| Common BBH Insurance, Inc Insurance Terms Email Us At: info@bbhinsure.com |
Actual Cash Value: an amount equal to the cost of replacing a damaged item with a new one, minus depreciation. At-Fault: responsible for an accident. Agent: an insurance salesperson who sells and services policies. An independent agent usually represents two or more insurers in a sales and service capacity and is paid on a commission basis. An exclusive agent or captive agent represents only one company, usually on a commission basis. Bodily Injury Liability: insurance that pays for another person’s bodily injury or death in an automobile accident caused by you. It compensates those people for pain, suffering, and other personal hardships, and will also pay for some economic damages. Cancellation: a termination of a policy before its normal expiration date. CLUE Report: short for Comprehensive Loss Underwriting Exchange which keeps insurance claims history. Collision Coverage: optional insurance that pays for physical damage caused when your own car hits another car or object, regardless of who is at fault. Collision coverage may carry a deductible -- a stated amount that you must first pay out of your own pocket. Comprehensive Physical Damage Coverage: pays for damage to your auto caused by fire, theft, vandalism, flood, falling objects, or hail. This coverage may also carry a deductible. Deductible: the amount you must pay from your own pocket for each claim or accident before the company pays on a claim. The bigger the deductible, the cheaper the coverage. Depreciation: the decrease in value of your vehicle or its parts due to wear, tear, and age. Exclusion: a provision in an insurance policy that denies coverage for certain losses, persons, or property. Liability Insurance: insurance that pays when you are liable for injuries to other persons or damage to their property. Non-Renewal: the termination of the insurance contract by electing not to renew the policy at the anniversary date. PIP (Personal Injury Protection): commonly referred to as “no-fault” insurance. This was designed to pay promptly -- regardless of fault or negligence -- for actual economic losses (e.g., medical expenses, lost earnings, and other reasonable and necessary expenses related to injuries sustained) to a driver or passenger injured in the car and to pedestrians injured by your car, because of its use or operation. It applies to personal injuries only, not for physical damages to the vehicle. Policy Limits: the maximum amount of benefits the insurance company agrees to pay on a loss. Policy Period: the amount of time an insurance contract or policy provides coverage. Preferred Risk: a person or risk less likely than the average person or risk to make a claim. A preferred risk usually qualifies for a lower premium. Premium: the amount you pay for insurance. Pro Rata Cancellation: revocation of a policy by an insurance company that returns the unearned premium to the policyholder. Property Damage Liability: this coverage protects you from claims and lawsuits by people whose property is damaged as a result of an accident you caused. Short Rate Cancellation: cancellation by the insured of an insurance policy for which the returned, unearned premium is diminished by administration costs incurred when the insurance company places the policy on its books. Underinsured Motorist Coverage (UIM): provides coverage for bodily injury caused by a driver who is underinsured. It does not cover damage to your car. Uninsured Motorist Bodily Injury Coverage (UMBI): insurance that covers the insured and family members if injured by a hit-and-run motorist or an uninsured driver, provided the other driver is at fault. |
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