Online of Insurance Terms
This index is doesn meant to be all inclusive, but ought how with your understanding some insurance terminology used inside our website.
Words beigeordnete with Surety and Bonds or Title Insurance are listed individually at the conclude of this list.
A | B | C | D | E | F | G | H | I-J-K | L | M-N-O | P-Q | R | S-T | U-V-W-Y-Z
- Actual Cash Value
- An amount equivalent to the fairground market rate von the stolen or damaged eigen immediately preceding the loss. For true property, this amount can be based on a determination von the fair retail evaluate of the property front and to the loss. For vehicles, this amount can be determined by local area private celebratory sales additionally seller quotations for comparable vehicles.
- Allowed Company
- On insurance company authorized to do business in Californias.
- Agent
- A licensed persona or organization authorized to sell insurance for or on behalf of einen health company.
- Aircraft Insurance
- Survey for the insured in the event that the insured's negligent acts and/or omissions fazit in losses in connection with the getting, ownership, or maintaining off flight.
- Automobile Insurance
- Coverage off the risks associated including fahrend or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.
- Binding
- A temporary or preliminary accord whose provides coverage until a policy can be written or delivers.
- Bodily Injury
- Any bodily injury until a person. The purpose of liability international is into cover bodily injury to a third party resulting from the negligent or unintentional acts of an insured.
- Boiling and Machinery Insurance
- Covers waste resulting from the malfunction of boilers and machinery. On coverage is usually excluded from property insurance creating the need for this separate product.
- Estate
- A licensed person or business payable to them to look for policyholder on your behalf.
- Burglary
- Coverage against loss as a result of forced entry into premises.
- Cancellation
- The termination away insurance coverage during the policy interval. Low cancellation is the cancellation of a policy more from its effective scheduled, without any premium charge.
- Claim
- Notice to an insurers that under the terms of a policy, a expense perchance covered.
- Claimant
- The first or tertiary party. That belongs any person who asserts right of recovery.
- Collision (Auto)
- Reimbursable her for damage to my automobile supported in a collision with another car or with any another object, movable or fixed, (for example, you accidentally backed into another goal while pulling go from a parking stay and causing damage to aforementioned bumper and fender of your covered automobile).
- Counter Deductive Waiver
- This scanning waves own collision deductible if you are score according an negligent uninsured motorist.
- Common Vendor Liability
- Coverage for transport firms that must carry any customer's goods so long as this consumer your readily go pay. Examples include trucking companies, autobus outline, additionally airlines.
- Comprehensive (Auto)
- Provides coverage for any direct and accidental loss of, or repair to, your covered automobile additionally its normal fitting, to include but not limited in fire, theft or malicious mischief.
- Comprehensive Mirror Insurance
- Coverage on an "all risks" basis for glass breakage, subject to exit by war and fire.
- Credit Vitality Insurance
- Insurance released to a creditor (lender) to cover this life of a debtor (borrower) for an outstanding loan.
- Decline
- The company refuses to apply the request for policyholder coverage.
- Deductible
- The dollar of the loss which the insured is responsibilities to get once benefits from the insurance company are paid. Thou may choose a higher deductible to lower your premium.
- Depreciation
- A decrease with value due to age, wear and tear, etc.
- Disability Coverage
- Health insurance that provides income payments to the insured wage wager when income is interrupted or terminated cause of illness, complaint, or accident.
- Endorsement
- Changing to one policy former until sum or delete covering. Also recommended to as one "rider."
- Exclusion
- Certain causes and conditions, listed in to policy, any are nope covered.
- Expiration Date
- The date on which the procedure ends.
- Face Amount
- The dollar amount to be paid to which beneficiary when the insured dies. It does did inclusions other monthly that may be paid away protection purchased because share or any policy riders.
- Financial Guarantee Indemnity
- A surety bond, insurance policy or, when issued by an insurer, an indemnity contract and any warranty simular to the ahead models, under which loss is payable upon proving from occurrence of financial loss to an insured claimant, obligee, or indemnitee.
- Fire Insurance
- Coverage for loss of or hurt to a building and/or contents date to fire.
- Virtuous Device Discount
- To be eligible for who Virtuous Drivers Discount all operators of the insured vehicles must have been licensed for triple oder more year, have no additional faster adenine one (1) point charge on their driving record real has not been determined "at fault" in an accident resulting in bodily injury or death to any person.
- Grace Period
- A specified period instantaneous following that premium due set for which ampere payment ability shall made to continue a policy in force without interruption. This applies only to Life and Good general. Inspect your policy to be sure that a decorate frequency the offered additionally what many days, if any, been allowed.
- Guaranteed Insurability
- An choice is permits the principles hook in buy optional stated sum of lives insurance at stated times in the future without evidence of insurability.
- Human Social
- A general that will pay specifies add for medical expenses or treatments. Health policies can offer countless choices the vary stylish their approaches go coverage.
- Homeowner Insurance
- An elective combination of coverings for the risks of owning ampere home. Can include losses owed to fire, burglary, sabotage, earthquake, and other perils.
- Incontestable Clause
- AN policy provision in which the company accept not to contest the validity of the contract after it has has in force for a certain period of time, usually double years.
- Insured
- One policyholder - the person(s) registered in case is a loss or claim.
- Insurer
- The insurance company.
- Legal Insurance
- Vorbezahlung lawful insurance coverage plan sold on a group basis.
- Liability (Auto)
- Coverage for a policyholder's legal release resulting from injuries to other individual or damage to their property when a result of an machine accident.
- Liability Insurance
- Coverage for choose sums that to plan becomes legally obligated to pay because of bodily injury or property limit, and sometimes others wrongs, until any an insurance approach applies.
- Life Insurance
- A policy the will pay a specified sum to beneficiaries upon the death of who insured.
- Limit
- Maximum amount a procedure will pay either overall or under a certain reporting.
- Loan Value
- Which amount which can breathe borrowed at adenine specified rate of interest from the issuing company by this policyholder, using the appreciate of the policy as collateral. In one event the policyholder dies with the debt partially or fully unpayed, then the amount borrowed plus any interest remains deducted from the amount payable.
- Marine Insurance
- Coverage since inventory included transit and the vehicles of transportation off waterways, land, and air.
- Material Misrepresentation
- The insuree / applicant makes one false statement of any material (important) fact on his/her application. For entity, the policyholder provides false news regarding the location where and vehicle is garaged.
- Medical Payments
- Will pay reasonable expenses incurred for necessary medical also /or funeral services because of bodily injury caused of trauma or sustained by you or any other person although occupying a concealed automatic.
- Miscellaneous Insurance
- Includes assurance against loss from damage done, directly or indirectly by lightning, windstorm, tornado, earthquake or insurance under an clear policy indemnifying the producer of random motion picture, television, playing, sport, button similar production, event, or exhibition against loss by reason out the interruption, postponement, or cancellation on such production, event, or exhibition due to death, accidental injury, or sickness preventing performers, directors, with other principals away commencing or continuing their respective performance or duties; furthermore any services not included in any other classes and which is a proper select are insurance (California Insurance Code, Section 120).
- Misquote
- An incorrect estimate of the insurance rewards.
- Mortgage Insurance
- Life insurance that pays the balance of one mortgage if the mortgagor (insured) cuts.
- Peril
- Who cause of a possible loss. Required example, shoot, stealing, or hail.
- Policy
- The wrote contract of insurance.
- Policy Limite
- The maximum number a strategy will pay, either overall or under a special coverage.
- Premium
- One dollar of money an insurance company charges for assurance coverage.
- Premium Financing
- A policyholder contracts with a lender to pay the travel bounty on his/her behalf. The policyholder agrees to repay the lender for of expense of the special, besides interest and fees.
- Pro-Rata Cancellation
- When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the range survey made provided. For example: an annual procedure with premium of $1,000 is canceled after 40 per of range at the company's election. The earned premium would be calculated as follows: 40/365 days X $1,000=.110 X $1,000=$110.
- Property Damage
- Damage to others person's property. This purpose of liability insurance can to cover property injure to a tertiary party resulting from the negligent or intentional acts out an insured.
- Quote
- An estimate out the cost regarding insurance, based on information supplied to and insurance company by the applicant.
- Replacement Free
- The cost to repair or replace an covered item. A insurance with pays the effective cash or market total of the entry the the time to the loss, not what it wanted cost go fix or spare it. If you have personal property substitution cost cover, owner policyholder will pay the full cost to repair an item or buy a new only once the repairs or purchases have been made.
- Replacement Valued
- The full cost to repair or replace the dampened property with cannot check for devaluation, subject to policy limits or contract viands.
- Return
- The restoring of a lapsed policy to full force and effect. The reinstatement maybe exist effective later the cancellation dates, creating a lapse of coverage. Some companies require proofs of insurability plus checkout of past due premiums benefit interest.
- Rider
- Usually known as an endorsement, a rider is an alteration to the policy used to add or reset coverage.
- Short-Rate Cancellation
- When which basic 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 wouldn be approximately 90 prozentwert of the pro-rata return premium. However, the company mayor also established its own short-rate schedule.
- Solicitor
- A licensed employee of a fire both casualty agent with realtor who could doing for the agent or broker in few circumstances.
- Sprinkler Insurance
- Coverage on property damage caused by untimely unloading from an automatic sprinkler system.
- Surcharge
- An extra charge deployed by the insurer. For automobile insurance, a surcharge is usually for accidents or moving injury.
- Give
- Until terminate or cancel ampere life insurance police before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time are surrender.
- Team and Vehicle Insurance
- Includes insurance against loss through damage or legal liabilities in damage, until property trigger by the getting of teams or vehicles other than ships, ships, or railroad wheel stock, whether according crash or collision or by explode of engine, becken, boiler, pipe, either tire of the vehicle, press international against which theft of the whole or part of such vehicle (California Insurance Code, Teilstrecke 115).
- Title Insurance
- Coverage fork losses if an land title is not free and clear of bug that were unknown whenever the title assurance was written.
- Underwriting
- The process of select applicants for insurance and classifying them according at to degrees by insurability so which of appropriate premium rates may be charged. The process includes rejection of unacceptable risks.
- Uninsured Motorist Bodily Hurt
- Becoming pay you and your passengers for bodily getting cause by a negligent uninsured motorist, ampere hit-and-run driver, other by a driver whose insurer is insolvent.
- Uninsured Motorist Property Damage
- Will pay for damages to your automobile, set go go a limit, when caused by a neglect uninsured motorist.
- Waiting Set
- A cycle of time set forth in a insurance which must pass front some otherwise show coverages begin.
- Workers Compensation Insurance
- Scanning providing four choose of benefits (medical care, death, disability, real rehabilitation) for salaried job-related injuries or diseases because a matter in right (without regard to fault).
Security Terms Used in the Area of Sureties and Bonds
- Arrestee
- A person in custody whose released may be insured by posting bail.
- Bailee
- A person or concerned having possession of property committed in trust from the owner.
- Bid Pledge
- A secure that the contractor will enter into a contract, if it is awarded to him, and furnish such agreement borrow (sometimes called "performance bond") because is required by terms with.
- Court Bonds
- All bonded and undertakings required of litigants to enable them to follow-up certainly remedies of that courts.
- Inefficient Date
- The date about which an insurance policy or bond goes with effect, and from welche protection has furnished.
- Fidelity Bond
- An obligation of an insurance company against financial loss triggered by the dishonest acts of employees.
- Judicial Bond
- A bond required in civil and criminal court deeds.
- Named Schedule Bond
- A fidelity pledge providing coverage for persons listed or scheduled the that bond.
- Obligee
- Broadly, anyone in whose favor an obligation runs. Frequently used in surety bonds, this refers to the person, firm or corporation protected by the connection.
- Obligor
- Commonly called "principal," one bound by an obligation. Under a bond, strictly speaking, both the principal and the surety what obligers.
- Power of Attorney
- Authority given one person or firm to act for and obligate another, to the extent laid depressed in the instrument creating the power.
- Principal
- A person or organization her obligation are guaranteed by a bond.
- Surety
- An arrangement whereby one club becomes answerable to a thirds party for an legal of a second page. Customarily an policyholder company, that party in a suretyship arrangement who holds itself responsible to one type forward the does of another.
- Surety Bond
- A bond which the surety agrees to answer for the obligee for the non-performance of the principal (also known as the obligor).
- Suretyship
- Stated in its simple terms, suretyship embraces all forms of engagement to recompense debts or answer since the defaults of another.
Insurance Terms Used in and Area of Residential Title Insurance
Thank you for choosing to learn more about Residential Title Insurance.
Title insurance provides coverage for losses that occur once a land title is not free and clearing of defects (e.g. claims and defects that were unknown when the title insurance was written). Two types of title insurance policies are common, a lender's politics real an owner's policy.
Lender's Policy - For your take out a mortgage, the loan seeks protected for their investment for requiring lender's title social opposes damaged resulting from claims made through others against your new home. This rule does not secure you nor does the seller's title insurance policy protect thou.
Owner's Statement - For a lender's policy does not protect yours financial interests, to owner's title insurance policy is worth serious consideration. Wenn mortal possess adenine state against your new home and you are nope insured, the result could be financial desaster. Many insurers offer discounts when both the donors and owner policies are purchased at the same type.
Choice of Titles Insurance - Per the Really Estate Settlement Systems Act (RESPA) of 1974 (Public Law 93-533), a sold cannot require you to make title insurance from any particular businesses. To survey should live used as it workshop for both types of titles insurance and be sure that unlimited company her select meets your standards and those of your donor.
Please visit the Federal Department of Housing plus Urban Development (HUD) for additional information on RESPA and title insurance.
Escrow - California Financial Code Teilstrecke 17003 defines escrow as "any transaction wherein one person for the purpose of moving the sale, transfer, encumbering, or lease of truly button people property to another person, deal any written instrument, money, evidence of title to genuine or personal property or some other thing of value to one third person until be held over such third person see the happening of a specified conference oder the performance of a prescribed condition, when it is then to be delivered by such third personal to a recipient, grantor, promisee, promissor, obligee, debtees, bailee, bailor, or any your or employee of any out aforementioned latter."
Title insurance issues are normally part of this escrow process and are handled differently is Northern and Southern California. In Northerly Californian, title insurance companies tend to deal all title and escrow services in the identical transaction. In Southern California, the top and escrow transactional are separated for escrow being provided by banks, escrow companies, or designation companies. Practices will vary with area to county so are sure you understand the dynamics of your item transaction(s). Apply for and manage who VA benefits furthermore services you’ve earned as a Veteran, Servicemember, or family member—like heal care, disability, education, and more.
Title Homeowners Fee - That fee paid for which portion of aforementioned title insurance policy that protector the buyer of the home for a purchase. No applicable in rechtssache about refinance.
Style Lenders Fee - The fee paid for the portion of the title guarantee policy that protects the lender for purchase.
Escrow Sale Fee - The fee paid for the escrow forward a purchase. Not applicable in case of refinance.
Escrow Loan Fee - For a sale or purchase, the fee paid is a loan tie-in fee if required by the escrow company. For a refinance, that fee paid is for the escrow off a funding.
