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We really want you to feel
comfortable and know that we want to do
everything we can to help you understand
your legal position. You can feel confident
in asking us questions about your situation
or legal position. Call today and speak to a
personal injury attorney in our office. |
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ACCIDENT
An unexpected fortuitous event, unforeseen
and unintended, not under the control of an
insured and resulting in a loss. |
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ACT OF GOD A flood,
earthquake or other accident or event that
is without any human intervention and that
could not have been prevented by reasonable
care or foresight, but is the result of
natural causes. (A snowstorm is an Act of
God; driving in a snowstorm is an act of
man.) |
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ACTUAL CASH VALUE The sum
of money required to pay for damages or lost
property, computed on the basis of
replacement value less its depreciation by
obsolescence or general wear. |
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ADJUSTER An individual
representing the insurance company and
acting for the company in working on
agreements as to the amount of loss and the
liability of the company in same. |
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AGENTS (INSURANCE) Two
types of agents sell insurance: (1)
Independent Agents are self-employed
business people who typically represent more
than one insurance company and are paid on a
commission basis; and (2) Exclusive Agents
represent only one insurance company and may
be salaried or work on a commission basis. |
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CLAIM (MEDICAL OR
INSURANCE) (1) A formal request
for payment of a loss under an insurance
contract or bond; (2) The actual amount of
the final settlement. |
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CLAIMANT One who seeks
reimbursement for loss under the terms and
conditions of the insurance contract. |
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CONTRIBUTION The term
relates to circumstances where more than one
party covers the risk. Each party is deemed
to be liable for his proportion of the loss.
If the Assured recovers in full from one
insurer, that insurer is entitled to recover
from the other insurer for that part of the
loss which should have been paid by the
latter. |
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DECLARATION PAGE That page
of the insurance policy which lists the
insurance company, its addresses, name of
the policyholder, starting and ending dates
of coverage, and the actual coverage given
in the contract, including the locations and
amounts. |
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DEDUCTIBLE The amount of
loss paid by the policyholder before the
insurance policy benefits become payable. |
GOOD FAITH A basic
principle of insurance. The Assured and his
broker must disclose and truly represent
every material circumstance to
the Underwriter before acceptance of the
risk. A breach of good faith entitles the
Underwriter to avoid the contract. (Proposed
changes in law may affect this definition.) |
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HOLD-HARMLESS AGREEMENT A
contractual arrangement whereby one party
assumes the liability inherent in a
situation, thereby relieving the other party
of responsibility. Such agreements are
typically found in contracts like leases. A
typical lease may provide that the lessee
must hold harmless the lessor for any
liability from accidents arising out of the
premises. |
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INSURED The person whose
risk is transferred and shared; the party to
an insurance agreement whom the insurer
agrees to indemnify for losses, provide
benefits for, or render services to. |
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INSURER The company or
group offering protection through the sale
of an insurance policy to an insured; the
party to an insurance agreement who
undertakes to indemnify for losses, provide
pecuniary benefits, or render services. |
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LIABILITY INSURANCE That
insurance that pays and renders service on
behalf of an insured for loss arising out of
his responsibility, due to negligence, to
others imposed by law or assumed by
contract. |
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LIABILITY LIMITS The sum or
sums beyond which a liability insurance
company does not protect the insured on a
liability policy. |
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LIEN A word that indicates
an encumbrance on property, either for
discharge of a duty or the payment of a
debt. When a lien exists, the conditions
attaching to the issue of an insurance
contract require that it be disclosed to the
insurance company. |
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PERSONAL INJURY PROTECTION
The formal name usually given to no-fault
benefits in states that have enacted
mandatory or optional
no-fault automobile insurance coverage. PIP
usually includes benefits for medical
expenses, loss of work income, essential
services, accidental death and funeral
expenses. |
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PROOF OF LOSS A statement
made to the insurance company under oath
setting out the basis of an insureds claim
under the insurance policy. |
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PROXIMATE CAUSE The
immediate and effective cause of loss or
damage. It is an unbroken chain of cause and
effect between the occurrence of an insured
peril or a negligent act and resulting
injury or damage. |
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SUBROGATION The legal
process by which an insurance company seeks
from a third party who may have caused the
loss, recovery of the amount paid to the
insured. |
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UNINSURED MOTORIST COVERAGE
Endorsement to a personal automobile policy
that covers an insured involved in a
collision with a driver who does not have
liability insurance. |
