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14160 Dallas Parkway, Suite 705
Dallas, Texas 75254
Phone: 877-404-0493
Fax: 800-650-9055
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Rusty Byrd
(972)715-0923
Fax: 972-692-7345
Wendy Flock - Account Mgr
(972)404-1615 x627
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Accident:A sudden and unexpected event that occurs at a specific
time and place. In newer policies, it may also include loss that occurs gradually
over a period of time.
Actual Cash Value (ACV): The cost to replace an item of property
at the time of loss, less an allowance for depreciation. Often used to determine
amount of reimbursement for a loss.
Additional Payments: See Supplementary Payments
Additional Insured: An individual or company, in addition to the
insured, who is listed in the Declarations. An example is a mortgage company that
has an insurable interest in the property insured.
Agent: The state-licensed professional who represents the insurance
company in the sale and servicing of insurance; the direct link between the insurance
company and the policyholder.
Agreed Value Coverage: An optional coverage written with property
insurance policies. The amount of coverage comes from a signed statement of value
filed with the company rather than the Actual Cash Value or Replacement Cost. This
coverage is most popular on items of value like antique or classic vehicles and
jewelry or antiques.
All Risk: See Open Peril
A. M. Best Company: Organization that rates the financial stability
of insurance companies doing business in the United States. Visit their website
by clicking
Application: A questionnaire filled out by an agent and the prospect
who is seeking insurance. The form contains information used to underwrite and rate
the policy.
Assigned Risk Plan: See Automobile Insurance Plan
Automatic Increase In Insurance Endorsement: A property insurance
endorsement that provides that the policy limits will increase a certain percentage
at regular intervals, for instance, once a year. Also called Inflation Guard Endorsement.
Automobile Insurance Plan: A state-sponsored plan for providing
automobile insurance to those who are uninsurable under standard auto insurance
policies.
Binder: Oral or written statement that provides immediate insurance
protection for a specified period. Designed to provide temporary coverage until
a policy is issued or denied.
Blanket Insurance: Insurance where a single amount of insurance
applies to two or more items. Some homeowner's policies will have a blanket amount
of insurance that covers the house, contents, and unattached structures instead
of separate limits for each item.
Boat owners Policy: See Watercraft Package Policy
Bodily Injury (BI): Defined in most policies to include physical
harm, sickness and disease, and death resulting from any of these at any time.
Builders Risk Coverage: One of the Commercial Property coverage
forms; covers buildings under construction as well as the materials, equipment,
supplies, and temporary structures used in the construction. This coverage is sometimes
used to cover houses under construction.
SAFECO offers an optional coverage called Theft of Building Materials on their homeowner's
policy that works like a builders risk policy for the owner of the home, but the
contractor is the one who should really have this coverage.
Burglary: As defined in Crime insurance policies, the taking of
property by a person unlawfully entering or leaving the premises as evidenced by
visible signs of forced entry or exit. Don't leave questions; call the police.
Business owners Policy (BOP): Package policy designed to provide
broad property and casualty coverage for small businesses. A form of BOP offered
by RLI can also cover your home business.
Cancellation: Termination of an insurance policy by the insured
or the insurance company during the policy period.
Certificate of Insurance Written form that verifies a policy has
been written. Provides a summary of the coverage provided under the policy.
Coinsurance Condition: A condition that requires an insured to
pay part of a loss if the coverage provided under the policy limits is less than
a specified percentage of the value of the property at the time of loss. Most homeowners
policies require that the home be insured for at least 80% of what it would cost
to rebuild it or a penalty will be charged at the time of a loss.
Coinsurance Penalty: The amount not paid by the insurance company
because the insured failed to comply with the coinsurance condition. For instance,
if a house is not insured for the 80% required by a homeowners policy, the insurance
company will only pay a percentage of the loss instead of all of it.
Collision Coverage: A type of Physical Damage insurance that covers
loss due to the insured object striking another object. May also include upset or
overturn of the insured object. Combined Single Limit (CSL): See Single Limit
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