adjuster glossorary
Terms
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- Conditions
- The part of an insurance policy that details the rights and duties of the insured and the insurance company in the policy.
- Estoppel
- The legal doctrine that prevents the denial of a fact prviously admitted through action or conduct.
- Errors and omissions (E&O)
- This is professional liability insurance primarily intended for non medical professionals that pays for losses or for defense of malpractice suits.
- Condominium associations coverage form
- A commercial package policy designed to provide property and liability coverage for a condominium owners association.
- Common policy provision
- The provisions common to all coveage parts under a single policy.
- Commercial blanket bond
- A type of fidelity bond with a lump sum limit that applies to each loss and collectively to all employees, no matter how many are involved in the loss.
- Depreciation
- A decrease in value of property due to use, age , obsolescence, wear and tear, deterioration, etc.
- Competive state fund
- A state fund that writes insurance coverage, usually workers' compensation, in competition with private insurance companies.
- Direct loss
- A loss resulting immediately and directly form an insured hazard
- Excess insurance
- This provides coverage against loss in excess of a stated amount or in excess of coverage provided under another insurance contract.
- Foreign company
- An insurance company that operates in a state other than the one in which it is incorporated or chartered.
- Commercial lines insurance
- A common term for insurance that pertains to business, industrial, mercantile, or manufacturing risks.
- Experience modificaion
- A factor applied to an insurance policy, usually worker's compensation, that modifies the premium based on the policyholder's loss experience.
- Comprehensive coverage (other than collision)
- Provides auto coverage for theft, vandalism, fire, and collision with a missile, falling object, and wild or domestic animal
- Dwelling policy
- A series of forms providing basic, broad or special form coverage for dwelling buildings and contents or coverage for household contents only. Usually written for owned residential property that is rented to others.
- Coverage
- A guarantee against sspecific losses provided under the terms of an insurance policy; the amount and extent of insurance afforded under a contract of insurance.. Often used as a synonym for insurance or insurance contract.
- Commercial general liablity
- This provides commercial liability coverage, including premises and operations, products and completed operations and other available liability options.
- First party claim
- A loss paid by and insurance company to its own policyholder.
- Floater policy
- An insurance policy that provide coverage for mobile property regardless of location
- Forgery
- The criminal act of falsely and fraudulently making or altering a document with intent to deprive others of some right, interest, or property by deceit.
- Consequential damage coverage
- This provides indirect loss coverage for boiler and machinery risks that indemnifies the insured both for actual loss of specified property as well as the liablity for others' loss owing to to the spoilage that resulted from a loack of power, light, heat, steam, or refrigeration caused by and accident to an insured boiler or machinery.
- Discovery period
- The period of time after an insurance contract or bond is terminated within which a loss that occured during the policy period must be discovered in order for the loss to be covered by the policy or bond.
- Fiduciary bond
- A court bond executed on behalf of a person appointed by a court to a position of trust that guarantees the performance of statutory duties and proper accounting.
- Express authority
- The authority given to an agent or agency directly by means of the agency agreement or contract
- Common carrier
- The business or individual that offers transportation services for hire to the public, such as by railroad, truck, bus, or taxi.
- Earth movement
- Any sinking shifting or rising of land including earthquake, landslide, or mudslide.
- Concealment
- The deliberate with holding of material facts that would affect the validity of an insurance policy or a claim under the policy.
- Direct writer
- An insurance company that sells its policies directly to insureds through insurance agents who are salaried employees or agents commissioned by that company exclusively.
- Difference in conditions
- This provides coverage that provides broad protection for damage to property. This form usually excludes fire and other perils covered by personal and commercial property insurance policies, but includes other perils for earthquake and flood.
- Consequential loss
- The indirect loss caused by and insured peril that occurs after and as a result of other loss, for ex., the loss of profits when a business is damaged by fire and consequently must temporarily close, or the loss of perishable items that freeze when an electrical failure damages the heating system in a building.
- Common law
- Law derived from common usage or from court decision.
- Furrier's customers policy
- A policy that provides coverage for loss or damage to a customer's furs while in the care, custody, or control of a furrier for storage, repair, or cleaning.
- Extra expense insurance
- This is coverage that pay for the necessary extra expenses, over and above normal expenses, to keep a business operating during the time it takes to rebuild, repair, or replace the damaged or destroyed property after a loss.
- Contract of adhesion
- A contract prepared by one party without negotiation with the other, which can either be accepted or rejected by the other party.
- Deposit premium
- An advance, estimated premium paid at the inception of a policy that is adjusted periodically (monthly, annually, etc) based on actual exposures
- Exclusion
- A provision in an insurance policy that excludes certain risks or otherwise limit the scope of coverage; certain causes and conditions listed in the policy that are not covered.
- Fidelity bond
- A bond that reimburses an employer for losses caused by dishones acts of employees, such as embezzlement, fraud, forgery, or theft.
- Conspiracy
- The corrupt or unlawful collusion or agreement between two or more parties to do an unlawful act by concerted action or to do a lawful act by unlawful means
- Constructive total loss
- A partial loss to property of a sufficient amount to make the cost of salvage or repair equal to or more than the value of the property.
- Fraud
- An intentional concealment or false representaiton of a material fact that intends to take somthing of value or to force the surrender of a right. Fraud can only be determined by a court of appropriate jurisdiction.
- Collusion
- A secret agreement and cooperation between two individuals or corporations, to the detriment of others and for fraudulent and deceitful purposes.
- Crop hail insurance
- This provides coverage for financial loss resulting from hail damage to growing crops. This is a federally sponsored program.
- Contingent business income insurance
- This provides protection for the commercial risk against loss of earnings when fire or other insured peril damages a business that is not owned, operated, or controlled by the insured, such as those that supply materials and services needed by the insured for the conduct of buisness.
- Family member
- A person related to the insured by blood marriage, or adoption who is a resident of the named insured's household, including a war or foster child.
- Extended Coverage
- Additional, broader protection against loss or damage to property offered in conjuncion with fire insurance that usually covers the perils of windstorm, hail, smoke, explosion, riot, riot attending a strike, civil commotion, vehicles, and aircraft.
- Discrimination
- The act of charging different rates to groups or individuals who represent the same risk, usually on the basis of age, sex, national origin, race, location, or occupation.
- Damages
- The amount claimed by or awarded to an injured party as compensation for liability owing to bodily injury or property damage.
- Completed operation liablity insurance
- This is bodily injury and property damage legal liability insurance that covers finished operation by the insured business.
- Commercial package policy
- A commercial package policy that combines comercial property, liability, and other insurance in a single package policy
- Furrier's block policy
- This provides broad, open perils coverage on a furrier's stock of furs, including furs that have been sold to customers, but not yet delivered.
- Combined single limit
- The combination of the liability limits of bodily injury and property damage into a single limit of liability for both. Example: $25,000 per person/$50,000 per occurence for bodily injury and $15,000 for property damage liability is the equivalent of $65,000 ($15,000 +$50,000) combined single limit of liability for BI and PD
- Compulsory insurance
- Insurance that is required by law
- Equipment breakdown coverage
- This provides coverage for accidental loss arising from the operation of a boiler, pressure, mechanical and electrical equipment, and machinery. Such policies may include coverage for loss to the boiler and machinery itself, for liablity from damge done to other property and for loss from business interruption. Formerly called boiler and machinery coverage.
- Contingent liability
- This provides coverage for loss due to the destruction of the undamaged portion of a building or structure that is requiered by law or ordinance when damage exceeds a percentage of the property value.
- Commission
- The compensation paid by and insurance company to an insurance agent or broker for sale or service of a policy.
- Expiration date
- the date on which coverage under a policy terminates.
- Comrhensive dishonesty, diappearance, and destruction policy
- Commonly called the 3-d policy, it is equivalent to Coverage C of the crime insurance policy.f
- Debris removal coverage
- This provides protection for reasonable expenses incurred by the insured for removal of debris after a loss caused by a covered peril.
- Embezzle
- The act of apprpriation fraudulently and for one's own use money or other property entrused to one's care or control..`
- Contract of insurance
- A legal and binding unilateral contract in which an insurance company agrees to indemnify an insured for loss,provide other benefits, or render services to or on behalf of an insured.
- Deductible
- Policy provision that requires the insured to pay a specific amount or percentage of a loss and the insurance company to pay covered losses in excess of that amount.
- Credit card, forgery, and counterfeit money coverage
- This provides protection up to a specified limit, for legal liability incurred because of theft or unauthorized use of credit cards issued to the insured as well as loss to the insured caused by forgery or accepting conterfeit money in goo faith.
- Farmowners and ranchowner policies
- This is a package policy coverage for farm dwellings and their contens, personal liability, and optional coverages for farm personal property, structures, livestock, and mobile agricultural equipment.
- Experience rating
- A modification of the insurance rate based on the loss experience of an individual insured.
- Declerations page
- The part of an insurance polifcy that contains the applicant's representaitons and other information pertinent to the risk, on the basis of which the policy is issued.
- Employer's liablity coverage
- This provides coverage for an employer against third-party liability claims that result from and employee's injuries. Usually part of a worker's compensation policy.
- Contractual liability insurance
- This provides coverage against legal liability for bodily injury or property damage assumed by the insured under a contract.
- Consideration
- The inducement to complete a contract, for ex. the premium paid by the insurer to the insured
- Endorsement
- A written amendment attached to a policy, with the insurance company's approval, that stipulates changes to the policy's terms.
- Contractor's equipment floater
- Theis provides coverage against legal liability for bodily injury or property damag assumed by ith insured under a contract.
- Expense ratio
- The cost of soliciting, underwriting and servicing an insurance policy by and insurer, expressed as a percentage of written premiums.
- Domestic Company
- An insurance company that writes business in the state or province of its incorporation or charter
- Exposure
- The potential for loss to an item of property or to the asssets of an individual, family, firm, or organization; the measure of risk to an insurer.
- Effective date
- The date on which a policy or bond is put in force and protection is furnished. Also called the inception date.
- Fiduciary duty or responsibility
- The responsibility (usually financial) that someone owes to another because of funds or other items held in trust.
- Earned premium
- The premium paid for the period of ime a policiy is in effect.
- Environmental impairment coverage (Pollution Liability)
- This provides coverage for unintentional bodily injury and property damage that arises out of the discharge, release, dispersal or escape of smoke, vapors, soot fumes, acid, toxic chemicals or irritants. Also provides coverage for the accidental discharge of pollutants or contaminants inso or upon land , atmosphere, or any body of water.
- Fire legal liability insurance
- This provides protection against legal liability that arises from a fire started by the negligence of the insured or an employee of the insured that damages property occupied by or rented to the insured.
- Fire insurance
- This is coverage for losses to insured property that result from fire or lightning, as well as the resultant damage cased by smoke and water.
- Countersignature
- The signature of a licensed insurance agent or representative of an insurance company necessary in certain states to validate the contract.
- Condominium unit owners form
- A commercial property policy for a unit owner of a non residential condomunium or cooperative unit; and HO-6 homeowners form designed for owners of condominiums, cooperatives, or townhomes.
- Fire department service charge coverage
- This provides protection in connection with fire insurance to pay (up to a specified limit of liablity) fire department charges incurred if the fire department is called to save or protect insured property
- compensation
- Any kind of financial remuneration, such as wages, salary, fees, comissions, or awards.
- Concurrent insurance
- Two or more insurance policies that cover the same property at the same location under the same terms and conditons, with the same types of coverage,
- Demolition
- This is insurance that covers the cost of destroying abuilding or structure that has been partially damaged.
- Contract
- An agreement (offer and acceptance) between two parties who have legal capacity to contract that involves valuable consideration and that does not violate any statue or other legal rule.
- Extended reporting period
- The time, under a commercial claims-made liability contract, after a policy has expired, during which the insured can still make a claim for a loss occurring within the policy period.
- Fortuitious Event
- An unintended accident