Policy Ensurance - Glossary

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"Policy Ensurance" Compiled by Antone P. Braga

Acceptance: In a contract of insurance, the —acceptance— occurs when the insurance company agrees to accept application and to issue policy.
Accident: A fortuitous (unforeseen—by chance), unusual, unexpected, or unlooked for event, happening or occurrence.
Act of God: An act by forces of nature without the interference of any human agency.
Actual Cash Value: That amount which makes a policyholder whole after suffering a loss—usually replacement cost less depreciation; however, market value can sometimes be a determining factor.
Actual damages: Compensation for the actual amount of loss. Synonymous with compensatory damages and with general damages.
Additional Insured: A person who is covered in addition to the named policyholder, but who may not be specifically named in the policy.
Additional Living Expense: Insurance coverage for expenses over and above normal living expenses, allowing for the same standard of living, while the insured premises are unlivable due to an insured peril.
Adjuster: One who determines the amount of loss and adjusts differences with an opposing adjuster to determine the amount of claim.
Adjustment: The agreed amount of claim as adjusted between both sides.
Affidavit: A signed, voluntary written or printed declaration or statement of facts. With regard to claim substantiation: A statement signed by a disinterested party in order to verify ownership and possession of property, in the absence of receipts or other proof.
Agency: A relationship between two persons, by agreement or otherwise, where one (the agent) may act on behalf of the other (the principal) and bind the other by words and actions. The consensual relation between two persons, by virtue of which, one is subject to the otherís control.
Agent: A person authorized by another (principal) to act for or in place of that principal; one entrusted with anotherís business (e.g., insurance company adjuster—insurance company, policyholder adjuster—policyholder).
Apportionment: The amount to be paid by each insurance company when more than one insurance company insures the same loss.
Appraisal: A form of arbitration agreed to in the policy for resolving amount of loss disputes.
Appraisal award: The amount of loss determined by two appraisers or by one appraiser and the Umpire, binding on the insurance company and the policyholder.
Appraiser: A disinterested party selected by the insurance company or the policyholder to represent that interest in Appraisal.
Assignee: A person to whom an assignment is made.
Assignment: The act of one policyholder transferring insurance benefits to another policyholder.
Bad faith: —Bad faith— on the part or an insurance company is any frivolous or unfounded refusal to pay benefits under a policy. The refusal need not be fraudulent.
Betterment: The added life or added value of an item because of its repair or replacement.
Binder: Temporary insurance pending investigation of the risk by the insurance company or until a formal policy is issued.
Broker: A person who obtains insurance for individuals or companies, from insurance companies or their agents. A broker differs from an insurance agent in that a broker does not represent any particular insurance company.
Claim: To ask for, or seek to obtain, by virtue of authority; assert with readiness to maintain; to call for something due, as an insurance claim.

Full Glossary in the book, "Policy Ensurance"

Help on the way: this content is local to your area in that it affects virtually everyone in your area, indirectly or directly: property insurance policyholders. When the next news stories run having to do with a local disaster such as a hurricane, earthquake, flood, tornado, fire, etc., perhaps think of those disaster survivors and to what extent you may have helped in their preparedness and recovery. Thank you for any help you give.


What is your philosophy: drive or be driven? I happen to think we are wise to keep our drive alive.

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