insurance

A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the "insurer" or "underwriter;" the other, the "insured" or "assured;" the agreed consideration, the "premium;" the written contract, a "policy;" the events insured against, "risks" or "perils;" and the subject, right, or interest to be protected, the "insurable interest."

A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event and is applicable only to some contingency or act to occur in the future. An agreement by which one party for a consideration promises to pay money or its equivalent or to do an act valuable to other party upon destruction, loss, or injury of something in which other party has an interest.

See also additional insurance

- insurable interest

- Lloyd's insurance

- Lloyd's of London

- loss

- named insured

- partial limitation

- participation

- policy of insurance

- premium

- pro rata clause

- reinsurance

- replacement insurance

- self-insurance

- accident insurance

- accounts receivable insurance.

@ accident insurance

Form of insurance which undertakes to indemnify the assured against expense, loss of time, and suffering resulting from accidents causing him physical injury, usually by payment at a fixed rate per month while the consequent disability lasts, and sometimes including the payment of a fixed sum to his heirs in case of his death by accident within the term of the policy.

See also casualty insurance below.

@ accounts receivable insurance

Insurance coverage designed to protect against inability to collect because of damage to records which support the accounts.

+ accounts receivable insurance

Insurance against loss due to inability to collect outstanding accounts receivable because of damage to or destruction of records

@ additional insured

A person other than the named insured, such as the insured's spouse, who is protected under the terms of the contract.

+ additional insured

Person(s) covered by policy in addition to the named insured; e.g. in an automobile liability policy, the "named insured" is usually the purchaser or the owner of the insurance policy, while an "additional insured" or an "insured" is one who is not specifically identified by name in the policy, but enjoys status of an insured under the named insured's policy, for example, as result of being the operator of the named insured's automobile. De Simone v. Nationwide Mut. Ins. Co., 149 N.J.Super. 376, 373 A.2d 1025, 1027

@ air travel insurance

Form of life insurance which may be purchased by air travelers according to the terms of which the face value of the policy is paid to the named beneficiary in the event of death resulting from a particular flight.

@ all-risk insurance

Type of insurance policy which ordinarily covers every loss that may happen, except by fraudulent acts of the insured. Miller v. Boston Ins. Co., 218 A.2d 275, 278, 420 Pa. 566. Type of policy which protects against all risks and perils except those specifically enumerated.

@ annuity insurance

An insurance contract calling for periodic payments to the insured or annuitant for a stated period or for life.

@ assessment insurance

A species of mutual insurance in which the policyholders are assessed as losses are incurred. A contract by which payments to insured are not unalterably fixed, but dependent on collection of assessments necessary to pay amounts insured, while an "old-line policy" unalterably fixes premiums and definitely and unchangeably fixes insurer's liability.

+ assessment insurance

Exists when benefit to be paid is dependent upon collection of such assessments as may be necessary for paying the amounts to insured. Keen v. Bankers Mut. Life Co., 230 Mo.App. 1072, 93 S.W.2d 85, 90.

Type of mutual insurance where the policyholders are assessed whenever there is a loss

@ automobile insurance

Automobile insurance may embrace insurance against loss of or damage to a motor vehicle caused by fire, windstorm, theft, collision, or other insurable hazards, and also against legal liability for personal injuries or damage to property resulting from operation of the vehicle. Policy of indemnity to protect the operator and owner from liability to third persons as a result of the operation of the automobile.

+ automobile insurance

A comprehensive term which embraces insurance coverage for all risks involved in owning and operating an automobile, such as personal injury protection, property damage to another and to the insured, fire, theft and vandalism.

See insurance

See also collision insurance; and no-fault auto insurance.

@ business insurance

Type of insurance which protects a business on the disability or death of a key employee.

See also key man life insurance, below.

@ business interruption insurance

Type of insurance which protects a business from losses due to inability to operate because of fire or other hazards.

@ cargo insurance

Insures risk that cargo will not be delivered in the same condition in which it was initially shipped.

@ casualty insurance

That type of insurance that is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to the property of others.

See also insurance

@ collision insurance

A form of automobile insurance that covers loss to the insured vehicle from its collision with another vehicle or object, but not covering bodily injury or liability also arising out of the collision. Type of coverage which protects insured for damage to his own property in an accident as contrasted with liability insurance which protects him in an action or claim for loss to another's property.

See also convertible collision insurance.

@ commercial insurance

Indemnity agreements, in the form of insurance bonds or policies, whereby parties to commercial contracts are to a designated extent guaranteed against loss by reason of a breach of contractual obligations on the part of the other contracting party. To this class belong policies of contract credit and title insurance.

@ comprehensive insurance

See all-risk insurance, above.

@ concurrent insurance

Insurance coverage under two or more similar policies of varying dates and amounts.

+ concurrent insurance

That which to any extent insures the same interest against the same casualty, at the same time, as the primary insurance, on such terms that the insurers would bear proportionately the loss happening within the provisions of both policies.

@ convertible collision insurance

Type of collision coverage generally carrying lower premium but requiring higher premium after first loss or claim; an alternative form of deductible collision coverage.

@ convertible insurance

A policy that may be changed to another form by contractual provision and without evidence of insurability.

Usually used to refer to term life insurance convertible to permanent insurance.

@ convertible life insurance

Generally a form of term life insurance which gives the insured the right to change policy to permanent life insurance without medical examination.

@ cooperative insurance

Type of non-stock mutual insurance in which the policyholders are the owners; may be assessable or nonassessable.

@ credit insurance

Type of insurance protection against losses due to death, disability, insolvency or bankruptcy of debtor. Policy covers balance of debt due, with proceeds payable to creditor. Commonly offered by banks and other lenders. Terms and conditions of such are regulated by federal and state statutes; e.g. Truth-in-Lending laws.

+ credit insurance

A contract whereby the insurer promises, in consideration of a premium paid, and subject to specified conditions as to the persons to whom credit is to be extended, to indemnify the insured, wholly or in part, against loss that may result from the death, disability, or insolvency of persons to whom he may extend credit within the term of the insurance. The requirement of such, as well as the full disclosure of the terms and cost, is regulated by federal and state consumer protection statutes

@ crime insurance

Type of insurance which protects insured from losses due to criminal acts against insured such as burglary, etc. Such insurance is sponsored by federal government for residents of certain high-crime localities.

@ crop insurance

Insurance coverage against financial loss due to destruction of agricultural products resulting from rain, hail, and other elements of nature. Such insurance is sponsored by Federal Crop Insurance Corporation.

@ decreasing term insurance

A term insurance policy where the premiums are uniform throughout its life, but the face value of the policy declines. Sometimes called a home protection plan because the face value declines much in the same way a mortgage due on a house declines. A form of life insurance that provides a death benefit of amount declining throughout the term of the contract to zero at the end of the term.

@ deposit insurance

Federally sponsored (Federal Deposit Insurance Corp.) insurance coverage against loss of deposits due to bank or savings and loan closings.

+ deposit insurance

Insurance coverage (e.g. Federal Deposit Insurance Corporation) for bank depositors protecting them from loss resulting from bank failure.

See Deposit Insurance Corporation

@ directors' and officers' liability insurance

- D & O liability insurance

Such insures corporate directors and officers against claims based on negligence, failure to disclose, and to a limited extent, other defalcations. Such insurance provides coverage against expenses and to a limited extent fines, judgments and amounts paid in settlement.

@ D & O liability insurance

- directors' and officers' liability insurance

Such insures corporate directors and officers against claims based on negligence, failure to disclose, and to a limited extent, other defalcations. Such insurance provides coverage against expenses and to a limited extent fines, judgments and amounts paid in settlement.

@ disability insurance

Insurance coverage purchased to protect insured financially during periods of incapacity from working. Often purchased by professionals

@ employer's liability insurance

In this form of insurance the risk insured against is the liability of the assured to make compensation or pay damages for an accident, injury, or death occurring to a servant or other employee in the course of his employment, either at common law or under statutes imposing such liability on employers. Coverage which protects employer as to claims not covered under worker's compensation insurance.

@ endowment insurance

Type of protection which combines life insurance and investment so that if the insured outlives the policy the face value is paid to him. If he does not outlive it, the face value is paid to his beneficiary.

@ errors and omissions insurance

Insurance that indemnifies the insured for any loss sustained because of an error or oversight on his part.

@ excess insurance

Coverage against loss in excess of a stated amount or in excess of coverage provided under another insurance contract.

+ excess insurance

That amount of insurance coverage which is beyond the dollar amount of coverage of one carrier but which is required to pay a particular loss as distinguished from "other insurance" which may be used to pay or contribute to the loss.

See also excess policy

@ extended term insurance

A non-forfeiture provision in most policies which continues the existing amount of life insurance for as long a period of time as the contract's cash value will purchase term coverage.

@ family income insurance

Type of term insurance designed to give maximum coverage during the period of maximum family dependency.

@ fire insurance

A contract of insurance by which the underwriter, in consideration of the premium, undertakes to indemnify the insured against all losses in his houses, buildings, furniture, ships in port, or merchandise, by means of accidental fire happening within a prescribed period.

See also loss payable clause

- pro rata distribution clause.

@ first party insurance

Insurance which applies to the insured's own property or person.

@ fleet policy insurance

Type of blanket policy covering a number of vehicles of the same insured; e.g. covers pool or fleet of vehicles owned by business.

@ floater insurance

A form of insurance that applies to moveable property whatever its location, if within the territorial limits imposed by the contract.

@ flood insurance

Insurance indemnifying against loss by flood damage. Required by lenders in areas designated as potential flood areas. The insurance is privately issued but federally subsidized.

@ fraternal insurance

The form of life or accident insurance furnished by a fraternal beneficial association, consisting in the undertaking to pay to a member, or his heirs in case of death, a stipulated sum of money, out of funds raised for that purpose by the payment of dues or assessments by all the members of the association.

@ government insurance

Life insurance underwritten and offered by Federal government to war veterans.

See also national service life insurance

- war risk insurance, below.

@ group health insurance

Provides protection to employees or other members covered under group policy for hospital, surgical and other medical expenses.

@ group insurance

A form of insurance whereby individual lives of a group of persons, usually employees, are in consideration of a flat periodical premium based on average age and paid either by employer in whole or partially by both employer and employee, insured each in a definite sum so long as insured remains in such employment and the premiums are paid. Holland v. Lincoln Nat. Life Ins. Co., 45 N.J.Super. 66, 131 A.2d 428, 429.

Coverage of number of individuals by means of single or blanket policy. McFarland v. Business Men's Assur. Co. of America, 105 Ga.App. 209, 124 S.E.2d 432, 433.

Type of insurance (life, medical, dental, automobile, legal) offered to employees or other homogeneous group under a single master policy. Generally, each employee receives a certificate of participation instead of a policy.

@ group term life insurance

Life insurance coverage permitted by an employer for a group of employees. Such insurance is renewable on a year-to-year basis and does not accumulate in value (i.e., no cash surrender value is built up). The premiums paid by the employer on such insurance are not taxed to an employee on coverage of up to a specified amount per year.

@ guaranty insurance

@ fidelity insurance

@ guaranty or fidelity insurance

guaranty or fidelity insurance

A contract whereby one, for a consideration, agrees to indemnify another against loss arising from the want of integrity or fidelity of employees and persons holding positions of trust, or embezzlements by them, or against the insolvency of debtors, losses in trade, loss by non-payment of notes, or against breaches of contract.

+ fidelity insurance

Form of insurance in which the insurer undertakes to guaranty the fidelity of an officer, agent, or employee of the assured, or rather to indemnify the latter for losses caused by dishonesty or a want of fidelity on the part of such a person.

See also fidelity and guaranty insurance.

- insurance

@ hail insurance

Type of insurance which provides protection against loss of crops, grain, etc. because of hail storms.

See also crop insurance, above.

@ health insurance

A contract or agreement whereby an insurer is obligated to pay or allow a benefit of pecuniary value with respect to the bodily injury, disablement, sickness, death by accident or accidental means of a human being, or because of any expense relating thereto, or because of any expense incurred in prevention of sickness, and includes every risk pertaining to any of the enumerated risks.

@ homeowners insurance

Policy insuring individuals against any, some, or all of the risks of loss to personal dwellings or the contents thereof or the personal liability pertaining thereto.

@ hull insurance

Marine or aviation insurance covering loss to vessel or plane or its machinery or equipment

@ indemnity insurance

Insurance which provides indemnity against loss, in contrast to contracts which provide for indemnity against liability. The latter are known as liability contracts or policies, and the former as indemnity contracts or policies

@ inland marine insurance

Originally, a form of insurance protection for goods transported other than on the ocean. Now, term applies to a variety of coverages on floating personal property and to general liability as a bailee.

@ joint life insurance

Form of life insurance on two or more persons and payable on the death of the first to die.

@ key man life insurance

Type of life insurance written on the life of an important or key officer or employee in a business organization. The business is the beneficiary and is entitled to the proceeds on his death.

See also key man insurance.

@ last survivor insurance

Life insurance on two or more persons, the benefits of which are payable on the death of the last survivor.

@ lease insurance

Protects against the loss sustained through the termination of a lease by hazards specifically insured against such as, for example, fire.

@ level premium insurance

Type of insurance in which the cost is spread evenly over the premium paying period.

@ liability insurance

Insurance that covers suits against the insured for such damages as injury or death to other drivers or passengers, property damage, and the like. It is insurance for those damages for which the driver can be held liable.

Liability insurance is that form of insurance which indemnifies against liability on account of injuries to the person or property of another. It is distinguished from "indemnity insurance" (see that title), and may be issued to cover the liability of, for example, carriers, contractors, employers, landlords, manufacturers, drivers.

+ liability insurance

Contract by which one party promises on consideration to compensate or reimburse other if he shall suffer loss from specified cause or to guaranty or indemnify or secure him against loss from that cause. Fidelity General Ins. Co. v. Nelsen Steel & Wire Co., 132 Ill.App.2d 635, 270 N.E.2d 616, 620.

That type of insurance protection which indemnifies one from liability to third persons as contrasted with insurance coverage for losses sustained by the insured.

See also insurance

@ life insurance

A contract between the holder of a policy and an insurance company (i.e., the carrier) whereby the company agrees, in return for premium payments, to pay a specified sum (i.e., the face value or maturity value of the policy) to the designated beneficiary upon the death of the insured. That kind of insurance in which the risk contemplated is the death of a particular person; upon which event (if it occurs within a prescribed term, or, according to the contract, whenever it occurs) the insurer engages to pay a stipulated sum to the legal representatives of such person, or to a third person having an insurable interest in the life of such person.

See also life insurance proceeds

- life insurance trust

- term insurance (this topic).

@ group life insurance

Type of life insurance commonly offered by companies to their employees in which there is a master insurance contract providing life insurance benefits to each covered employee who holds a certificate indicating his participation.

See also group term life insurance, above.

+ group life insurance

A contract of group life insurance is one between insurer and employer for benefit of employees. Crawford v. Metropolitan Life Ins. Co., Mo. App., 167 S.W.2d 915, 924.

In its nature, group life insurance is similar, if not identical, with that form of insurance known as "term" life insurance.

See group policy

- insurance

@ limited payment life insurance

Type of life insurance for which premiums are payable for a definite period after which the policy is fully paid.

@ straight life insurance

straight life insurance or whole life insurance is insurance for which premiums are collected so long as the insured may live, whereas, term insurance is insurance which promises payment only within a stipulated term covered by the policy; though such term policies are commonly renewed each term. The premium for whole life insurance remains the same whereas the premium for term insurance increases with the age of the insured, i.e. as the risk increases. Also, whole life policies build up cash reserves, whereas term policies do not.

See insurance (life insurance)

See also term insurance.

@ whole life insurance

straight life insurance or whole life insurance is insurance for which premiums are collected so long as the insured may live, whereas, term insurance is insurance which promises payment only within a stipulated term covered by the policy; though such term policies are commonly renewed each term. The premium for whole life insurance remains the same whereas the premium for term insurance increases with the age of the insured, i.e. as the risk increases. Also, whole life policies build up cash reserves, whereas term policies do not.

+

A life insurance policy in which the insured pays a level premium for his or her entire life and in which there is a constantly accumulating cash value against which the insured can withdraw or borrow. Sometimes referred to as straight life insurance.

See insurance (life insurance)

See also term insurance.

@ universal life insurance

Insurance over a specified period of time, which builds a cash value for policyholders over time. This coverage emphasizes the separation of the portion of the premium that is used to cover the insurance protection from the portion of the premium allocated to an investment that is used to build the policy's cash value. Investments are usually selected with a view to maximizing the rate of return.

@ variable life insurance

A distinct type of whole-life insurance in which some amount of death benefit is guaranteed by the insurer, but the total death benefit and the cash-value of the insurance before death depend on the investment performance of that portion of the premium which is allocated to a separate fund. Some variable-life insurance policies allow the insured to decide how the separate account is to be invested.

@ limited policy insurance

Type of coverage which offers protection against specific perils or accidents and against no others.

@ major medical insurance

Insurance protection against large medical, surgical and hospital expenses of the insured.

@ malpractice insurance

Type of liability insurance which protects professional people (e.g. doctors, lawyers, accountants) against claims of negligence brought against them.

@ manual rating insurance

Type of insurance in which the premium is set from a manual classifying types of risk on a general basis such as a particular industry without reference to the individual case.

@ marine insurance

A contract whereby one party, for a stipulated premium, undertakes to indemnify the other against certain perils or sea-risks to which his ship, freight, and cargo, or some of them, may be exposed during a certain voyage, or a fixed period of time. An insurance against risks connected with navigation, to which a ship, cargo, freightage, profits, or other insurable interest in movable property may be exposed during a certain voyage or a fixed period of time.

See also inland marine insurance.

@ mortgage insurance

Insurance from which the benefits are intended by the policyowner to pay off the balance due on a mortgage upon the death of the insured or to meet the payments on a mortgage as they fall due in case of the death or disability of the insured. Insurance against loss to the mortgagees in the event of default and a failure of the mortgaged property to satisfy the balance owing plus costs of foreclosure.

@ national service life insurance

Life insurance on servicemen. The contract is between the U.S. Government and private insurers for benefit of servicemen.

@ no-fault auto insurance

Type of automobile insurance in which claims for personal injury (and sometimes property damage) are made against the claimant's own insurance company (no matter who was at fault) rather than against the insurer of the party at fault. Under such state "no-fault" statutes only in cases of serious personal injuries and high medical costs may the injured bring an action against the other party or his insurer. No-fault statutes vary from state to state in terms of scope of coverage, threshold amounts, threshold types (e.g. monetary or verbal), etc.

@ nonassessable insurance

Type of insurance in which the rate of premium is guaranteed and no additional assessments may be made against the policyholder.

@ old line life insurance

Insurance on a level or flat rate plan where, for a fixed premium payable without condition at stated intervals, a certain sum is to be paid upon death without condition.

@ ordinary life insurance

Whole life and permanent insurance as distinguished from term, group and industrial insurance.

@ paid-up insurance

Insurance policy on which all premiums have been paid and on which no further premiums are due and for which benefits company is liable.

+ paid-up insurance

Insurance coverage for which no additional premiums are due

@ participating insurance

Type of insurance issued by a mutual company on which policyholder may participate in dividend distributions.

@ partnership insurance

Life insurance on lives of partners designed to enable surviving partners to buy out deceased partner's estate. Life or health insurance sold to a partnership, usually for guaranteeing business continuity in case of disability or death of a partner.

See insurance

@ patent insurance

Insurance against loss due to infringement of the insured's patent, or due to claim of infringement of the other's patent by the insured.

@ product liability insurance

Type of liability coverage which protects manufacturers and suppliers from claims for accidents arising out of the use of their products.

+ product liability insurance

Type of insurance coverage which protects manufacturers and suppliers when claims are made for injuries and damage incurred in the use of their goods or products

@ profits insurance

Policy that pays the insured for loss of profits he would have had if the damage or loss had not occurred.

@ public liability insurance

Insurance liability protection against claims arising out of the insured's property, conduct or the conduct of his agent.

+ public liability insurance

Type of insurance coverage which protects against claims arising from the conduct, property and agents of the insured and which idemnifies against loss arising from liability

@ reciprocal insurance

Type of insurance plan administered by an exchange rather than an insurance company and in which each insured is the insurer of the other members of the plan.

@ renewable term insurance

Type of term insurance in which the premiums are level during each term, but increases at each new term with the age of the insured. The insured generally has the right to renew for additional terms without a medical examination.

@ retirement income insurance

Type of insurance in which the insurer guarantees payment of the policy if the insured dies before a certain age and an annuity if the insured survives beyond the specified period.

@ self insurance

Plan in which the insured (e.g. business) places aside in a fund sufficient sums to cover liability losses that may be sustained. Commonly, under such plan the business will self-insure itself up to a certain amount and then carry regular liability insurance to cover any excesses.

@ single premium insurance

Type of policy on which the insured makes but one premium payment. Social insurance. A comprehensive welfare plan established by law, generally compulsory in nature, and based on a program which spreads the cost of benefits among the entire population rather than on individual recipients. The federal government began to use social insurance programs in 1935 with the passage of the Social Security Act.

The basic federal and state approaches to social insurance presently in use are:

- Old Age, Survivors, and Disability Insurance (i.e. social security);

- Medicare and Medicaid;

- unemployment insurance; and

- worker's compensation.

@ split dollar insurance

Type of insurance in which the insurer divides the premium dollar between life insurance protection and investment for the benefit of the insured.

@ step-rate premium insurance

Type of insurance in which the premium may vary from time to time at the option of the insurer.

@ surety and fidelity insurance

Form of insurance which more approximates a bond which protects the insured against dishonesty of employees, agents and the public.

@ term insurance

Form of pure life insurance having no cash surrender or loan value and generally furnishing insurance protection for only a specified or limited period of time; though such policy is usually renewable from term to term.

See also convertible life

- decreasing term

- extended term

- family income

- group term

- renewable term insurance, above.

@ title insurance

A policy issued by a title company after searching the title, representing the state of that title and insuring the accuracy of its search against claims of title defects. Insurance against loss or damage resulting from defects or failure of title to a particular parcel of realty, or from the enforcement of liens existing against it at the time of the insurance. This form of insurance is taken out by a purchaser of the property or one loaning money on mortgage, and is furnished by companies specially organized for the purpose, and which keep complete sets of abstracts or duplicates of the records, employ expert title-examiners, and prepare conveyances and transfers of all sorts. A "certificate of title" furnished by such a company is merely the formally expressed professional opinion of the company's examiner that the title is complete and perfect (or otherwise, as stated), and the company is liable only for a want of care, skill, or diligence on the part of its examiner; whereas an "insurance of title" warrants the validity of the title in any and all events. It is not always easy to distinguish between such insurance and a "guaranty of title" given by such a company, except that in the former case the maximum limit of liability is fixed by the policy, while in the latter case the undertaking is to make good any and all loss resulting from defect or failure of the title.

See also back title letter.

@ trust insurance

A trust, the res of which consists in whole or in part of insurance policies.

@ unemployment insurance

Form of taxation collected from business to fund unemployment payments and benefits.

@ war risk insurance

Insurance offered by the federal government to protect persons against wartime loss of vessels and property on the high seas, and death or injury while in the armed forces. Insurance covering damage caused by acts of war. War risk insurance refers to those contracts which were brought into being by the United States government during the first World War to replace ordinary life and accident insurance which was no longer available to those in the hazardous occupation of military service.

See also national service life insurance.

@ worker's compensation insurance

Type of protection purchased by employers to cover payments to employees who are injured in accidents arising out of and in the course of their employment; governed by statutes in all jurisdictions.

See also employer's liability insurance.

@

Other Insurance terms

@ aviation clause

Insurance clause limiting the liability of the insurer in case of death or injury is connected in a specified degree with aviation.

@

- blanket policy

@ claims made policy

Under this type policy the insured is indemnified for claims made during the policy period regardless of when the acts giving rise to those claims occur. Appalachian Ins. Co. v. Liberty Mut. Ins. Co., C.A.Pa., 676 F.2d 56, 59. Also called "discovery" policy (discovery policy)

Compare occurrence policy.

@ comprehensive coverage

A simple and convenient form of indemnity now commonly available in contracts of automobile insurance. It includes not only the conventional coverages against loss caused by fire, theft, wind, water, or malicious mischief, but is generally designed to protect against all damage to the insured vehicle except collision or upset.

@

- contract of insurance.

@ discovery policy

See claims made policy, above.

@ double insurance

Exists where the same person is insured by several insurers separately in respect to the same subject and interest

@ general and special insurance

In marine insurance, a general insurance is effected when the perils insured against are such as the law would imply from the nature of the contract considered in itself and supposing none to be specified in the policy. In the case of special insurance, further perils (in addition to implied perils) are expressed in the policy

@ insurance adjuster

One undertaking to ascertain and report the actual loss to the subject-matter of insurance due to the peril insured against. The adjuster also settles claims against the insurer. Such adjuster may be employed either by the insurer or the insured.

See adjuster

@ insurance agent

Person authorized to represent insurer in dealing with third parties in matters relating to insurance. Travelers Indem. Co. v. National Indem. Co., C.A.Minn., 292 F.2d 214, 219. An agent employed by an insurance company to solicit insurance business. Agents of insurance companies are called "general agents" when clothed with the general oversight of the companies' business in a state or large section of country, and "local agents" when their functions are limited and confined to some particular locality.

See also insurance broker, below

@ insurance binder

A memorandum of the insurance coverage agreement. It extends temporary protection pending issuance of the formal policy, while the insurer is investigating the risks and setting appropriate premium rates. Blackburn v. Crum & Forster, C.A.Tex., 611 F.2d 102, 103

@ insurance broker

One who acts as middleman between insured and company, and who solicits insurance from public under no employment from any special company and places order of insurance with company selected by insurer or, in absence of any selection, with company selected by such broker. Broker is agent for insured though at same time for some purposes he may be agent for insurer, and his acts and representations within scope of his authority as such agent are binding on insured. An "insurance agent" is tied to his company, whereas an "insurance broker" is an independent middleman not tied to a particular company. Osborn v. Ozlin, Va., 310 U.S. 53, 60 S.Ct. 758, 761, 84 L.Ed. 1074

+ insurance broker

Person who obtains insurance for individuals or companies from insurance companies or their agents. Differs from an insurance agent in that he does not represent any particular company.

@ insurance commissioner

A public officer in most states, whose duty is to supervise the business of insurance as conducted in the state by foreign and domestic companies, for the protection and benefit of policy-holders, and especially to issue licenses, approve rates, make periodical examinations into the condition of such companies, and receive, file, and publish periodical statements of their business as furnished by them

@ insurance company

A corporation or association whose business is to make contracts of insurance. They are generally either mutual companies or stock companies. A "mutual" insurance company is one whose fund for the payment of losses consists not of capital subscribed or furnished by outside parties, but of premiums mutually contributed by the parties insured, or in other words, one in which all persons insured become members of the association and contribute either cash or assessable premium notes, or both, to a common fund, out of which each is entitled to indemnity in case of loss. A "stock" company is one organized according to the usual form of business corporations, having a capital stock divided into shares, which, with current income and accumulated surplus, constitutes the fund for the payment of losses, policy-holders paying fixed premiums and not being members of the association unless they also happen to be stockholders.

See also joint-stock insurance company

@ insurance contract

See policy of insurance

@ insurance policy

See policy of insurance

@ insurance pool

Combining together of several insurers to share premiums and losses so as to spread risks

@ insurance premium

The consideration paid by insured to insurer for insurance protection. Alyea-Nichols Co. v. U. S., D.C.I11., 12 F.2d 998, 1005.

See premium

@ insurance rating

Process by which the premium for a policy is set after considering the risks involved

@ insurance trust

An agreement between insured and trustee, whereby proceeds of policy are paid directly to trustee for investment and distribution to designated beneficiaries in manner and at such time as insured has directed in trust agreement.

+ insurance trust

A trust, the res of which consists of insurance policies or their proceeds.

See also insurance

- trust

@ insuring clause

Provision in insurance policy or bond which recites the agreement of the insurer to protect the insured against some form of loss or damage

@ interinsurance

Insurance system whereby several individuals, partnerships, or corporations, through common attorney in fact, underwrite one another's risks against loss under agreement that underwriters act separately and severally. Hoopeston Canning Co. v. Cullen, 318 U.S. 313, 63 S.Ct. 602, 604, 87 L.Ed. 777.

It is distinguishable from all other forms of insurance, in that every insured is interinsurer, and every insurer is insured.

@ occurrence policy

This type policy provides for indemnity, regardless of when claim is made or reported, if act giving rise to the claim occurred during policy period. Yazoo County, Miss. v. International Surplus Lines Inc. Co., D.C.Miss., 616 F.Supp. 153, 154

Compare claims made policy.

@ over-insurance

Insurance effected upon property, either in one or several companies, to an amount which, separately or in the aggregate, exceeds the actual value of the property.

See excess insurance.

- double insurance

@

- reinsurance

@ standard policy

A form of insurance contract which is required, or recommended, to be issued in a particular state. Such is regulated by various state statutes and administrative officials.

@ umbrella policy

A form of insurance protection against losses in excess of the amount covered by other liability insurance policies. Type of supplemental or excess liability policy that provides coverage above basic or normal limits of liability.

@ under-insurance

Insurance coverage for less than the value of the property. Under such policy, coverage for loss or damage to property will be reduced by percentage of under-insurance.

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- underwriter