Frequently Asked Questions

GLOSSARY

(This glosaary is for informational purposes only, and does not create any rights or obligations. Please refer to the actual terms of your indvidual insurance policy.)

AUTOMOBILE INSURANCE

Actual Cash Value (ACV): Unless otherwise definied 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 foryou, your family, or others in your car. This coverage pays regardless of fault.

HEALTH INSURANCE

Copayment: 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.

HOMEOWNERS INSURANCE

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 lienholder 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.

(These glossary terms are copied directly verbatim from California Department of Insurance website 2004 at www.insurance.ca.gov. Payton Insurance Agency attempts to maintain the highest accuracy of content on its website, but makes no claims, promises or guarantees about the absolute accuracy, completeness or adequacy of the contents of this website, and expressly disclaims liability for errors and omissions in the content of this website or its hyperlinks to other Internet resources.)