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Unless otherwise defined in the policy, Actual Cash Value in California means Fair Market price. The Fair Market Price of a product is the dollar amount that an experienced purchaser (under no unusual pressure) wants to pay and a knowledgeable seller (under no uncommon pressure) is ready to accept.
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Agent

A licensed individual or organization licensed to offer and service insurance plan for an insurance coverage business.

Limit

The maximum dollar amount of coverage in force for a residential or commercial property damage policy or liability policy. This maximum quantity can be figured on a per incident basis or as a general aggregate for the total policy term.

Agreed Value

A technique of loss evaluation where the insured and the insurance provider list an agreed upon total up to be paid in case of loss. This valuation approach is most common in residential or commercial property insurance coverage when insuring valuable artwork, antiques, or classic autos. A professional appraisal is typically required.

Arbitration Clause

A clause in an insurance plan that allows the insured and the insurer to each select an arbitrator if they can not agree upon an appropriate claim settlement. Once the arbitrators have actually been chosen, they in turn appoint an independent umpire. If the arbitrators disagree, then the umpire chooses which declares settlement to support. The decision is binding.

Betterment

A scenario that takes place in a loss when an old piece of residential or commercial property is changed by a brand name brand-new product. The insured is put in a much better monetary position than they were before the loss happened, and consequentially may have to pay the difference in rate for the betterment.

Binder

A short-term arrangement that supplies temporary insurance protection till the policy can be issued or delivered.

Broker

A certified person or company who sells and services insurance coverage polices on your behalf.

Broker-agent

A licensed individual who can function as an agent representing several insurance providers, and likewise as a broker dealing with several insurance providers representing your interests.

Cancellation

The termination of an in-force insurance coverage contract by either the insured or the insurer before its typical expiration date.

Claim

Notice to an insurer that a loss has actually occurred that might be covered under the terms of the policy.

Claim Adjuster

The individual who examines the damage brought on by a covered loss and determines the quantity to be paid under the policy terms.

Claims Made

A liability insurance plan where coverage applies to claims filed throughout the policy duration no matter when the loss happened based on a retroactive inception date.

Coinsurance

An insurance provision that specifies the amount of each loss that the business pays according to the amount of insurance coverage carried, divided by the amount of insurance coverage needed. This standard formula connects to a contracted percentage of protection that need to be required to prevent a coinsurance charge.

Combined Single Limit

When bodily injury liability and residential or commercial property damage liability is revealed as a single sum (limit) of protection.

Commercial Lines

Insurance coverages for services, industrial organizations, and professional organizations, as contrasted with individual insurance coverage.

Commission

A portion of the policy premium that is paid to an agent by the insurer as compensation for the representative's work.

Concurrent Causation

Occurs when 2 or more hazards trigger a loss. When only one of these hazards is covered by the insurance plan, the court normally rules that the entire loss is covered. Many insurer have reworded their policies to clarify that just a loss associated to a covered hazard is undoubtedly covered.

Conditions

The portion of an insurance coverage contract that sets forth the rights and tasks of the insured and the insurer.

Consequential Bodily Injury

In Workers Compensation, unique circumstances can arise when a job-related injury triggers some sort of non-work associated injury. (Please see Loss of Consortium, Dual Capacity, and 3rd party Over glossary meanings.)

Coverage

Protection that is offered under an insurance plan.

Declarations (DEC) Page

Usually the very first page of an insurance coverage that consists of the full legal name of the insurance coverage business, the policy number, efficient and expiration dates, premium payable, the amount and kinds of protection, and the deductibles.

Deductible

The quantity of the loss that the insured is responsible to pay before advantages from the insurance coverage are payable.

Depreciation

The real or accounting recognition of the decline in worth of residential or commercial property over a time period according to a predetermined schedule.

Dual Capacity

In Workers Compensation, an employer might be accountable 2 ways to a staff member who sustains bodily injury on the task as a result of using a product or service produced by that employer. The worker is eligible for Workers Compensation benefits and might likewise take legal action against the employer because of the defectiveness of the injuring services or product.

Earned Premium

The part of the policy premium paid by a guaranteed that has actually been assigned to the insurer's loss experience, expenditures, and profit year to date.

Endorsement

A written arrangement that alters the regards to an insurance plan by including or deducting protection.

Effective Date

The beginning date of an insurance coverage: the date the policy goes in to require.

Exclusion

A contractual arrangement in an insurance coverage that denies or limits protection for specific hazards, individuals, residential or commercial property, or places.

Experience Modification

The modification of premium arising from the use of experience rating. Experience rating plans show an insured's past loss experience (usually from the previous 3 years) and utilizes this experience to modify and determine the prem

The termination date of coverage as shown on an insurance plan.

First Party

The insurance policy holder (insured) in an insurance agreement.

Flat Cancellation

Cancellation that occurs on the policy reliable date. No premium charge is made