PC Chapter 6 Flashcards
Arbitration
a process under which two parties ( the insured and the insurance company) can settle a claim dispute without the need to go to court. Three Arbitrators hear arguments from both parties and set the amount that should be paid under the claim. The determination made by the Arbitrators may or may not be binding
Collision
Available under Coverage for Damage to your auto, collision covers your automobile if it colludes with another car, a stationary object or if it overturns
Comprehensive
The term comprehensive is used with commercial liability, competed operations poilicy it is known as other than collision coverage. It provides all risk type coverage for damage to a car. Most every peril, other than collision, would be covered. Examples include, loss due to : theft, flood , vandalism, and striking an animal
Covered Auto
Generally your auto,.. the auto named on the dec sheet of the auto policy, also includes autos acquired during the policy period, trailers and temporary substitute autos
Depreciation
the loss of value of an item over time
Liability
to have responsibility for damage caused to another person or their property
Medical Payments
a no fault coverage found in homeowners, Commercial General liability policies and automobile policies, medical payments (MED PAY) is designated to pay medical bills, dental bills and funeral expense. in homeowners and CGL policies med pay pays for injuries sustained by other, in automobile it pays for injuries sustained by insured as well as passengers in the insureds auto
Occupy, Occupying, Occupied and Occupancy
the word occupy in automobile insurance simply means to be in our around your car. in property polices occupying a building mean that you and your property are in the same structure ( dwelling and commercial building)
Other than Collision Coverage
other than collision coverage is the modern day version of comprehensive coverage. it provides coverage for physical damage coverage caused to your car by something other than a collision with another car or stationary object. Examples of losses covered would include: theft, contact with a bird or animal, fire, flood. and glass breakage, plus any other accidental loss not caused by a collision with another car or stationary object
Personal Automobile Policy
A policy purchased to provide coverage on the named insureds auto or on any auto being operated by the named insured or nay insured family member. a personal automobile policy contains liability coverage plus it may not contain property coverage for the car, medical payments coverage and uninsured/ underinsured motorist coverage
Right of Salvage
if an insurance company declares an insured piece of property to be non repairable the company can simply pay the insured the value of item and salvage the damaged property
Single Limit
Found most frequently within a commercial automobile policy, a single limit simply state the total amount of insurance company woulld pay in a liablit claim against an insured driver in a single occurrence withouth subdividing the amount into bodily injury or property damage coverage as in the case in split limits
Split Limit
used in connection with automobile policy, a split limit simply states the total amount of insurance company will pay in a liability claim against an insured driver. expressed by three numbers such as 25/50/10. the first two numbers refer to bodily injury per person and bodily injury per occurrence. the last number is the total amount payable for property damage per occurrence
Underinsured Motorist
an at fault motorist who causes an accident and who although meeting state liability requirements, does not have enought insurance to pay for the damage they caused. legal but inadequate
uninsured motorist
an at fauly motorist who causes an accident and who does not carry the required amount of liability insurance to satisfy the laws of the state in which the accident occurred. illegal
