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| The end of an insurance policy. Usually applied to
the premature ending of the policy for nonpayment but
may be used to describe the ending of any insurance
policy. |
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| Captive
Insurance Company |
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| A captive insurance company is an insurance company
that has been set up to provide coverage at a lower
cost than available by going through the general insurance
market. The company's stock is controlled by one interest
or a group of related interests so as to provide coverage
for their business operations. A captive insurance company
may be a nonadmitted, nonresident, or foreign insurer.
Sometimes it may provide reinsurance to a self-insure
or a domestic company. |
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| Cargo insurance is another name for inland marine
insurance which covers loss to moving or moveable property
and is an outgrowth of ocean marine insurance. Historically,
ocean marine insurance held the transporter responsible
for property loss before, during, and after the completion
of the voyage. In the 1800's, the non-ocean portion
of the journey grew as cargoes were transferred to barge,
etc., and the term "inland marine" was coined. Inland
marine policies became known as "floaters" since the
property to which coverage was originally extended was
essentially "floating." |
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| An official document created by an insurance carrier
or agent to prove insurance coverage to a third party. |
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| The formal request by a policy holder or claimant
to be paid under the terms of the insurance policy. |
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| A method of providing liability insurance in which
the insurer agrees to cover all claims asserted against
the insured during a specified date period regardless
of when the claim occurred. All claims-made policies
have a "retro" date which specifies the beginning date
for claims to be considered. |
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Coinsurance is an arrangement by which the insured,
in consideration of a reduced rate, agrees to carry
an amount of insurance equal to a percentage of the
total value of the property insured.
An example is if you have guaranteed to carry insurance
up to 80% or 90% of the value of your building and/or
contents, whatever the case may be. If you don't, the
company pays claims only in proportion to the amount
of coverage you do carry. |
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| Pays for the stuff you hit with your moving vehicle
(but not your vehicle). |
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| Commercial
General Liability Coverage (CGL)
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| An all encompassing type of insurance policy which
covers all liability exposures for all locations and
causes of loss except those specifically excluded in
the policy. |
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| Describes a type of package policy which covers more
than one peril or cause of loss in a single policy.
Should not be confused with a commercial package which
provides several types coverages in a single policy. |
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| Commercial
Package Policy (CPP) |
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| A single insurance policy which combines several types
of insurance coverages. A typical CPP might contain
coverage for property, liability, crime, auto, inland
marine and boiler and machinery. |
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| Commercial
Property Coverage |
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Protects against physical damage to buildings, contents,
stock, and equipment. The terms and conditions of coverage
are determined by the limit of insurance chosen by the
policyholder. The limit is based on the items that the
policyholder wishes to insure; i.e., buildings, stock,
machinery, valuable papers, etc.
Business Interruption and Extra Expense Coverage can
also be provided under a Commercial Property policy.
Business Interruption protects the policyholder against
lost profits as a result of direct damage to the facility.
Extra Expense provides payments for those extraordinary
expenses necessary to continue operations after physical
damage to the policyholder's facility. |
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| Completed
Operations Liability Coverage
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This form of liability insurance provides coverage
for bodily injury and property damage rising from completed
or abandoned operations, provided the incident occurs
away from premises owned or rented by the insured.
Operations are deemed completed at the earliest of the
following items:
When all operations to be performed by or on behalf
of the insured under contract have been completed.
When all operations to be performed by or on behalf
of the insured at the site of the operations have been
completed.
When the portion of work out of which injury or damage
rises has been put to its intended use by a party other
than the contractor or subcontractor. |
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| Comprehensive
Automobile Coverage |
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Owned Automobiles - Covers liability rising out of
the ownership, maintenance or use of automobiles.
Hired Automobiles - Covers liability for the use of
hired automobiles in your business.
Non-Owned Automobiles - Covers liability for the use
of non-owned automobiles in your business. An example
would be an employee using his/her own car on an errand
for you.
Uninsured Motorists - Protects insureds who are not
contributorily negligent against bodily injury caused
by negligent uninsured motorists.
Comprehensive - Pays for damage to or the loss of automobiles
from perils other than collision. A deductible applies.
Collision - Pays for damage to or the loss of automobiles
from upset or collision with another object. A deductible
applies. |
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| Comprehensive
General Liability Coverage |
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Under this form of insurance and regarding a covered
occurrence, the company will pay all sums the insured
becomes legally obligated to pay as damages due to:
1. Bodily injury (Coverage A)
2. Property damage (Coverage B)
The insurance company has the right to defend any suit
against the insured seeking damages for bodily injury
or property damage, even if any of the allegations of
suit are groundless, false, or fraudulent, and to make
such investigation and settlement of any claim or suit
as it deems expedient. However, the company is not obligated
to pay any claim or judgment or to defend any suit after
the applicable limit of the company's liability has
been exhausted by payments of judgments or settlements. |
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| Consequential
Loss or Damage |
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| Consequential loss or damage -- as opposed to direct
loss or damage -- is indirect loss or damage resulting
from loss or damage caused by a covered peril, such
as fire or windstorm. In the case of loss caused where
windstorm is a covered peril, if a tree is blown down
and cuts electricity used to power a freezer and the
food in the freezer spoils, iIf the insurance policy
extends coverage for consequential loss or damage then
the food spoilage would be a covered loss. Business
Interruption insurance, extends consequential loss or
damage coverage for such items as extra expenses, rental
value, profits and commissions, etc. |
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| Contents includes just about anything in the home
(including garage and outbuildings) belonging to the
policyholder or a member of his family living in the
same house, or to resident domestic servants. It also
includes property, which is not owned by the policyholder
but for which he is responsible, such as rented property.
Furniture, furnishings, household goods, electrical
appliances, food and drink, clothes, and money up to
a specified limit all count as 'contents'. Also included
are movable fixtures and fittings, for example, special
lighting fittings which would be taken away on removal.
Fittings, which would be left in the house, such as
built-in furniture, count as part of the 'buildings',
although fitted carpets are classed as 'contents'. Certain
types of property are excluded. The cover applies principally
to contents actually inside the home, although there
is some cover under a 'standard' policy for contents
temporarily away from the home. Some policies also include
theft of household contents from the garden or immediate
vicinity of the home. |
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| Contractors'
Liability Coverage |
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(1)Premises/Operations
The "premises" portion of your liability insurance provides
for payment on your behalf of all sums you become legally
obligated to pay as damages resulting from bodily injury
and/or property damage caused by an insured peril and
rising out of the ownership, maintenance, or use of
premises and your operations in progress.
The "operations" portion of your liability insurance
covers operations in progress and is intended for situations
where your principal business operations are performed
away from your premises.
(2)Completed Operations
This portion of your liability insurance covers you
for possible liability for bodily injury and/or property
damage after your work is complete and you have left
the job site. |
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| Contractors'
Protective Liability Coverage
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This insurance coverage provides for payment on behalf
of the insured of all damages the insured becomes legally
obligated to pay due to bodily injury or property damage
caused by an occurrence rising from the following:
Operations performed for the named insured by independent
contractors.
Acts or omissions of the named insured in connection
with his/her general supervision of such operations.
This does not include maintenance and repair at premises
owned by or rented to the named insured, or structural
alterations at such premises that do not involve changing
the size of or moving buildings or other structures. |
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| Contractual
Liability Coverage |
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It is common in construction and other agreements
(written or oral) for one party to "assume" the liability
of another. This is sometimes referred to as a "hold
harmless" agreement. The extent to which one holds another
harmless varies from contract to contract, job to job,
etc.
To assume the liability of another, regardless of extent,
is a voluntary undertaking which increases your exposure
to loss. A standard Commercial General Liability policy
does cover this additional exposure subject to certain
exclusions. |
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| Similar to a life insurance policy for the amount
of a loan. Pays off the loan if the debtor dies. Normal
term life insurance is usually a better deal. |
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| Crime Insurance pays an owner for the loss of property
due to its wrongful taking by someone else through employee
dishonesty, burglary, robbery, or theft. There are many
different types of crime coverage available, including
coverage for computer theft and fraud. |
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| Insures growing crops against hail damage. In addition
to hail, most policies also cover damage from wind,
lightning, drought, frost, snow, sleet, etc. |
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| In the event of claim by one insured for which another
insured covered by the same policy may be held liable,
this endorsement covers the insured against whom the
claim is made in the same manner as if separate policies
had been issued. However, it does not operate to increase
the insurance company's overall limit of liability. |
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