Commercial Insurance Guide
Unless otherwise defined in the policy, Actual Cash Value in California indicates Fair Market price. The Fair Market Value of a product is the dollar amount that an educated purchaser (under no uncommon pressure) wants to pay and a knowledgeable seller (under no unusual pressure) wants to accept.
Agent
A licensed person or organization licensed to sell and service insurance policies for an insurer.
Aggregate Limit
The maximum dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This maximum quantity can be figured on a per event basis or as a general aggregate for the complete policy term.
Agreed Value
A technique of loss appraisal where the insured and the insurer list an agreed upon quantity to be paid in case of loss. This valuation method is most common in residential or commercial property insurance coverage when guaranteeing important art work, antiques, or classic automobiles. A professional appraisal is normally needed.
Arbitration Clause
A clause in an insurance coverage policy that allows the insured and the insurer to each designate an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually been chosen, they in turn select an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The decision is binding.
Betterment
A circumstance that happens in a loss when an old piece of residential or commercial property is replaced by a brand new item. The insured is put in a much better financial position than they were before the loss occurred, and consequentially might need to pay the distinction in cost for the betterment.
Binder
A short-term agreement that offers momentary insurance protection until the policy can be released or delivered.
Unless otherwise defined in the policy, Actual Cash Value in California indicates Fair Market price. The Fair Market Value of a product is the dollar amount that an educated purchaser (under no uncommon pressure) wants to pay and a knowledgeable seller (under no unusual pressure) wants to accept.
Agent
A licensed person or organization licensed to sell and service insurance policies for an insurer.
Aggregate Limit
The maximum dollar amount of protection in force for a residential or commercial property damage policy or liability policy. This maximum quantity can be figured on a per event basis or as a general aggregate for the complete policy term.
Agreed Value
A technique of loss appraisal where the insured and the insurer list an agreed upon quantity to be paid in case of loss. This valuation method is most common in residential or commercial property insurance coverage when guaranteeing important art work, antiques, or classic automobiles. A professional appraisal is normally needed.
Arbitration Clause
A clause in an insurance coverage policy that allows the insured and the insurer to each designate an arbitrator if they can not concur upon a proper claim settlement. Once the arbitrators have actually been chosen, they in turn select an independent umpire. If the arbitrators disagree, then the umpire decides which declares settlement to support. The decision is binding.
Betterment
A circumstance that happens in a loss when an old piece of residential or commercial property is replaced by a brand new item. The insured is put in a much better financial position than they were before the loss occurred, and consequentially might need to pay the distinction in cost for the betterment.
Binder
A short-term agreement that offers momentary insurance protection until the policy can be released or delivered.