, although in come cases receipts. Coverage is not provided for damage to property which is owned by, rented to, or in the care, custody or control of the insured.
If an installer of Venetian blinds should accidentally knock over a lamp belonging to a customer when bringing the blind into the room to install it, there would be coverage, for the simple reason that the lamp was not owned, rented to, or in the care, custody or control of the insured. Completed Operations Coverage is also excluded.
Provision in Ocean Marine policies which provides automatic continuation of coverage at no additional premium when transit is interrupted, delayed or suspended because of circumstances beyond the control of the insured. The amount of money a seller may expect to receive from the sale of real or personal property, service or securities at any given time.
An agreement not permitted in all states providing that, in the event of a covered loss, stock merchandise is to be valued at its selling price whether sold or not.
Clause is limited to stock the value of which may at any date be determined when it is of a kind which is traded on an established exchange.
A plan of insurance covering certain lines of insurance which is offered under the auspices of a large employer or other homogeneous group, such as a labor union or fraternal organization, where a large number of persons are covered by one insurance company with the idea of convenience principally payroll deduction and economy.
Although this marketing concept has been used for many years in the Life and Accident and Health fields, it has been applied to automobile and homeowners since There has been a natural antipathy toward such plans by independent agents, most of whom predict that the insured will suffer by loss of counseling service and assistance, particularly at the time of a loss; and also, that the company which engages in mass merchandising, supposedly for the benefit of a large group, should accept all those who wish to participate in the program, "dogs" and all, and forego the traditional risk selection.
A single policy issued to cover a large number of risks under identical coverage, certificates being issued as needed for individual risks, with reference to the "master policy.
Direct solicitation by an insurance company, using media other than agentstelevision, radio, direct mail, etc. Term also sometimes known as "allowable expenses" means reasonable charges incurred, for reasonably needed products, services and accommodations, including, but not limited to, those for medical, surgical, dental and hospital care, nursing services, ambulance services, X-ray, prosthetic devices, laboratory fees and drugs, rehabilitation, treatment and care.
As in Automobile Medical Payments, negligence on the part of the insured need not be shown. As in other sections of this work, the information given above on Medical Payments is to be used simply as a guide, and in no way intended to be considered technically or legally exact or complete. This policy covers loss of money and securities excluding manuscripts, records and accounts for burglary or attempted burglary, and when all doors of the safe and vault are locked by all combinations and time locks, at all hours, whether the premises are open for business or not.
See Money and Securities Broad Form, Open Stock Burglary Policy. A system of determining a rate based on the known past experience of the individual risk, or of a large group of similar risks.
Mexico does not recognize an automobile policy written by any U. Insurance Company in satisfying Mexican Financial Responsibility laws. Visitors to Mexico would be well advised to purchase at the border special short-term policies issued by Mexican insurance companies so as to avoid difficulties with the local authorities and detainment following an accident or violation.
Also known as Class Rates, minimum rates are used in fire insurance to cover those classes of risks which fall into general categories, such as dwellings and contents and small apartment buildings and their contents. On larger risks, such as mercantile, manufacturing and larger apartment buildings and many dwellings in congested areas, the Rating Bureau having jurisdiction promulgates a Specific Rate for the building and contents with particular regard for construction, housekeeping, use, grade of protection, etc.
See also discussion on Rates. The minimum amount of premium kept by the insurance company in the event of short rate cancellation. Representing a material fact affecting a policy or a claim as true, when in reality it is not true; lying. As used in insurance, "Money" means domestic or foreign currency, coin, bank notes and bullion. Basically a policy including premises and outside messenger coverage on an all-risk basis on money and securities with limited protection on other types of property.
Among the exclusions are dishonesty of insured or employees, accounting or bookkeeping errors and loss of books, manuscripts and records of account. After a loss, it is often possible to recover some of the stolen or lost property from individuals who caused the loss or from others.
The Money and Securities Broad Form Policy provides that any recovery shall be applied to indemnify the insured to the degree of recovery. The Company is entitled to deduct any expenses involved in the recovery of such salvage.
A Moped is defined as a two-wheeled cycle with a power-assisting engine, with a piston displacement of 50cc or less or if -electrically powered, with rating of not more than two braking horsepower. Some states require registration, but most do not. All mopeds are subject to motor vehicle laws of the states and are prohibited from use on limited access highways. Homeowners and personal liability policies specifically exclude coverage for mopeds. A number of companies do write moped coverage under motorcycle forms, rating them as cc or less.
Other sources are specialty-line writers with specially designed moped policies. A condition of the character of the insured, the circumstances in which he finds himself, or a combination of the two resulting in a increase in the possibility of loss constitutes a Moral Hazard.
Carelessness or untidiness on the part of the insured, for example, creates a moral hazard, as would pressure from creditors. If the possibility exists that the insured, in the event of a loss, could receive payment in excess of the value of the property destroyed, moral hazard has entered the picture. Insurance rates and premiums are determined on the basis of Physical Hazards which for the most part can be measured or appraised.
Since a moral hazard cannot be measured or appraised, no insurance company would insure a risk with the knowledge it contained such an exposure to loss. A legal claim against real property as opposed to personal property guaranteeing satisfaction of financial obligation.
A Mortgagee is the lien holder to whom the Mortgagor the owner of the property has the obligation. A clause which is attached to an insurance policy protecting the interest of the mortgagee in the event of a loss. The Mortgagee must be named on any check in payment of a loss in addition to the insured and must also be given advance notice of cancellation.
The clause is attached to a policy covering real estate property buildings. The lender of money to the owner of real property in exchange for a conditional lien on the property as security for repayment. A detailed report of an accident required to be submitted to the motor vehicle department where the accident occurred by any operator involved. State requirements vary as to the extent of property damage involved, but when bodily injury to any extent results, virtually all states require a motor vehicle accident report to be made within a specified time limit.
A detailed account of violations, fines and accidents of an individual operator kept by the motor vehicle department; a driving record history or a transcript thereof. Also known as "Two or More Automobiles Discount. An insurance company owned by its policyholders who share in its profits, if any, through dividends. The dividends are based on a percentage of premiums paid by the policyholder, and can never be guaranteed in advance.
In former years, the policyholders of a mutual company were also liable to share in its losses through assessment. These were holders of so-called Assessable Policies. Today, most mutual insurance companies have enough reserves so that they are in a position to issue Non-Assessable policies.
The loss of an item or items which cannot be explained or presumed to be caused by fire, theft or any other insured peril; an unexplainable disappearance.
The specific exposures to loss listed in the policy for which, if determined to be the proximate cause of the loss, the -company agrees to indemnify the insured. The person or the see entity specifically named in the policy as opposed to a party having an interest, such as a mortgagee as the insured. See Automobile, Comprehensive Personal Liability and Homeowners Policy Section II. A form of automobile liability insurance written for an individual who does not own an automobile.
It covers the named insured and spouse if resident in the same household for liability for accidents occurring while driving any automobile not owned by either party or by a member of his or her household. The named non-owner policy is excess over any other insurance available to the insured. The law imposes a duty on every person to exercise reasonable care with respect to his own acts and to the maintenance of his own property so as not to cause injury to other persons or damage their property.
Failure to exercise such reasonable care constitutes Negligence. The burden of proof of negligence lies with the injured party with few exceptions. In theory, one who charges another of being guilty of negligence must himself be completely free of blame. Any degree of blame on the part of the injured party is called Contributory Negligence, which again in theory act to void his claim for recovery of damages.
In actual practice, however, such is not the case. In some jurisdictions, the very harshness of the concept of Contributory Negligence, wherein the injured party receives no compensation for injuries or damages, the doctrine of Comparative Negligence has been introduced, wherein an attempt is made to determine the degree of negligence blame of both parties which allows partial recovery by the injured party. In all cases involving a charge of negligence, intent to harm must be absent. The degree of reasonable and prudent care required to avoid a judgment on a charge of negligence varies as to the relationship between the parties involved: Volumes have been written on the subject of negligence and its ramifications.
See also Torts, Common Law, Statutory Law, Res Ipsa Loquitor. Also known as "Commercial Paper". A document of value meaning measurable in terms of money which is transferable from one person to another by endorsement, assignment or delivery. Checks, drafts, bills of exchange, notes, and some bonds and securities. See Stale Check, Draft. Ideally, No-Fault would work something like this: If you become involved in an accident, the determination of fault as a factor would be eliminated.
There would be no blame to fix, no investigation, no lawyers, no courts and no delays in receiving compensation. Total "Pure" No-Fault would pay all economic losses to all insured parties without regard to fault. There would be no limits to the total amount of benefits, and there would be no delays and no law suits. The standard tort liability system meaning the one at fault has to pay for damages he caused seems to be equitable enough, yet not only does the party to blame not pay his insurance company and all who pay premiums pick up the tabbut the system has turned into a very expensive method of making settlements which is often slow and frequently unfair.
In addition, it is expensive out of all proportion to the benefits paid. Only about forty-five cents out of each premium dollar is paid out in actual benefits.
Figures are from U. Department of Transportation study. Several judicial bodies have declared the system constitutional. A number of No-Fault plans have been enacted into law, or are about to be adopted by many states.
All of these have set various limits "thresholds" of economic loss and other losses, providing that if these limits are reached or exceeded, injured parties may resort to courts. Most of these "thresholds" are quite low. In order to be effective, No-Fault state laws must eventually conform to the same general standards.
An insurance company which is not licensed in a particular state or country, is termed "non-admitted" in that state or country. Insurance may be obtained from these companies however, under the following conditions: The liability of persons or organizations by reason of the operation for their interest of automobiles which they do not own. An Automobile Non-Ownership Liability Policy may be issued to cover the interest of the employer or organization for this exposure.
See also Named Non-Owner Policy and Hired Car Policy. An agreement between the insured and the insurance company after a loss, whereby it is agreed that the investigation or appraisal of damages shall not be construed as an admission of liability on the part of either party.
Written notice issued by company to insured with copy to agent of its intention not to renew a policy. Same notice may be issued by agent with copy to company. When required, notice must be given a specified number of days in advance of expiration date. Specifically excludes loss caused by nuclear hazards explosion accidental or otherwise from any source, except fire resulting from such an occurrence is covered. The commonly accepted definition: That class of insurance covering ships, their equipment, cargoes and other liabilities.
Often referred to as "Wet Marine" as opposed to "Inland Marine. Refers to insurance applying away from the premises described in the policy. Personal activities liabilitypersonal property homeowners and inland marine are examples of such coverage.
Often referred to as "away from the premises. The term commonly used to refer to the section of the automobile policy which defines the word Insured wherever used in the policy. Originally the automobile policy covered only the person, persons or organization s specifically named in the policy, and a separate charge was made for each.
Insurance people refer to the Omnibus Clause, a term which you will not find in the policy. The concept, however, is contained in the section of the policy titled "Definition of Insured. A separate corporation formed by a commercial bank for the purpose of transacting business related to its usual operations, such as the selling and servicing of insurance among other services which it is prohibited from doing by reason of terms of its charter and other banking regulations. It is a means of permitting the bank to expand and diversify its related services.
The technique used when date requires some form of immediate processing. Compare to Batch and Real Time Processing. A policy having no expiration date but continuing in force until cancelled.
There is generally an annual premium deposit with company retention of the minimum and the policy is written more or less on a "reporting form" basis with adjustments in premium made at arranged periodic intervals. Usually a marine form e. Parcel Post, Marine Cargo where values exposed to loss at any given time fluctuate. The Fidelity Bond has an expiration date and is also therefore an "open" form.
Also known as the Mercantile Open Stock Policy. Coverage is also provided for robbery of a watchman when the premises are not open for business. This policy does not cover money, manuscripts, securities, records or accounts. Theft, shoplifting, inventory shortages, etc. See Forcible Entry definition. A computer operation which can "read" numbers and letters typed, printed or handwritten from a source document anything that contains information needed for data processing and converts them directly into electrical impulses for entry into the computer.
This process eliminates the need for manual entry of data from terminal keyboard or key-punched cards. See also Magnetic Ink Character Recognition--MICR. A provision in the policy outlining the procedures to be followed in the event of a loss where or when other existing insurance may be applicable. Any device which transfers processed data from computer storage and records it in whatever form is required e.
Incurs wrath of fellow bureaucrats. Liability arising out of the ownership, occupancy or use of real estate, or of operations in connection therewith, including maintenance of premises. The scope of protection under the O. Even though this extension may include delivery and installation, there are the usual expected exclusions see Completed Operations, Loading and Unloading such as Liability assumed under Contract, Vehicles, Aircraft and New Construction or Demolition, among others. A policy containing protection against a number of different exposures in a single contract such as fire, theft, burglary and liability.
Other all-risk options such as scheduled items for all-risk coverage are available at the option of the insured. Personal Package Policies are usually of the Broad Form or Special Dwelling Policies, or, more frequently the Homeowners Policies. Commercial Package Policies are also now available under the Special Multi-Peril SNP Forms, and may be tailor made for particular businesses, such as Motels, Hotels, various Mercantile and Office Risks and others.
Also known as "Combination Policy. Clause found in inland marine policies which provides that in the event of covered loss of one item of a pair or one or more items of a set, the company is liable only as the value of the item s lost bears to the total value of the complete pair or set, and the loss of the item s shall not be construed as the total loss of the entire pair or set. For example, the loss of one of a pair of earrings would require the company to pay the reasonable and fair proportion of the total value of the pair, some consideration being given to the importance of the lost item.
Today, however, adjustment is frequently made by replacing the set in exchange for the remaining piece for salvage. This practice does not usually hold, however, in matters of loss or damage of a part of a set which is made up of a number of parts, where the individual parts are not considered for their value as part of a complete set.
See also Stock Participating Company. A legal entity created by combining the work, talents, money and other assets of two or more individuals in order to accomplish more than any one could do alone. Many partnerships have been highly successful, but there are many dangers to the participants in this type of arrangement.
Unlike a see Corporation, the liability of each partner is not limited to the extent of his investment. If the firm fails and its obligations exceed its assets, creditors may recover from assets of the individuals involved.
In addition, all partners are bound by the acts of one of them. An individual or other legal entity partnership, corporation, unincorporated association who is or becomes principal in a contract or other legal action. An entity whose physical or financial condition may be altered as a result of the settlement of a claim or judgment in litigation is referred to as an "Interested Party" or as a "Party at Interest.
A wall constructed on the building line dividing two pieces of property, the use and the responsibility of which is common to both owners of the adjoining property.
A bond guaranteeing the owner of a building under construction that the building will be turned over to him upon completion free and clear of any liens for unpaid labor or materials or other encumbrances. The limit of liability or the maximum amount of insurance of the company the Surety writing a bond.
A bond guaranteeing the satisfactory performance of a contract usually construction. This bond is sometimes erroneously referred to as a "Completion Bond.
See also Payment Bond. A private passenger automobile which is more highly powered, relative to its size and weight, than would be expected for the normal operation of private passenger vehicles. A "performance vehicle" is usually subject to a surcharge for liability and physical damage, and may be identified as such in the Symbol and Identification of the Private Passenger Automobile Manual. The hazards insured against in an ocean marine policy which refer to unusual but natural action of heavy seas or high winds resulting directly in sinking, collision or stranding on reefs, rocks or shoals.
The usual action of the winds, waves or tides does not come under the meaning of this term. A reference to hazards in an ocean marine policy which are not the result of "Perils of the Sea," but instead are losses or damage caused by such things as theft, pilferage, non-delivery, fire, breakage, shifting of cargo, condensation in the hold, contact with other cargo and other occurrences brought about by external causes. Excepted are losses which are described in certain warranties, such as -those resulting from capture, seizure, strikes, lockouts, riots, war risks, etc.
Equipment used primarily for the processing of punched cards key punchers, sorters, reproducers, collators, etc. These devices are not connected directly to the computer. They are not part of the computer system, but serve an important role in the operation of the data processing function by reducing the burden of card processing on the computer. Punched cards have been for the most part replaced by other storage devices. The willful making of a false statement concerning a material fact under oath in a legal proceeding; false testimony.
The items to be covered are "scheduled" described in detail and evaluated, and coverage is usually world-wide but may sometimes be limited to the United States and Canadaand, unlike the Personal Effects Floater, cover at the residence of the insured.
The floater form may be attached to and made a part of the Homeowners policy. Also known as "Tourist Floater. Coverage under the Personal Effects policy is now covered to a large degree by the Homeowners policy.
Physical damage to the human body, as opposed to damage to property. See also discussion under Injury.