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| INDEPENDENT CONTRACTOR—one who agrees to perform services or supply commodities under a contract. In carrying out his contract he is not under the control of, nor an employee of, the party with whom he contracts. The "independent contractor v. employee" issue is relevant to certain insurance questions, particularly in relation to workers compensation coverage, and Florida Statute 440.02(14) attempts to clarify the issue by defining the terms for WORKERS COMPENSATION purposes. |
| INSURANCE—the contractual relationship which exists when one party, for a consideration, agrees to reimburse another for loss caused by designated contingencies. The first party is called the insurer; the second, the insured; the contract, the insurance policy; the consideration, the premium; the property in question, the risk; and the contingency in question, the hazard or peril. |
| INSURANCE AGENT—an individual licensed under the insurance laws of a state and appointed by insurance companies to transact insurance on their behalf. The two major types are INDEPENDENT AGENTS, who contract with multiple insurance companies and CAPTIVE AGENTS who (primarily) represent one company. (See AGENCY, APPOINTMENT, DIRECT WRITER, and F.S. 626.015 (3)) |
| INSURED—in property-casualty insurance, the person, partnership, association, trust, or corporation whose insurable interest is protected by the policy. (See NAMED INSURED) |
| JOINT UNDERWRITING ASSOCIATION
(JUA)—a type of RESIDUAL MARKET involving an administrative body (the JUA) using a few “servicing carriers” to carry out the ordinary insurance company functions such as receiving funds, issuing policies, and processing claims, but in which the losses are underwritten by private market insurers based on their respective market shares. |
| LIABILITY—broadly, any legally enforceable obligation. The term is most commonly used in a pecuniary sense. (See ABSOLUTE LIABILITY, LIABILITY INSURANCE, NEGLIGENCE, STRICT LIABILITY, TORT, and VICARIOUS LIABILITY) |
| LIABILITY INSURANCE—any form of coverage whereby insureds are protected for claims for DAMAGES filed against them by third parties. Most liability insurance is written by casualty companies, but some forms, especially those referring to property in the care of the insured, are underwritten in connection with fire and marine business. The insured's liability for damages under such claims may arise from his NEGLIGENCE or through the operation of a law or a contract. |
| LIABILITY LIMITS—the sum or sums beyond which a liability insurance company does not protect the insured on a particular policy. The majority of policies covering liability for bodily injury have two limits, a limit of liability to any one person and, subject to this personal limit, another (and usually higher) limit for any single accident, where more than one person is involved. Coverage for property damage is usually written with a limit per accident, and may also include an aggregate limit of liability for the total amount of all claims during the policy period. Basic limits of liability are the lowest limits which are ordinarily written and are the limits contemplated by manual rates and minimum premiums. |
| LICENSE AND PERMIT BONDS—bonds required by various municipalities or public authorities to indemnify them against loss in the event of violation of regulations or ordinances under which the permit is required. (See SURETYSHIP) |
| LIQUOR LIABILITY—liability arising out of the manufacture or sale of alcoholic beverages. (See HOST LIQUOR LIABILITY) |
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