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| ADDITIONAL INSURED—a person other than the named insured who is protected under an insurance contract. |
| ADJUSTER—an individual representing the insurance company in discussions leading to agreement about the amount of loss and the company's liability. Adjusters may be salaried employees of adjusting organizations operated by insurance companies, individuals operating independently and engaged by the companies to adjust a particular loss, and special agents or staff adjusters employed by the company. (See Florida Statute 626.015(1)) |
| AGENCY—a relationship between two parties where one (the AGENT) is empowered to act on behalf of the other (the PRINCIPAL). (See AUTHORITY) |
| AGENCY AGREEMENT—the contract which establishes the legal relationship between the agent and the insurer. (See AGENCY) |
| AGENT—a person authorized by another to act on his account and under his control. (See AGENCY and Florida Statute 626.015(3)) |
| APPLICATION—a document prepared by the agent which serves as a request for coverage for the person seeking insurance. It gives the company information about the proposed subject of insurance and the person to be insured. |
| APPRAISAL—a survey of property made for determining its insurable value or the amount of loss sustained. Insurance policies commonly contain an Appraisal Clause to address disputes between the company and the insured over the value of damaged property. (See VALUATION) |
| ASSIGNED RISK PLAN—a type of RESIDUAL MARKET in which the state assigns policies to insurance companies based on their share of the private market for the line of insurance that is the subject of the assigned risk plan. |
| BODILY INJURY LIABILITY
INSURANCE—protection against loss arising out of the liability imposed upon the insured by law for damages because of bodily injury, sickness, or disease sustained by any person or persons (other than employees). (See LIABILITY and NEGLIGENCE) |
| BUILDERS RISK POLICY—property insurance designed for a building under construction. |
| BUSINESS INTERRUPTION
INSURANCE—a form of coverage that reimburses the insured for loss of earnings during an interruption of business operations caused by a covered PERIL. It functions the way disability insurance does for an individual and enables a business to pay its ongoing bills while its operations are suspended due to property damage at the described premises. (See BUSINESS INCOME and TIME ELEMENT COVERAGES) |
| CANCELLATION—the termination of an insurance policy or bond before its expiration by either the insured or the company. The notice necessary before such cancellation becomes effective is almost invariably stated in the contract, and minimum notice requirements in cases of cancellation by the company are often established by statute—e.g. Florida Statutes 627.4133 and 627.728. |
| CASUALTY INSURANCE—that type of insurance which is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others. It also includes such diverse forms as plate glass; insurance against crime, such as robbery, burglary, and forgery; power plant insurance, and aviation insurance. Many casualty companies also write surety business. |
| CERTIFICATE OF INSURANCE—a form issued by the company to the insured or other interested parties attesting to the fact that coverage is in force. Certificates cannot be used to alter coverage and generally contain disclaimers stating that certificate holders are not granted any rights under the policy, and the company has no duty to notify them of cancellation. |
| CGL—Commercial General Liability |
| CLAIM—as used in reference to insurance, a claim may be a demand by an individual or corporation to recover under a policy of insurance for loss which may come within the scope of that policy, or it may be a demand by an individual against an insured for damages covered by a policy held by him. In the latter case (i.e., third-party claims), such claims are referred to the insurance company for handling on behalf of the insured in accordance with the contract terms. |
| CANCELLATION—the termination of an insurance policy or bond before its expiration by either the insured or the company. The notice necessary before such cancellation becomes effective is almost invariably stated in the contract, and minimum notice requirements in cases of cancellation by the company are often established by statute—e.g. Florida Statutes 627.4133 and 627.728. |
| CASUALTY INSURANCE—that type of insurance which is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others. It also includes such diverse forms as plate glass; insurance against crime, such as robbery, burglary, and forgery; power plant insurance, and aviation insurance. Many casualty companies also write surety business. |
DEDUCTIBLE—the amount (usually stated as a dollar amount, but sometimes as a percentage) that the insured must assume on all losses with the insurance company paying the amount of the loss in excess of the deductible. The deductible essentially has the effect of reserving insurance coverage for larger, less frequent losses, thus avoiding "nuisance" claims and keeping premiums down. Associated primarily with property, rather than liability, insurance.
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| DIRECTORS & OFFICERS LIABILITY (D&O)—covers directors and officers of a corporation for liability arising from negligent acts or omissions in the management of the corporation on behalf of the shareholders. The D&O policy normally has two coverages—one for direct coverage of directors and officers and the other for indemnification of the corporation when it has advanced payments on behalf of its directors and officers. (See F.S. 617.0834 and 768.1355) |
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