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