The insurance company that issues the policy and assumes or“carries” the risk and responsibilities associated with the policy.
Used to describe the liability coverage of an individual or organization for negligent acts or omissions, but not directly concerned with Life, Health, or Property insurance. This is a somewhat elastic term and can depend upon the specific policy, but can often cover such things as aviation related property insurance, glass insurance, crime insurance, boiler & machinery insurance, marine losses due to shipwreck and losses at sea or fidelity and surety insurance, earthquake, political risk, terrorism, forgery, fidelity and surety bonds, livestock, and legal expenses. Automobile insurance is the most common form of casualty insurance.
Coverage for extremely large scale disasters, often resulting in high losses including loss of life and extensive property damage. This refers to natural disasters such as ice storms, hurricanes, tsunami, flood,and earthquake, as well as man-made disasters such as terrorism, depending on the policy specifics. These events are usually excluded from standard hazard insurance and so require their own policy.
Certificate of Insurance
A document which provides proof that insurance has been purchased by the policyholder and which can then be presented to other parties. It is not a substitute for the actual policy. Also referred to as an Insurance Certificate.
Chartered Property Casualty Underwriter (CPCU)
Considered to be the premier designation in the insurance industry and administered by the American Institute for Chartered Property and Casualty Underwriters. CPCU designation requires the completion of nine (9) graduate and post graduate courses as well as passing of nine (9) extensive national examinations in various specified areas. CPCU designees are bound by a Code of Ethics and must meet experience requirements outlined. Designees have a professional society called the Chartered Property and Casualty Underwriters Society with over 150 chapters in the United States.
Formal notification to an insurance company requesting payment of estimated or actual amount of loss due under the terms of a policy. Claims are reviewed by the insurance company for validity and paid to the appropriate party once approved.
The total amount paid out for all claims divided by the number of claims. Also called Average Cost Per Claim.
Classification or Class (insurance)
Grouping of persons, operations, or property with similar general characteristics which are rated based on a number of statistical factors to determine risk and appropriate insurance rates.
(a) The joint assumption of risk between the insurer and the insured, where the insured received a reduced rate for insurance equal to a percentage of the actual value of the property insured. (b) The sharing of risks between two or more title insurance companies.
Insurance policies designated for and purchased by businesses.
Commercial Multiple-Line Policy
A broad coverage policy package geared toward businesses, including various liability and property coverage.
A rule of law applied to determine responsibility and damages based on negligence of every party involved in an accident.
Competitive State Fund (insurance)
An organization created by a state to sell workers' compensation insurance in competition with other private insurers.
Compulsory auto liability insurance
Nearly all states require registered vehicles to carry a minimum amount, which varies by state, of auto liability insurance to drive a car, covering the other driver’s medical, repair, and any additional costs associated with an accident.
The act of intentionally withholding information, which results in the voiding of an insurance claim, even if the insured is not specifically asked about it. The failure to disclose pertinent facts prior to the instatement of an insurance contract.
Loss accompanying an insured loss but not directly associated with it, such as loss of income to a business after flooding. These losses are not usually covered by normal insurance policies unless specifically indicated and usually accompany payment of an additional premium. Also called Indirect Loss.
The insurance policy received by an insured from the insurer which details the extent coverage, conditions, and circumstances under which the policyholder will be compensated financially.
Common law referring to a case where an individual is responsible in part for injuries or damages due to their own actions, often resulting in a reduction of financial compensation.
The total type and amount of insurance purchased by the policy holder against certain losses as described in the specific policy.