Assignment 4 Flashcards
Named insured
A person, corporation, partnership, or other entity identified as an insured party in an insurance policy’s declarations page.
Policy period
The time frame, beginning with the inception date, during which insurance coverage applies.
Vehicle identification number (VIN)
A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.
Collision coverage
Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn.
Other than collision (OTC) coverage
Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded.
Compensatory damages
A payment awarded by a court to reimburse a victim for actual harm.
Punitive damages (exemplary damages)
A payment awarded by a court to punish a defendant for a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear any relation to a party’s actual damages.
Split-limits basis
Separate coverage limits that allow one limit for bodily injury to each person; a second usually higher limit for bodily injury to all persons in each accident; and a third limit for all property damage in each accident.
Single-limits basis
One coverage limit that applies to all damages arising from bodily injury or property damage or both, resulting from a single accident.
Prejudgement interest
Interest that may accrue on damages before a judgement has been rendered.
Supplementary payments
Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of insured’s earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer’s request.
Attachment
The act of seizing property to secure a judgement.
Postjudgment interest
Interest that may accrue on damages after a judgment has been entered in a court and before the money is paid.
Public, or livery conveyance
In case law, a method of transportation that is indiscriminately offered to the general public, such as a taxi or public bus.
Uninsured motor vehicles
A land motor vehicle or trailer that is not insured for bodily injury liability, is insured for less than the financial responsibility limits, is a hit-and-run vehicle, or whose insurer denies coverage or becomes insolvent.
