An amount equivalent to the fair market value of the stolen
or damaged property immediately preceding the loss. For real
property, this amount can be based on a determination of the
fair market value of the property before and after the loss.
For vehicles, this amount can be determined by local area
private party sales and dealer quotations for comparable vehicles.
An insurance company authorized to do business in Arizona
.
A licensed person or organization authorized to sell insurance
by or on behalf of an insurance company.
Coverage for the insured in the event that the insured's negligent
acts and/or omissions result in losses in connection with
the use, ownership, or maintenance of aircraft.
Coverage on the risks associated with driving or owning an
automobile. It can include collision, liability, comprehensive,
medical, and uninsured motorist coverages.
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A temporary or preliminary agreement which provides coverage
until a policy can be written or delivered.
Any physical injury to a person. The purpose of liability
insurance is to cover bodily injury to a third party resulting
from the negligent or intentional acts of an insured.
Covers losses resulting from the malfunction of boilers and
machinery. This coverage is usually excluded from property
insurance creating the need for this separate product.
A licensed person or organization paid by you to look for
insurance on your behalf.
Coverage against loss as a result of forced entry into premises.
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The termination of insurance coverage during the policy
period. Flat cancellation is the cancellation of a policy
as of its effective date, without any premium charge.
Notice to an insurer that under the terms of a policy, a loss
maybe covered.
The first or third party. That is any person who asserts right
of recovery.
Reimburses you for damage to YOUR automobile sustained
in a collision with another car or with any other object,
movable or fixed, (for example, you accidentally backed
into another object while pulling out from a parking stall
and causing damage to the bumper and fender of your covered
automobile).
This coverage waves your collision deductible if you are hit
by an negligent uninsured motorist. COMMON
CARRIER LIABILITY Coverage for transportation firms that
must carry any customer's goods so long as the customer is
willing to pay. Examples include trucking companies,
bus lines, and airlines.
Provides coverage for any direct and accidental loss of, or
damage to, YOUR covered automobile and its normal equipment,
to include but not limited to fire, theft or malicious mischief.
Coverage on an "all risks" basis for glass breakage, subject
to exclusions of war and fire.
Insurance issued to a creditor (lender) to cover the life
of a debtor (borrower) for an outstanding loan.
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The company refuses to accept the request for insurance coverage.
The amount of the loss which the insured is responsible to
pay before benefits from the insurance company are payable.
You may choose a higher deductible to lower your premium.
A decrease in value due to age, wear and tear, etc.
Health insurance that provides income payments to the insured
wage earner when income is interrupted or terminated because
of illness, sickness, or accident.
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Amendment to the policy used to add or delete coverage. Also
referred to as a "rider."
Certain causes and conditions, listed in the policy, which
are not covered.
The date on which the policy ends.
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The dollar amount to be paid to the beneficiary when
the insured dies. It does not include other amounts that may
be paid from insurance purchased with dividends or any policy
riders.
FINANCIAL
GUARANTEE INSURANCE
A surety bond, insurance policy or, when issued by an
insurer, an indemnity contract and any guaranty similar to
the foregoing types, under which loss is payable upon proof
of occurence of financial loss to an insured claimant, obligee,
or indemnitee.
Coverage for loss of or damage to a building and/or contents
due to fire.
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To be eligible for the Good Drivers Discount all operators
of the insured vehicles must have been licensed for three
or more year, have no more than a one (1) point charge on
their driving record and has not been determined "at fault"
in an accident resulting in bodily injury or death to any
person.
A period (usually 31 days) after the premium due date, during
which an overdue premium may be paid without penalty. The
policy remains in force throughout this period.
An option that permits the policy holder to buy additional
stated amounts of life insurance at stated times in the future
without evidence of insurability.
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A policy that will pay specifies sums for medical expenses
or treatments. Health policies can offer many options and
vary in their approaches to coverage.
An elective combination of coverages for the risks of owning
a home. Can include losses due to fire, burglary, vandalism,
earthquake, and other perils.
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INCONTESTIBLE CLAUSE
A policy provision in which the company agrees not to contest
the validity of the contract after it has been in force for
a certain period of time, usually two years.
The policyholder - the person(s) protected in case of a loss
or claim.
The insurance company.
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Prepaid legal insurance coverage plan sold on a group basis.
This coverage will pay for BODILY INJURY and/or PROPERTY DAMAGE
to the OTHER party for which you become legally responsible
of an
automobile accident.
Coverage for all sums that the insured becomes legally obligated
to pay because of bodily injury or proprty damage, and sometimes
other wrongs, to which an insurance policy applies.
A policy that will pay a specified sum to beneficiaries upon
the death of the insured.
Maximum amount a policy will pay either overall or under a
particular coverage.
The amount which can be borrowed at a specified rate
of interest from the issuing company by the policyholder,
using the value of the policy as collateral. In the event
the policyholder dies with the debt partially or fully unpaid,
then the amount borrowed plus any interest is deducted from
the amount payable.
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Coverage for goods in transit and the vehicles of transportation
on waterways, land, and air.
The policyholder / applicant makes a false statement of any
material (important) fact on his/her application. For instance,
the policyholder provides false information regarding the
location where the vehicle is garaged.
Will pay reasonable expenses incurred for necessary medical
and /or funeral services because of bodily injury caused by
accident and sustained by YOU OR ANY OTHER PERSON WHILE OCCUPYING
A COVERED AUTOMOBILE.
Includes insurance against loss from damage done, directly
or indirectly by lightning, windstorm, tornado, earthquake
or insurance under an open policy indemnifying the producer
of any motion picture, television, theatrical, sport, or similar
production, event, or exhibition against loss by reason of
the interruption, postponement, or cancellation of such production,
event, or exhibition due to death, accidental injury, or sickness
preventing performers, directors, or other principals from
commencing or continuing their respective performance or duties;
and any insurance not included in any other classes and which
is a proper subject of insurance (California Insurance Code
§120).
An incorrect estimate of the insurance premium.
Life insurance that pays the balance of a mortgage if the
mortgagor (insured) dies.
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The cause of a possible loss. For example, fire, theft, or
hail.
The written contract of insurance.
The maximum amount a policy will pay, either overall or under
a particular coverage.
The amount of money an insurance company charges for insurance
coverage.
A a policyholder contracts with a lender to pay the insurance
premium on his/her behalf. The policyholder agrees to repay
the lender for the cost of the premium, plus interest and
fees.
When the policy is terminated midterm by the insurance company,
the earned premium is calculated only for the period coverage
was provided. For example: an annual policy with premium of
$1,000 is cancelled after 40 days of coverage at the company's
election. The earned premium would be calculated as follows:
40/365 days X $1,000=.110 X $1,000=$110.
Damage to another person's property. The purpose of
liability insurance is to cover property damage to a third
party resulting from the negligent or intentional acts of
an insured.
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An estimate of the cost of insurance, based on information
supplied to the insurance company by the applicant.
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The cost to repair or replace an insured item. Some insurance
only pays the actual cash or market value of the item at the
time of the loss, not what it would cost to fix or replace
it. If you have personal property replacement cost coverage,
your insurance will pay the full cost to repair an item or
buy a new one once the repairs or purchases have been made.
The full cost to repair or replace the damaged property with
no deduction for depreciation, subject to policy limits and
contract provisions.
The restoring of a lapsed policy to full force and effect.
The reinstatement may be effective after the cancellation
date, creating a lapse of coverage. Some companies require
evidence of insurability and payment of past due premiums
plus interest.
Usually known as an endorsement, a rider is an amendment to
the policy used to add or delete coverage.
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When the policy is terminated prior to the expiration date
at the policyholder's request. Earned premium charged would
be more than the pro-rata earned premium. Generally, the return
premium would be approximately 90 percent of the pro-rata
return premium. However, the company may also establish its
own short-rate schedule.
A licensed employee of a fire and casualty agent or broker
who may act for the agent or broker in some circumstances.
Coverage for property damage caused by untimely discharge
from an automatic sprinkler system.
An extra charge applied by the insurer. For automobile insurance,
a surcharge is usually for accidents or moving violations.
To terminate or cancel a life insurance policy before the
maturity date. In the case of a cash value policy, the policyholder
may exercise one of the nonforfeiture options at the time
of surrender.
Includes insurance against loss through damage or legal liability
for damage, to property caused by the use of teams or vehicles
other than ships, boats, or railroad rolling stock, whether
by accident or collision or by explosion of engine, tank,
boiler, pipe, or tire of the vehicle, and insurance against
the theft of the whole or part of such vehicle (California
Insurance Code §115).
Coverage for losses if a land title is not free and clear
of defects that were unknown when the title insurance was
written.
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The process of selecting applicants for insurance and classifying
them according to their degrees of insurability so that the
appropriate premium rates may be charged. The process includes
rejection of unacceptable risks.
Will pay you and your passengers for BODILY INJURY cause by
a negligent uninsured motorist, a hit-and-run driver, or by
a driver whose insurer is insolvent.
Will pay for damages to your automobile, set up to a limit,
when caused by a negligent unisured motorist.
A period of time set forth in a policy which must pass
before some or all coverages begin.
Coverage providing four types of benefits (medical care, death,
disability, and rehabilitation) for employee job-related injuries
or diseases as a matter of right (without regard to fault).
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