A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.
A fortuitous, unexpected, undesigned, unintended event occurring suddenly. Today.
Business accepted by a company which normally would be rejected according to a strict underwriting standard, but which is accepted because of the relationship of the agent to the company or the client to the company and agent.
The report of premium transactions, usually on a monthly basis, either provided by the agency to the company, or by the company to the agency.
Accounts Receivable Coverage Form
An inland marine coverage form that insures against loss the insured suffers when not able to collect account receivables from customers.
Accredited Advisor in Insurance (AAI)
Designation offered by the Insurance Institute of America (CPCU/IIAA) that stresses the production side of insurance, with study in personal and commercial property and liability contracts, sales and agency management.
Accredited Customer Service Representative (ACSR)
Designation offered by the Independent Insurance Agents of America (IIAA) that stresses the service side of insurance, with study in commercial and/or personal lines insurance contracts, account development, errors and omissions, and quality customer service.
Actual Cash Value (ACV)
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost — Depreciation).
A statistical specialist responsible for rate, reserve, and dividend calculations as well as other insurance-related statistical studies.
This is an individual, company or some other entity that is not considered the insured as definded under the insurance policy of another, but may be added to that policy by endorsement to aford a degree of insurance protection.
Premiums for some coverages (exposures) are based on estimates of amounts which may change during the policy term. These include: sales, payroll, costs of contracts, numbers of items held in inventory, etc. These are reviewed and any premium adjustment is made at the time of audit. (See Audit)
A representative of the insurer who arranges for adjustment and/or settlement of a loss
Admitted Aircraft Liability Coverage
A coverage sometimes written in conjunction with Aircraft passenger liability which can provide reimbursement for death or dismemberment without requiring legal action.
Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.
The contract which establishes the legal relationship between the agent and the insurer. In addition to other features, it sets forth the authority of the agent and his scale of commissions.
A bill for the policy is produced in the agent's office and the policyholder pays the premium to the agent.
Agency Management System
In-house computer capable of performing multiple functions: accounting, client and policy information maintained and word processing are included. Other functions include diary/suspense, claims handling, sales and marketing, etc.
Usually an insurance company appointed representative which is licensed by the state in which they do business. They can solicit, market, negotiate, bind, and administer insurance policies for the insurer.
A type of policy limit found in liability policies which limits coverage to a specified total amount for all losses occurring within the policy period.
Written with property insurance policies. It waives the Coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company.
Aircraft Hull Insurance
Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance
Coverage written to cover public and passenger liability and property damage liability.
Airport and Air Meet Liability
Coverage that provides protection to airports for bodily injury and property damage liability.
All Risk Insurance
Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against.
Property coverages which are closely associated and frequently sold with fire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc.
Form to collect information for a particular account.
The division of loss among insurers when two or more cover the same loss.
A survey of values in order to determine the appropriate amount of insurance to be written or the proper amount of loss to be paid.
Clause which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose an appraiser, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive.
Transfer of a legal right or interest in a policy from one party to another (as when an insured property is sold).
A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing.
This a condition that can attract and injure people (namely children). The occupants of land on which such a condition exists are liable for their injuries.
Procedure involving reporting and/or reviewing the policyholder's records at sometime after the policy takes effect to determine the final premium for the policy.
Automobile Liability Insurance
Insurance to protect against financial loss because of a legal liability act that has automobile related injuries to others or damage to property of others.
Automobile Mechanical Breakdown Insurance
Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's warranty.
Automobile Physical Damage Insurance
Insurance coverage to indemnify insured for damage to, or loss, of an insured automobile resulting from covered perils.
Insurance which provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage available separately for hangarkeepers and airport owners or operators.
Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.
One who has temporary custody of property belonging to another. (Example: dry cleaners.)
Inland Marine insurance obtained by a bailee, to cover loss or damage to customers property in the bailee's custody, without regard to liability.
Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement.
Basic Limits of Liability
Minimum amounts of insurance. Usually the lowest amounts which can be written at the published rates or the minimum amounts an insurer is willing to underwrite.
The person named in a Life or Disability policy as a recipient of a death benefit.
A type of Contract bond which guarantees the obligee that if a contractor's bid is accepted, the contractor will provide the required Performance bond. See also Contract bond.
The agent or company representative agrees to cover the item/person etc. until the formal insurance contract is issued.
An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.
Authority granted by the insurance company who will ultimately assume responsibility for providing coverage. Allows an agent to act on behalf of the company for specific reasons and within prescribed guidelines.
Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Also a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.
Blue Sky Bond
Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public.
Boiler and Machinery Coverage Form
Insurance which covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of the Commercial Package policy.
One who represents an insured in the solicitation, negotiation, or placement of insurance.
Broker of Record
A common term of "Agent of Record" is used to designate the broker who is to handle certain insurance policies for the named insured
Generally, insurance accounts handled for one agent by another agent.
Builders Risk Coverage Form
Insurance that provides coverage for buildings under construction as well as materials, equipment, supplies and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package policy.
As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visiblesigns of forced entry or exit.
Burglary and Theft Coverage Form
Insurance coverage against property losses as a result of burglary, robbery, or larceny as defined by burglary.
Business Auto Coverage Form
A form which is a part of the Commercial Auto Coverage Part and is designed to cover the auto exposures of businesses, other than truckers or garages.
Business Income Insurance
A coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package policy.
Business Personal Property
Furniture, fixtures (permanetly installed), equipment, machinery, merchandise, and all other personal property owned by the insured and used in the insured's business.
A multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.
Camera and Musical Instrument Dealers Form
An all risk Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an employee's custody or elsewhere.
Termination of an insurance policy in force by a voluntary act of the insured or by insurer for lack of payment, fraud, misrepresentation etc.
The maximum amount of coverage a company will write on a specific risk.
Capital Stock Company
A corporate form of insurer, owned by stockholders and having reserve and surplus funds.
An agent under exclusive contract to one company.
Captive Insurance Company
A company formed to insure the risks of a parent company. This is usually done when business insurance for a certain commercial risk cannot be obtained through markets
Cargo Liability Insurance
Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation policy.
A line of insurance which historically has included a wide variety of unrelated coverages. One important coverage in the casualty lineis Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Workers Compensation and Surety Bonds.
An event which loss is of extraordinary magnitude, such as a hurricane or tornado
Causes of Loss Form
A form which is a part of the Commercial Property Coverage Part of the Commercial Package policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from basic to broad to special. An earthquake form is also available.
Certificate of Insurance
Evidence to another that one has insurance of a certain type and amount. Proof of insurance.
Certified Professional Insurance Man (CPIM)
Designation granted by the National Association of Insurance Women upon successful completion of courses of study in basic insurance principles, personal and commercial property and liability coverages.
Certified Professional Insurance Woman (CPIW)
Designation granted by the National Association of Insurance Women upon successful completion of courses of study in basic insurance principles, personal and commercial property and liability coverages.
Chartered Life Underwriter (CLU)
A designation granted by the American College of Life Underwriters upon successful completion of a series of examinations in Life and Health insurance, economics, business insurance, estate planning, etc.
Chartered Property and Casualty Underwriter (CPCU)
Designation granted by the American Institute for Property and Liability Underwriters/ Insurance Institute of America upon successful completion of a series of examinations in the fields of insurance other than Life insurance, including accounting, financing, economics, and management.
The assertion of a legal right against an insurer, that carries with it a demand for appropriate relief.
A liability form which is part of the Commercial General Liability part of the Commercial Package policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.
A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.
A type of physical damage insurance which covers loss due to the insured object striking another object. Collision may also include upset of the insured object.
Commercial Articles Coverage Form
Part of the Inland Marine Coverage part of the Commercial Package policy. Provides all risk coverage for cameras and musical instruments on either a scheduled or blanket basis.
Commercial General Liability Policy (CGL)
An Insurance policy that provides limits for general liability, fire legal liability, medical payments, products and completed operations, as well as advertising and personal liability.
Commercial Package Policy (CPP)
A simplified, easy-to-read commercial package policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime, Boiler and Machinery, Commercial Auto and Farm. Forms may be used in the package policy or may be used to issue monoline policies.
Common Policy Conditions
A form containing conditions that apply to all coverages issued under the Commercial Package policy program.
In automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property which are specifically excluded.
Computer Fraud Coverage Form
A form which is a part of the Commercial Computer Crime Coverage part of the Commercial Package policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premises.
The withholding of a material fact from the insurance company. May void the policy.
Two or more policies with the same conditions that cover the same interest in identical property.
Conditional Binding Receipt
A receipt given for premium payments accompanying an application for insurance
A type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.
The portion of an insurance contract which sets forth the rights and duties of the insured and the insurance company.
Condominium Association Coverage Form
A part of the Commercial Property Coverage part of the Commercial Package policy which covers the buildings in a condominium complex (not the unit-owner's personal property).
Condominium Commercial Unit-Owners Coverage Form
A part of the Commercial Property Coverage part of the Commercial Package policy which covers business personal property.
Damage which occurs as "consequence" of a directloss, such as loss from spoilage resulting from lack of power, light, heat, etc.Not generally covered under property policies unless specified.
A loss arising indirectly from an insured peril, such as damage to goods as a result of fire that causes failure of refrigeration while not actually burning the stored goods themselves.
Fiduciary bond for those appointed to manage and preserve property other than estates of decedents.
This bond will protect the owner of a building or other structure should the contractor be unable to fulfill his contractual duty to the insured. In such a case, the insurer is obligated to see that the work is completed.
Constructive Total Loss
In Ocean Marine insurance, a loss which occurs when property is not completely destroyed but the cost to salvage or repair the property would exceed its value.
Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.
A policy without an expiration date. One that remains in effect until cancelled.
A legal agreement between two parties promising a certain performance in exchange for a certain consideration.
A category of Surety bonds which guarantees the fulfillment of contractual obligations. Includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply bonds.
Contractors Equipment Coverage Form
Part of the Inland Marine Coverage part of the Commercial Package policy. It covers various types of contractors mobile equipment.
Contractual Liability Insurance
Provides coverage against liability rising out of an insured's contractual obligations. Excluded in the Commercial General Liability policy, subject to several exceptions.
Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commercial Package policy. Contrast uncontrolled lines.
Signature of a licensed agent or representative on a policy necessary to validate it.
A category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, etc. (Includes bail bonds, litigation bonds)
The event which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage which occurs during the policy period. Under the Claims-Made form, the trigger is BI or PD which occurs on or after the retroactive date and for which claim is made during the policy period.
Crime Coverage Plans
Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.
Insurance Coverage against damage to growing crops.
A Surety bond that may be required of those associated with import or export activities, to guarantee that the required custom will be collected, reported and paid.
Dealers Drive-Away Coverage:
A coverage which can be added to the Garage policy by endorsement. It eliminates the exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart.
A coverage provided in many property contracts which reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.
The page of an insurance contract that indicates the name of the policyholder, the insurance company, the period of coverage, what is covered (property, liability) under the contract.
Rejection of an application for insurance by the insurer.
Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. See also Franchise, Percentage and Straight.
Decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear and obsolescence.
An insurance company which varies (deviates) from bureau rules, rates or forms.
The bill for the premium is produced by the insurance company and sent directly to the policyholder. The policyholder then pays the insurance company directly.
Direct Damage Loss
A loss involving value of tangible property which is physically damaged.
Any financial loss that results directly from an insured peril
An insurance company that secures its business either through the direct selling system (its own employees) or the exclusive agency system (captive).
Directors' and Officers' Liability Insurance
The protection of corporate directors and officers from liability arising out of errors in judgement, duty breachments, and any wrongful acts related to their organizations
Disability Income Insurance
Line of insurance which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.
A period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered during the "Discovery Period" will be covered.
Distribution of profit from a company to its policyholders.
Supporting evidence or proof as to what has been done and the reason therefore.
An insurance company formed under the laws of the state in which the insurance is written.
A Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.
A form of payment, almost like a check.
Authority granted to the agent by the insurance company to handle small claims and issue drafts within prescribed limits.
Dread Disease Policy
A Health insurance policy which provides benefits for a single illness.
Drive Other Car Coverage
An endorsement to the Business Auto policy which covers named persons for nonbusiness use of autos they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car.
Driver Education Credit
A student discount or reduction in premium amount for which younger drivers become eligible on completion of a driver education course. These courses are available in most public school systems
Duplication of Benefits
A situation where identical or overlapping coverage of the same type exists between two or more health insurance plans
An allied lines policy which provides coverage for the dwellings and personal property of individuals and families against fire andadditional perils.
That portion of the written policy premium applicable to the expired, or used, part of the period for which the premium has been charged.
Available under the Commercial Package policy. Requires the Coverage of Loss form – Earthquake.
An estimated total cost, insured and uninsured, of mishaps (such as: vehicle accidents, work accidents, and fires); including such factors as property damage, funeral expenses, wage loss, insurance administration costs, and medical, hospital and legal costs.
The beginning of the policy term, usually 12:01 a.m. of the date shown.
Electronic Data Processing Coverage
Inland marine insurance designed to cover computer hardware and software.
Employee Dishonesty Coverage Form
Part of the Commercial Crime Coverage part of the Commercial Package policy, it covers loss resulting from dishonest acts of employees. This coverage is excluded under other Crime insurance forms. Formerly this coverage was provided under Fidelity bonds or combination policies that included Fidelity bonds.
Employers Liability Coverage
Coverage provided under a Workers Compensation policy to cover the employer's liability arising out of employee's work-related injuries.
A document which is attached to the policy and modifies or changes the original policy in some way.
Equal Shares Clause
An insurance clause which states that when the insured has other insurance, the loss payment made by the company will be based on the number of applicable policies, not on their limits.
Equipment Dealers Coverage Form
An Inland Marine form which provides all risk coverage for mobile agricultural and construction equipment owned by or in the care of an equipment dealer.
Errors and Omissions Insurance
A form of insurance that indemnifies the insured for any loss sustained because of an error or oversight on his part.
Excess and Surplus Insurance
Markets Facilities which have the capability to provide coverage that cannot be obtained in the standard markets.
One who provides coverage over primary or underlying limits.
Coverage which applies only after limits of primary insurance have been exhausted. See Primary Insurance.
Section of the insurance policy which lists property, perils, persons, or situations which are not covered under the policy.
Exclusive Agency System
An insurance distribution system within which agents sell and service insurance under contracts that limit representation to one or more insurers under common management and which reserve to the insurer the ownership, use, and control of policy records and expiration data.
Damages awarded to make an example of the wrongdoer.
Expediting Expenses – A Boiler And Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs, i.e., over-time, or express transportation charges.
A statistical compilation of premiums and losses which establishes the loss record of an insured or of a type of insurance written.
Experience Modification Factor
Used in workers compensation rating to reflect the degree to which a particular employer has experience that is better or worse that expected for that industry
Process of determining the premium rate for a group risk, wholly or partially on the basis of that group's experience.
The date that coverage ceases to be provided by an insurance policy.
The state of being subject to the possibility of loss.
Extended Nonowned Coverage Endorsement
A Personal Auto policy endorsement that extends liability coverage to named individuals for a nonowned automobile which is furnished for their regular use.
Extended No-owned Coverage
A Personal Auto policy endorsement that extends liability coverage to named individuals for a nonowned automobile which is furnished for their regular use.
Extended Reporting Period
A period of time provided by the Claims-Made Commercial General Liability Coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage part with insurance that has a retroacti
Extortion Coverage Form
A Commercial Crime form that covers all types of property when surrendered away from the premises as a result of a threat to do bodily harm to the insured or employee, or an invitee of either, while they are being held captive, or allegedly being held captive.
Extra Expense Insurance
Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package policy.
The amount of insurance provided by a policy, usually found on its face.
False Pretense Coverage
Coverage that can be added to a Garage policy by endorsement to insure a dealer against loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have title.
Farm Coverage part
Part of the Commercial Package policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis.
Farm Liability Coverage Form:
A form that is a part of the Farm Coverage Part and is designed to provide liability coverage for farm operations.
Farm Property Coverage Form
A form that is part of the Farm Coverage part and provides seven separate property coverages designed specifically for farms.
Federal Crop Insurance
Comprehensive Insurance coverage with rates that are subsidized by the federal government for unavoidable crop losses
A class of bonds which guarantees an employee's honesty. Today this coverage is generally provided through Employee Dishonesty insurance.
A Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others. See Judicial bond.
A collection of information on a specific subject or person.
Film Coverage Form
An Inland Marine Coverage form that provides all-risk coverage for exposed motion picture film, including sound recordings and magnetic or video tapes that have been properly recorded until the first full quota of positive prints or film have been made.
Financial Responsibility Law
State law which requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
Combustion accompanied by a flame or glow, which escapes normal confines to cause damage
First Party Insurance
A loss which applies to the insured's own property or person and thus involves only the insurer and the insured.
The cancellation of a recently written insurance contract without charge to the insured.
Coverage on goods of a mobile nature, whatever their location.
Coverage against loss resulting from rising water
Floor Plan Coverage Form
An Inland Marine Coverage form that provides all risk coverage for merchandise for sale that has been financed.
Florida Joint Underwriting Association
A market source for persons who are unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed in their behalf by a group of servicing carriers.
Forgery or Alteration Coverage Form
A Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments.
An insurance document such as a policy, endorsement, rider or application.
A Surety bond that may be required by a public body when it awards a franchise.
A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full.
A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.
An Ocean Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.
Often means all the coverage that is available. It usually applies in connection with Automobile Insurance to include damage to the automobile as well as liability protection. It also can mean coverage without deductibles applicable.
Money held in trust to pay pension benefits
When Lisa knows, she will tell us
Garage Coverage Form
A coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc.). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, nonowned and hired autos.
A coverage which is part of the Garage coverage form. Covers a garage risk's legal liability for customers autos in the care, custody or control of the garage. At the insured's option, can also apply without regard to fault, for an additional premium.
An Ocean Marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their total interest in property being transported.
A category of insurance which includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.
Glass Coverage Form
One of the Commercial Property forms that can be included in the Commercial Package policy. Includes glass specified in a schedule and may include the value of lettering or ornamentation on the glass.
In Health insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length of the grace period.
A policy issued to cover more than one person or interest, such as group life or hospitalization on all employees of a firm.
A Health insurance policy provision that states that the insurer must renew the policy to a certain age. While the company cannot fail to renew the policy until the specified age, it can increase the premium.
A form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.
Something that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss.
Insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto.
Health Maintenance Organization (HMO)
A noninsurance alternative to dealing with the risks of health care costs. An HMO provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium.
Hold Harmless Agreement
A contractual arrangement whereby one party assumes the liability in a given situation, thereby relieving the other party of responsibility.
A personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection.
Hospital Indemnity Insurance
Health insurance that pays a flat amount per day of hospitalization, regardless of expenses or other insurance. Its primary purpose is to supplement other coverage which may be inadequate due to rising costs.
Hospitalization Expense Insurance
Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items.
In Ocean Marine and Aviation insurance, insurance against physical damage to plane or ship.
Improvements And Betterments
Permanent alterations which a tenant makes to the rented property which will not be removed when the tenant leaves.
See Effective Date.
In a Surety agreement, one who agrees to reimburse the surety for any loss it may suffer from having bonded the principal.
A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
A License bond which holds the government harmless from injuries or damages caused by the principal's activities.
Independent Insurance Agent
One who represents more than one company, sells and services the insurance solely on a commission or fee basis under contract, and is recognized to own the business produced.
Loss resulting as a consequence of physical damage to property.
Loss which is a result or consequence of a direct loss.
A property insurance option which provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually.
Inland Marine Insurance
A form of insurance originally designed as an extension of marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.
Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.
An uncontrolled Inland Marine form that covers property in transit and at premises where an installation is to be made.
Instrumentalities Of Transportation And Communication
A category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.
Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exists.
A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
Insurance Service Office (ISO)
An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also develops standardized forms.
Also referred to as the policyholder. The person, business or other entity that is covered by the policy.
The insurance company.
The section of an insurance policy which states which losses will be indemnified, what property is covered, which perils are insured against.
A bill for providing coverage.
A voluntary action to rid the ship of cargo in order to prevent further damage or peril.
An all risk Inland Marine form for retail jewelers that covers the insured's stock in trade and the property of others, while at the insured's premises, in transit and elsewhere.
Judicial Bond And Bonds Required By Courts
See Fiduciary bonds and Court bonds.
Keep Out Program
This is a common term used by the F.R.P.C.J.U.A to allow insurers to take policies out of the F.R.P.C.J.U.A. before policies are issued giving the insured an admitted carrier for their homeowner's insurance .
Labor and Materials Bond
See Payment bond.
A policy becoming invalid because of failure to pay the premium on time.
Leasehold Interest Coverage Form
A form which belongs to the Commercial Property Coverage part of the Commercial Package policy; It covers a tenant for certain losses following damage to the premises from a covered peril, such as tenant's loss of a favorable lease or loss of remaining value of improvements or betterments made by a tenant.
Rules of law dictate that a person must pay for damages done to another.
Legal Liability Coverage Form
This form belongs to the Commercial Property Coverage part of the Commercial Package policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control.
The person to whom a lease is granted, commonly called the tenant.
The person granting a lease, commonly called the landlord.
Insures the individual for financial losses which arise out of the person's responsibilities to others imposed by law or contract.
The amount (limits) of protection the insured receives in a liability insurance policy.
A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such roadened coverage.
License And Permit Bonds
A category of Surety bond which covers a wide variety of occupations and operations, and which are often required as a condition of doing business.
Limits Of Liability
The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.
1) A particular line of insurance. 2) Various types of insurance written for a property owner. 3) The amount of insurance paid under a liability policy.
Liquor Liability Coverage
This form belongs to the Commercial General Liability coverage part of the Commercial Package policy. It covers liquor liability which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.
See Court bond.
An unincorporated form of insurance carrier comprised of individual underwriters responsible for the liabilities they assume.
Generally: 1) The reduction in value of the insured's property. 2) The amount sought in his claim. 3) The amount paid under a liability policy.
Loss Of Use Coverage
Under the Homeowners contract, covers the insured's increased cost of living after loss and rental value of any portion of the dwelling which is rented out.
The percentage of losses in relation to premiums. For example, a 60% loss ratio would mean that there were 60 cents in losses for each $1.00 of premium.
The total losses, paid or reserved, sustained by the insurer during a particular period.
Lost Instrument Bonds
A category of Surety bonds issued in situations where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder, the issuer of the instrument would be reimbursed.
Lost Policy Release
A statement signed by the insured releasing the insurance company from all liability under a lost or mislaid contract of insurance.
Mail Coverage Form
A part of the Commercial Inland Marine Coverage part of the Commercial Package policy. It provides all risks coverage for valuable contents of mail.
Major Medical Insurance
A type of health insurance intended to provide protection against catastrophic losses. Some forms are designed to complement or supplement basic hospital/surgical insurance; others provide both basic and catastrophic illness coverage.
A book giving rates, classifications and underwriting rules for certain types of insurance or bonds.
Marine Insurance – A form of insurance primarily designed to cover property in transport over land or sea.
Medicare Supplement Insurance
A type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.
The lowest premium for which a policy may be issued.
Miscellaneous Type Vehicle Endorsement
An endorsement which may be added to the Personal Auto policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.
Statement of something that is known to be untrue.
A condition of morals or habits that increases the probability of a loss from a peril insured against.
One who has a lender's interest in real property.
A provision in a policy protecting the interest of the mortgagee.
Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.
One who has secured a loan from a mortgagee, usually the property owner, and thus the insured under a property policy.
Motor Truck Cargo Policy
Inland Marine transportation insurance which protects the carrier against its liability for damage to domestic shipments in its custody.
Multiple Line Insurance
The combination of two separate lines of insurance into a single policy. Often referred to as package insurance.
Mutual Insurance Company
A cooperative form of insurance company owned by and operated for the benefit of the policyholders.
Motor Vehicle Report – a listing of the tickets (violations) and/or accidents for an individual driver over a period of time, i.e., three years, five years, etc.
Any person, firm, or corporation designated by name as the specific insured in a policy.
Named Nonowner Coverage
An endorsement that can be added to the Personal Auto policy to provide coverage for a named individual who does not own an auto while the insured is operating autos owned by others.
Named Perils Policy
A policy specifying only those perils to be insured against, in contrast to a policy that insures all perils not specifically excluded.
Named Schedule Coverage
A type of Employee Dishonesty insurance that covers loss only from named employees.
The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.
The amount of coverage a company will accept as its maximum.
See Personal Injury Protection.
One issued by a mutual or reciprocal exchange which provides that the insured may not be assessed. His payments are thus limited to the amount of premiums paid.
A type of Health insurance policy which the company may not cancel, but must renew to a certain age with no change in premium. Affords the greatest degree of continuation protection to the insured.
Nuclear Energy Liability Endorsement
A mandatory endorsement which must be included with the Commercial General Liability coverage part of the Commercial Package policy. In general, it excludes all hazards related to nuclear energy.
Objects Definition Form
Part of the Boiler and Machinery Coverage part of the Commercial Package policy. Defines the objects covered by the Boiler and Machinery Coverage form in great detail.
In bonds, the party to whom the principal makes the promise, and for whose protection the bond is being written.
The type and character of the use of the property and the entity therein.
In liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.
A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made.
Ocean Marine Insurance
Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, and liability coverage (Protection and Indemnity).
A type of health insurance that cannot be canceled during the policy term, but for which the company reserves the right to nonrenew the policy at expiration.
Owners And Contractors Protective Liability:
A form of Liability insurance which protects an owner or general contractor against liability arising out of the acts of independent contractors or subcontractors. May be issued to the independent contractor or subcontractor, or may be issued directly to the owner or general contractor.
A policy combining two or more lines of insurance which might otherwise have been written as separate policies.
A policy on which dividends are paid.
In Ocean Marine insurance, a partial loss which is not part of a general sacrifice of property (general average).
A type of Contract bond which guarantees that bills for labor and materials will be paid to the contractor as they are due. Also called Labor and Materials bond. See Contract bonds.
Peak Season Endorsement
A Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.
The amount of a bond.
A deductible which requires a deduction from the loss of a percentage of the value of the property.
Contract bonds which guarantee that jobs will be completed by the contractor according to contract specifications.
The cause of loss. Examples include fire, windstorm or explosion.
Perils Of The Sea
Unique perils to which property in transit by water is exposed. Includes unusual action of wind or waves, stranding, lightning, collision and sinking.
Personal Articles Floater
Personal Inland Marine insurance which provides all risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.
Personal Auto Policy
Easy-to-read auto policy which provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.
Personal Effects Floater
Provides all risk coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.
Personal Injury Protection
A coverage provided in Auto policies in the state of Florida that provides coverage for the insured's own injuries on a first-party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida.
Personal Liability Policy
Provides broad coverage for an individual's or family's liability exposure for bodily injury or property damage. Similar to coverage included in Homeowners contract.
Personal Property Floater
Personal Inland Marine floater which provides all risk coverage on unscheduled personal property.
In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control.
The material, structural or operational features of the property to be insured. It involves the condition or type of property, not the persons owning or managing it.
Physicians and Surgeons Coverage Form
Part of the Commercial Inland Marine Coverage part of the Commercial Package policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.
A type of Health insurance that reimburses the insured for nonsurgical care provided by a physician.
An insurance contract.
The period during which the policy contract is in force and affords protection, from inception date to expiration date.
Pollution Liability Coverage
A form of liability insurance that can be added to the CGL section of the Commercial Package policy to provide limited coverage for pollution.
Position Schedule Coverage
A form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.
The particular location of property as designated in the policy.
Premises Burglary Coverage Form
One of the Commercial Crime Coverage forms which are a part of the Commercial Package policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson.
Premises Theft And Robbery Outside The Premises Coverage
One of the Commercial Crime Coverage forms which are a part of the Commercial Package policy. Covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.
The consideration (price) paid by the insured to the insurer for insurance protection over a specified period.
Allows the insured to pay part of the premium when coverage takes effect and pay the rest during the policy period through arranged payments.
Preservation Of Property
This is a property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises to protect it following a covered loss.
When two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less. See excess insurance.
In bonds, the party who promises to do (or not to do) a specific thing.
Private Passenger Autos
Ordinary cars, station wagons and jeeps, utility autos (pickups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.
Pro Rata Cancellation
Calculation of the premium charge for a cancelled policy based upon the exact time the protection had been in force.
Fiduciary bond dealing with those who administer estates of a deceased person.
A term commonly applied to agent, solicitor, or other person who sells insurance, producing business for the insurer.
Products and Completed Operations
A form of insurance which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.
Liability arising out of the rendering or failure to render services of a professional nature.
Proof Of Loss
(1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy.
A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.
Insurance that indemnifies the person with an interest in physical property for its loss or the loss of its income-producing ability.
A written presentation to a prospect indicating various coverages, options, and may also include premiums.
The person or entity for whom the agent is trying to provide insurance coverage.
A risk located in an area served by a fire department.
1) A term denoting the insurance provided under a policy. 2) A term indicating the existence of fire fighting facilities in the area which the risk is located.
Protection And Indemnity
In Ocean Marine insurance, a form of liability insurance.
A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.
Public Official Bonds
A category of Surety bonds furnished by principals who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office.
Damages that punish the wrongdoer for antisocial actions, rather than compensating for loss.
Uncertainty whether a loss will occur. Only pure risks are insurable.
A notification of the premium for coverage before the policy has been issued.
The cost of a given unit of insurance. Often the price per $100 or $1,000 of insurance. Can also be a percentage.
The unlawful practice of returning a part of a premium to an insured.
A form of insurance carrier made up of entities (subscribers) who pool their assets and liabilities under the management of an attorney-in-fact.
An instrument which provides evidence of the discharge of a claim or the abandonment of one's right to claim against another.
The continuation of coverage for another period after a policy has expired.
The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.
Replacement Cost Endorsement
An endorsement that can be added to an HO-3 form to provide replacement cost coverage on personal property (with limitations).
A method of collecting premiums for exposures which are difficult to evaluate "before the fact." Instead of paying a flat premium, the insured pays a deposit, then submits periodic reports to the insurer, showing the status of the factors on which premium is based. From these status reports, premiums are calculated and charged against the deposit.
Statements an applicant for insurance believes to be true. Does not carry as much force as warranty.
An organization created by the Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.
A date stated in the Declarations of a CGL Coverage form which is normally the same date as the date of the issuing company's first claims-made policy for the insured. No coverage is provided under the claims-made form for bodily injury or property damage that occurs prior to the retroactive date.
The amount due the insured if a policy is cancelled, its amount reduced or its rate reduced.
Another word for endorsement.
1) Uncertainty as to financial loss. 2) The person or thing insured.
Preserving financial resources against loss through various methods including the purchase of insurance.
In Crime insurance, the taking or attempted taking of property by one who has caused or threatened to cause bodily harm or committed and witnessed an obviously unlawful act.
Robbery And Safe Burglary Coverage
A Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery outside the premises and safe burglary.
Running Down Clause
An Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damaging another ship.
Safe Driver Insurance Plan
An Automobile insurance rating program which applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.
Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.
A list of individual items covered under one policy with specific amounts of insurance applicable to each.
Scheduled Personal Property Endorsement
An endorsement to the Homeowners policy that schedules specific amounts of coverage for one or more of several categories of personal property on an all risks basis.
Financial preparation, in accordance with law, for meeting an insured's own risks by appropriating sufficient funds, in advance. Self-insurance does not mean "no insurance".
A Surety bond that can be provided as evidence of compliance with an insurance requirement.
An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.
A standard Liability insurance clause which means that insurance applies separately to each insured.
The method of calculating the return premium on policies cancelled by the insured, providing a penalty because of the cancellation.
Signs Coverage Form
A Commercial Inland Marine Coverage form that provides all risk coverage for neon, fluorescent, automatic or mechanical electrical signs.
In Auto Liability, policy limits that apply to all bodily injury and property damage arising from a single accident.
Small Business Boiler And Machinery Broad Form
A Boiler and Machinery Coverage form for small businesses that provides somewhat broader coverage than the standard Small Business Boiler and Machinery.
An individual appointed and authorized by an agent to solicit and receive applications for insurance as a representative of such agent.
Sound Receiving And Transmitting Equipment Endorsement
An endorsement that can be added to an Auto policy for such equipment permanently installed in the auto.
An insurance company writing limited lines of coverage, not a broad across-the-board book of business.
Property specifically listed and covered for a specific amount. Also called Scheduled coverage.
Specified Perils Policy
A policy which names the specific perils insured against.
In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits.
A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.
A deductible that specifies the deduction of a flat amount.
A Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other required improvements will be installed.
The assignment of rights of recovery from the insured to his insurer.
Sue And Labor Clause
A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss or to minimize a loss which has occurred.
Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.
Supply Contract Bond
A form of Contract bond which guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation. See Contract bond.
Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party.
Surgical Expense Insurance
A type of Health insurance that covers fees of physicians for performing surgery, with a maximum amount payable for each procedure.
A group of insurers or underwriters who join to insure property that may otherwise be to high of a hazard.
Tapes And Records Endorsement
An endorsement that can be added to an Auto policy that provides coverage for tapes and records owned by the insured while contained in the covered auto.
A large, hazardous risk on which insurance is difficult to place.
Theatrical Property Coverage Form
All risks Commercial Inland Marine coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions.
In Crime insurance, a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.
Theft, Disappearance and Destruction Coverage Form
A Commercial Crime Coverage form which covers money and securities for loss by theft, disappearance or destruction, both inside and outside of the premises.
Third Party Insurance Coverage
Those coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.
Third Party Loss
A situation involving a person other than the insurer and the insured.
A civil wrong other than a breach of a contract for which the court will provide a remedy in the form of an action for money damages.
Towing And Labor Endorsement
An endorsement that can be added to an auto policy to cover towing and the costs of labor performed at the site of the disablement.
Trailer Interchange Insurance
A legal liability coverage provided under the Truckers Policy. Provides coverage for damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss, provided the trucker is liable for the damage under a written interchange agreement and the damage is caused by a covered peril.
Truckers Coverage Form
A form that is part of the Commercial Auto Coverage Part and is designed specifically for the trucking industry. Includes Trailer Interchange insurance.
U.S. Internal Revenue Bond
A Surety bond required of those who collect and must report taxes for certain controlled commodities, such as liquor or tobacco.
High-limit excess coverage of all forms of liability to which the insured may be subject.
Commercial Inland Marine coverages which are not standardized.
One who judges the acceptance or rejection of insurance risks on behalf of the insurance company.
The portion of the written premium that has not expired or has not been used, but for which the insured has been charged.
Unfair Insurance Trade Practices Act
A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc.
Uninsured Motorist Coverage
Automobile coverage designed to provide protection for the insured should he or she be included in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.
A single coverage amount which applies generally to personal property. Also called blanket insurance.
Utmost Good Faith
A principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith.
The absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.
Valuable Papers Insurance
Inland Marine coverage form which provides all risk coverage for valuable papers such as manuscripts, blue prints, records, and other printed documents.
Value Reporting Endorsement
An endorsement that can be added to Commercial Property policies which sets the limit of insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averaged and the premium is then adjusted to reflect the average exposure.
A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.
Valued Policy Law
A statute, which states that if there is a total loss by an insured peril to a building, the insurer must pay the amount provided in the policy for which premium has been paid.
Vandalism And Malicious Mischief (V&MM)
Protects property against damage caused by vandals. Many property forms contain Vandalism and Malicious Mischief coverage.
Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability.
In disability insurance, a period of time between issuance and acceptance before sickness benefits begin.
The voluntary or intentional relinquishment of a known right. A waiver may be expressed or implied.
Waiver Of Premium
An optional provision in Health insurance policies that states that if the insured becomes totally disabled, premiums are waived and coverage remains in force.
A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a part of the policy.
An endorsement to the Homeowners contract which provides coverage for watercraft which is excluded under the HO policy itself.
Workers Compensation Insurance
Insurance which covers an employer's obligations under Workers Compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness. Workers Compensation coverage also includes separate coverage for Employers' Liability.
To insure, to underwrite or to take an application.
Yearly renewable Term Insurance
Term life insurance that may be renewed annually without evidence of insurability to a stated age.