Abandonment: Giving up the proprietary rights in insured property to the Underwriter in
exchange for payment of a constructive total loss.
Accident: An unintended and unforeseen event, identifiable in time and place, usually
resulting in personal injury or property damage.
Accident Insurance: A form of health insurance against loss by bodily injury.
Accounts Receivable Policy: A burglary policy written to protect the insured from financial
loss due to his inability to collect amounts owed him because of the destruction of his
Act of God: A flood, an 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.
Actual Cash Value: For auto insurance, the traditional measure of property insurance loss.
Usually defined as the cost of replacing the destroyed property with new property, minus
an allowance for depreciation resulting from physical wear and tear and/or by changing
technology or user preference. For home insurance, the actual cash value of a piece of
property at the time of loss. The ACV is less than the replacement cost due to depreciation,
since depreciation decreases value.
Actual Total Loss: Occurs when:
(1) the insured property is completely destroyed or
(2) the Assured is irretrievably deprived of the insured property.
Additional Insured: A person or firm or corporation other than the named insured on a
policy or mortgage company named in a mortgagee clause, who is protected against loss
by the terms of the policy or mortgage company named in the mortgage clause.
Adjuster: An individual who assesses the validity of an insurance claim on behalf of an
insurance company. The adjuster authorizes appropriate payment, repairs, or other action.
All Risk: Insurance against loss or damage to property arising from any fortuitous cause,
except such as may be specifically excluded.
Application for Insurance: Refers to a questionnaire or form filled out by a customer, which
provides pertinent information about the customer to the insurance company. The form is a
preliminary step in the application process to obtain insurance.
Appraisal: A survey of property made for determining its insurable value or the amount of
Assigned Risk: A risk which underwriters do not care to insure, but because of state law or
otherwise, the insured must be protected and the insurance is therefore handled through
the state and assigned to companies.
Assignment: The passing of beneficial rights from one party to another.
Assignment of Benefit: A document signed by the insured, which allows the hospital or
doctor to collect health insurance benefits directly from the health insurance provider.
Assumed Liability: Liability which would not rest upon a person except that he has
accepted responsibility by contract expressed or implied. This is also known as contractual
Automobile Fleet Policy: A commercial automobile policy covering five or more automobiles.
Automobile Insurance Policy: There are six different types of automobile insurance
coverages. Some are optional and, depending on the state you live in, some are required
by law. The following list represents the six most common types of automobile insurance
• Bodily Injury Liability
• Medical Payments
• Property Damage Liability
• Uninsured Motorist Coverage
The above information is for general informational purposes only and is not to be
construed as a recommendation or advice in any way shape or form.
|Copyright © 2016 Stephen W. Gersh Insurance Agency, Inc. All rights reserved.