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| When insurance policies are written on an "indemnification"
basis, the insurance company will reimburse the insured
for claim costs already paid. Technically, the insured
must not only suffer a loss, but must also pay the loss
before being reimbursed (indemnified) by the company. |
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| To reimburse or otherwise pay for an incurred loss. |
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| Making whole. The act of reimbursing or otherwise
paying an injured party for an incurred loss. In life
insurance, the amount paid to the beneficiary is referred
to as indemnity. |
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| A contract to pay or reimburse a third party for failure
to perform or fulfill contractual obligations named
in the bond. |
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| An insurance agent that is affiliated with more than
a single insurance company. An independent agent is
able to shop several insurance carriers for the best
plan for a particular insured. |
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| This coverage extension automatically increases the
building amounts of insurance by 2% per quarter. This
is done at no additional cost and is an attempt to keep
pace with inflation. |
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| Inland marine insurance indemnifies 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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| A contract by which one undertakes to indemnify another
or to pay a specified amount upon determinable contingencies. |
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| Sometimes factors that enter into determining appropriate
premiums for insurance coverage can't be known in advance;
therefore, accurate premiums for the coverage provided
can't be billed by the insurance carrier. This often
is true in the case of Worker's Compensation and Product
Liability insurance, where such things as payroll and
sales can't be determined ahead of time. An audit serves
as an examination of the insured's records after the
fact to adjust the initial premium billed to reflect
the actual coverage. |
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| Insurance fraud is any act or omission with the purpose
of illegally obtaining a property and casualty insurance
benefit. This definition encompasses the full range
of fraudulent acts, from completely fabricated claims,
to inflation or padding of legitimate claims, to false
statements on insurance applications, to internal fraud. |
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