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| Typically used in life insurance to indicate the termination
of a policy. |
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| A statement in most property policies which specifies
that changes in law or ordinance are not valid perils
or causes of loss. This means if your property is destroyed
or damaged in the course of enforcing a law, you're
not covered. Law coverage is available separately. |
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| A technique to obtain very high limits of insurance
or to insure high risk items for reasonable prices by
purchasing layers of insurance. The first or primary
layer picks up all normal losses with secondary layers
coming in to play when the limits of the first layer
are exceeded. Secondary layers are typically less expensive
that buying the needed limit from the primary layer. |
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| Leasehold
Interest Coverage |
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| Leasehold Interest insurance provides coverage for
a tenant in the event his or her lease is terminated.
The lease may be terminated due to (1) a clause in the
lease specifying that the lease is terminated in the
event of property damage causing the premises to be
unavailable for tenancy, or (2) condemnation of the
leased premises. It is a form of "time element" coverage
that serves to provide coverage for the difference between
the old rental and a new, likely more expensive rental. |
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| Insurance for your screw ups. A liability insurance
policy will pay up to a stated limit for events resulting
from the insured's negligence. A liability policy will
also usually pay for property damage and medical expenses
incurred by the injured party. |
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| A life insurance policy will pay a stated amount to
a beneficiary upon the death of another. The death payment
may be accelerated for a terminally ill insured in need
of medical or living expenses (see ADB). The two major
types of life insurance policies are Term Life and Whole
Life. Term Life is valid for a predetermined period
such as a year. Whole Life is until you die and usually
involves periodic deposits in to an account that can
be withdrawn before death. |
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| The maximum amount to be paid by an insurance policy.
Many policies have split limits meaning they'll pay
one amount per person and another amount per accident.
A third split may be included to indicate the maximum
amount the policy will ever pay regardless of the number
of people or accidents. |
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| Liquor
Liability Coverage |
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Liquor liability insurance provides coverage for bodily
injury or property damage for which an insured may be
held liable by reason of the following:
Causing or contributing to the intoxication of any person;
Furnishing alcoholic beverages to a person under the
legal drinking age or under the influence of alcohol;
or
Violating any statute, ordinance, or regulation relating
to the sale, gift, distribution, or use of alcoholic
beverages.
This coverage applies only if the insured is involved
in the following activities:
Manufacturing, selling, or distributing alcoholic beverages;
Serving or furnishing alcoholic beverages for a charge,
whether or not such activity requires a license or is
for the purpose of financial gain or livelihood; or
Serving or furnishing alcoholic beverages without a
charge, if a license is required for such activity. |
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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, loss control or loss prevention. |
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| Loss of Use is an extra expense you incur while staying
at a temporary location if your condo or home becomes
uninhabitable. While most policies allow a limited dollar
amount for this coverage. |
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TO TOP |
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