Glossary

A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.

Liability that does not require proving negligence.

A sudden fortuitous event. An accident is an occurrence which results from an unknown cause or is an unusual effect of a known cause and, hence, is unexpected and unforeseen.

A sudden and accidental breakdown of an object or a part of it that, at the time of breakdown, manifests itself by physical damage to the object necessitating replacement or repair. Slow decay, leakage at seals and joints, electronics and supporting structures, and the functioning of a safety device are all excepted.

An Inland Marine Coverage form that insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged

The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost Depreciation)

The indirect loss endorsement that pays, up to a stated limit, actual lost profits and necessary continuing expenses through the interruption period. Subject to 100% coinsurance measured against annual net profits plus fixed expenses as shown in the required annual reports.

A marine loss in which the property no longer exists or is beyond salvage, such as a ship that sinks in deep water and cannot be raised; contrast the constructive total loss, which is paid the same way.

Rates set to cover the losses and expenses the business is actually expected to produce, with no subsidy. FWCJUA Tier Three rates are actuarially sound from the beginning; Tier One at 25% and Tier Two at 50% above voluntary market rates move to actuarially sound rates once the plan has sufficient experience, and that adjustment could not occur prior to January 1, 2007.

A specialist in the mathematics of insurance who calculates the rates to be used by an insurer.

A limit written on top of another limit rather than inside it. On the Small Business Boiler and Machinery forms, business interruption including extra expense is written for 25% of the property damage limit as an additional amount of insurance, so a total property damage loss still leaves the whole interruption limit standing.

A Florida endorsement, available only with Extended PIP, that raises the $10,000 per-person PIP limit by $10,000, $25,000, $40,000, or $90,000 for the named insured and family members without touching the $5,000 death benefit.

An adjuster or claims representative is one who is involved in the investigation, adjustment, negotiation and/or trial preparation of claims arising under policies of insurance.

The ultimate disposition of a claim. The act of determining the cause and the amount of the loss and the amount that can be recovered under the terms and conditions of the policy contract.

A coverage sometimes written in conjunction with Aircraft Passenger Liability that can provide reimbursement for death or dismemberment without requiring legal action.

The carriers authorized to write a line of business in Florida, taking risks by their own choice. The FAJUA is defined against it: a market source for persons who are unable to purchase auto insurance through admitted markets.

A settlement option in which the insurer makes certain payments to a claimant before the claim can be negotiated, to relieve the claimant's financial burden. It is neither a gift nor a release: the amount advanced is subtracted from the final settlement.

The pattern an insurer falls into when it writes only the line of an account that other carriers declined, which packaging avoids by putting the whole account with one insurer.

Any person who directs or participates in the conduct of affairs of a licensee and who is an officer, stockholder, owner or other person who directly controls the company.

The sales representative of the insurance company, who actually meets the people and sells and services the business and binds the company within the scope of his authority. A licensed person authorized to transact insurance, including: soliciting, procuring applications, analyzing, abstracting, counseling, advising, or giving opinions relative to insurance contracts.

A type of policy limit found in liability policies that limits coverage to a specified total amount for all losses occurring within the policy period.

Written with property insurance policies. It waives the Coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company.

A guide for apportioning losses when nonconcurrent policy provisions apply to a single claim.

The industry guide for apportioning a loss when nonconcurrent policy provisions apply to a single claim, whose full title is Guiding Principles: Casualty, Fidelity, Fire, Inland Marine; First Party Property Losses and Claims. It has no signatories and compliance is voluntary, and it is used solely to decide among insurers where primary liability falls in overlapping coverage, never to interpret, add, or reduce coverage.

Physical damage insurance provided to cover loss or damage to an insured aircraft in motion, not in motion or both.

Coverage written to cover public and passenger liability and property damage liability.

Coverage that provides protection to airports for bodily injury and property damage liability.

The Federal Aviation Administration document that certifies an aircraft fit for flight. Aircraft policies give no coverage unless the aircraft is registered under a standard category certificate in full force and effect.

Better known as "open perils" insurance, it is insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against.

Property coverages that are closely associated and frequently sold with fire insurance: Dwelling insurance, Earthquake insurance, Sprinkler Leakage, etc.

Inland Marine transportation insurance that insures a property owner for goods being transported.

In a liability claim case, the answer is the statement of the defendant's defense.

A form containing pertinent information about the property to be insured upon which the insurer makes its determination whether or not to insure and on what basis. A form submitted to an insurer which contains pertinent information about the risk to be insured.

The authority given by an insurer or employer to transact insurance or adjust claims. A license says the state considers you qualified; the appointment is what authorises you to act, and it must be obtained within 48 months of licensure (F.S. 626.112, 626.381, 626.431).

A method for determining how much will be contributed by each company toward a loss covered under more than one policy. A typical Apportionment clause provides that the company will pay no more than the same proportion of the loss that its policy limit bears to the total amount of insurance.

Clause that provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose an appraiser, who, failing to agree, selects an umpire. Agreement of any two of the three will be decisive.

Structures belonging to and located on the same premises as a covered main building, included automatically in Businessowners building coverage without being separately scheduled.

The willful and malicious burning of property. This act is a felony crime. Losses caused by arson are generally paid for under insurance contracts unless the act was committed by or at the direction of the insured.

The transfer of a legal right or interest in a policy from one person to another.

A device by which, through an assignment from the insured, the insurer may bring an action for recovery against a responsible third party in its own name alone. It goes further than a loan receipt, which only lets the insurer join in the insured's action.

A condition in insurance policies that specifies that transferring the legal right or interest in a policy to another is not valid unless the company consents to it in writing.

An instrument transferring policy benefits to a third party such as a repair contractor. Florida legislation broadened the definition to include an assignment executed by a party that inspects the property, requires the assignment to hold the policyholder harmless from all liabilities including attorney fees, requires a Notice of Intent before suit, and bars a third party holding one from recovering attorney fees in a lawsuit against the insurer. Public adjuster fees are not an assignment agreement.

A doctrine that holds that a person who knowingly exposes himself to the danger of injury is said to have assumed the risk of such injury. This can be used as a defense against liability.

The person who executes a bond on the surety's behalf; sureties generally appoint their general lines agents as attorneys-in-fact through a limited power of attorney for bonds of certain types up to certain maximum penalties, leaving others to the surety's own specialists.

An insurer holding authority to transact insurance in Florida, as opposed to a surplus lines or unauthorized carrier. Every Citizens door turns on the phrase: the 20% certification measures offers from an authorized insurer, a take-out or keep-out offer must come from one, and a Citizens policy may be replaced by one at any time during the policy period with a 60-day notice.

A coverage extension giving 90 days of coverage for an accident to an object at a newly acquired location, at the highest limit and deductible stated in the Declarations for the same type of object. A grace period, not permanent coverage.

Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's warranty.

The wage figure every disability benefit is a percentage of, determined from the average of the employee's prior 13 weeks' pay at the time of injury, or from the wages of another employee with the same or similar duties when 13 weeks of experience is not present.

Insurance that provides both liability and physical damage (also called Aircraft Hull insurance) coverage for aircraft. Liability coverage available separately for hangarkeepers and airport owners or operators.

The insurer conduct reached by the Civil Remedies provision (F.S. 624.155), most often the failure to attempt in good faith to settle a claim when the insurer could and should have done so. There can be no bad faith claim against an insurer that tenders the lesser of the policy limits or the amount requested within 90 days after receiving actual notice of the claim.

Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.

One who has temporary custody of property belonging to another. (Example: dry cleaners.)

An inland marine form that reimburses the insured for damage to customers' property in the insured's care whether or not the insured is liable, provided the damage resulted from a peril insured against.

Inland Marine insurance obtained by a bailee, to cover loss or damage to customers property in the bailee's custody, without regard to liability.

The delivery of property by its owner to someone else, to be held for some special purpose and then returned, as when clothing is left at a dry-cleaners to be cleaned and pressed.

The one who owns the property in a bailment and hands it over; the bailee is the one who receives it.

Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of the cargo.

A type of Contract bond that guarantees the obligee that if a contractor's bid is accepted, the contractor will provide the required Performance bond. See also Contract bond.

An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.

Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Also a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.

Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public.

The body that oversees a residual market's operations, standing above the servicing carriers and answering to the member companies that ultimately own the results. Both the FAJUA and the FWCJUA have one, and neither board touches an individual application.

Usually defined to include physical harm, sickness, disease, or death resulting from any of these.

Protection against loss arising out of the liability imposed upon the insured by law for physical harm, sickness, disease, or death resulting from any of these suffered as the result of an accident.

Insurance that covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of the Commercial Package Policy. Also see Equipment Breakdown Insurance.

A genuine Florida resident, as distinct from someone claiming residency on paper. The General Lines and Personal Lines applications require the applicant to be a bona fide resident of Florida or, in the alternative, to have a place of business in Florida.

The Florida doctrine that any evidence which tends to establish the value of damaged or destroyed property may be considered in determining what constitutes actual cash value.

A Garage endorsement that deletes the Liability exclusion for damage to the insured's own products, subject to a deductible of $250 per accident.

A Garage endorsement that expands the form's nonauto liability to include coverages otherwise bought in a Commercial General Liability form: personal and advertising injury, host liquor, fire legal, incidental medical malpractice, nonowned watercraft, additional persons insured, automatic liability for newly acquired garage businesses, and limited worldwide liability.

Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package Policy.

The primary coverage form of the Commercial Package Policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others.

The endorsement bought when the Increased Cost of Construction allowance is too small: it pays for enforcement of laws requiring demolition of undamaged portions of a building, their value and the cost to demolish them, and for the higher cost of repair under building, zoning or land use laws. It requires 80% or higher coinsurance and replacement cost coverage.

An employee or agent of an adjustment bureau that serves multiple company clients.

As it is defined in insurance policies, is the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit.

A form that is a part of the Commercial Auto coverages and is designed to cover the auto exposures of businesses, other than truckers or garages.

A coverage that reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy.

The Businessowners additional coverage, limited to $5,000, for income lost because of damage at a property the insured depends on rather than at the insured's own premises.

An endorsement to a Homeowners Policy that provides coverage against

A multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.

Cost and freight. The buyer procures his or her own insurance on the shipment.

Cost, insurance and freight. When cargo is shipped C.I.F., the seller assumes complete responsibility for securing all necessary insurance.

An all risk Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an employee's custody or elsewhere.

The weakest of the five coverage continuation provisions: some health forms reserve to the insurer the right to cancel during the policy term on a specified degree of notice, not less than 20 days in Florida. The privilege is not widely used, and most individual health policies prohibit mid-term cancellation.

Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy.

Transported for a fare or other compensation. Admitted liability, written as an adjunct to passenger liability, is not applicable to passengers carried for hire.

Work to be completed in not over 10 days, at a total labor cost of less than $500, and not in the course of the employer's normal business; all three conditions must be met for the worker to fall outside the definition of employee.

A line of insurance that historically has included a wide variety of unrelated coverages other than Life and Health. One important coverage in the casualty line is Liability. Casualty also includes Aviation, Auto, Boiler And Machinery, Crime, Workers' Compensation and Surety Bonds.

The narrower ground-collapse peril a Florida insurer must include in every policy under F.S. 627.706, in contrast to the broader sinkhole coverage an insurer may leave off.

The closed list of permanent impairments that alone qualify a claimant for Permanent Total benefits: spinal cord injury with severe paralysis of an arm, a leg or the trunk; amputation of an arm, hand, foot or leg with effective loss of use; severe brain or closed-head injury; second- or third-degree burns of 25% or more of the body surface or third-degree burns of 5% or more to the face and hands; and total or industrial blindness.

A form that is a part of the Commercial Property Coverage Part of the Commercial Package Policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. An earthquake form is also available.

The authorization the Office of Insurance Regulation issues under F.S. 624.401 without which no person may act as an insurer or transact insurance in this state; acting without one is a felony of the third degree.

An elected official and member of the Florida cabinet who heads the Department of Financial Services and sits on the Financial Services Commission. In that capacity the CFO directly regulates insurance agents, insurance fraud, insolvent and impaired insurers, and insurance consumer protection.

Using the values in an existing life policy or annuity with the same insurer to buy another policy or contract from that insurer for the purpose of earning additional premiums, fees, or commissions; a first-degree misdemeanor under F.S. 626.9541(1)(aa).

Florida's state-created residual market for residential and commercial property, formed in the 2001 legislative session by merging the FRPCJUA and the Florida Windstorm Underwriting Association under one umbrella. It writes personal residential, commercial property and wind-only business, and its operating results ultimately fall on all licensed carriers in Florida.

The Business Income Additional Coverage that pays for up to a three-week period, after the 72 hour deductible, when access to the insured's premises is prohibited by a civil authority because of damage elsewhere from a covered cause of loss.

Liability involving actions brought by persons against others for money damages or other relief such as injunctions, accounts and specific performance.

A provision of Florida statutes that provides that any person damaged by certain insurer practices is granted a right to sue the insurer for damages.

The written notice of a violation that must be given to the Department of Financial Services and the authorized insurer as a condition precedent to a civil action under F.S. 624.155, which gives the insurer 60 days to pay the damages or correct the circumstances before any suit lies.

The assertion of a legal right against an insurer that carries with it a demand for appropriate relief.

The person who makes a demand for payment of a loss under an insurance policy.

A liability form that is part of the Commercial General Liability part of the Commercial Package Policy. Covers bodily injury and property damage that occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.

A type of Bailees Customers policy written for the garment trade, whose unique peril is confusion of goods.

An endorsed insuring agreement covering nonowned property for which the insured is legally liable while the property is on the premises of the insured's client; the classic janitorial exposure.

A code of ethics that the state of Florida requires claim adjusters to comply with.

A clause that requires an insured to pay part of a loss if the coverage provided under the policy limits is less than a specified percentage of the value of the property at the time of loss.

Cash or other valuable property deposited with the surety, in part in relationship to the bond amount or for 100% of the penalty, held for the lifetime of the bond and returned when the principal has fulfilled the obligation.

A type of physical damage insurance that covers loss due to the insured object striking another object. Collision may also include upset of the insured object.

Part of the Inland Marine Coverage part of the Commercial Package Policy. Provides all risk coverage for photographic equipment and musical instruments on either a scheduled or blanket basis or both.

A simplified, easy-to-read Commercial Package Policy introduced by ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/ Employee Dishonesty, Boiler and Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and Employment-Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies.

A body of principles and rules of action arising from usages and customs or from judgments of courts that recognize, affirm and enforce custom. Common law is unwritten in that it has never been enacted into statute law.

A form containing conditions that apply to all coverages issued under the Commercial Package Policy program.

See Staff Adjuster.

A rule whereby a plaintiff's damages are reduced to the extent of the plaintiff's degree of negligence. Plaintiff's negligence does not bar a suit altogether.

Damages that compensate for actual economic loss or tangible losses such as pain and suffering.

A complaint is the statement of claim by the claimant and is the instrument by which a lawsuit is initiated.

In automobile insurance, a broad physical damage coverage that covers all property losses except collision and those perils or property that are specifically excluded.

Provides broad coverage protecting the insured for amounts to which the insured(s) may become legally liable for damages of bodily injury or damages to property of others arising from the insured's private residences and personal activities including medical payments to others. It does not cover personal injury. Similar to Homeowners – Section II.

The insuring agreement paying for loss of money, securities or other property resulting from the use of a computer to fraudulently transfer property from inside the insured's premises or its banking premises to a person or place outside them, anywhere in the world.

A form that is a part of the Commercial Computer Crime Coverage part of the Commercial Package Policy. It covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premises.

The willful withholding of material facts from the insurer in negotiating an insurance contract or when making a claim. If material, concealment may result in the policy being rendered void.

A situation where two or more policies cover the same property. If the written portions of the policies are not identical, claim problems up to and including claim denial could result.

A contract in which the insurer's obligation to perform may be conditioned upon the insured satisfying certain conditions, so the happening of the insured-against contingency does not automatically fulfill the insurer's promise.

A type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.

The portion of an insurance contract that sets forth the rights and duties of the insured and the insurance company.

A part of the Commercial Property Coverage part of the Commercial Package Policy that covers the buildings in a condominium complex (not the unit-owner's personal property).

A part of the Commercial Property Coverage part of the Commercial Package Policy that covers the unit-owners business personal property.

The unique peril of the Cleaners, Dyers and Laundries form: the loss that occurs when damage from another loss makes it impossible to identify a garment with the correct customer.

Damage that occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.

Fiduciary bond for those appointed to manage and preserve property other than estates of decedents.

A characteristic of a legal contract: the thing of value exchanged for the performance promised in the contract. In insurance, the policy premium is the consideration.

The statutory flip that designates sole proprietors and partners in the construction industry as employees who are provided benefits and may not exempt themselves, and that makes construction an employment at one or more employees rather than four.

In Ocean Marine insurance, a loss that occurs when property is not completely destroyed but the cost to salvage or repair the property would exceed its value.

F.S. 627.3517, the statute asserting the right of consumers to select and maintain their agent of choice. All keep-out and take-out plans of Citizens are subject to it, and no rule, plan of operation or depopulation plan may cancel, suspend, impede, abridge or otherwise compromise that right.

The published blueprint for a Florida licensing examination: the number of scored and pretest questions, the time limit, and the percentage of the exam drawn from each domain. Questions come from the Florida Study Manual, so the percentages function as study weights rather than a passing score.

Liability that an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.

A legal agreement between two parties promising a certain performance in exchange for a certain consideration.

A category of Surety bonds that guarantees the fulfillment of contractual obligations. Includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds and Supply Contract bonds.

A contract whose parties are of unequal bargaining power, where the insured cannot negotiate the terms but must take the insurer's offer as made, with the result that ambiguities are resolved in favor of the insured.

Part of the Inland Marine Coverage part of the Commercial Package Policy. It covers various types of contractors mobile equipment needed to conduct business, such as cranes and bulldozers.

Provides coverage against liability arising out of an insured's contractual obligations. Excluded in the Commercial General Liability Policy, subject to several exceptions.

A common law defense against negligence that states that if an individual contributes to his or her own loss, then someone else cannot be held liable for the loss.

Insurance written on the applicant's own or family's interests, or on an organization in which the applicant is associated or interested. A license may not be sought for the purpose of writing controlled business, defined as more than 50 percent of income coming from such business.

Classes of Inland Marine coverage for that standardized forms have been prepared as part of the Commercial Package Policy. Contrast uncontrolled lines.

The vehicle, railcar or vessel carrying a covered auto. Specified Causes of Loss insures the sinking, burning, collision or derailment of a conveying transport, while a dealer's blanket Specified Perils coverage excludes loss caused by collision or upset of the transporting vehicle.

The amount that has to be paid by the insured once the major medical policy limits have been exhausted and additional coverage can be used. It sits in the gap between one exhausted layer of coverage and the next.

The rating basis for hired autos on a Business Auto policy: the premium is charged at a rate per $100 of the amount the insured pays to hire, rent, lease or borrow autos. Nonowned autos are instead rated per employee.

A category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, etc. (Includes Bail bonds, Litigation bonds)

An amount of insurance the commercial property form adds in addition to the policy limits, available only if the policy is subject to 80% or more coinsurance or a Value Reporting form is used. Distinguished from an Additional Coverage, which carries no such 80% gate.

The United States and its territories or possessions, Puerto Rico, and Canada, including international waters or airspace between them, expanded to the entire world for injury caused by the insured's products made or sold in that territory and for the insured's activities away from it for a short time on business.

The event that triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage that occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is BI or PD that occurs on or after the retroactive date and for which claim is made during the policy period.

A number entered next to a coverage on a Business Auto or Garage declarations page that defines which autos that coverage applies to: 1 through 9 and 19 on the Business Auto form, 21 through 31 on the Garage form.

An accident to an object shown in the Declarations that is in use or connected ready for use at the specified location. Both halves must be true: the object must be scheduled, and it must have been working or standing ready to work.

Under F.S. 631.54, an unpaid claim, including one for unearned premium, within the coverage and limits of a policy of an insolvent member insurer where the claimant or insured was a Florida resident at the time of the insured event or the property is permanently located in this state.

Property owned by the insured, or nonowned property in the care, custody or control of the insured and for which the insured is legally liable. It reaches all forms of property, not just the object that is the subject of coverage: the object decides whether there was an accident, and covered property decides what gets paid for.

The aircraft hull named peril that answers the aircraft striking something; the manual calls it comparable to the protection afforded by automobile collision coverage.

Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.

Liability that is purely a product of statutory law. The action is generally brought by society and the punishment may include denial of freedom to the defendant.

The third of the three levels of long term care: assistance with day to day living such as bathing and dressing. It needs no medical skill, which is why the medical expense forms do not reach it and long term care insurance exists as a separate product.

Under the crime forms, you, your partners or an employee, but not a leased employee; the person whose robbery triggers Inside The Premises—Robbery Or Safe Burglary Of Other Property.

The Farm Liability endorsement that covers liability arising from farming operations the insured performs for another for a charge, above the first $5,000 of receipts in any 12-month period that the basic form already reaches.

A Surety bond that may be required of those associated with import or export activities, to guarantee that the required customs will be collected reported and paid.

Coverage for loss arising out of electronic data and network exposures, the risks general liability and property forms were never written to answer, such as breach of private data, network security failure, and media content published electronically.

A Section II Additional Coverage paying up to $1,000 for property of others damaged by an insured, without regard to legal liability, when the loss is not covered under Section I.

A doctrine that holds that anyone who possesses, stores, maintains or transports a dangerous instrumentality is absolutely or strictly liable for any injury or damage caused by the instrumentality, regardless of the presence or absence of due care.

A coverage that can be added to the Garage policy by endorsement. It eliminates the Physical Damage exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart.

A coverage provided in many property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.

The section of an insurance contract that shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.

Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. See also Franchise, Percentage and Straight Deductibles.

The ERISA provision stating that no employee benefit plan or trust may be deemed an insurance company, which shields a genuine single-employer plan from state insurance regulation but does nothing for a MEWA.

The geography inside a designated county where Citizens wind-only coverage may be written. A local government requests certification from the Department of Financial Services, a hearing determines the need for windstorm and hail coverage and how much is available in the voluntary market, and an area found to need coverage that is generally unavailable may be designated.

Damages a charterer agrees to pay for delay in loading or unloading, or for time lost by a vessel prevented from pursuing profitable employment by perils of the sea or accidental causes; demurrage is excluded by marine policies.

Any program that moves risks out of a residual market and back to private insurers, whether by take-out, keep-out, midterm assumption or the Property Insurance Clearinghouse. Commissions under a depopulation program are payable in accordance with Florida law.

The traditional showing that coverage was sought from and refused by at least three authorized insurers writing that kind of coverage (one insurer where a residential structure's dwelling replacement cost is $1 million or more), which the Legislature removed from the conditions for export in 2025.

Loss that is a direct result of a peril. Also includes loss due to efforts to end the peril or to unavoidable exposure following a peril.

Insurance whose object is to provide periodic income payments when the insured is unable to work because of sickness or injury. It replaces the paycheck rather than reimbursing the bill, pays a monthly benefit after a waiting period for a specified period or for life, and is deliberately written below full earnings to avoid over-insurance.

Line of insurance that includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.

A property loss deductible that is gradually consumed as the loss increases and disappears when the loss reaches a prescribed amount.

A crime coverage form under which any loss discovered during the policy period or within 60 days after expiration is covered regardless of when it occurred, the window running one year for losses connected with employee benefit plans.

A period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered within one year of expiration will be covered.

Loss of a limb, hand, foot or eye. Under admitted liability the schedule states what percentage of the principal sum each such loss pays.

A Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.

A Health insurance policy that provides benefits for a single illness.

An endorsement to the Business Auto Policy that covers named persons for non-business use of autos they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car.

See Split Limits.

An allied lines policy that provides coverage for the dwellings and personal property of individuals and families against fire and additional perils.

Available under the Commercial Package Policy. Requires the Causes of Loss Form—Earthquake.

A lump-sum benefit a disability policy may let the insured elect on a loss-by-loss basis for certain injuries, usually fractures and dislocations, in lieu of the weekly or monthly loss of time indemnity.

Inland Marine insurance designed to cover computer hardware and software.

An unauthorized insurer the Office has made eligible to accept Florida risks exported through a licensed surplus lines agent, subject to the surplus and trust-fund floors in F.S. 626.918.

The manual's other name for the waiting period: the stated time that must pass before benefits begin. On a disability income policy it runs from the start of the disability and may be as little as seven days or as long as a year; long term care policies cap it at 180 days. Accident coverage may be issued without one.

The first stage of NFIP participation, reached once a community applies and a first study produces a Flood Hazard Boundary Map, with sharply limited coverage amounts such as $35,000 on a single family building and $10,000 on residential contents.

Part of the Commercial Crime Coverage part of the Commercial Package Policy, it covers loss resulting from dishonest acts of employees. This coverage is excluded under other Crime insurance forms. Formerly this coverage was provided under Fidelity bonds or combination policies that included Fidelity bonds.

The Commercial Crime insuring agreement covering loss of or damage to money, securities and other property resulting from theft committed by an employee, theft being the unlawful taking of property to the deprivation of the insured.

Coverage provided under a Workers' Compensation policy to cover the employer's liability arising out of employee's work-related injuries.

Claims-made coverage for employment offenses such as refusal to employ, termination, demotion, negative evaluation, discipline, and work-related harassment, written with a single limit that includes defense expenses and a co-payment by the insured.

A document that is attached to the policy and modifies or changes the original policy in some way.

An insurance clause stating that when the insured has other insurance, the loss payment made by the company will be based on the number of applicable policies, not on their limits.

Insurance that covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery that operates under pressure or that uses or transforms electrical or mechanical power. Part of the Commercial Package Policy. In Florida, this coverage is referred to by the traditional title of Boiler and Machinery Insurance.

An Inland Marine form that provides all risk coverage for mobile

An equitable principle to the effect that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally prohibited from asserting that the fact does not exist. Found in unit(s): 2.11

Verbal, documentary or other tangible and prohibitive matter that substantiates or impugns allegations made by either party to a legal action. Found in unit(s): 2, 3, 5, 7, 11, 12, 16, 17, 18

The policy that covers everything a wind-only policy does not: fire, theft, liability and the rest, written in the voluntary market alongside a Citizens wind-only policy. An offer of full coverage from the insurer already writing the ex-wind or wind-only piece is not a take-out or keep-out offer.

A duty after a loss: the insured must submit to examination under oath if the company requests it, and must show the remains of the damaged property on request. At these premiums the physical evidence and the insured's sworn word are the investigation.

Coverage that applies only after limits of primary insurance have been exhausted. See Primary Insurance. Found in unit(s): 3.8, 15.5

A provision in a policy indicating that specific property, perils, persons, or situations that are not covered under the policy. Found in unit(s): 2, 3, 4, 5, 6, 7, 8, 10, 11, 14, 15, 16

The rule of F.S. 440.11(1) that an employer's workers' compensation liability is exclusive and in place of all other liability for an occupational injury, to the employee, the family, the dependents and any third-party tortfeasor.

Damages awarded to make an example of the wrongdoer. Found in unit(s): 3.8, 10.9

A coverage extension reimbursing temporary repairs and the cost of speeding permanent repair or replacement: overtime labor, long distance telephone calls, air freight. Subject to a $250 deductible and a $25,000 internal limit.

A Boiler And Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs, i.e., overtime, or express transportation charges. Found in unit(s): 15.2, 15.5

The multiplier that adjusts an employer's workers' compensation premium for its own loss history. In the FWCJUA it does the sorting: below 1.00 points to Tier One, 1.00 through 1.10 to Tier Two, and anything else to Tier Three.

The mandatory plan for risks exceeding certain annual premiums that reads the risk's prior loss experience and applies a debit for unfavorable experience or a credit for better-than-expected loss results to the manual premium.

The Businessowners additional coverage that continues income protection for 30 days after operations resume, and which can be increased by endorsement.

An endorsement that broadens an industrial fire policy to windstorm, hail, explosion (except from steam boilers), riot, riot attending a strike, civil commotion, aircraft, vehicle, and smoke damage. It increases the scope of coverage only; the amount of coverage is not increased.

An endorsement that restores liability, and optionally Medical Payments, for a non-owned auto furnished or available for the regular use of a named individual, undoing the regular-use exclusion.

A Personal Auto Policy endorsement that extends liability coverage to named individuals for a nonowned automobile that is furnished for their regular use. Found in unit(s): 3.11

A Florida endorsement that raises PIP medical from 80% to 100% and income loss from 60% to 80% for the named insured and family members, leaving the $10,000 maximum unchanged.

A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the coverage part with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic ERP runs five years. The Supplemental ERP has unlimited duration but is available only by endorsement for an extra charge. Found in unit(s): 8.2, 8.7, 8.8, 8.13

A Commercial Crime form that covers all types of property when surrendered away from the premises as a result of a threat to do bodily harm to the insured or employee, or an invitee of either while they are being held captive, or allegedly being held captive. Found in unit(s): 11.4

The endorsement paying extraordinary expenses incurred to keep operations going, over and above the normal expenses that would have been experienced had there been no accident to the covered object. Its schedule caps recovery by period of restoration and its deductible is stated in dollars.

A Time Element coverage that covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy. Found in unit(s): 7.2, 7.5, 7.6, 7.10, 15.3

Free along side. The seller assumes cost and risk until delivery along side the overseas vessel and within reach of its loading tackle.

Free on board. When cargo is shipped F.O.B., the buyer assumes responsibility for the cargo once the goods reach the designated point.

Coverage D of a Dwelling policy, which reimburses the rent the insured stops collecting while a portion of the premises rented or held for rental is uninhabitable, for the period needed to restore it to tenantable condition.

A named Coverage B personal and advertising injury offense covering false arrest, detention or imprisonment, most often a retailer's loss prevention officer holding a customer who turns out to have paid.

Coverage that can be added to a Garage policy by endorsement to insure a dealer against loss from voluntarily parting with a covered auto by trick or scheme or from acquiring an auto from someone who does not have legal title. Found in unit(s): 6.3

Part of the Commercial Package Policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis. Found in unit(s): 7.14

A form that is a part of the Farm Coverage Part of the Commercial Package Policy and is designed to provide both personal and business liability coverage for farm operations. Found in unit(s): 7.14, 8.12

A form that is part of the Farm Coverage Part of the Commercial Package Policy

An Ocean Marine warranty that provides that there will be no coverage in case of loss from perils such as capture, seizure, weapons of war, revolution, insurrection, civil war or piracy. Found in unit(s): 13.4

An adjuster who offers services on a fee-for-service basis. They represent many insurers. Bureau and independent adjusters are fee adjusters.

A common law defense that allowed employers to escape liability for injury to an employee, if another employee's carelessness had contributed to the loss.

A class of bonds that guarantees an employee's honesty. Today this coverage is generally provided through Employee Dishonesty insurance.

A person or institution that has responsibility for the money, property or financial affairs of another.

A Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others. See Judicial bond.

An Inland Marine Coverage form that provides all risk coverage for exposed motion picture film, including sound recordings and magnetic or video tapes that have been properly recorded until the first full quota of positive prints or film have been made.

A bond obligation under which the principal must pay a given amount at some date or on the happening of some contingency; the kind of bond for which a surety may require collateral.

State law that requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.

The Governor, the Chief Financial Officer, the Attorney General, and the Commissioner of Agriculture, sitting together. It appoints the Commissioner of the Office of Insurance Regulation and the Director of the Office of Financial Regulation.

A rapid oxidation, accompanied by a flame, or at least a glow, but not an explosion. In insurance it must be hostile as opposed to friendly, meaning it must be sudden and accidental and it must be a fire that is in a place not intended for it, like a furnace, stove or fireplace.

The unit cost of insurance, quoted per hundred dollars of coverage. A ten cent rate on $20,000 of coverage produces a premium of $20.00, computed as ($20,000 divided by 100) times .10.

The CGL's coverage for fire damage to premises rented to the insured, reached because every exclusion other than intentional injury and contractual is lifted for it, and capped by a $100,000 fire damage limit for each fire.

The basic forms of health or medical expense insurance, so called because, unlike major medical, benefits are provided up front without a deductible having to be satisfied. The limit on them is the schedule, not a deductible.

A claim by a policyholder, insured or beneficiary directly against the insurance company that issued the contract. Contrast Third-Party Claim.

The status a licensee falls back to once the license has gone beyond 48 months without an appointment. It is not a renewal or a reinstatement: the person must qualify again through one of the license's qualification routes and, for most routes, sit the state examination.

A bond on which the obligee or issuer specifies an amount, so the surety's liability stops at that stated penalty; on lost instrument bonds it is the alternative to an open penalty.

A stated amount the insured must pay before the insurer can pay benefits; the plainest of the three major medical deductibles, and the one in the manual's worked example.

An insurance contract that applies to property wherever it is moved, rather than applying only at a fixed location.

The detailed flood map a community receives after the second NFIP study, which together with the community's building and zoning ordinances moves it into the Regular Program and its much higher limits.

An Inland Marine Coverage form that provides all risk coverage for merchandise for sale that has been financed.

A market source for persons who are unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed in their behalf by a group of servicing carriers.

The body of laws serving as the legal framework that prescribes standards for the insurance industry. The Florida Legislature writes and amends it, and created the DFS, OIR, and OFR to oversee insurance and financial regulation (F.S. 20.121).

The nonprofit association, membership in which is a condition of an insurer's authority to transact insurance in this state, that pays covered claims of insolvent member insurers up to $300,000 per claim, plus an additional $200,000 where a homeowner's claim damages both a covered structure and its contents, less a $100 deductible per claim.

Created by the Florida Legislature to oversee the surplus lines insurance industry in this state. It reviews all surplus lines policies and documents, maintains records and reports to the DFS, collects surplus lines taxes and service fees, and trains and educates surplus lines agents (F.S. 626.921).

The FWUA, originally created to offer coverage on properties in areas of the state deemed especially susceptible to windstorm damages. It was merged with the FRPCJUA under Citizens in 2001, and the Citizens wind-only policy is identical to what it wrote.

An excess liability policy that provides exactly the same coverages, provisions, exclusions, and insureds as the underlying policies, which makes it simple to underwrite and usually cheaper than other excess forms, and means it excludes whatever the underlying excludes.

An excess liability policy that provides the exact same coverages, provisions, exclusions, and insureds as the underlying policy, so that once the underlying responds only the available limits remain in question.

Entry made by force, with evidence of that force visible at the place of entry. Together with an actual theft it is what turns a loss of property into a burglary the endorsement will pay for.

A Commercial Crime form that covers loss from forgery or alteration of checks, drafts, promissory notes or similar instruments.

A Surety bond that may be required by a public body when it awards a franchise.

A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full.

A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.

An ocean marine clause providing that no particular average (partial, accidental) loss will be paid unless the loss is caused by certain perils such as stranding, burning, sinking or collision.

The Florida-required provision letting an insured return a policy within a stated number of days and receive a full refund. Long-term care, major medical and Medicare supplement policies all have 30 days. It unwinds the sale, unlike the grace period, which keeps a policy in force after a premium due date.

An Ocean Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.

A fire burning where it is meant to burn, such as in a stove or fireplace. Smoke from the faulty operation of such a unit is non-hostile and is not covered by the Standard Fire Contract.

The Florida Residential Property and Casualty Underwriting Association, created by the Legislature after Hurricane Andrew's 1992 damages to provide a market for residential properties unable to obtain coverage in the voluntary market. In the 2001 legislative session it was merged with the FWUA under Citizens Property Insurance Corporation.

A settlement in which the claimant relinquishes the right to sue in exchange for the payment. It is the ending that closes a claim completely, and it is the option most often confused with the Walk-Away, which takes no separate release at all.

An endorsed insuring agreement covering loss due to the fraudulent transfer of funds through the use of a telephone or fax machine, as distinct from Computer Fraud.

The Florida Workers' Compensation Joint Underwriting Association, a state-created market under F.S. 627.311 for employers unable either to self-insure or to secure coverage through normal marketing channels. Insureds are assigned to one of three statutory tiers, which set the price.

A coverage form that is part of the Commercial Auto Coverage Part and that provides coverage for garage businesses (auto dealers, service stations, garages, parking lots, etc). Includes coverage

A customer of a dealer risk driving a covered auto. Such a customer is not an insured under the Garage form if he carries his own liability coverage of at least 10/20/10; with less, or none, he is an insured but only up to 10/20/10 unless full policy limits are optionally elected.

The defined term Garage Liability insures: the ownership, maintenance or use of locations for garage business and the ways adjoining, all operations necessary or incidental to the business, and the autos indicated by the covered auto symbols in the Declarations.

A coverage that is part of the Garage coverage form. Covers a garage risk's legal liability for a customer's autos in the care, custody or control of the garage. At the insured's option, can also apply without regard to fault, for an additional premium.

The most the CGL will pay for all claims during each annual policy period for every coverage except bodily injury and property damage arising out of the insured's products and completed operations; the ISO basic limit is $200,000.

An Ocean Marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their total interest in property being transported.

The frequency threshold that turns most of the unfair claim settlement acts listed in F.S. 626.9541(1)(i) into a violation; a person suing under s. 624.155 need not prove it, but punitive damages require it together with willful, wanton, and malicious conduct.

Damages of an intangible nature, such as pain and suffering, mental anguish, inconvenience and disfigurement. Contrast Special Damages.

A category of insurance that includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.

A slightly different set of basic Crime Coverage Forms tailored for insuring governmental entities.

In Health insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length of the grace period.

The arrangement created when two or more employers agree to pool their liabilities in order to qualify as self-insurers, the third of the three ways to secure the payment of compensation.

A disability rider guaranteeing the right to purchase additional coverage at predetermined times in the future without evidence of insurability, sometimes contingent on the insured meeting earnings tests before each purchase to avoid overinsurance.

A Health insurance policy provision that states that the insurer must renew the policy to a certain age. While the company cannot fail to renew the policy until the specified age, it can increase the premium.

An endorsed insuring agreement covering the named insured's legal liability for a guest's property in a safe deposit box, inside the premises, or in the insured's possession, written on an 'all risk' basis with extra exclusions.

A form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.

Something that increases the chance of loss. For instance, faulty wiring is a hazard because it increases the chance of a fire loss.

Insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto.

A noninsurance alternative to dealing with the risks of health care costs. An HMO provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium.

A notice created by the Florida Legislature in 2014 (F.S. 627.7142) that a residential property insurer must provide to its policyholders, explaining their rights in the claims process in nontechnical terms: acknowledgment within 7 days, notice within 30 days of whether the claim is covered in full or in part, denied, or being investigated, and payment or denial within 60 days, along with interest, free mediation, neutral evaluation of a sinkhole claim, and assistance from the Division of Consumer Services.

A personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degrees of protection.

Health insurance that pays a flat amount per day of hospitalization, regardless of expenses or other insurance. Its primary purpose is to supplement other coverage that may be inadequate due to rising costs.

Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies, and related items.

A fire burning somewhere it was never intended to burn. Damage by smoke is covered under the Standard Fire Contract when it comes from a hostile fire, and a friendly fire that becomes hostile carries both the fire and the smoke damage with it.

In Ocean Marine or Aviation insurance, insurance against physical damage to plane or ship.

A Florida residential property deductible of at least $500, offered at 2%, 5%, or 10% of the dwelling limit, printed on the declarations as a dollar amount, applied on an annual basis to all covered hurricane losses in the calendar year rather than per occurrence, and changeable only at renewal.

Permanent alterations that a tenant makes to the rented property that will not be removed when the tenant leaves.

Liability resulting from negligence that is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible.

See Vicarious Negligence. (Should this be imputed liability and vicarious liability?)

An aircraft moving under its own power or the momentum generated from it, which includes an aircraft in flight. The hull deductible normally applies on this side of the line.

Minor occupancies permitted inside an otherwise eligible Businessowners risk: eligible offices, and wholesaler, mercantile, processing and service occupancies not exceeding 25,000 square feet, with contractors limited to 7,500 square feet or 15% of the total floor area.

Any change, except a temporary one, in construction, occupancy or exposure that would entitle the insurer to a higher rate of premium or cause it to cancel, not renew, reduce or restrict the coverage, and which may suspend coverage while the hazard is increased if it is material and due to means within the insured's control or knowledge.

The Building and Personal Property Additional Coverage for the higher cost of repair forced by a building ordinance or law, limited to 5% of the limit of insurance or $10,000, whichever is less. Replacement cost must be selected and the ordinance must be in effect at the time of loss.

In a Surety agreement, one who agrees to reimburse the surety for any loss it may suffer from having bonded the principal.

A principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

A License bond that holds the government harmless from injuries or damages caused by the principal's activities.

A self-employed adjuster, not affiliated with any insurer or bureau. They serve as adjuster representatives of insurers, and their services are compensated on a fee-plus-expense basis for each loss handled.

Loss that is a result or consequence of a direct loss.

A Business Auto endorsement used when the named insured is an individual and the policy covers autos eligible for a Personal Auto Policy; it broadens coverage on those autos to be similar to PAP coverage.

An agent licensed by the state to sell industrial fire insurance for a company on the debit plan of operation. He may hold no other license except life and health. A licensed person authorized to transact insurance, including: soliciting, procuring applications, analyzing, abstracting, counseling, advising, or giving opinions relative to insurance contracts. Such licensee may hold no other license except life and health.

A product authorized by F.S. 626.729 for the segment of the property market insurers generally do not write, limited to $25,000 on the primary structure and $50,000 of total coverage, written on an actual cash value basis with premium collected weekly or monthly.

A property insurance endorsement that provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually.

The front page of the workers' compensation and employers liability policy that corresponds to the declarations of other policies, carrying the named insured, the workplaces in Item 1, the Part One and Part Three states, the Part Two limits, and the premium basis.

An explosion caused by some condition existing and natural to the insured premises, such as a gas explosion in a gas stove or the bursting of a water heater. It is covered under the extended coverage endorsement's explosion peril.

A condition or defect that exists within property from the beginning. A tendency of the property itself. An example of inherent vice is the tendency of milk to sour. Insurance policies usually exclude inherent vice.

A form of insurance originally designed as an extension of Ocean Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.

The condition in which furniture and household effects remain in a house but no one is living there at the time. Inoccupancy longer than 60 days may suspend coverage, and the 60-day period may be extended by endorsement.

Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.

An uncontrolled inland marine floater insuring machinery, equipment, building materials or supplies in transit to, or being used with or during the course of, installation, testing, building, renovating or repair; it may cover the interest of the owner, the seller or the contractor.

An uncontrolled Inland Marine form that covers property in transit and at premises where an installation is to be made.

An Inland Marine form that covers property sold on an installment basis.

A category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.

Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exists.

A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. An agreement between two parties in which one agrees to indemnify the other for a specified type and amount of loss, when such loss is caused by an agreed upon peril.

An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also

The section of an insurance policy that states which losses will be indemnified, what property is covered, which perils are insured against.

A deductible used with a supplementary major medical plan. It must be satisfied before major medical benefits can be paid, but it is offset or integrated into any amounts paid by the basic plan.

The second of the three levels of long term care: care provided by registered nurses, but not 24-hour care.

Caps a major medical policy places on particular services inside the maximum limit, such as a hospital daily room charge or the hospital's customary semi-private room rate, and limits for surgical services. Charges above an internal limit never become covered expenses, so they are removed before the deductible and the percentage participation apply.

The process or vehicle by means of which the adjuster secures evidence and preserves factual details upon which to base a decision as to the disposition of a claim. Investigation consists of inquiry, verification and comparison.

A voluntary action to rid the ship of cargo in order to prevent further damage or peril.

An all risk Inland Marine form for retail jewelers that covers the insured's stock in trade and the property of others, while at the insured's premises, in transit and elsewhere.

An underwriting tool in which the surety and principal exercise joint control over assets, so that the principal must get the surety to sign off on any disbursement and the surety can satisfy itself the disbursements are proper.

See Fiduciary Bonds and Court Bonds.

Depopulation before a policy exists. Under the On-Site Keep-Out Program an authorized insurer underwrites and takes the application at the Service Company location before the Service Company processes it; the original effective date bound by the agent is honored and the policy cannot be canceled for one year unless the applicant was never eligible under the plan's underwriting rules.

The principle that a loss already known to have occurred cannot be insured, the way a burning building cannot be insured; the CGL insuring agreement now applies it by treating any continuation of injury or damage the insured knew about before the effective date as a known loss.

See Payment Bond.

The statistical theory that states the larger the number of similar exposure units the more predictable and accurate the estimate of expected losses.

A form that belongs to the Commercial Property Coverage part of the Commercial Package Policy; It covers a tenant for certain losses following damage to the premises from a covered peril, such as tenant's loss of a favorable lease or loss of remaining value of improvements or betterments made by a tenant.

Rules of law dictate that a person must pay for damages done to another.

This form belongs to the Commercial Property Coverage part of the Commercial Package Policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control.

An endorsed insuring agreement covering theft, disappearance or destruction of securities and burglary or robbery of other property from within designated places of safe depository the insured rents.

A letter from the licensing authority of the state where a licensee currently holds resident status, sent to Florida, indicating that an all-lines adjuster license (company or independent) was held for at least one year immediately preceding the Florida application. It is the instrument that moves resident status from one state to another.

Insures the individual for financial losses that arise out of the person's responsibilities to others imposed by law or contract.

A policy condition found in many standard policies that states that if the insurer adopts a revision that would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage.

A category of Surety bond that covers a wide variety of occupations and operations, and that are often required as a condition of doing business.

A charge or encumbrance upon property.

An arrangement under which a person may occupy a residence for life while title passes to someone else at death; an occupant holding one is treated as an owner and may be the named insured on a Homeowners Policy.

The clause Florida law requires in all health policies, also called the incontestable clause or the Time Limit on Certain Defenses: after two years from the issue date, only a fraudulent misstatement in the application may be used to void the policy or deny a claim for a loss or disability beginning after that period.

Condominium property shared in ownership but used by a single unit, such as a balcony or an assigned parking space. Personal property located in them belongs to the unit owner's policy, not the association's, with no further test to apply.

An endorsement available when the object covered is a boiler, fired vessel or electric steam generator, redefining accident to cover only sudden and accidental tearing asunder of the object instead of sudden and accidental breakdown. It restricts coverage in exchange for premium.

A restaurant whose food preparation does not emit enough smoke or grease vapors to require exhaust systems or dry-chemical extinguishing systems, cooking with microwaves, toasters, pizza ovens, infrared snack warmers and similar appliances.

The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.

This form belongs to the Commercial General Liability coverage part of the Commercial Package Policy. It covers liquor liability that is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.

See Court bond.

A device used in subrogation suits. It is a written statement given by the insured to the insurer acknowledging that money received in the settlement of damages is received, not as final payment, but as an advance, pending the outcome of a claim against the

Also known as nursing home care: coverage designed to assist clients who now depend on others for care, at home, in a nursing home, or at an adult care center. Policies carry benefit limits, age limits and elimination periods of at most 180 days, and HIPAA requires them to be guaranteed renewable.

Coverage for an assessment levied against the insured by an association of property owners, carried as a $1,000 Additional Coverage in a Homeowners policy but absent from Personal Liability coverage unless it is added by endorsement.

Under the Homeowners contract, covers the insured's increased cost of living after loss and rental value of any portion of the dwelling that is rented out.

The provision that protects a lender's interest in covered personal property by naming it a loss payee, so that loss payments are made payable to both the insured and the loss payee, sometimes with some or all of the added protection found in mortgage clauses.

A lender or other party with a financial interest in the vehicle, named in the Declarations, to whom Part D physical damage losses are paid jointly with the named insured.

The Section I condition that sizes the check: actual cash value is the default, and buildings under Coverages A and B are paid at replacement cost only if the limit carried is at least 80% of the building's replacement cost, otherwise in the proportion the limit bears to that 80%, but never less than actual cash value.

A crime coverage form covering only losses that both occurred and were discovered during the policy period or within one year of expiration, plus losses under previous expired crime policies where coverage continued without interruption.

A category of Surety bonds issued in situations where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder, the issuer of the instrument would be reimbursed. Also called Securities bond.

A workers' compensation claim in which the injured worker loses time from work, so indemnity as well as medical benefits is paid. In the FWCJUA tier tests a single lost-time claim disqualifies an employer from the tier it would otherwise reach, while medical-only claims are tested as a group against 20% of premium.

A part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It provides all risks coverage for valuable contents of mail, sent by banks, brokers and other fiduciaries.

A contract bond guaranteeing that the principal will correct faulty work or replace defective materials after completion and acceptance, where the specifications or operation of law make it responsible for doing so; it may be included as part of the performance and payment bond.

The causation gate that replaced fault: an injury arises out of employment only if the work performed is the major contributing cause of the injury or death.

A type of Health insurance intended to provide protection against catastrophic losses. Some forms are designed to complement or supplement basic hospital/surgical insurance; others provide both basic and catastrophic illness coverage.

A named Coverage B offense: causing a criminal or civil proceeding to be brought against a person without proper grounds, as when a store presses a shoplifting charge that is later dropped.

A form of insurance primarily designed to cover property in transport over land or sea.

A fact that, had the company known it, would have caused them to decline the risk or include entirely different provisions than those currently included.

The date after which further recovery from, or lasting improvement to, an injury or disease can no longer reasonably be anticipated based upon reasonable medical probability; temporary total benefits end at it or at 104 weeks, whichever comes first.

A claim filed against improved property by unpaid suppliers of labor or materials; keeping such liens off the obligee's property after completion is what a payment bond assures.

The Businessowners optional coverage providing replacement cost coverage on boilers and air conditioning units, an exposure the property section does not otherwise treat as a covered cause of loss.

The trigger of the Physicians, Surgeons and Dentists professional liability form: any act or omission in the furnishing of professional medical, dental, or (as amended for veterinarians) veterinary services.

The Section II coverage paying a hurt person's medical expenses without regard to fault, limited under a Businessowners Policy to $5,000 per person no matter which Liability and Medical Expenses limit was chosen.

A workers' compensation claim that pays medical benefits with no lost time from work. The FWCJUA tier tests never count them one by one; they are totaled and compared with 20% of premium, because small claims occur in every workforce and only a pattern of them predicts anything.

A type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.

The share of a building given over to retail or trade use. A Citizens commercial risk with mercantile occupancy exceeding 25% of the total building area is specifically ineligible; the test is how much retail there is, not whether there is any.

An endorsement that lets a Personal Auto Policy cover motor homes, motorcycles, golf carts, and all-terrain vehicles, with its own restrictions on 'your covered auto' and 'insured'.

An endorsement that may be added to the Personal Auto Policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.

A written or verbal misstatement or falsehood of a material fact concerning an insurance application or claim. Misrepresentation may result in the policy being rendered void. Statement of something that is known to be untrue.

Off-road and unlicensed land vehicles such as bulldozers and forklifts, vehicles used solely on the insured's or adjacent premises, and vehicles that merely provide mobility to permanently attached equipment. Insured under general liability rather than auto, except that a unit subject to a compulsory or Financial Responsibility Law is treated as an auto.

The Businessowners optional coverage insuring money and securities against theft, disappearance or destruction, with separate limits applying on premises and off premises.

The insuring agreement paying for loss from having accepted counterfeit currency or money orders in good faith, from any country, in exchange for merchandise, money or securities.

A hazard stemming from the conscious mental attitude of the insured, an intentional loss being the clearest example.

A hazard stemming from the unconscious mental attitude of the insured, such as accident proneness.

The holder of a mortgage lien on a property.

A policy provision which makes the proceeds of the policy payable to a mortgagee to the extent of its interest in the property.

Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property.

Inland Marine transportation insurance that protects the carrier against its liability for damage to domestic shipments in its custody.

An association operating more than one condominium, which may elect by majority vote of the collective members to operate them as a single condominium for insurance purposes, including buying the required property insurance and apportioning deductibles and damages in excess of coverage.

An arrangement that provides employee health or welfare benefits to the employees of two or more employers, regulated in Florida as a risk-bearing entity under ss. 624.436-624.446 and never eligible for the single-employer ERISA exemption.

A type of Employee Dishonesty insurance that covers loss only from named employees.

A Business Auto endorsement treating the persons named in it, their spouses and resident family members as named insureds for PIP, used when the insured furnishes an auto to someone who owns no auto and therefore has no family PIP of his own.

An endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto while the insured is operating autos owned by others.

The auto policy an eligible person who owns no automobile may secure through the FAJUA. Florida's compulsory scheme follows the driving rather than the title, so a driver with no car of their own can still need the proof of financial responsibility a policy provides.

Insurance contract that insures only against perils named in the policy.

The bureau that administers and enforces all aspects of workers' compensation rating: it files rules and rates with the Office of Insurance Regulation, establishes classifications, promulgates experience modifications, and audits every policy filed with it.

The industry definition that identifies which risks are eligible for Ocean or Inland Marine insurance, listing six categories: Imports, Exports, Domestic Shipments, Instrumentalities of Transportation or Communication, Personal Property Floater Risks, and Commercial Property Floater Risks.

The Builders Risk clause that replaces coinsurance. The company pays the proportion of loss that the limit of insurance bears to the value at completion, so the proper amount of insurance is 100% of the expected completed value from the first day of the job.

The failure to exercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.

The alternative dispute resolution under F.S. 627.7074, conducted by a licensed engineer or professional geologist, available for a disputed sinkhole claim where the sinkhole damage is covered by the policy.

A private passenger auto, or a pickup or van under 10,000 lbs GVW with no other coverage, that the insured becomes the owner of during the policy period, covered on the policy's 14-day and 4-day reporting clocks.

See Personal Injury Protection.

A situation where two or more policies cover the same property and coverages are not identical. This can result in claim problems up to and including claim denial. Agents can prevent this situation by making sure policies covering the same risk are consistent with one another.

Under Part D, a private passenger auto, pickup, van, or trailer not owned by or furnished for the regular use of the named insured or a family member, while in that person's custody; it gets the broadest coverage on any declared auto, on an excess basis.

A disability income policy that specifically provides that benefits will not be reduced if the insured changes to a more hazardous occupation.

A type of Health insurance policy that the company may not cancel, but must renew to a certain age with no change in premium. Affords the greatest

An aircraft the named insured does not own. For private business and pleasure craft operators, aircraft liability normally covers its use by or for the named insured.

Dealer physical damage written subject to a single limit stated in the policy instead of periodic reports of values. The equivalent of 100% coinsurance still applies, so a stated limit below the total values on hand cuts the loss payment in that same proportion.

An aircraft in any other situation: parked, chocked, hangared, or moving under tow, because the power then belongs to the tug rather than to the aircraft. This basis may not require a deductible.

A mandatory endorsement that must be included with the Commercial General Liability coverage part of the Commercial Package Policy. In general, it excludes all hazards related to nuclear energy.

The Boiler and Machinery field's term for the subject of insurance: the boiler, generator, engine, pump, compressor or turbine itself. An object earns coverage by being described in the Declarations at a named location. Covered property, by contrast, is everything the accident damages.

Part of the Boiler and Machinery Coverage part of the Commercial Package Policy. Defines the objects covered by the Boiler and Machinery Coverage form in great detail.

In bonds, the one who is to be guaranteed that the principal will perform.

A disease resulting from the nature of the employment, where a particular hazard of that occupation distinguishes it from the usual run of occupations; the law treats it as injury by accident.

In Liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage that occur during the policy period, regardless of when claim is made.

Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, Freight and Liability coverage (Protection and Indemnity).

The office that provides regulatory oversight to Florida's financial service providers: banks, credit unions, finance companies, and the securities industry. Its Director is appointed by the Financial Services Commission.

The office that administers insurance company regulation: licensing, rates, policy forms, market conduct, claims, certificates of authority, and solvency. It admits qualifying companies, examines financial condition periodically, and approves the majority of forms before use. It does not make rating and underwriting rules.

A bond requiring a guarantee of payment without limit, written where the issuer will not accept a ceiling, most commonly on a lost instrument bond whose eventual value nobody can predict.

A type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to nonrenew the policy at expiration.

Any tangible property other than money and securities that has intrinsic value and is not otherwise excluded.

The Part D coverage for direct and accidental loss that is not collision, including the policy's named list of fire, theft, larceny, explosion, earthquake, windstorm, hail, water, flood, missiles, falling objects, vandalism, riot, civil commotion, contact with a bird or animal, and glass breakage; it may be bought without Collision.

Specific liability coverage protecting the insured for damages of bodily injury or damage to the property of others arising out of the insured's actions or omissions as owner, landlord, or tenant of an insured private residence or dwelling.

A form of Liability insurance that protects an owner or general contractor against liability arising out of the acts of independent contractors or subcontractors. May be issued to the independent contractor or subcontractor, or may be issued directly to the owner or general contractor.

A work impairment that limits either the duties that can be performed or the amount of time that can be worked, falling short of the total disability definition. Benefits are normally around half of the total disability benefit.

A loss that is less than the total insurance amount provided under an insurance policy.

In Ocean Marine insurance, a partial loss that is not part of a general sacrifice of property (general average).

The aircraft liability line covering liability to the people carried in the aircraft, treated as a separate exposure with its own limit, totally apart from bodily injury liability to others.

A type of Contract bond that guarantees that bills for labor and materials will be paid by the contractor upon completion of the work. Also called Labor and Materials bond. See Contract bonds.

A Commercial Property endorsement that provides for higher limits to apply during specific periods of the year when inventory is at a peak.

The amount of a bond.

A deductible that requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits.

The manual's other name for coinsurance on a major medical policy: the standing share of covered expenses above the deductible, split between company and insured. A representative policy shows 80% participation, with the insured absorbing 20%.

Contract bonds that guarantee that jobs will be completed by the contractor according to contract specifications.

The cause of loss. Examples include fire, windstorm, explosion, lightning, hail, explosion, riot, civil commotion, aircraft, and smoke damage.

Unique perils to which property in transit by water is exposed. Includes unusual action of wind or waves, stranding, lightning, collision and sinking.

The clock the time element forms are paid on: it begins 72 hours after the date of direct damage and ends on the earlier of the date the property could be repaired, rebuilt or replaced with reasonable speed or the date the business resumes at a new, permanent location. The 72 hour deductible does not apply to Extra Expense coverage.

Coverage provided under Liability policies that provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.

Personal Inland Marine insurance that provides all risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

Easy-to-read auto policy that provides broad coverage for both owned and nonowned autos, used, maintained or operated by the insured and family.

A contract that covers persons rather than property or operations, so that whether payment is due and how it is measured depend on the economic loss suffered by the person and the coverage does not follow the property to a new owner.

Provides all risk coverage for individuals and families who desire to insure their personal belongings (baggage) while traveling or vacationing.

The offense group, such as libel and slander, kept distinct from bodily injury. Comprehensive Personal Liability coverage includes medical payments to others but does not cover personal injury.

A coverage provided in Auto policies in the state of Florida that provides coverage for the insured's own injuries on a first-party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in Florida. Also known as No-Fault.

Provides broad coverage for an individual's or family's liability exposure for bodily injury or property damage. Similar to coverage included in Homeowners contract.

Personal Inland Marine floater that provides all risk coverage on unscheduled personal property.

In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control.

A condition stemming from the physical characteristics of an object that increases the probability and severity of loss from given perils.

Part of the Commercial Inland Marine Coverage part of the Commercial Package Policy. It covers insureds in the medical and dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.

A type of Health insurance that reimburses the insured for nonsurgical care provided by a physician.

An attachment naming or describing additional pilots permitted to operate the insured aircraft. Operation in flight by anyone not named or described in the Declarations or such an endorsement is excluded.

An insurance contract.

The Businessowners additional coverage paying up to $10,000 to extract pollutants from land or water after a covered loss, but only where the expenses are reported to the insurer in writing within 180 days of the date of loss.

A form of liability insurance that can be added to the CGL section of the Commercial Package Policy to provide limited coverage for pollution.

A form of Employee Dishonesty insurance that covers only people who fill positions named in the policy.

The prescribed form an employer who has secured the payment of compensation must display in a conspicuous place at the business premises, giving the name and address of the insurance company (if any) and the expiration date of the policy.

A selected group of hospitals and medical practitioners in a given area joined together to reduce medical costs, under contract with a traditional insurance company or Blue Cross/Blue Shield at a prearranged cost. It has no separate physical facility, and it lowers cost by negotiating a volume discount.

One of the Commercial Crime Coverage forms that are a part of the Commercial Package Policy. Provides coverage for property other than money and securities if caused by burglary or attempted burglary or robbery of a watchperson.

One of the Commercial Crime Coverage forms that are a part of the Commercial Package Policy. Covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.

A promissory note or other written agreement by which an insured promises to repay a premium finance company the amount it advanced to an insurer or agent in payment of premiums, together with a service charge authorized and limited by law.

This is a Property insurance coverage, sometimes known as a removal coverage, which

An unscored question the examination vendor is trying out, stated in addition to the scored count. A General Lines candidate sits 160 scored questions plus 15 pretest questions, so 175 items appear on screen.

When two or more coverages or policies apply to the same loss, the one that pays first, up to its limit of liability or the amount of the loss, whichever is less. See Excess insurance.

In bonds, the party who promises to do (or not to do) a specific thing.

A benefit amount fixed by schedule before any loss, paid for death or dismemberment under admitted liability instead of damages measured after the fact.

Ordinary cars, station wagons and jeeps, utility autos (pickups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.

The termination of an insurance policy before its regularly scheduled expiration date, where the premium refund is calculated on a proportionate basis to the time the policy was actually in effect. This is used when the company cancels the policy. All unearned premium is returned to the insured.

Liability for a claim is divided among more than one insurer covering the same risk with each company paying in proportion to the limit it bears in relation to all limits.

An other-insurance provision under which a policy pays the proportion of a loss that its limit bears to the total limits of all applicable policies, so a $25,000 limit among $100,000 of total limits pays one quarter.

Fiduciary bond dealing with those who administer estates of a deceased person.

A guarantee concerning the fitness, merchantability, quality or durability of a product.

A form of insurance that covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.

A separate annual pot, $200,000 at the ISO basic limit, that is the most the CGL will pay for all bodily injury and property damage arising out of the insured's products and completed work; a claim belongs to this aggregate or to the general aggregate, never to both.

Liability arising out of the rendering or failure to render services of a professional nature.

(1) The evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer. (2) The statement, signed and sworn by the insured, setting forth the claim information required by the policy.

A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.

Line of insurance that includes many types of insurance designed to handle the risk that we will suffer financial loss when our tangible property is damaged or destroyed.

The matching service the Florida Legislature approved in 2013 to help Floridians find coverage in the private market. Starting in January of 2014, all new applications for Citizens homeowners HO-3 policies are entered into it before a Citizens policy can be purchased, which reduces Citizens' exposure and the risk of hurricane assessments for all Floridians.

In Ocean Marine insurance, a form of liability insurance.

Under a Value Reporting form, the total of the per-location limits set above expected peak values. It is the maximum the policy will ever pay, while the premium is adjusted afterward from the insured's periodic reports of actual values.

A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence. For example, fire is proximate cause of damage done by water used in extinguishing it.

An adjuster that represents the public rather than insurers and is generally compensated by the insured through payment of a percentage of the claim payment received.

An appointment held under F.S. 626.8651 that supplies the supervised time a public adjuster applicant needs. The applicant must be licensed in Florida as an all-lines adjuster and appointed on a continual basis for the previous 6 months as an apprentice, an independent adjuster (626.855), or a company employee adjuster (626.856).

A category of Surety bonds furnished by principals who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office.

Damages awarded to a plaintiff that punish the defendant (wrongdoer) for anti-social actions, 378

Only the possibility of loss or no loss occurs but no gain. Pure risks are generally insurable.

A truck rating factor measured from the point of garaging: within 50 miles is local and takes the lowest rates, over 50 to 200 miles is intermediate, and over 200 miles is long distance.

The unit of exposure used to rate a dealer's Garage Liability and PIP. A number of rating units is established from the number of employees and their positions and duties, then multiplied by a base rate to produce the premium.

The second stage of NFIP participation, reached when a community has a Flood Insurance Rate Map and has agreed to flood-reducing ordinances, opening the full limits such as $250,000 on a single family building and $100,000 on residential contents.

The provision stating how a health policy that lapsed for nonpayment may be placed back in force: the company may reinstate automatically on receipt of a late premium, or give a conditional receipt and require a reinstatement application, in which case Florida reinstates coverage at the time of approval. Reinstatement is automatic after 45 days if the insurer does not notify the insured of disapproval.

A contract whereby the person executing the instrument gives up a right, claim or privilege to the person against whom it might have been demanded or enforced.

The person against whom the released right, claim, or privilege might have been demanded or enforced. A release generally extinguishes the cause of action only against the releasee named on it, which is why the adjuster must name every person who qualifies as an insured under the liability policy.

The person executing a release, who gives up a right, claim, or privilege against the person named in it. In a liability claim the releasor is the claimant, or the claimant's parents where the injured person is a minor.

A type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to nonrenew the policy at expiration. Also known as 'Optionally Renewable.'

The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.

An endorsement that can be added to an HO-3 form to provide replacement cost coverage on personal property (with limitations).

A method of collecting premiums for exposures that are difficult to evaluate "before the fact." Instead of paying a flat premium, the insured pays a deposit, then submits periodic reports to the insurer, showing the status of the factors on which premium is based. From these status reports, premiums are calculated and charged against the deposit.

Statements an applicant for insurance believes to be true. Does not carry as much force as warranty.

An insurer's agreement to defend a claim while reserving the right to withdraw from the case or decline to pay damages if the claim is later determined not to be covered.

For a known claim, represents the benefits estimated to be due but not yet paid; amount may be revised as further details about the claim are discovered or resolved.

An organization created by the Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.

The tort doctrine of 'let the master answer,' under which a principal or master is vicariously liable for the negligent acts of an agent or servant performed within the scope of the employment or at the principal's express or implied direction; also called the master-servant rule.

A date stated in the Declarations of a CGL Coverage form that is normally the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is provided under the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date.

An optional alternative that adjusts premium after expiration by adding the insured's actual losses incurred to a guaranteed basic premium; such plans are often called cost-plus programs.

As defined in insurance contracts, is the taking or attempted taking of property by one who has caused or threatened to cause bodily harm or committed and witnessed an obviously unlawful act.

A Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery of property in the care and custody of a messenger outside the premises and safe burglary.

A separate Florida deductible of up to 2% of the Coverage A limit or 50% of the cost to replace the roof, which the policyholder may decline in writing and which does not apply to a total loss, a hurricane loss, a hazard that punctures the roof deck, or a repair of less than 50% of the roof.

An Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damaging another ship.

The taking or attempted taking of property from within a locked safe or vault by unlawful entry with visible marks of forcible entry, or the taking of the safe or vault itself from inside the premises.

An endorsed insuring agreement covering the named insured's legal liability when it is the safe depository for customers' property, against burglary, robbery, destruction or damage.

An Automobile insurance rating program that applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.

Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.

The surety's recovery against those who default: having paid the obligee, the surety exercises its right of recovery against the nonperformer, which is why in theory there would be no losses under surety bonds.

A professional salvage company, insurer-owned or independent, that protects damaged property from further loss, inventories it, values it before and after the loss, reconditions it where possible, and sells it. Salvors work on a fee-plus-expense basis or, where they conduct the sale, on a cost-plus-commission basis.

Also called an Open-Ended release. General damages and the specials incurred to date are paid immediately, and the claim is left open for future specials such as an additional visit to the physician. It buys most of the insurer's certainty now while leaving a door open for the part nobody can price yet.

An endorsement to the Homeowners Policy that schedules specific amounts of coverage for one or more of several categories of personal property on an all risks basis.

The second person who, in addition to the applicant, receives a long term care policy's lapse notice. The rule exists because the decline these policies insure against is the same decline that leaves a premium notice unopened.

Hiding property rather than returning it. In the hull exclusions it names a possessor who was handed the aircraft lawfully, under a bailment lease, conditional sale, mortgage or other encumbrance, and then concealed it.

See Lost Instrument Bond.

An endorsed insuring agreement covering theft, disappearance or destruction of securities deposited with a custodian such as a bank or stockbroker.

A Surety bond that can be provided as evidence of compliance with an insurance requirement.

The deductible an insured owes on any claim for which an umbrella acts as a primary liability policy, which happens only when the umbrella covers something no underlying policy covers.

The CGL condition that coverage applies separately to each insured as though that interest were the only insured, so an exclusion aimed at one insured's relationship to the claimant does not automatically defeat a claim against a different insured.

The office that processes Citizens business. It is the physical location where the On-Site Keep-Out Program happens: an authorized insurer that underwrites and takes the application there, before the Service Company processes it, keeps the policy from ever being issued through Citizens.

The company that accepts applications, issues policies, collects premiums and pays losses on behalf of a residual market plan. It performs the work; it is not itself the insurer of last resort, and the plan's results belong to the whole syndicate of licensed carriers.

An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.

A standard Liability insurance clause that means that insurance applies separately to each insured.

The termination of a policy with a return premium based on less than the proportionate amount for the actual time the policy was in force. It involves a penalty to the insured to cover the expense of issuing and servicing the policy. Return premium is calculated on a short rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses.

A Commercial Inland Marine Coverage form that provides all risk coverage for neon, fluorescent, automatic or mechanical electrical signs.

In Auto Liability, policy limits that apply to all bodily injury and property damage arising from a single accident.

The first of the three levels of long term care: continuous care.

Representing that an ancillary coverage is required by law or included at no extra charge when it is not, charging for it without the applicant's informed consent, or binding a policy or invoicing a mortgagee without the property owner's prior informed consent, under F.S. 626.9541(1)(z).

A Boiler and Machinery Coverage form for small businesses that provides somewhat broader coverage than the standard Small Business Boiler and Machinery Coverage.

A Boiler and Machinery Coverage form designed specifically for small businesses. Does not require attachment of Objects Definition form, since definitions are built in.

A common law concept that the government cannot be sued without its permission. Florida waives this immunity under certain circumstances.

Damages awarded for actual economic loss. Compare General Damages

Caps written inside Coverage C on named classes of personal property, such as $200 on money, $1,500 on jewelry, watches and furs stolen, and $2,500 on firearms stolen; they limit what the coverage pays and never add insurance on top of it.

Property specifically listed and covered for a specific amount. Also called Scheduled coverage.

A named-peril alternative to Comprehensive. Under the Business Auto form it insures fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, and mischief or vandalism, plus the sinking, burning, collision or derailment of a conveying transport; under Garagekeepers the same name covers only fire, explosion, theft, and mischief or vandalism.

A risk where either a profit or a loss is possible. Speculative risks are not usually insurable.

In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits.

A form that must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is

Adding together the Uninsured Motorists limits carried on two or more vehicles so the combined amount is available for one accident; Florida policies are stacked at the liability limits unless the named insured elects otherwise in writing.

Salaried employees under the supervision of the home, branch, or regional claim department of insurance companies.

The base contract underneath an industrial fire policy, insuring fire and lightning together because it is often hard to determine what lightning has damaged and what fire has damaged.

A policy that, for a given coverage, is substantially like the policies written by all or a majority of companies in the field, such standardization having developed through custom and common law, statute, or intercompany agreement.

The signed schedule of property values filed with the company to support the Agreed Value option, which waives the Coinsurance condition when it insures 80% or more of those values, or 90% if written blanket.

A named peril in aircraft hull insurance: the parked aircraft struck by something on the ground, such as a fuel truck, a hangar door, or a wind-blown gate.

A law that is written and enacted into law through the legislative process. Contrast Common Law.

A legislative enactment that limits the time within which a plaintiff may initiate a legal action. In Florida, a general negligence action must be brought within two years of the date of injury. A contract action within five years of when the cause of action occurs.

A policy whose wording is standardized through state law; statutory policies are few, although state laws have prescribed many minimum standard statutory provisions that must be included in insurance contracts.

The order the Division of Workers' Compensation may issue against an employer that failed to secure required benefits, ceasing all business operations until the employer complies.

A deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss.

Another term used for absolute liability, which occurs when liability is assigned by law without regard to negligence or fault. Strict liability is usually used in reference to product liability where the manufacturer is liable to a third party regardless of the degree of care exercised by the manufacturer.

A settlement paid in set installments over time rather than in one sum. It is generally reserved for large settlements, where spreading the payments matches the money to the claimant's future needs.

A Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other required improvements will be installed.

The transfer to the insurance company of the insured's right to collect for damages.

A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss or to minimize a loss that has occurred.

A later claim on a loss the insurer has already handled, for damage or amounts the original claim did not include. Notice must be given to the insurer within 18 months after the date of the loss or the supplemental claim is barred, six months longer than the one-year bar on an original or reopened property claim (F.S. 627.70132).

Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.

A form of Contract bond that guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation. See Contract bond.

The party (often the insurance company) that agrees to be responsible for loss that may result if the principal does not keep his promise.

Bonds that guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party.

A contract in which the fulfilling of an obligation by one party to another is guaranteed by a third party, making it a three-party arrangement in which the surety lends its credit rather than absorbing a loss.

A type of Health insurance that covers fees of physicians for performing surgery, with a maximum amount payable for each procedure.

The Boiler and Machinery condition allowing any of the insurer's representatives, on finding an object in or exposed to a dangerous condition, to immediately suspend the insurance against loss from an accident to that object by delivering or mailing a written notice to the insured's last known address or to the address where the object is located. It suspends one object, not the policy.

A depopulation offer from an authorized insurer to assume a policy that already exists in an apportionment plan. On receipt of one, F.S. 627.3517 lets the policyholder retain the current agent.

The narrower trigger substituted for 'breakdown' by the Limited Coverage endorsement on a boiler, fired vessel or electric steam generator. The object must come apart; a bulge, a crack or a burn out is a breakdown but not a tearing asunder.

An auto or trailer you do not own, used in place of a covered vehicle that is out of normal use because of breakdown, repair, servicing, loss, or destruction; it is 'your covered auto' for every part of the policy except Part D.

An aircraft used in place of the described aircraft while it is out of service; aircraft liability coverage normally extends to it.

All risks Commercial Inland Marine Coverage form that covers scenery, costumes and theatrical property for either a single production or blanket for all productions.

As defined in insurance contracts, is a broad term encompassing any unlawful taking of property without the owner's consent, including swindling, embezzlement, robbery and burglary, but usually excludes employee dishonesty and mysterious disappearance.

A Commercial Crime Coverage form that covers money and securities for loss by theft, disappearance or destruction, both inside and outside of the premises.

A claim by a third person against the insured under a policy of liability insurance, as distinct from a first-party claim, which the policyholder, insured, or beneficiary makes directly against the insurer that issued the contract. Commercial General Liability is the standard example.

Those coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.

A civil wrong, not arising from a contract, for which money damages may be had.

The injury test a no-fault claimant must pierce to sue for pain and suffering: significant and permanent loss of an important bodily function, permanent injury other than scarring, significant and permanent scarring or disfigurement, or death.

The condition a disability income policy is written to pay for. Definitions vary by insurer: complete inability to do any work (highly restrictive), inability to work in an occupation for which the insured is qualified by education, training or experience (average), or inability to perform the duties of his or her own occupation (liberal).

An endorsement that can be added to an auto policy to cover towing and the costs of labor performed at the site of the disablement.

A contractor whose work is primarily a single specialty, such as plumbing, eligible for a Businessowners Policy only within limits on square footage, gross sales, annual payroll, height of work, subcontracting, equipment rental and unrelated sales.

The Part D benefit that comes automatically with Collision or Other Than Collision: $20 per day up to $600, with no deductible, starting 24 hours after a loss or 48 hours after a total theft.

An uncontrolled inland marine form insuring a single shipment for a company with only occasional shipments; coverage extends from the time and point of origination to the time and point of destination.

Knowingly making misleading representations or incomplete or fraudulent comparisons of policies or insurers to induce a person to lapse, forfeit, surrender, terminate, borrow on, or convert a policy or to buy one from another insurer; a first-degree misdemeanor under F.S. 626.9541(1)(l).

A Surety bond required of those who collect and must report taxes for certain controlled commodities, such as liquor or tobacco.

A list showing, for each surety company, the maximum penalty acceptable for that company on any bond required by the federal government; obligees consult it when they are concerned with a surety's ability to fulfill its guarantee.

The only licensed agent who is self-appointed and practices as an independent consultant (F.S. 626.311). Because this agent sells advice rather than any one company's product, there is no insurer to file the appointment.

Commercial Inland Marine coverages that are not standardized.

The party who determines what risks are acceptable to an insurer and at what rate. Insurance agents are considered "Field Underwriters" because they make the initial determination and take an application detailing necessary information. Insurers also utilize "Home Office Underwriters" who make the final determination concerning issuance of the policy, based on the information furnished by the field underwriter.

That portion of premium collected which is attributable to the part of a policy period which has not yet occurred. An insurer must generally recognize these funds as a liability on its balance sheet. That portion of the premium which has not yet been earned by the company if the policy still has some time to run.

A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc.

The law recommended by the National Association of Insurance Commissioners in 1950 to standardize basic health policy conditions; it requires 12 precisely worded clauses and describes 10 more that are optional with the insurance company.

Personal property an industrial fire and burglary policy does not insure: accounts, bills, currency, deeds, evidences of debt, money, securities, bullion, or manuscripts. Coverage for bullion or manuscripts may sometimes be offered for an additional premium.

Automobile coverage designed to provide protection for the insured should he or she be included in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.

The absence of people from a building. Property coverage is often restricted when a property has long periods without an occupant. The condition created when a dwelling has furniture and contents but lacks a tenant.

A single coverage amount that applies generally to personal property. Also called blanket insurance.

The overturning or rollover of a vehicle, which the policy treats as Collision even though nothing else was struck.

The purpose the aircraft is permitted to be used for, printed in the Policy Declarations. Maintaining the aircraft for any other purpose voids both the hull and the liability sections for that flight.

A principle of insurance that states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith.

An endorsement that removes the Vacancy condition's suspensions and its 15% reduction for the period stated on it, so an empty building becomes a priced exposure instead of a denied claim.

The absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.

Inland Marine coverage form that provides all risk coverage for valuable papers such as manuscripts, blueprints, records, and other printed documents. (Part of the CPP)

The Part E condition providing replacement cost coverage on all covered property, except that if repair or replacement is not made within 18 months of the date of accident, actual cash value applies.

An endorsement that can be added to Commercial Property policies that sets the limit of insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averaged and the premium is then adjusted to reflect the average exposure.

The indirect loss endorsement that pays an agreed dollar limit for each day of total interruption, or a proportionate part of it for partial interruption. The total limit is the daily limit times 90, 100, 126, 153, 180, 216, 270 or 360, and the deductible is expressed in days.

A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.

A statute that states that if there is a total loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid.

Willful destruction of property.

Protects property against damage caused by vandals. Many property forms contain Vandalism and Malicious Mischief coverage.

Liability resulting from negligence that is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability.

Negligence that is not directly attributable to the person claimed against, but that is the negligence of another for whom the person claimed against is in some way responsible. Also known as imputed negligence.

Insurance bought from a carrier that chose to write the risk. A residual market exists only because the voluntary market is free to decline coverage the state has made compulsory or considers crucial, and every residual-market rule is built to hand the risk back to it.

In Disability or Health insurance, a period of time between issuance and acceptance before sickness benefits begin.

The voluntary or intentional relinquishment of a known right. A waiver may be expressed or implied.

An optional provision in Health insurance policies that states that if the insured becomes totally disabled, premiums are waived and coverage remains in force.

A policy provision permitting the insured to relinquish in advance the insurer's right of recovery against a named party, such as a tenant released by a lease, without impairing the insurer's rights.

Also called a No release settlement. The bills presented are paid with no attempt to obtain a separate release, although the wording on the draft or check may serve as a form of release, and the file is considered closed after time passes with no further contact from the claimant.

A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a part of the policy.

An endorsement to the Homeowners contract that provides coverage for watercraft that is excluded under the HO policy itself.

The Citizens product that provides only two perils, windstorm and hail. All types of buildings and contents are eligible, including habitational mobile homes if tied down in accordance with statutory requirements, but only if located in a defined area of a designated county.

Insurance that covers an employer's obligations under workers' compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness. Workers' Compensation coverage also includes separate coverage for Employers' Liability.

A court order preventing a person from disposing of the property in question while a case runs; a plaintiff seeking one posts a court bond protecting the defendant against loss if the plaintiff fails to show a legal entitlement to the remedy sought.

A program under which a private insurer sells and services flood insurance under its own name while the coverage is backed 100% by the National Flood Insurance Program.

In Florida, an act that defines the recoverable rights of the survivors of a deceased person.

The Personal Auto Policy's term for the vehicles it treats best: any vehicle shown in the Declarations, a newly acquired auto, any trailer you own, and a temporary substitute for a covered vehicle that is out of normal use.