E. Other Related Concepts

Question 1

Proximate Cause

Answer 1

An act considered a natural and reasonably foreseeable cause of the damage or event that occurs and damages property or injures a plaintiff; also referred to as direct liability

Question 2

Deductible

Answer 2

A Dollar amount an insured must pay on a claim before the insurance policy provides coverage.

Question 2

Coinsurance or Insurance to Value

Answer 2

In consideration of a reduced rate, the insured agrees to maintain a certain minimum amount of insurance on the insured property.
- Depending on the value of the property the clause states that the insured maintains a minimum amount of insurance

Question 3

Deposit Premium Audit

Answer 3

Condition that allows the insurer to audit the insured’s books or records at the end of the policy. Insurer has up to 3 years.

Question 4

Certificate of Insurance

Answer 4

Written evidence showing that an insurance policy has been issued.