(This glossary is for informational purposes only, and does not
create any rights or obligations. Please refer to the actual terms of
your individual insurance policy.)
Actual Cash Value (ACV): Unless otherwise defined in the
policy, actual cash value in California means fair market value. The
fair market value of an item is the dollar amount that a knowledgeable
buyer (under no unusual pressure) is willing to pay, and a
knowledgeable seller (under no unusual pressure) is willing to accept.
Broker-Agent: A licensed individual who can act as an agent
representing one or more insurance companies and also as a broker
dealing with one or more insurance companies representing your
interests.
Insured: The policyholder(s) entitled to covered benefits in case of an accident or loss.
Limits: The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
Medical Payments Coverage: Covers the medical costs (up to
the specified limit) resulting from an auto accident for you, your
family, or others in your car. This coverage pays regardless of fault.
Co payment: The portion of charges you pay to your provider for covered health care services in addition to any deductible.
Grace Period: The specified period immediately following the
premium due date during which a payment can be made to continue a
policy in force without interruption. This applies only to Life and
Health policies. Check your policy to be sure that a grace period is
offered and how many days, if any, are allowed.
Declarations: Usually the first page of an insurance policy
that contains the full legal name of your insurance company, your name
and address, the policy number, effective and expiration dates, premium
payable, the limits of insurance, covered property, deductibles, and
any applicable lien holder information.
Deductible: The amount of loss that the policyholder is
responsible to pay up-front before covered benefits from the insurance
company are payable.
Exclusion: A contractual provision in an insurance policy
that denies or restricts coverage for certain periods, persons,
property, or locations.
Quote: An estimate of the cost of insurance based on information supplied to the agent, broker or insurance company.
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