Terminologies used in fire insurance and thier meaning
Answers
ACCIDENT – An unexpected event, which happens by chance and is not expected in the normal course of events.
ACTUAL CASH VALUE – The current cost of replacing an article with a similar one in the same condition. Any item has three basic values: original cost, actual cash value, and replacement value.
ADDITIONAL INTEREST INSURED – Another person or company who may be liable for an accident involving an insured or an insured vehicle.
ADDITIONAL PREMIUM – An extra charge for an alteration, during the policy period, which increases the hazard or the company’s liability.
ADJUSTER – A person who investigates a loss and negotiates settlement with the claimant on the company’s behalf.
ALL PERILS – An optional coverage designed to provide protection for your vehicle for all types of losses except those specifically excluded in your policy. “All perils” coverage is the most complete coverage you can select to protect yourself from loss or damage to your own vehicle.
ALL RISK – Coverage against loss or damage from all perils except those specifically excluded.
AMOUNT OF RISK – The company’s total liability at a specific location
APPLICATION (APP) – A form on which the prospective insured states facts requested by the insurance company.
ARSON – The willful and malicious burning of property.
ASSUMED LIABILITY – Liability, which would not rest upon a person except that he or she has accepted responsibility by contract expressed or implied. This is also known as contractual liability.
ASSURANCE – Same as “insurance”.
AUTOMOBILE INSURANCE – Coverage on the risks associated with driving or owning an automobile. It can includenuninsured motorist coverage.
BASIC RATE – The standard charge for a given type of risk.
BI/ PD – Bodily Injury / Property Damage Liability Coverage
BINDER – A temporary or preliminary agreement, which provides coverage until a policy can be written or delivered.
BODILY INJURY – Term used in Auto and Casualty policies meaning physical injury, including sickness, disease, mental injury, shock, or death.
BODILY INJURY LIABILITY – Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued.
BROAD FORM – Any of the commercial or personal lines property forms that provide coverage on a named perils basis. This form normally adds the Extended Coverage and Vandalism and Malicious Mischief coverage. This form is generally used for coverage on a Homeowners Policy.
BROKER – An independent person or firm who acts on behalf of the insured in placing business with the insurance company. They are responsible for the collection of premiums, but do not have the authority to give coverage on the insurance company’s behalf without their specific agreement. Compensation is on a commission basis.
BUSINESS INTERRUPTION – Insurance against business expenses and loss of income resulting from fire or other insured peril.
CANCELLATION – Termination of an insurance coverage during the policy period by the voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.
CIVIL LIABILITY – Liability to other motorists, pedestrians, and property owners that you assume when operating your automobile on a public roadway.
CLAIM – Notice to an insurer that under the terms of a policy, a loss may be covered.
CLAUSE – A term used to identify a particular part of a policy or endorsement.
COINSURANCE – In property insurance, a clause under which the insured shares in losses to the extent that he or she is under insured at the time of loss.
COLLISION COVERAGE – An optional coverage designed to provide protection for your vehicle when damage occurs as a result of a collision with another object. This coverage is optional device for reducing risk by transferring the risks of several individual entities to an insurer.
INSURANCE POLICY – A legal document issued to the insured setting out the terms of the contract of insurance.
INSURED – The person (or persons) whose risk of financial loss from an insured peril.
INSURER – The Insurance Company.
JOINT TENANCY – Ownership of property shared equally by two or more parties under which the survivor assumes complete ownership.
LAPSE – Termination of a policy because of failure to pay the premium.
LESSEE – The person to whom a lease is granted, commonly called the tenant.