An insurance agent works for only one company and sells policies only for that insurer.
Bailee for Hire
One who has temporary possession of personal property of others for a purpose other than sale and who is compensated for caring for it.
A written or oral agreement from the insurer giving temporary protection to an insured pending issue of the policy.
Generally defined in liability policies to mean bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time.
One who is an independent middleman (not tied to a particular insurance company) who obtains insurance for his clients from insurance companies or their brokers.
Generally defined as the unlawful taking of property from within the premises by a person unlawfully entering or leaving the premises, as evidenced by marks of forcible entry or exit.
Sum paid as remuneration to the broker for business placed with an insurer.
A condition imposed upon an insured under the policy required them to do or not to do something during the term of the policy.
A system of separate ownership of individual units in a multiple-unit building.
In a contract, an exchange of something of value between the parties.
An agreement between two or more parties that is enforceable at law.
An amount of money awarded to the person injured by another’s tort or wrongdoing.
The specific dollar amount or percentage of the insured value to be paid by the insured before he is entitled to recovery from the insurer.
When used in Accident and Sickness Insurance, a physical or mental inability to work.
The building occupied as a private residence.
Acknowledges a change in the terms of the contract.
Relating to moral character. Conforming to professional standards or conduct.
Provision specifying the situations, occurrences or persons not covered by the policy.
One who manages money or property for another.
The loss of property due to ignition or burning.
Insurance document used to provide coverage for property having a high degree of mobility.
Without delay. The words “forthwith” and “immediately” convey the same meaning.
A deliberate attempt to deceive, with a view to securing some profit.
Fire contained to the place it is supposed to be, eg. Fire in a fireplace, etc.
A condition that may cause a peril to occur.
One that becomes uncontrollable or breaks out from where it is intended to be and becomes a hostile element.
Indemnity (Principle of)
Insurance principle that aims to ensure the victim of a loss receives the actual amount of the loss, no more and no less.
People have an insurable interest when they are able to show they would suffer financially from a loss a requirement of insurance contracts.
The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed…or to pay a sum of money or other thing of value upon the happening of a certain event.
The rate over and above the fire rate charged by the insurer to provide additional policy coverages.
A fact which, if the insurer knew about it, would cause it to decline the insurance altogether or charge a higher premium for accepting it.
Minimum Retained Premium
The minimum amount of premium an insurer will retain in the event the policy is cancelled before its expiry.
Failure to use that degree of care which an ordinary person of reasonable prudence would use under the give circumstances.
A loss under and insurance policy that does not either completely destroy or render worthless the insured property, or that does not use up the insurance limits applying to it.
One to whom insurance monies are payable in the event of a loss to insured property.
The cause of the loss.
The land contained within the lot lines.
The money or consideration paid by the insured to the insurer for insurance protection.
Refers to the things a person has done internally to prevent or reduce loss.
In commercial liability insurance policies, generally defined as “physical injury to tangible property, including all resulting use of that property; or loss of use to tangible property that is not physically injured.”
Refers to the protection provided to insured property from outside sources.
Involves the chance of financial loss with no chance of financial gain.
Discount or reduction in stipulated premium of a policy, generally by broker or broker and intended as an enticement.
One person connected to another by blood or affinity.
The act of restoring a damaged structure or thing to a condition as close as possible to that which originally existed.
The cost of replacing, repairing, constructing or reconstructing, whichever is the least, the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation.
Refers to “self-insurance”; a means of generation funds from within the organization to pay for losses.
Adds additional coverages to the existing contract.
A risk management technique concerned with taking measures to reduce the frequency and severity of losses.
The chance of financial loss to which the object of insurance may be exposed.
Felonious taking of property from the possession of another against his will, accomplished by means of force or fear.
Refers to the lawful substitution of a third party in place of a party having a claim against another party. In insurance contracts, the insurer has the right to “step into the shoes” of another party whom it has compensated and sue any party whom the compensated party could have sued.
The taking of property without the owner’s consent.
One who is not a party to the insuring agreement but who might have rights therein.
A legal wrong, other than the breach of contract, for which the court will provide a remedy in the form of a suit for damages.
One who commits a tort; a wrong-doer.
Complete destruction of insured property.
(a) The one assuming the risk in return for payment of a premium.
(b) The person within the insurance company authorized to accept or reject applications for insurance.
Utmost Good Faith
A requirement of insurance contracts; implies complete honesty, concealing nothing.
One in which the insured and insurer agree as to the value of property insured in advance of any loss to it, such amount to be paid in the event of a total loss of the covered property.
Having no legal force or binding effect.
That which is capable of being declared void.
To voluntarily give up a right.
The unilateral and voluntary relinquishment of a known right.
A promise that certain facts are truly as they are represented to be and that they will remain so.
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Housing construction costs increased by more than 20% in 2008. Re-evaluate your home’s replacement cost every few years to reflect any changes in the cost of construction, building materials and labor in your region.