Auto
A document that verifies how and when a loss happened and includes the cost of damages.
Proof of Loss
The taking of property from the care and custody of a person by one who has caused or threatened bodily harm or committed an unlawful act witnessed by that person.
Robbery
A fire that produces a visible spark, flame, or glow and leaves the area in which it was intended to be kept.
Hostile Fire
A specified dollar amount of each covered property loss that an insured must pay.
Deductible
Government agency that administers the National Flood Insurance Program (NFIP).
FEMA
Protects the insured against drivers who do have auto liability insurance, but whose coverage limits are inadequate or insufficient to respond to claims.
The coverage pays only up to the amount that exceeds the limit of liability of the at-fault party.
Underinsured Motorists Coverage
This form is designed to insure those who are tenants.
Contents Broad Form (HO-4)
Legal liability arising from damage to tangible property, including loss of use of that property caused by the insured's negligence.
Property Damage
A cause of a potential loss.
Peril
Association of all insurance commissioners.
No legal authority over insurance regulations.
Promotes uniformity and recommendations for state policu
NAIC
Provides insurance to insured persons injured in accidents that are caused by another party.
Uninsured Motorists Coverage
Fire, lightning, internal explosion, wind, hail, aircraft, riot, vehicles, volcanic eruption, explosion, smoke, VMM.
Broad Form
(HO-2)
The cost to replace property with property of like kind and quality, at current pricing, without a deduction for depreciation.
Replacement Value
A condition or defect that exists within property itself that causes the property to spoil, break, become defective, or destroy itself.
Inherent Vice
Designed to provide coverage on a worldwide basis to third parties and does not pay benefits directly to an insured.
Umbrella Policy
The amount of coverage is divided between bodily injury (BI) and property damage (PD).
Split Limit
A situation under which at least 2 policies provide identical coverage for the same risk.
Concurrency/Concurrent Policies
RRG
The cancellation of a policy for which a refund is made of unearned premium calculated in proportion to the time the policy was in force.
Pro Rata Cancellation
This is a special form used to fill in the gaps of a property policy. There is no standard policy form, no coinsurance, no pro rata clause.
Difference in Conditions
(DIC)
Insurance
The insurer will pay reasonable expenses incurred for necessary medical and funeral services caused by an accident, sustained by an insured, and incurred within how many years of the accident
3
A clause designed to prevent the insured from collecting more than the actual extent of loss by allowing each policy to pay its share of a loss.
Pro Rata Liability
Established by states to provide basics property insurance to property owners who are unable to secure coverage in the standard property marketplace
Fair Access to Insurance Requirements
(FAIR Plan)
The principle of restoring the insured to the same financial condition as before the loss, with no intent of loss or gain.
Principle of Indemnity
Similiar to HO, provides bodily injury and property damage liability coverage for an occurrence arising out of the use or maintenance of covered property or a non-owned boat.
Boatowners Policy