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Fax: (866) 849-9716

ACV: Actual Cash Value - Replacement cost minus depreciation
Admitted Insurer: Recognized by the Department of Insurance to transact insurance: approved or authorized
Agent: Person that represents the Insurance Company
Binder: A temporary insuring contract
Broker: A person who represents the client, Property & Casualty only
Declarations (Dec Page): Contract section stating who or what is covered, amount of coverage, policy period, and premium
Deductable: A specified amount of money that is paid by the insured before the insurer pays money on a claim
D.I.C.E.: Declarations, Insuring clause (agreement), Conditions, Exclusions
Endorsements: Written agreement attached to a policy to add or subract insurance coverages
Exclusions: Things that are not covered
Gap Insurance: Pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease
Hazard: Anything that increases a chance of loss
Indemnify: To restore one to their previous financial condition that existed prior to the loss
Insurable Interest: Financial Interest
Insured: You, the insured
Insurer: Insurance Company
Judgment Rating: Based on best judgment of underwriter in classifying a risk
Loss Sustained Form: Covers losses that occur during the policy period and losses are discovered and reported during the policy period or up to one year after the policy expires.
Non-admitted Insurer: An insurer that is not licensed to do business in a particular state
Open Peril: All perils except those specifically excluded
Ordinance or law: A limitation in a Homewoners policy (10% of A) - an exclusion in Commercial Property policies
OTC: Other than collision
Peril: The Cause of Loss
Personal Property: Property that can move (e.g. furniture, clothes, paintings)
Physical Hazard: Distinct characteristic arising from material, structural, or operational features that increase a chance for loss
i.e. being next to explosives
Pure Risk: Chance of Loss
Real Property: Land, buildings, anything attached (does not move)
Replacement Cost: The cost to replace without a deduction for depreciation
Retroactive Date: The first date an occurrence would be covered under a claim made CGL policy
Risk: Uncertainty of Loss
Subrogate: The insured transfers the right to sue TO the insurance dompany
Substandard Risk: Classification of risk that is more than the normal acceptable risk
Third Party: The injured party. To whom liability pays claims
Tort: A wrongful act other than breach of contract or a crime
Umbrella: Covers above and beyond the liability coverage on policy
MORE TO COME!......