Terms Commonly Used in Pennsylvania Private Passenger Automobile Insurance Policies.
Actual Cash Value (ACV) - Unless otherwise defined in the
policy, Actual Cash Value is defined in Pennsylvania as fair market
value. The fair market value of an item is the amount at which
a knowledgeable buyer (under no unusual pressure) would be willing
to buy, and a knowledgeable seller (under no unusual pressure) would
be willing to sell.
Adjuster
- A person who evaluates the damage caused by an accident or other
covered loss and determines the amount to be paid. Agent
- A person authorized, by and on behalf of an insurer, to sell and
service insurance policies. Assigned
Risk - A risk which is not ordinarily acceptable to insurers and
is, assigned to an insurer participating in an assigned risk pool or
plan. Each participating company agrees to accept its share of
these risks.
Automobile Insurance - A type of insurance which protects the
insured against losses involving automobiles. Different
coverage's can be purchased depending on the needs and wants of the
insured, e.g., the liability coverage's of Bodily Injury Liability,
Property Damage Liability, and Medical Payments; and the physical
damage coverage's of Comprehensive and Collision. Binder
- A temporary or preliminary agreement which provides coverage until
a policy can be issued/delivered. Broker
- A person who for payment of a fee (paid by you) procures insurance
on your behalf.
Cancellation - The termination of an insurance policy before its
normal expiration date.
Commission - That portion of the premium paid to the agent as
compensation for his or her services.
Collision - Pays for damage to your car caused by a collision
with another vehicle or with any other object, regardless who was at
fault.
Commissioner of Insurance - The title of the head of most state
insurance departments. In some states, the Director or
Superintendent of Insurance is used instead.
Comparative Negligence - The percentage of fault shared by each
driver in an accident in which both contribute to causing the
collision.
Comprehensive Coverage - Pays for damage to your car caused by
reason other than collision, such as fire, theft, windstorm, flood,
etc. Claim
- Notice to an insurer of a loss that under the terms and conditions
of a policy may be covered. The
Declarations (Dec) Page - The front page of your policy is
called the Declarations page. It contains useful information such
as: the
vehicles insured, their identification numbers, and the
classifications for rating purposes.
Deductible - The amount of the loss which the insured is
responsible to pay before benefits from the insurance policy are
payable. You may choose a higher deductible to lower your
premium.
Exclusion - A contractual provision in an insurance policy that
denies coverage for certain perils, persons, property, or locations. Full
Tort - With this selection you retain unrestricted rights to
bring suit against the negligent party. Insured
- The person(s) entitled to coverage in case of an accident or loss. Insurer
- The insurance company providing the insurance.
Liability Insurance - Coverage for a policyholder's legal
liability resulting from injuries to other persons or damage to
their property.
Limited Tort - Offers savings on your
premiums. You are still able to recover all out-of-pocket medical
and other expenses, however you are not able to recover non-monetary
damages or receive payments for pain and suffering unless injuries
are defined as serious. Limits
- The maximum amount of benefits the insurance company agrees to pay
in the event of a loss.