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Juan's FL General Lines Agent & Customer Rep Study Manual
This is the Glossary in the General Lines Agent and Customer Representative Study Manual 21st Edition, randomly shuffled - not in alphabetical order.
Terms in this set (264)
A sudden fortuitous event.
This form belongs to the Commercial Property Coverage part of the Commercial Package Policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control.
Legal Liability Coverage Form:
Section of the insurance policy, which lists property, perils, persons, or situations, which are not covered under the policy.
An endorsement that can be added to an HO-3 form to provide replacement cost coverage on personal property (with limitations).
Replacement Cost Endorsement:
A type of Health insurance that covers fees of physicians for performing surgery, with a maximum amount payable for each procedure.
Surgical Expense Insurance:
A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.
A type of Contract bond, which guarantees that the contractor upon completion of the work will pay bills for labor and materials. Also called Labor and Materials bond. See Contract bonds.
A legal liability coverage provided under the Trucker's Policy. Provides coverage for damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss, provided the trucker is liable for the damage under a written interchange agreement and the damage is caused by a covered peril.
Trailer Interchange Insurance:
In Crime insurance, the taking or attempted taking of property by one who has caused or threatened to cause bodily harm or committed and witnessed an obviously unlawful act.
Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Blanket insurance also refers to a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.
An Ocean Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.
An Inland Marine form, which provides "all risk" coverage for mobile agricultural and construction equipment owned by or in the care of an equipment dealer.
Equipment Dealers Coverage Form:
Rules of law dictate that a person must pay for damages done to another.
A form which belongs to the Commercial Property Coverage part of the Commercial Package Policy; It covers a tenant for certain losses following damage to the premises from a covered peril, such as tenants loss of a favorable lease or loss of remaining value of improvements or betterments made by a tenant.
Leasehold Interest Coverage Form:
Something that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss.
The section of an insurance contract which shows, who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.
The transfer to the insurance company of the insured's right to collect for damages.
The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.
Limits of Liability:
Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, Freight and Liability coverage (Protection and Indemnity).
Ocean Marine Insurance:
In Health insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length of the grace period. Guaranteed Renewable: A Health insurance policy provision that states that the insurer must renew the policy to a certain age. While the company cannot fail to renew the policy until the specified age, it can increase the premium.
A legal agreement between two parties promising a certain performance in exchange for a certain consideration.
Health insurance that pays a flat amount per day of hospitalization, regardless of expenses or other insurance. Its primary purpose is to supplement other coverage, which may be inadequate due to rising costs.
Hospital Indemnity Insurance:
A part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It provides "aII risks" coverage for valuable contents of mail.
Mail Coverage Form:
A deductible, which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy, limits.
A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc.
Unfair Insurance Trade Practices Act:
This form belongs to the Commercial General Liability coverage part ofthe Commercial Package Policy. It covers liquor liability, which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, sewing or furnishing alcoholic beverages.
Liquor Liability Coverage:
A Boiler and Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs, i.e., overtime, or express transportation charges.
An endorsement to the Business Auto Policy, which covers named persons for non—business use of autos, they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car.
Drive Other Car Coverage:
A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made.
An endorsement that can be added to an auto policy to cover towing and the costs of labor performed at the site of the disablement.
Towing and Labor Endorsement:
A liability form, which is part of the Commercial General Liability part of the Commercial Package Policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.
An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.
A Commercial Crime Coverage form which covers money and securities for loss by theft, disappearance or destruction, both inside and outside of the premises.
Theft, Disappearance and Destruction Coverage Form:
A category of Surety bonds, which guarantees the fulfillment of contractual obligations; includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply Contract bonds.
A category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeals, etc. (Includes Bail bonds, Litigation bonds)
Part of the Inland Marine Coverage part of the Commercial Package Policy. It covers various types of contractors mobile equipment needed to conduct business.
Contractor's Equipment Coverage Form:
The party (often the insurance company), which agrees to be responsible for loss, which may result if the principal does not keep his promise.
Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public.
Blue Sky Bond:
Coverage that can be added to a Garage policy by endorsement to insure a dealer against loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have legal title.
False Pretense Coverage:
A form, which is a part ofthe Commercial Property Coverage Part ofthe Commercial Package Policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. An earthquake form is also available.
Causes of Loss Form:
Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party.
A category of Surety bonds furnished by principals who are elected or appointed to till positions of trust, guaranteeing their faithful and honest performance in office.
Public Official Bonds:
A principle of insurance, which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
In Ocean Marine insurance, a loss, which occurs when property is not completely destroyed but the cost to salvage or repair the property, would exceed its value.
Constructive Total Loss:
Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.
In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims ofall persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits.
Coverage provided under a Worker's Compensation policy to cover the employers' liability arising out of employee's work-related injuries.
Employers' Liability Coverage:
Damages awarded to make an example of the wrongdoer.
A Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery outside the premises and safe burglary.
Robbery And Safe Burglary Coverage:
Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package Policy.
Builder's Risk Coverage Form:
Those coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.
Third—Party Insurance Coverage:
In Ocean Marine and Aviation insurance, insurance against physical damage to plane or ship.
A type of policy limit found in liability policies, which limits coverage to a specified total amount for all losses occurring within the policy period.
Usually defined to include physical harm, sickness, disease, or death resulting from any of these.
A type of Contract bond, which guarantees the obligee that if a contractors bid is accepted, the contractor will provide the required Performance bond. See also Contract bond.
Illegal acts committed willfully by a ship'svmaster or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of the cargo.
Insurance, which covers an employer's obligations under Worker's Compensation laws, which make the employer responsible for, stated damages in the event of a work-related injury or illness. Worker's Compensation coverage also includes separate coverage for EmpIoyers' Liability.
Worker's Compensation Insurance:
An Inland Marine Coverage form, which insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged.
Accounts Receivable Coverage Form:
A type of physical damage insurance, which covers loss due to the insured object striking another object. Collision may also include upset of the insured object.
A standard Liability insurance clause that means that insurance applies separately to each insured.
Part of the Commercial Package policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis.
Farm Coverage Part:
A Boiler and Machinery Coverage form for small a business that provides somewhat broader coverage than the standard Small Business Boiler and Machinery.
Small Business Boiler And Machinery Broad Form:
Statement of something that is known to be untrue.
Insurance which covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of the Commercial Package Policy.
Boiler and Machinery Coverage Form:
Automobile coverage designed to provide protection for the insured should he or she be in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.
Uninsured Motorist Coverage:
Insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with "Named Perils" insurance, which names the peril or perils insured against.
AII Risk Insurance:
A type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to non renew the policy at expiration.
All Risks Commercial Inland l\/larine Coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions.
Theatrical Property Coverage Form:
When two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less. See Excess insurance.
The withholding of a material fact from the insurance company. May void the policy.
In bonds, the party who promises to do (or not to do) a specific thing.
Part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.
Physician's and Surgeon's Equipment Coverage Form:
Part of the Boiler and Machinery Coverage part of the Commercial Package Policy. Defines the objects covered by the Boiler and Machinery Coverage form in great detail.
Objects Definition Form:
A form containing conditions that apply to all coverages issued under the Commercial Package Policy program.
Common Policy Conditions:
An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and tiles standard rates for many lines of insurance. Also develops standardized forms.
Insurance Service Office (ISO):
A form that is part of the Farm Coverage Part and provides seven separate property coverages designed specifically for farms.
Farm Property Coverage Form:
Loss, which is a result or consequence of a direct loss.
A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage.
Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.
Personal and Advertising injury:
Provides coverage against liability rising out of an insured's contractual obligations. Generally excluded in the Commercial General Liability Policy, subject to several exceptions.
Damages that punish the wrongdoer for anti-social actions, rather than compensating for loss.
A type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.
A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.
The primary coverage form of the Commercial Package policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others.
Building and Personal Property Coverage Form:
A form that is part of the Commercial Auto Coverage Part and is designed specifically for the trucking industry. Includes Trailer Interchange insurance.
Trucker's Coverage Form:
Written with property insurance policies. It waives the Coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company.
A Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.
Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.
A deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss.
A simplified, easy-to-read Commercial Package Policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler and Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and EmpIoyment—Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies.
Commercial Package Policy:
(1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy.
Proof of Loss:
See Personal injury Protection.
Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items.
Hospitalization Expense Insurance:
A Surety bond that can be provided as evidence of compliance for an insurance requirement.
Insurance, which provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage is available separately for hangar keepers and airport owners or operators.
A Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments.
Forgery or Alteration Coverage Form:
The event, which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage, which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is Bl or PD, which occurs on or after the retroactive date and for which claim is made during the policy period.
A form, which is a part of the Commercial Auto Coverages and is designed to cover the auto exposures of businesses, other than truckers or garages.
Business Auto Coverage Form:
This is a Property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises following a covered loss.
Preservation of Property:
A type of Health insurance policy which the company may not cancel, but must renew to a certain age with no change in premium. Affords the greatest degree of continuation protection to the insured.
In Crime insurance, a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.
An organization created by the Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.
A form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.
Position Schedule Coverage:
A date stated in the Declarations of a CGL Coverage form which is normally the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is provided under the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date.
Protects property against damage caused by vandals. Many property forms contain Vandalism and Malicious Mischief coverage.
Vandalism And Malicious Mischief (VMM):
A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing.
Property coverages which are closely associated and frequently sold with tire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc.
One of the Commercial Crime Coverage forms, which are a part of the Commercial Package policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson.
Premises Burglary Coverage Form:
In automobile insurance, a broad physical damage coverage, which covers all property losses except collision and those perils or property, which are specifically excluded.
The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.
An Inland Marine form, which covers property sold on an installment basis.
Installment Sales Floater:
A coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage businesses (dealers, service stations, garages, parking lots, etc). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, non-owned and hired autos.
Garage Coverage Form:
A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic Extended Reporting Period runs five years. The Supplemental Extended Reporting Period has unlimited duration but is available only by endorsement for an extra charge.
Extended Reporting Period:
A type of Health insurance intended to provide protection against catastrophic losses. Some forms are designed to complement or supplement basic hospital/surgical insurance; others provide both basic and catastrophic illness coverage.
Major Medical Insurance:
A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
The amount of a bond.
A form of insurance, which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.
Products and Completed Operations:
Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy. (p.68)
Extra Expense Coverage Form:
See Court bond.
A Commercial Inland Marine Coverage form that provides "all risk" coverage for neon, fluorescent, automatic or mechanical electrical signs.
Signs Coverage Form:
The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.
Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. See also Franchise, Percentage and Straight Deductibles.
A Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other required improvements will be installed.
A category of Surety bond which covers a wide variety of occupations and operations, and which are often required as a condition of doing business.
License and Permit Bonds:
A coverage provided in many property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.
One of the Commercial Crime Coverage forms, which are a part of the Commercial Package policy. Covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.
Premises Theft and Robbery Outside the Premises Coverage:
A class of bonds, which insurers against an emp|oyee's dishonesty. Today this coverage is generally provided through Employee Dishonesty insurance.
A coverage sometimes written in conjunction with Aircraft Passenger Liability which can provide reimbursement for death or dismemberment without requiring legal action.
Admitted Aircraft Liability Coverage:
A Boiler and Machinery Coverage form designed specifically for small businesses. Does not require attachment of Objects Definition form, since definitions are built in.
Small Business Boiler And Machinery Coverage:
See Payment Bond.
Labor and Materials Bond:
An "all risk" Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an empIoyee's custody or elsewhere.
Camera and Musical Instrument Dealers Form:
Part of the Inland Marine Coverage part of the Commercial Package Policy. Provides "all risk" coverage for photographic equipment and musical instruments on either a scheduled or blanket basis or both.
Commercial Articles Coverage Form:
An optional provision in Health insurance policies that states that if the insured becomes totally disabled, premiums are waived and coverage remains in force.
Waiver of Premium:
Physical damage insurance provided to cover loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Hull Insurance:
A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full.
An endorsement to the Homeowner's policy that schedules specific amounts of coverage for one or more of several categories of personal property on an "all risks" basis.
Scheduled Personal Property Endorsement:
Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.
Line of insurance, which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.
Coverage, which applies only after limits of primary insurance have been exhausted. See Primary Insurance.
Inland Marine insurance designed to cover computer hardware and software.
Electronic Data Processing Coverage:
In Ocean Marine insurance, a partial loss that is not part of a general sacrifice of property (general average).
Personal Inland Marine Floater, which provides "all risk" coverage on unscheduled personal property.
Personal Property Floater:
An Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damaging another ship.
Running Down Clause:
In Disability or Health insurance, a period of time between issuance and acceptance before sickness benefits begin.
See Fiduciary Bonds and Court Bonds.
Judicial Bond and Bonds Required By Courts:
Insures the individual for financial losses, which arise out of the person's responsibilities to others imposed by law or contract.
A statute, which states that if there is a total loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid.
Valued Policy Law:
A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.
A form that is a part of the Farm Coverage Part and is designed to provide liability coverage for farm operations.
Farm Liability Coverage Form:
In a Surety agreement, one who agrees to reimburse the surety for any loss it may suffer from having bonded the principal.
Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commercial Package Policy. Contrast uncontrolled lines.
An endorsement that can be added to Commercial Property policies which sets the limit of insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averaged and the premium is then adjusted to reflect the average exposure.
Value Reporting Endorsement:
An Inland Marine Coverage form that provides "all risk" coverage for exposed motion picture film, including sound recordings and magnetic or video tapes that have been properly recorded until the first full quota of positive prints or film have been made. (p. 148)
Film Coverage Form:
Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy.
Cargo Liability Coverage:
A multi—peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.
Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.
Inland Marine coverage form, which provides "all risk" coverage for valuable papers such as manuscripts, blueprints, records, and other printed documents.
Valuable Papers Insurance:
An endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto.
Named Non-owner Coverage:
A single coverage amount, which applies generally to personal property. Also called blanket insurance.
Coverage written to cover public and passenger liability and property damage liability.
Aircraft Liability Insurance:
A document, which is attached to the policy and modifies or changes the original policy in some way.
Policy limits that apply to all bodily injury and property damage arising from a single accident.
The assertion of a legal right against an insurer that carries with it a demand for appropriate relief.
A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss orto minimize a loss which has occurred.
Sue and Labor Clause:
A type of Employee Dishonesty insurance that covers loss only from named employees.
Name Schedule Coverage:
Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability.
An allied lines policy, which provides coverage for the dwellings and personal property of individuals and families against fire and additional perils.
Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.
Crime Coverage Plans:
The section of an insurance policy, which states which losses will be indemnified, what property is covered, which perils are insured against.
A type of Health insurance that reimburses the insured for non—surgicaI care provided by a physician.
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss Replacement Cost -Depreciation).
Actual Cash Value (ACV):
A type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.
Medicare Supplement Insurance:
A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.
A property insurance option, which provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually.
The voluntary or intentional relinquishment of a known right. A waiver may be expressed or implied.
Commercial Inland Marine coverages, which are not standardized.
Provides "all risk" coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.
Personal Effects Floater:
Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exists.
A Surety bond required of those who collect and must report taxes for certain controlled commodities, such as liquor or tobacco.
U.S. Internal Revenue Bond:
Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.
A non-insurance alternative to dealing with the risks of health care costs. An HMO provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium.
Health Maintenance Organization:
See Health Maintenance Organization.
A coverage, which is part of the Garage coverage form. Covers a garage risk's legal liability for customer's autos in the care, custody or control of the garage. At the insured's option, can also apply without regard to fault, for an additional premium.
A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a part of the policy.
An endorsement, which may be added to the Personal Auto Policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.
Miscellaneous Type Vehicle Endorsement:
A category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.
Instrumentalities Of Transportation And Communication:
A Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.
Peak Season Endorsement:
A form, which is a part of the Commercial Computer Crime Coverage part of the Commercial Package Policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premise.
Computer Fraud Coverage Form:
State law that requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
Financial Responsibility Law:
A form of insurance originally designed as an extension of Ocean Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.
Inland Marine Insurance:
An insurance clause, which states that when the insured has other insurance, the loss payment made by the company will be based on the number of applicable policies, not on their limits.
Equal Shares Clause:
An Automobile insurance rating program, which applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.
Safe Driver Insurance Plan:
Inland Marine insurance obtained by avbailee, to cover loss or damage to customer's property in the baiIee's custody, without regard to liability.
A personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection.
Insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto.
A line of insurance, which historically has included a wide variety of unrelated coverages other than Life and Health. An important coverage in the casualty line is Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Worker's Compensation and Surety Bonds.
A Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others. See Judicial bond.
Clause, which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose appraisers, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive.
A principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith.
Utmost Good Faith:
Permanent alterations which a tenant makes to the rented property, which will not be removed when the tenant leaves.
Improvements and Betterments:
A Health insurance policy, which provides benefits for a single illness.
Dread Disease Policy:
A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.
A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.
Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturers warranty.
Automobile Mechanical Breakdown Insurance:
Fiduciary bond dealing with those who administer estates of a deceased person.
In Liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.
Under the Homeowner's policy, covers the insured's increased cost of living after loss and rental value of any portion of the dwelling, which is rented out.
Loss of Use Coverage:
A person or institution, which has responsibility for the money, property or financial affairs of another.
Available under the Commercial Package Policy. Requires the Causes of Loss form - Earthquake.
A mandatory endorsement, which must be, included with the Commercial General Liability coverage part of the Commercial Package Policy. In general, it excludes all hazards related to nuclear energy.
Nuclear Energy Liability Exclusion Endorsement:
Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.
Personal Inland Marine insurance which provides "all risk" coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.
Personal Articles Floater:
An Ocean Marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their total interest in property being transported.
A category of Surety bonds issued in situations where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder, the issuer of the instrument would be reimbursed.
Lost Instrument Bonds:
The absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.
Part of the Commercial Crime Coverage part of the Commercial Package Policy, it covers loss resulting from dishonest acts of employees. This coverage is excluded under other Crime insurance forms.
Employee Dishonesty Coverage Form:
A License bond, which holds the government harmless from injuries or damages caused by the principal's activities.
A form of insurance primarily designed to cover property in transport over land or sea.
An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.
An Inland Marine Coverage form that provides "a|l risk" coverage for merchandise for sale that has been financed.
Floor Plan Coverage Form:
An "all risk" Inland Marine form for retail jewelers that covers the insured's stock in trade and the property of others, while at the insured's premises, in transit and elsewhere.
A part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the buildings in a condominium complex (not the unit-owner's personal property).
Condominium Association Coverage Form:
A Surety bond that may be required of those associated with import or export activities, to guarantee that the required customs will be collected, reported and paid.
A coverage, which can be added to the Garage policy by endorsement. It eliminates the Physical Damage exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart.
Dealers Drive—Away Collision:
An insurance contract.
In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control.
Provides broad coverage for an individuaI's or famiIy's liability exposure for bodily injury or property damage. Similar to coverage included in Homeowner's contract.
Personal Liability Policy:
A Personal Auto Policy endorsement that extends liability coverage to named individuals for a non owned automobile, which is furnished for their regular use.
Extended Non—owned Coverage Endorsement:
Contract bonds, which guarantee that jobs will be completed by the contractor according to contract specifications.
A Surety bond that may be required by a public body when it awards a franchise.
Inland Marine transportation insurance, which protects the carrier against its liability for damage to domestic shipments in its custody.
Motor Truck Cargo Policy:
Damage which occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.
Inland Marine transportation insurance, which insures a property ownerfor goods being transported.
Annual Transit Policy:
One who has temporary custody of property belonging to another. (Example: dry cleaners.)
A part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the unit-owner's business personal property.
Condominium Commercial Unit Owners Coverage Form:
Fiduciary bond for those appointed to manage and preserve property other than estates of decedents.
An endorsement to a Homeowners policy, which provides coverage against occupational liabilities for those who are employed by others.
Business Pursuits Endorsement:
Loss, which is a direct result of a peril. Also includes loss due to efforts to end the peril or unavoidable exposure following a peril.
An endorsement to the Homeowner's contract, which provides coverage for watercraft, which is excluded under the HO policy itself.
A category of insurance, which includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.
A voluntary action to rid the ship of cargo in order to prevent further damage or peril.
Unique perils to which property in transit by water is exposed. Includes unusual action of wind or waves, stranding, lightning, collision and sinking.
Perils Of The Sea:
In bonds, the one who is to be guaranteed that the principal will perform.
A market source for persons who are unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed in their behalf by a group of servicing carriers.
Florida Automobile Joint Underwriting Association:
A period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered within one year of expiration will be covered.
Liability arising out of the rendering or failure to render services of a professional nature.
As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit.
Easy-to-read auto policy that provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.
Personal Auto Policy:
Coverage that provides protection to airports for bodily injury and property damage liability.
Airport and Air Meet Liability:
A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.
An uncontrolled Inland Marine form that covers property in transit and at premises where an installation is to be made.
In Ocean Marine insurance, a form of liability insurance.
Protection and indemnity:
A method of collecting premiums for exposures, which are difficult to evaluate "before the fact." Instead of paying a flat premium, the insured pays a deposit, then submits periodic reports to the insurer, showing the status of the factors on which premium is based. From these status reports, premiums are calculated and charged against the deposit.
Property specifically listed and covered for a specific amount. Also called Scheduled coverage.
The cause of loss. Examples include fire, windstorm or explosion.
The portion of an insurance contract, which sets forth the rights and duties of the insured and the insurance company.
A form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.
Ordinary cars, station wagons and jeeps, utility autos and utility trailers designed to be pulled by a private passenger auto.
Private Passenger Autos:
A coverage provided in Auto policies in the state of Florida that provides coverage for the insured's own injuries on a first—party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida.
Personal Injury Protection:
A coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy.
Business Income Form:
A form of liability insurance that can be added to the CGL section of the Commercial Package policy to provide limited coverage for pollution.
Pollution Liability Coverage:
A form of Contract bond, which guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation. See Contract bond.
Supply Contract Bond:
Statements an applicant for insurance believes to be true. Does not carry as much force as warranty.
A form of Liability insurance which protects an owner or general contractor against liability arising out of the acts of independent contractors or subcontractors. May be issued to the independent contractor or subcontractor, or may be issued directly to the owner or general contractor.
Owners and Contractor's Protective Liability: