Vehicle Insurance 03

Question 1

1. What is ACTUAL CASH VALUE?

Answer 1

the fair market value of property, technically, the replacement cost less depreciation

Question 2

2. What is an ADVERSE CARRIER?

Answer 2

Term used to refer to the other party’s insurance company.

Question 3

3. What is the AGREED PRICE?

Answer 3

the price or cost of repairs agreed to by the AD (Auto Damage) adjuster or independent appraiser at the body shop

Question 4

4. What is an AMENDMENT?

Answer 4

A change to the basic policy contract. An amendment alters the policy, and ENDORSEMENT adds to it.

Question 5

5. What is ASSIGNED RISK (AIP)?

Answer 5

A DRIVER OR VENICLE OWNER WHO CANNOT QUALIFY FOR INSURANCE IN THE REGULAR MARKET. He must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of theses drivers/owners.

Question 6

6. What is ASSURED?

Answer 6

Means the same as an INSURED POLICYHOLDER or someone who has an insurance policy

Question 7

7. AT FAULT

Answer 7

the party that is legally liable for the damage in an accident

Question 8

8. AUTO DAMAGE (AD)

Answer 8

Division of the claims department that handles auto claims

Question 9

9. BINDER

Answer 9

A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policy holder when it is not possible to issue or endorse the policy immediately

Question 10

10. BODILY INJURY

Answer 10

An injury sustained by a person