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| When you have two or more policies providing the same
coverage at the same time. |
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| Accelerated
Death Benefits (ADB) |
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| When the holder of a life insurance policy is terminally
ill and needs the money for medical and living costs,
they may request an accelerated death benefit. This
pays the benefit of the life policy before death. |
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| Inspection and engineering work done to help remove
potential causes of loss. Loss prevention is also referred
to as safety engineering, accident prevention, accident
control, or loss prevention. |
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| Accidental
Death and Dismemberment (AD&D)
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| A type of life insurance that pays in the case of
the death or dismemberment of the insured from an accidental
cause. |
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| Accounts
Receivable Coverage |
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This coverage provides protection for the following
losses:
All sums due you from customers, providing you are unable
to effect collection thereof as a direct result of loss
or damage to records of accounts receivable.
Interest charges on any loan to offset impaired collections
pending repayment of such sums made uncollectable by
such loss or damage.
Collection expense in excess of normal collection cost
made necessary because of such loss or damage.
Other expense, when reasonably incurred by you in re-establishing
records of accounts receivable following loss or damage. |
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| "Actual Cash Value" is the replacement cost of property
damaged or destroyed at the time of loss, with deduction
for depreciation. Actual cash value cannot exceed the
applicable limit of liability shown in the declarations
of the policy, nor the amount it would cost to repair
or replace such property with material of like kind
and quality within a reasonable amount of time after
a loss. |
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| An individual or entity that is not automatically
included as an insured under the policy of another,
but for whom the named insured's policy provides a certain
degree of protection. An endorsement is typically required
to effect additional insured status. The named insured's
impetus for providing additional insured status to others
may be a desire to protect the other party because of
a close relationship with that party (e.g., employees
or members of an insured club) or to comply with a contractual
agreement requiring the named insured to do so (e.g.,
customers or owners of property leased by the named
insured). |
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1. An individual or entity, other than the first named
insured, identified as an insured in the policy declarations
or an addendum to the policy declarations.
2. An individual or entity who is added to a policy
with the status of named insured after the policy is
written. Such an individual or entity would have the
same rights and responsibilities as an individual or
entity named as an insured in the policy declarations
(other than those rights and responsibilities reserved
to the first named insured). In this sense the term
can be contrasted with additional insured, an individual
or entity added to a policy as an insured but not as
a named insured. The term additional named insured has
not acquired a uniformly agreed-upon meaning within
the insurance industry, and use of the term in the two
different senses defined above often produces confusion
in requests for additional insured status between contracting
parties. |
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| Additions
and Alterations Coverage |
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| Additions and Alterations coverage protects any additions,
alterations, and improvements you make to your unit,
for up to 10% of your contents limit. This coverage
can be increased. |
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| Advertising
Injury Liability Coverage |
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| "Advertising Injury" means injury rising out of an
offense committed in the course of your advertising
activities, if such injury rises out of libel, slander,
defamation, violation of right of privacy, piracy, unfair
competition or infringement of copyright, title or slogan. |
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A limit in an insurance policy stipulating the most
it will pay for all covered losses sustained during
a specified period of time, usually one year. Aggregate
limits are commonly included in liability policies.
While not often used in property insurance, aggregates
are sometimes included with respect to certain catastrophic
exposures, e.g., earthquake and flood.
The dollar amount of reinsurance coverage during one
specified period, usually 12 months, for all reinsurance
losses sustained under a treaty during such period. |
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| Agreed
Amount Endorsement |
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This endorsement is an agreement made by the insurance
company wherein it waives the coinsurance clause on
the specified property. As long as this endorsement
is in effect, there would be no coinsurance penalty
at the time of a claim.
By combining an Agreed Amount Endorsement with a Replacement
Cost Endorsement (see separate explanation), you can
obtain an unusually high quality of insurance coverage. |
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| Typically sold as a package policy comprised of physical
damage (hull), personal injury and liability coverages.
Protects from the risks associated with owning and operating
an aircraft. |
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| Alienated
Premises Exclusion |
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| This exclusion eliminates coverage for property damage
liability to premises alienated (i.e., sold) by you.
For example, you own a lot and build a house on it.
After the house is completed and sold, a subcontractor's
faulty wiring causes the house to burn. The buyer, or
his/her insurance company, sues you for the cost of
repairing or rebuilding the house. There is no coverage
for this exposure under standard liabilty policies. |
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| An insurance policy that covers everything not specifically
excluded. Most often associated with property coverage.
An All-Risk policy is the opposite of a Named Perils
insurance policy. |
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| Structures that are also on the property covered by
an insurance policy. Examples might be a storage shed
or barn. Most property policies have a limit they will
pay for other structures based on a percentage of the
main buildings value. |
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| A method to provide insurance to the uninsurable.
In mandatory insurance states, everyone must have insurance
regardless of their risk or record. These states require
that each company writing insurance in their state must
take a number of clients that they would not insure
otherwise. |
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| Any insurance pertaining to the use or ownership of
a vehicle. Common coverages are liability, physical
damage and personal injury. |
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| Typically sold as a package policy comprised of physical
damage (hull), personal injury and liability coverages.
Protects from the risks associated with owning and operating
an aircraft. |
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