Translate INSURANCE-EZE INTO BUSINESS-EASE
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| Rate Legal Definition: In fire and marine insurance, rate is the cost of a unit of insurance, e.g., the price of $100 of insurance for the terms specified. In casualty insurance, it is the cost per unit of the insurance company’s exposure to loss, e.g., workers’ compensation insurance rates are charged per $100 of payroll. Translation: A unit of cost that is used to determine how much you'll pay for your insurance. | back to top |
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| Reinstatement Legal Definition: The resumption of coverage under a policy that has lapsed. A provision is usually made for reinstating the policy to its original amount. Depending on policy conditions, it may be done automatically, either with or without premium consideration, or it may be done at the request of the insured. Translation: When a lapsed policy is restored and becomes active (in force) again. | back to top |
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| Renewal Legal Definition: Continuance of coverage beyond original terms signified by acceptance of a premium payment for a new term. Translation: A policy that is issued to renew one that is expiring. | back to top |
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| Replacement Cost Insurance Legal Definition: Insurance providing for replacement of the damaged property without deduction for depreciation. The usual replacement cost form requires that the property actually be replaced before the insured may collect a claim under it. It is primarily available only for buildings, with a few exceptions. Translation: An insurance provision that pays the actual cost to replace damaged property without deducting anything for its depreciation. | back to top |
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| Riders Legal Definition: Another term for “clauses” or “endorsements.” More specifically, they are forms of special provisions not contained in the basic policy contract. In bonding, and also in personal accident insurance, such added clauses are called “riders” rather than “endorsements.” Translation: A provision that is added to an insurance policy that may add some extra benefit, right or feature to the policy. | back to top |
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| Risk Legal Definition: 1) Uncertainty arising from the possible occurrence of given events. 2) The insured or the property to which an insurance policy relates. Translation: 1) Any chance of loss due to an unexpected hazard or peril. 2) Also used to refer to the insured or to the property covered by a policy. | back to top |
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| Robbery Legal Definition: Differs from larceny in that the theft is accomplished by stealth and the degree of crime is measured by the value of personal property taken. Robbery is commonly known as “holdup.” Translation: This is a criminal act when, by violence or threat of violence, one person takes the personal property of another. | back to top |
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| Salvage Legal Definition: The amount received by an insurer from the sale of property (usually damaged) on which the insurer has paid a total loss to the insured. Translation: The value of property after it has been partially damaged by fire or other perils. | back to top |
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| Schedule of Insurance Legal Definition: List of individual items covered under one policy, e.g., various buildings, animals and other property in farm insurance; or rings and bracelets, etc., insured under a jewelry floater. Translation: An itemized list of what the policy insures. | back to top |
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| Subrogation Legal Definition: An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a paid claim if the loss was caused by an unrelated or outside party. Subrogation clauses usually describe how proceeds from a recovery will be distributed among the interested parties, usually the insured business and its insurance company. Translation: The named insured's intentional relinquishing of the right to recover damages from another party who may be responsible. | back to top |
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| Surety Bond Legal Definition: An agreement in writing whereby one party (surety) agrees to answer to a second party (obligee) for the debt, default or miscarriage of a third party (principal). Translation: A contract guaranteeing the performance of a specified obligation. | back to top |
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| Term Legal Definition: The length of a policy period. It also may refer to the length of time for which a specific coverage is provided, as in those situations where the term of the coverage is less than that of the entire policy. Translation: The period of time for which a policy provides insurance. | back to top |
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| Termination Legal Definition: The cancellation of an insurance policy because of nonpayment Translation: When your insurance policy ends because you don't make the premium payments | back to top |
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| Umbrella Insurance Legal Definition: Insurance that extends your coverage beyond the limits of your basic insurance policy. Translation: Insurance that kicks in once you've reached the limit of your basic policy. For example, if you suffered a $1 million dollar loss, and your property insurance covers $500,000, an umbrella policy could cover the remaining $500,000. | back to top |
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| Underwriter Legal Definition: Any individual in the insurance business who has the responsibility of accepting risks and of determining the amount of insurance the company will write on each acceptable risk. Translation: The person at an insurance company who decides whether or not to provide insurance to a business, how much insurance and at what cost. | back to top |
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| Valuable Papers Coverage Legal Definition: An "all risk" insurance coverage that covers the cost of researching and reconstructed damaged records. Translation: Insurance that protects your business' valuable documents, such as architectural drawings, law libraries, medical reference books, etc. | back to top |
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| Waiver of Premium Legal Definition: Nearly all life insurance companies will add to their contracts, upon payment of a small additional premium, a clause which provides that in the event the insured is totally and permanently disabled, his insurance policy will be continued in full force even though the necessity of paying further premiums is waived by the company during the disability period. Translation: A provision that states if the insured is totally and permanently disabled, the insurance policy will be continued in full force even if premiums are waived by the company during the disability period. | back to top |
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| Workers’ Compensation Insurance Legal Definition: Provides protection to workers for injuries or death arising by accident out of, and in the course of, employment. Translation: A type of insurance that provides benefits to workers if they become sick or injured on the job. | back to top |
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| Worldwide Coverage Legal Definition: In certain policies, worldwide coverage is provided, e.g., jewelry, furs, personal effects, and personal property floaters. Translation: Insurance coverage that covers the insured’s property on a worldwide basis. | back to top |
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The definitions contained herein are for informational purposes only,are not intended to be all inclusive, and may not apply in all situations. You should not rely on these definitions for interpretation of policy coverages, terms and conditions.