Terms and Abbreviations

Question 1

Actual Cash Value

Answer 1

An amount equivalent to the replacement cost of stolen or damaged property at the time of a loss, less depreciation.

Question 2

ADV(‘D)

Answer 2

Abbreviation that means Advise(d). Usually used when a customer is advised during communication. Commonly seen in Diaries and Notes.

Question 3

Agent

Answer 3

A licensed person or organization authorized to sell insurance by or on behalf of an insurance company.

Question 4

At-Fault Accident

Answer 4

An accident resulting in payment by the insurance company of a certain dollar amount, in which the insured was as responsible proportionally as another driver involved. A ticket need not be issued for the accident to be at fault. Typically, this is caused by negligence or failure to take reasonable care to prevent harm to other driver or person.

Question 5

Automobile Insurance

Answer 5

Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured or underinsured motorist coverage.

Question 6

Binder

Answer 6

A temporary contract that shows coverage for a specific vehicle, including liability limits and physical damage deductibles. This letter will also display any lien holder associated with the vehicle. This letter is usually requested by dealerships or lien holders.

Question 7

Cancellation

Answer 7

The termination of insurance coverage in the MIDDLE of the policy period.

Question 8

CB

Answer 8

Abbreviation that means to callback a customer or that the customer needs to be called back. Commonly seen in Diaries and Notes.