|
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Salvage
Property taken over by an insurer to reduce its loss.
Producer
A term applied to an agent, solicitor or other person who sells insurance.
Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.
Medical Payments Coverage
Covers the medical costs (up to the specified limit you choose) resulting from an auto accident for you, your family, and others in your car. It pays regardless of fault.
Nonrenewal
The termination of an insurance policy at its normal expiration date.
Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.
Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.
Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
|
Did You Know?