1) An unusual, fortuitous, unexpected or unforeseen event or occurrence.
2) A mishap that is not expected or designed.

A form of insurance compensating an individual for loss as a result of an accident or illness. It may pay certain or all expenses for medical and similar services. The amounts and items covered vary from policy to policy and depend to some extent on what coverage is purchased by the insured.

A direct, violent sudden act of nature that could not have been foreseen, or if foreseen, its effect could not have been prevented, e.g., flood, earthquake.

1) A person who is employed to act on behalf of another.
2) An insurance agent is one who contracts with one or more insurance companies to sell their insurance policies to the public and is paid a commission on or receives compensation for such business. See also Broker.

A name given to an insurance policy which covers against the loss caused by all perils except those which are specifically excluded by the terms of the policy. Frequently, a policy of insurance is written to insure damage to property caused by specific "named perils," which are listed on the policy. However, policies may be issued in certain cases to insure against "all risks of loss or damage" and are then called "all risks" policies. The term excludes insurance against certain hazards.

The limit of payment for which an insurer is liable under a policy.

A valuation or an estimation of the value of property usually done by an expert in that field who has no personal interest in the property.

Reference of a dispute to one or more impartial persons chosen by the parties to the dispute to determine their rights and/or obligations. The parties agree in advance to abide by the arbitration.

At common law, the deliberate and intentional burning of property by its owner or by another person.

1) The witnessing of signatures. Where a document is signed a witness who has seen the document signed before him may "attest" that the signatures on the document are genuine.
2) Audited financial statements are said to be "Attested," i.e. the auditor attests the corporation's representations.

1) An examination of evidential matters to determine the reliability of a record or assertion.
2) In connection with financial statements a review of the accounting records and other supporting evidence of an individual or an organization to assess the reasonableness of the statements as presented (not a guarantee of accuracy).

After a claim has been paid or the property restored, most policies automatically return the stated limit of insurance to its original amount.

In contract and property law one to whom goods or property are entrusted for a stated purpose. Can be either gratuitous (for no consideration) or for hire (for consideration).

The act of placing goods in the possession of a bailee.

A person entrusting goods to another.

Financial statement showing assets, liabilities and equity of a company.

A starting charge made to which is added the premium developed by the application of rates as directed.

Physical improvements beyond mere maintenance or repairs that augment the value of a property .

A written or oral agreement given by an insurer to insure a risk, pending the issue of a policy. A binder is deemed to be the policy and must be cancelled in the same manner.

An individual policy covering several crime perils on a single amount rather than on individual limits.

Insurance on two or more items, or locations, in one aggregate sum insured without separate amounts for each item.

An independent person or firm who acts on behalf of the insured in placing business with insurance companies.

Devices of various types which give warning of entry into premises by unauthorized persons.

Unlawful removal of property from premises involving visible forcible entry.

Insurance against loss of property caused by burglars.

Various types of insurance against business expenses and loss of income resulting from a fire or other insured peril.

A term used primarily in liability coverages which refers to property belonging to another but which is legally in the insured's possession or under his control.

Goods being transported, such as the load of a truck or the goods being carried by a ship. The cargo of a ship does not include the equipment needed to operate the ship.

When an insured wishes to cancel a life insurance policy before the full term, the policy may have a cash value which is stipulated in the policy. The longer the policy is in force, the higher the cash value is likely to be. It is a sum paid back by the life insurance company to the insured when an insured requests the termination of the policy.

Loosely used to describe an area of insurance not particularly or directly concerned with life insurance, fire insurance or automobile insurance. Most frequently refers to liability, burglary and plate glass insurance but may include Fidelity and Surety.

An insurer cedes part of a risk to a reinsurer when it transfers or reinsures part of the risk.

Reproduction of a document, that authority having custody of original signs and attests as a true, genuine and authentic copy.

Disturbance involving a large number of individuals. An uprising of people creating a prolonged disturbance.

Strictly speaking, a claim is the exercising of the right of an insured to be indemnified by his insurance company for damage suffered. It is frequently used, however, to indicate the amount of the claim.

In practice, it is any notification of a possible loss under an insurance policy whether any payment is likely to follow or not.

For every claim that is reported, the insurance company must set aside reserves equal to the figure which it is anticipated the claim will cost.

One who makes a claim.

An employee of an insurer who handles and is responsible for incoming claims.

Provision in some insurance and reinsurance contracts covering only claims made during term of the contract.

Words in a policy which describe certain specifications, limitations or modifications.

Two or more persons or companies who may be sharing a loss. A company whose policy covers the same risk as that of one or more other companies, is a co-insurer whether the policies are written separately or together.

Falling in of a building.

A vehicle or a ship collides when it strikes another object or another vehicle or ship. Collision insurance insures against loss so caused.

A secret agreement between persons to defraud another, e.g., an insured driver of an automobile and his passenger may misrepresent the facts of an accident in order to have monies paid to the passenger or a third party vehicle owner under the insured's automobile insurance policy.

One who offers to transport merchandise for hire and must accept shipments from anyone who wishes to use the services. Different laws and rules govern common carriers than do private or contract carriers who only transport the goods of those with whom they have made agreements.

American, Canadian and British law derives its force and authority from the universal consent and practice of the people over the years. Certain aspects of the law are written into statutes. The underlying principles and usages and rules of action which do not rest for their authority on this statutory or legislative law are to be found in principles set forth by decisions of the Courts over the years.

Many rules were promulgated in feudal times. During the reign of Henry II (beginning 1154 AD) the King's Courts became organized and common law began to evolve. The Courts met frequently and when one Court made a decision in connection with a certain issue, that decision was followed by the other courts and became the law unless modified by statue or by gradual evolution.

The general terms or requirements upon which the insurance is based. For the mutual understanding of the parties the conditions will commonly state such matters as how the policy can be cancelled or renewed, provisions with respect to change of the insured's interest, provisions as to what an insured should do in the event of a loss, and conditions as to what he should do subsequent to a loss etc.

A condition precedent is one that must be fulfilled prior to the general fact at stake. The insured, for example, is required to give notice of a claim and fulfill certain other obligations as a condition precedent to his receiving a settlement.

A condition subsequent is one which is applicable subsequent to the event, as for example, the insured is required to co-operate in the disposition of the claim and to co-operate, other than in a monetary way, to assist to recover from anyone who is responsible for the loss.

Articles in contract defining or describing terms, responsibilities of owner and contractor, performance and payment schedules, and the like.

Is the individual ownership of a single unit in a multiple unit building or group of buildings, together with a percentage interest in that part of the total property owned jointly by all unit owners. In an apartment building, each apartment would be a unit and the stairways, pathways and parking areas would be in common ownership.

The word "consequential" means something following as an effect or result. It is an indirect result of the occurrence that causes the loss.

The difference between a direct loss and a consequential loss can be seen in the destruction of a power station by wind. The damage to the power station is a direct loss by wind. There is actual physical damage directly resulting. The destruction of the power station also interrupts the generation of power by the station. For example, a cold storage plant is without electrical power. Foodstuffs spoil as a result or as a consequence. This is a consequential loss, not a direct loss.

The inducement to a contract; the cause, motive or price which induces a contracting party to enter into an agreement, act or forbearance or promise thereof. It is an essential part of a binding contract. Consideration is either expressed or implied.

The money, or whatever is being used in substitution of money, paid for the article or contract is "the consideration."

A partial loss but where the damage is so extensive that repairs would cost as much or more than the repaired property would be worth, or the limit of insurance.

An agreement made between two or more persons, which is intended to be enforceable at law, and is constituted by the acceptance by one party of an offer made to him by the other party, to do or to abstain from doing some act. The offer and acceptance may either be expressed or inferred by indication in the conduct of the parties.

Agreement, addenda, supporting documents, general conditions, supplementary conditions, specifications and drawings and modifications to an agreement.

Insurance protecting contractor from defined liability claims arising from contractor's operations.

Liability assumed by a contract either written or implied. Legal liability policies are based upon liability in tort or negligence and have very little coverage normally for contractual liability (with a possible exception of such matters as sidetrack agreements, etc.) However, contractual liability may be covered in many instances as an additional risk with an additional premium.

Many accidents are the fault of both parties who are involved in the occurrence. The plaintiff who sues another party for damages also may be guilty of some negligence, which is a concurrent cause of the damage. Such a party is guilty of contributory negligence.

To protect with insurance, or the insurance protection provided.

The nature of protection afforded by a particular policy. Can be used at times interchangeably with "insurance" or "protection" as "fire coverage" or "fire protection" or "fire insurance."

Immediate control that an authority exercises over property or people.

Insurance against the breakage of glass. The coverage is usually extended to certain other incidental expenses associated therewith. See Plate Glass.

Most ordinary contracts are good faith contracts. Insurance contracts are agreements made in the utmost good faith. This implies a standard of honesty greater than that usually required in most ordinary commercial contracts.

The degree of negligence somewhat greater than ordinary negligence. It may be a reckless wanton and willful misconduct causing bodily injury and/or property damage.

Any insurance policy which covers two or more lines or types of insurance in the same policy.

Establishes that loss or damage to one of a pair or set of individual items does not represent the loss of the pair or set.

A loss covered by an insurance policy where the property or the premises are not completely destroyed or rendered completely worthless.

The event that caused a loss covered by the policy, e.g., fire windstorm.

Giving false evidence or information while under oath.

Insurance for individuals and families, such as private passenger auto insurance and homeowners policies.

Legally, any property of an insured other than real property. More often used to refer to the personal property of family members insured under a Homeowner's policy.

Provisions which state the rights and duties of the insured or insurer.

The maximum that the insurance company is obligated to pay in actual claims under an insurance policy. Certain additional costs may also need to be paid.

Statements contained in an insurance policy which explain the benefits, conditions and other features of the insurance contract.

Period between anniversary dates.

Individual or other entity who owns an insurance policy. The Insured.

Authority given one person or organization to act for and obligate another to the extent of the instrument creating the power.

Building including the land immediately surrounding it and belonging to it.

The price of insurance protection for a specified risk for a specified period of time.

The concept that an insured will be reimbursed for his loss (subject only to the policy limit and terms). If there is no loss there can be no indemnity.

Four-wheeled motor vehicles of the private passenger, station wagon or van type, designed for use on public roads and subject to motor vehicle registration.

Protects professionals against liability for damages and cost of defense based upon his/her alleged or real professional errors and omissions or mistakes, e.g., architects, engineers, medical malpractice, attorneys.

A formal statement made by a policy owner to an insurer regarding a loss. It is intended to give information to the insurer to enable it to determine the extent of its liability.

Covers an insured's property against damage, destruction or loss by a covered peril.

Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy.

Used interchangeably with "coverage" to denote insurance provided under the terms of a policy.

Cause of loss or damage. Unbroken chain of cause and effect between the occurrence of an insured peril and damage to property.

Damages in excess of those required to compensate the plaintiff for the wrong done, which are imposed in order to punish the defendant because of the particularly wanton or willful character of his wrongdoing.

A provision in an insurance policy most commonly found in fire insurance providing indemnification for the cost of removal of the debris after a fire.

Statement, signed by the insured, warranting that information given by him is true.

To refuse acceptance of an insurance application.

An agreed specified sum to be deducted from the amount of loss and assumed by the insured. See also Franchise.

A clause defining the amount of loss for which insured is liable defines insurer's and insured's contributions to cover losses.

Reduction in value of property through use, aging, deterioration and obsolescence.

Protection for officers and directors of a corporation against damages resulting from negligent or wrongful acts in the course of their duties. Also covers the corporation for expenses incurred in defending lawsuits arising from alleged wrongful acts of officers or directors. These policies always require the insured to retain part of the risk uninsured.

Inability to carry on in one's normal occupation due to accident or sickness.

Act of making known something known.

The living quarters occupied, or intended for occupancy, by a household.

1) That portion of premium earned or charged for the period of time a policy remained effective. For example, an annual policy paid for in advance would be one twelfth "earned" at the end of the first full month of its term.
2) An amount calculated by taking earned premium reserve at beginning of period plus premium written during period, less unearned premium reserve at end of period.
3) Premium actually exposed to loss.

Insurance against damage by earthquake.

The date of inception of an insurance policy, or the date additional coverages become effective.

Coverage for legal liability imposed on an employer to pay damages to an employee injured by the employer's negligence. This is not Worker's Compensation Insurance where special acts of legislature set out specifically the relationship between the employer and employees in certain circumstances and formula by which awards in each case are computed.

Mortgage, lien or other charge against a property.

An amendment added to a written document, particularly an agreement between parties, altering its provisions.

Material for use on one machine, one vehicle, one unit. For example, a car comes "equipped" with five tires. Tires other than those on the car are not "equipment" of the car. They are instead the dealer's "stock of tires." Equipment also includes contractor's equipment, e.g., backhoe, bulldozer.

1) In law, one of the various interests in land.
2) The net worth of an individual's worldly goods.

Risks, perils or properties defined in the policy as not covered.

Comparison of premiums earned with claims incurred for: a) an individual insured b) group of insureds c) class of coverage.

End of the policy period.

A rupture of a pressure vessel of some kind due to excessive internal pressure (usually accompanied by a loud noise).

The hazard threatening a risk because of external or internal physical conditions.

An endorsement that enlarges the coverage afforded by the primary policy. Coverages such as windstorm, hail, smoke, riot are extended coverages on a fire policy.

Price at which a buyer and seller, under no compulsion to buy or sell, will trade.

Damage caused by fire.

Coverage for losses from fire and lightning and also the resultant damage caused by smoke and water. Usually supplemented by Extended Coverage Insurance. See definition.

A fire resistant building or article is generally designed to resist certain higher heat temperatures for a certain period of time. It has a lesser degree of resistance to fire and ranks slightly more hazardous than "fireproof."

Tangible long-term assets such as land, building, furniture, fixtures, machinery, equipment etc. held for use rather than for sale.

Anything that is attached to real property is known as a "fixture." Fixtures when permanently attached to real property become part of the real property. Tenant's fixtures are fixtures of a removable nature and are the responsibility of the tenant for insurance purposes. Whether a fixture is a tenant's fixture and movable or a landlord's fixture and immovable is frequently determined by the purpose of the fixture.

In automobile insurance, this is a policy insuring a number of cars for one owner. In marine insurance, a policy insuring a number of ships for one owner.

1) The illegal signing of another's name to a document, such as, a cheque.
2) Falsely making or altering a written instrument.

1) Methods used to deceive to cause unwarranted favourable decision for one's own benefit.
2) Deliberate misrepresentation or misstatement.
3) Concealment of facts which should at the time be made known.

Dishonest based on or obtained by fraud.

A false statement made knowing it to be false and intending another to act on it to his detriment, or made carelessly or recklessly without regard to whether it is true or false.

In insurance it is most frequently found in the intentional misrepresentation of a risk to obtain insurance or in proof of loss after the loss occurs.

When goods are shipped F.O.B., the shipper is responsible only until the goods have been placed on board the vessel or freight car or truck or other means of transport. After that the risk belongs to the consignee.

Dwelling place residence.

1) A risk or probability that the event insured against might occur.
2) Condition which engenders or increases the chances of a loss.

Hazard arising from character, interest, habits and lack of integrity of the insured or person concerned.

Hazard arising from physical condition or characteristics of the object that is insured, e.g., using and storing volatile materials and substances on the premises.

Collision between motor vehicle and/or a motor vehicle and another object and/or a motor vehicle and a pedestrian where a driver leaves the scene of the accident without identifying him/herself. This is an offence under the Road Traffic Act.

The taking of money or property by threat or the use of force or violence.

Additions or changes to a rented premises by a tenant at his own expense. Also called Tenant's Improvements.

Malicious setting on fire or preparing, providing and setting the means for fire to start.

The date and time on which coverage under an insurance policy takes effect.

To provide compensation for loss or expenses incurred.

A contract, expressed or implied, to repay in the event of a loss. Insured neither gains nor loses.

The policy period.

One who adjusts losses on behalf of insurance companies, but is not employed by any one insurance company.

Easily set on fire.

Insurance policy which is in effect, and has not expired or been cancelled.

The quality that something has to deteriorate or damage itself without outside help, e.g., milk sours; coal combusts spontaneously.

An interest which the insured must have in the subject matter of the insurance he buys so that if the event insured against occurs, the insured will suffer a pecuniary loss.

A contract in which one party, the insurer, for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defined subject caused by specified hazards or perils.

A written contract of insurance.

The entity (individual or otherwise) whose risk of financial loss from an insured peril is protected by the insurance policy.

The company providing the insurance coverage.

Describes the intent of the policy, just what insurance coverage is provided by the policy and in what limits.

1) The agent/broker negotiating insurance or reinsurance contracts for another.
2) Any party representing another party, in negotiation with a third party.

Itemized list of goods and property on hand.

This exists when the situation is such that a creditor in the case can sue any one of the debtors individually, or any, several or all of them, at the creditor's option. This situation applies to tort-feasors as well as to commercial debtors. Persons who together commit a tort and injure another person generally would be jointly and severally liable for the damage. An injured person has the option of suing the entire group or of suing the one having the greatest financial strength.

1) An order given by a Court.
2) A debt resulting from a Court Order.

Common law, being based partly on decisions made in previous cases and quotations from these earlier cases, supports the decision that should be reached in any particular case presently before the Court. These previously decided cases are known as jurisprudence.

An insurance policy which, having reached its expiry date, is not renewed or extended is said to have lapsed.

A defect which is not apparent. A hidden defect.

A contract by which one party, called the lessor, conveys to another, called the lessee, real estate, equipment or facilities for a specified term and for a specified rent.

Liability imposed by law on individuals or corporations to pay for harm done to others. Such law may be the common law, statute law or customs which over a period of time have taken on the same status as law. Legal liability may also be assumed under the terms of a contract.

One that holds real or personal property under a lease, e.g., a tenant of rented premises.

One that conveys property by lease, e.g., a landlord of rented premises.

Insurance which agrees to indemnify the insured for sums he may be required by law to pay to third parties as damages for bodily injury or damage to property.

The maximum amount of insurance provided under a policy of liability insurance. There may be different limits for bodily injury and property damage, or, more commonly, a single amount for all claims for bodily injury or property damage arising from one accident or occurrence.

Policies providing cover for claims arising from products manufactured by the insured or arising from his completed operations generally contain a further "aggregate limit" applicable to these, imposing a maximum for all claims occurring during the course of a single year.

Claims handling and adjusting expenses, costs of legal defense and prejudgment interest are normally payable in addition to the liability limits stated in the policy.

Insurance against claims arising from alleged libel, slander, defamation of character, etc. Principally written for the protection of those engaged in the publishing or advertising fields, as well as TV or radio broadcasters. Also provided as an extension to a liability policy as part of "personal injury" cover, which also includes false arrest, malicious prosecution and wrongful eviction.

A charge upon real or personal property as security for some debt or duty. Also, the security interest created by a mortgage. The conditions of an insurance policy require the disclosure to the insurer of any existing lien on the insured property.

The maximum amount, as stated in the policy, which an insurer is bound to pay in case of a loss. See also Liability Limits.

Insurance against loss (death) of horses, cattle, hogs, sheep, dogs, etc. owned by the insured. The cover can be on an all risk or a specified perils basis and includes loss by theft. The insurance is usually written by specialist livestock insurers.

A word often used in place of the word "claim." It refers to the amount an insurer must pay because one of the possibilities of loss insured against under a policy, has happened.

Cover against expenses incurred as a result of damage to the property insured resulting in the need to replace the property on a temporary basis. In automobile insurance this might refer to the cost of a rental car while the insured vehicle is under repair as the result of an accident. In a homeowner's policy it might refer to additional living expense when the insured premises are rendered uninhabitable by an insured peril.

Injury to the rights or property of another with a wicked or perverse intent.

A performance by a professional which is deficient in skill from what might ordinarily be expected of a professional person. The standard of performance to which a professional person will be held is necessarily higher than the standard which an unskilled person would be expected to display.

The value of an asset based on a current market valuation, e.g., the amount for which the item could be sold on the open market.

Something affecting a contract of insurance important enough to change the agreement between the company and the policyholder. Material facts must be disclosed if asked about. Failure to do so may result in a voiding of the policy involved.

Hazard or peril of a merchant in selling his stock of goods.

Those goods which a commercial enterprise ordinarily sells to its customers.

A person under the age of being legally capable of transacting business on his own behalf.

An incorrect statement made about a material fact. Misrepresentation can be innocent, e.g., arising from an oversight; fraudulent (in other words, a deliberate untruth with intent to deceive) or the result of extreme carelessness where a statement is made without regard to whether it is true or false. When a misrepresentation is discovered, the insurer may either continue the contract or treat the contract as void with a full return of any premiums paid. In order for the insurer to successfully treat a policy as void, the misrepresented fact must be material to the risk.

Danger of loss arising from the nature of the insured rather than from the physical nature of the risk. This would encompass those instances where the chance of loss is increased by an insured's carelessness, incompetence, recklessness, indifference to loss or an insured's fraudulent nature.

A clause in an insurance policy which stipulates the rights and obligations of the insurer and the mortgagee. The main characteristics of this clause are that the mortgagee is granted protection in the event a loss is denied due to the actions of the insured (provided that the mortgagee was not aware of the insured's wrongful action) and, in return, the mortgagee accepts responsibility to advise the insurer of any misrepresentation or change in risk of which the mortgagee is aware.

A policy which is a combination of fire and casualty (or fire, casualty and inland marine coverages) in a single contract such as the Homeowner's Policy.

The person or party designated in the policy as the insured, as opposed to someone who may be covered by the policy, but is not specifically named.

A policy in which the perils insured against are listed, as opposed to one which insures against "all risks."

A disaster caused by the elements such as flood, earthquake, tornado, lightning, etc.

Failure to use the degree of care expected from a reasonable and prudent person.

Materials, no part of which will ignite and bum when subjected to fire.

A contract of insurance is based on utmost good faith. An applicant for insurance is required to disclose to the company all material facts which are necessary to underwrite a policy. If the applicant does not disclose all these facts, he/ she is guilty of non-disclosure and may risk having coverage voided from inception.

A risk for which no insurance can be written. The chance of loss is very high or cannot be accurately measured.

A policy is valued when it promises to pay its face value in case of total destruction, irrespective of the value of the insured property. In other words, the value is agreed upon in advance. Used only for certain classes of property such as fine arts or ocean marine. Ordinary policies do not contain agreement and are therefore "non-valued."

The conditions of the insurance policy require that any person sustaining a loss insured by the policy shall immediately give notice to the company of such loss. Failure to give notice as required has been held to be a bar against recovery. The notice is required to be in writing, and verbal notice to the agent or broker will not be sufficient to comply with the condition.

The conditions of insurance policies stipulate how a policy may be terminated during its term. For example, a policy may be terminated by the insured at any time or by the insurer who must give the insured a certain number of days' notice of termination by registered mail or a certain lesser number of days' written notice of termination personally delivered.

Of no legal or binding force invalid.

Impairment of desirability and usefulness brought about by changes in public preference or by forces in addition to those which cause deterioration. Functional obsolescence refers to impairment of functional capacity or efficiency. Economic obsolescence refers to impairment of desirability or utility arising from economic forces such as changes in highest and best land use, legislative enactments which restrict or impair property rights, and changes in supply demand relationships.

Occupancy is the act of holding possession of property or premises. The term implies the use of the building for the purposes described in the policy, and no other. An occupied building has furnishings and/or people in it.

A happening or event. Liability policies are usually written on either an accident or occurrence basis. For coverage on an accident basis, the loss or damage must be due to accident, whereas on an occurrence basis all that is required is the happening or the continual or repeated exposure to an unfavourable situation, neither intended nor expected to cause injury or damage. In reinsurance and insurance, it is also the grouping of related losses into a single loss situation.

The business of an Insured or the type of business of an Insured.

Normally an insured must disclose to an insurance company from whom he is purchasing insurance, information about what insurance he already carries on the property.

As a matter of principle, the insured should also advise existing insurance carriers of new policies which he is taking out. This is an essential point in the matter of disclosure.

Liability insurance coverage which gives protection because of liability arising out of ownership, use or occupancy; operation or maintenance of buildings or premises.

Amount or quantity.

The amount of premium that an insurer sets as the price to cover a particular risk.

The price for Rs100 or Rs1,000 of insurance, usually for one year, expressed in rupees and cents. Alternatively, the rate is the premium for a specified amount of insurance, for a specified time.

In addition to policyholder premium rates, the industry commonly uses the term "rate" in reference to reinsurance premium rates, and to commission costs for both insurance and reinsurance.

Person appointed to hold in trust and to administer property of insolvent companies.

A return to the policyholder of part of the paid premium, because of cancellation, suspension, reduction in insurance coverage, or because of rate reduction.

The reactivation of suspended or cancelled insurance. Restoration of full amount of insurance or reinsurance after a claim has been paid, with or without the payment of additional premium.

A discharge from obligation or responsibility. To let go of, or give up a legal claim. The most common types in insurance are: First Party Release - between the insured and the insurance company. Third Party Release - between the insured and a third party. Indemnifying Release - between the insured and a guardian for a minor or other person not legally competent.

The standard fire insurance policy insures against damage done in removing the insured property from the path of the fire or other insured peril (if loss is mitigated).

Removal also may mean the taking of property to some place other than that at which it was insured.

A certificate which attests to the fact that an insurance policy has been extended for another term.

The premium for the new term of the policy.

Generally an insurance policy will set out the conditions for an insured to effect repairs to insured property. Ordinary repairs are usually permitted without notice to the insurer.

Most policies of insurance of property give the company the right to substitute other property of like kind and quality for insured property which has been damaged or destroyed. This is making a replacement.

Applies generally to some fire insurance policies where a special cover may be purchased so that in the event of fire, repairs or replacement will be made with material of like kind without cost to the insured for depreciation or betterment.

The cash value representing what it would cost to replace the particular article which is the subject of the insurance.

The acceptance or rejection of an insurance risk and the amount of premium that would be required, is determined by information submitted by the person applying for such insurance.

Statements which would normally lead the company to decline the acceptance of a risk, or to charge a much higher rate, are material to the risk.

All other statements such as the insured's address, etc. are referred to as mere "representations" to distinguish them from the more important statements considered to be "warranties."

The penalty for false information on material facts or "warranties" may be voiding of the policy.

Another name for an endorsement.

The chance of loss. Specifically the possible loss or destruction of property or the possible incurring of a liability. Sometimes refers to the subject of an insurance contract.

The taking of another's property by force or threat of force.

The remaining value of property after severe damage by fire or other peril. The overall loss is reduced by the salvage value. Undamaged property may be quite saleable and some property may be partially damaged, thus repairable and then saleable.

1) A comprehensive list accompanying a policy to detail the property, locations and amounts insured, and the applicable conditions.
2) In rate-making, the formula applied to determine a rate.

A person, corporation or organization which assumes all or part of a risk itself rather than use an insurer, government departments often self-insure.

An agreement between concerned parties. In insurance, the agreement is usually on the money changing hands to discharge an insurance claim.

The cancellation by the insured of a policy before its natural expiration the insurer pays a return premium which is less than the proportionate part that remains unearned.

Actual loss from the natural, not the necessary, consequences of the subject of complaint; e.g., specific payments for medical bills or car repairs. In third party claims, it means the damages that may be proved with documents.

This basic policy contains declarations, general provisions and definitions applicable to the four principal sections of coverage; property, liability, comprehensive crime, boiler and machinery. The particular coverage requirements for each are handled by separate forms attached to the basic contract.

Self-ignition of combustible material through chemical action of its parts.

Property protected against fire by a system of overhead pipes with regularly spaced heads designed to melt at the heat of a fire, thus releasing water for extinguishment.

A written statement by a plaintiff detailing the facts which support the claim against the defendant and the relief sought.

The information required when a single rate is to cover more than one item or building. To determine a correct average, the rating bureau requires the policyholder to give the value of each separate risk and its contents.

An act of the legislature. Common law is made up of the various court decisions over the years. Case law may be altered by statute.

Special prescribed and standardized conditions that the Provincial Insurance Acts require to be included in fire, automobile and accident and sickness policies.

Merchandise for sale or manufacture, as distinguished from furnishings, fixtures or equipment.

A term applied to articles or substances held for safekeeping. If storing of such articles is prohibited by a policy, the policy will be voided if loss consequently occurs, unless the company's permission and consent has been specially granted.

A trade contractor such as a roofer who usually subcontracts with a general contractor.

Once a company has paid a loss for which someone other than the policyholder is responsible, it may have the right to recover this loss from the guilty party. This right is called subrogation.

A legal proceeding brought by one person against another.

The amount for which insurance is effected and the one on which the premium is based. Often in life insurance, the term is "sum assured."

Cancellation of a policy before its normal expiry by mutual consent of insured and insurer.

A package policy specially designed to meet the normal insurance requirements of a private tenant covering personal belongings and liabilities.

The period of time from the inception to the termination of an insurance policy or bond.

The wrongful taking of the property of another. It is a broad term and includes larceny, pilfering, hold-up, robbery and pick-pocketing.

A claimant under a liability policy, so called because he is not one of the two parties (insured and insurer) who has entered into the insurance contract which pays his claim.

A fire policy insures the policyholder against loss or damage to his own property. When a policy insures a person against the liability he may incur to another for damages, it is "Third Party Insurance." The insured is indemnified with respect to any loss which he might suffer as a result of his legal liability to others arising out of the peril against which insurance is written.

The right to ownership of property. The owner of real property having just possession of his property.

A legal wrong arising from a duty fixed by law. Breach of this duty causing injury to persons or property is repressible by legal action for damages. Liability for tort involves private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual.

Loss of all the insured property. Also a loss involving the maximum amount for which a policy is liable.

An illegal act against another person's rights or property.

To insure. More commonly, to scrutinize a risk and decide on its eligibility for insurance.

1) The insurance company or group that underwrites or insures a particular risk.
2) The individual within an insurance company whose responsibility it is to accept or reject business in the particular line in which he/she specializes and in this way chooses risks his/her principals are prepared to underwrite.

Where the premises contain contents but no human beings, such persons being temporarily away from the premises, on vacation for example, the premises are said to be unoccupied. This is distinguishable from Vacant in that in vacancy, the contents have been moved out leaving nothing but the building.

A property located in an area not regularly serviced by a fire department.

A phrase in a legal document calling for the highest standards of integrity on the part of the insured and the insurer. See also Uberrimae Fidei.

A building with no occupants or furnishings. See also Unoccupied.

An estimate or the act of assessing of value. This will frequently be done through the process of an appraisal.

A policy which provides that a special amount shall paid in the event of a total loss of the property.

Liability imposed upon a person even though not a party to a particular occurrence, e.g., the owner of a motor vehicle is vicariously responsible for injuries even though he is not driving the car at the time of the occurrence.

1) Invalid, not legally binding.
2) An insurance contract that is prohibited by law and thus cannot be held to be a valid contract.

The time which must elapse before an indemnity is paid.

The intentional relinquishment of a known right. A waiver under a policy is required to be clearly expressed and in writing.

Statement or stipulation in a contract, the breach of which nullifies the contract.

A warranty assumed to be a part of the insurance contract even though not expressly included.

An action taken during claims negotiations designated as "without prejudice" is intended to be without detriment to the existing rights of the parties.

A Court document commanding the defendant to enter an Appearance within a specified number of days if he wishes to dispute the claimant's claim.