Explain Occurrence
Occurrence Technical Terms
Occurrence : An incident or event that triggers coverage in an insurance policy.
Discover Nonwaiver
Nonwaiver Technical Terms
Nonwaiver : An agreement between an insured and an insurer that a claim defense is being undertaken but without agreement that coverage is due. Usually the insured gives up some rights in exchange for the insurer undertaking the defense.
Discover No Control Endorsement
No Control Endorsement Technical Terms
No Control Endorsement : An endorsement to a policy that provides that the insured entity is not denied covered because of the actions of one of its members, actions that are beyond the control of the insured entity. An example is the payment of a fire claim even if the fire is started by a member of a unit owner’s family.
Discover Negligence
Negligence Technical Terms
Negligence : Failure to use the degree of care which an ordinary person of reasonable prudence would use under given circumstances. Acts of either omission or commission or both may constitute negligence.
Discover Named Peril
Named Peril Technical Terms
Named Peril : A cause of loss specified in the policy or a type of policy that covers only those causes listed. See Cause of Loss for further explanation.
Explain Money And Securities
Money And Securities Technical Terms
Money And Securities : A form of crime coverage that pays for the robbery or burglary of money or equivalent property.
Discover Medical Payments (Aka Premises Medical Payments)
Medical Payments (Aka Premises Medical Payments) Technical Terms
Medical Payments (Aka Premises Medical Payments) : An incidental coverage included with most General Liability policies, to pay for medical costs incurred by a guest on the premises who sustains Bodily Injury on those premises. No question is raised as to whether negligence was involved on the part of the Association. Premises medical payments may or may not be extended to residents of an Association.
Expose Mechanical Breakdown (See Boiler And Machinery)
Mechanical Breakdown (See Boiler And Machinery) Technical Terms
Mechanical Breakdown (See Boiler And Machinery) : Because of the change in the equipment used in many structures and because of the expansion of what is covered by such policies, this term is more current and appropriate for what has traditionally been known as a "Boiler and Machinery policy".
Remember Master Policy (Aka Blanket Policy)
Master Policy (Aka Blanket Policy) Technical Terms
Master Policy (Aka Blanket Policy) : A package insurance policy which encompasses an Association’s property and liability exposures and typically includes the structures on the premises, all with a single limit. Additional coverage is normally needed to satisfy all of an Association’s exposures.
Discover Inland Marine
Inland Marine Technical Terms
Inland Marine : Coverage for any type of property that is in some way related to transportation. Today is used for all sorts of movable property, which may be scheduled and often carries a lower deductible than the building insurance carries.
Discover Owners And Contractors Protective/ O&Cp
Owners And Contractors Protective/ O&Cp Technical Terms
Owners And Contractors Protective/ O&Cp : A policy which protects an insured against losses caused by the negligence of a contractor or subcontractor that he hires. The coverage may also be referred to as Independent Contractors Insurance.
Explain Owners, Landlords, And Tenants/ Ol&T
Owners, Landlords, And Tenants/ Ol&T Technical Terms
Owners, Landlords, And Tenants/ Ol&T : A form of insurance that protects an owner when another entity sustains bodily injury or property damage as the result of the operation of the defined premises. Investor owners in an association typically carry such coverage, though it is more limited in scope than that available in a package policy or as an extension from the homeowner’s policy.
Remember Owners, Landlords, And Tenants/ Ol&T
Owners, Landlords, And Tenants/ Ol&T Technical Terms
Owners, Landlords, And Tenants/ Ol&T : A form of insurance that protects an owner when another entity sustains bodily injury or property damage as the result of the operation of the defined premises. Investor owners in an association typically carry such coverage, though it is more limited in scope than that available in a package policy or as an extension from the homeowner’s policy.
Discover Personal Effects
Personal Effects Technical Terms
Personal Effects : The property of an individual covered by the policy in question. Normally refers to items such as clothing, furniture, and jewelry.
Explain Personal Injury
Personal Injury Technical Terms
Personal Injury : A term used to describe one of the General Liability coverages, other than Bodily Injury, which includes libel, slander, false arrest, wrongful eviction, and invasion of property. The definition is usually quite specific in each policy and merits reading.
Expose Personal Property Of Others
Personal Property Of Others Technical Terms
Personal Property Of Others : Property belonging to individuals or entities other than the insured, which is covered by the policy. Normally property in the "care, custody, and control" of the named insured is explicitly excluded. This coverage will extend coverage to such property.
Expose Policyholders’ Surplus
Policyholders’ Surplus Technical Terms
Policyholders’ Surplus : The amount over and above liabilities available for an insurer to meet future obligations to its policyholders. In the case of a mutual insurer, it is the whole equity section of the balance sheet. In the case of a stock insurer the equity section is divided into two parts, the stockholders’ surplus and the policyholders’ surplus.
Remember Pollution Coverage
Pollution Coverage Technical Terms
Pollution Coverage : An insurance coverage, which provides for damage done by pollution, as defined in the policy. The pollution damage may be property damage or bodily injury for third parties that resulted from the operation of the Named Insured’s premises.
Expose Reservation Of Rights
Reservation Of Rights Technical Terms
Reservation Of Rights : A statement by an insurer in which the insurer agrees to provide defense but does not agree (or deny) that it owes any payment on the claim. In essence, the company states that by providing defense it is not agreeing that monies are due and that it is proceeding to determine whether the claim involved is covered by the policy or not. In this circumstance, the insured may be left without funding at any time and may be asked to return any costs incurred.
Discover Replacement Cost/ Rc
Replacement Cost/ Rc Technical Terms
Replacement Cost/ Rc : A form of valuation of property within a policy. With replacement cost the damaged property is repaired or replaced with "like kind and quality" of materials, but at today’s labor and materials cost, without deduction for depreciation.
Discover Reinsurance
Reinsurance Technical Terms
Reinsurance : A type of insurance that involves acceptance by an insurer, called a reinsurer, of all or part of the risk of loss covered by another insurer, called the ceding company. It is a way for an insurer to avoid having to pay large or catastrophic losses and to spread the risk among multiple companies.
Discover Receiving Room Coverage
Receiving Room Coverage Technical Terms
Receiving Room Coverage : As described under Bailee’s Coverage and Bailee, this is a form of coverage to protect the insured against claims alleging loss or damage to property belonging to others but temporarily in custody of the insured. Within associations this may be dry cleaning left in a receiving room or a package left with a doorman.
Discover Property Off Premises
Property Off Premises Technical Terms
Property Off Premises : This term describes coverage extended to property owned by the insured but away from the defined premises, e.g. in storage in a facility away from the association premises.
Expose Property Insurance
Property Insurance Technical Terms
Property Insurance : This is the portion of the package policy, which insures against direct damage to one’s own property. For associations such property will normally include buildings, signs, antennas, and other such items. In order for such coverage to apply, that which was damaged must be defined as covered and the cause of loss must be included among the perils insured against.
Expose Property Damage
Property Damage Technical Terms
Property Damage : A term defined in the CGL policy. It refers to damage done to someone else’s property or to liability for the loss of use of that property.
Explain Proof Of Loss
Proof Of Loss Technical Terms
Proof Of Loss : A formal and normally written statement capturing the information needed to demonstrate what was lost in a particular incident or event. Normally such a proof must be signed by the insured.
Discover Professional Liability
Professional Liability Technical Terms
Professional Liability : A form of liability that arises because the individual or entity involved has particular skills and train or has a particular role as a responsible party, often a fiduciary. Medical Malpractice insurance provides protection for the professional liability of a doctor or nurse dentist. Errors and Omissions insurance provides protection for certain other professionals, such as attorneys and accountants. Directors and Officers Liability insurance provides protection for the officers and directors of a Board.
Remember Products And Completed Operations
Products And Completed Operations Technical Terms
Products And Completed Operations : A form of insurance coverage which protects an insured against claims which arise out of products sold, manufactured, handled, or distributed. Coverage is applicable only after the product is sold and delivered to the buyer. The completed operations portion responds to claims resulting from activities or operations completed by the insured.
Discover Managing Agent’s Rider
Managing Agent’s Rider Technical Terms
Managing Agent’s Rider : An endorsement to an insurance policy that names the property or community association manager as an additional insured for their activities relating to the association involved. Typically it is recommended for General Liability policies and for Fidelity Bond coverages.
Expose Maintenance Fees And Assessments
Maintenance Fees And Assessments Technical Terms
Maintenance Fees And Assessments : An insurance cover designed to reimburse an association for those monies it would normally collect as maintenance fees and assessments but which it has not collected because of the occurrence of an insured loss. Normally the carrier that pays for such a loss will also be subrogated to the rights to seek collection of those monies from the entity or individual that owes them.
Discover Loss Ratio/ Lr
Loss Ratio/ Lr Technical Terms
Loss Ratio/ Lr : A measurement that an insurance company uses to determine the profitability of an Association. The LR is typically the sum of the actual amounts paid out due to losses plus any existing reserves, divided by the premiums collected for that time period. This "pure loss ratio" does not take into account any carrier adjustment expenses or defense costs. A loss ratio may include Loss Adjustment expenses. However, the "Combined Loss Ratio" also adds in the company’s operating expenses. More reliable loss ratios cover at least 3 years.
Remember Loss Of Rents
Loss Of Rents Technical Terms
Loss Of Rents : An insurance coverage designed to reimburse the association in the event that normal and expected rental income cannot be collected because of the occurrence of an insured peril.
Remember Loss Of Income
Loss Of Income Technical Terms
Loss Of Income : An insurance coverage designed to reimburse the association for income that is lost as the result of the occurrence of an insured peril.
Explain Loss Of Assessments
Loss Of Assessments Technical Terms
Loss Of Assessments : A policy coverage that reimburses an Association for funds not collected from unit owners, whether or not mandated by the CC&Rs. Normally it applies only when an insured loss has led to the nonpayment; the carrier does not intend to become a collection agency for the Association. If mandated, the insurance company will assume the collection rights of the Association. The benefit of this coverage is a protection of the cash flow of the Association immediately after a loss.
Expose Loss Assessment
Loss Assessment Technical Terms
Loss Assessment : A coverage included in personal lines policies, which helps to pay for any special assessments levied against the unit owners of the Association. While the coverage details vary, typically the loss must be insurance related, on a peril that would be covered by the policy, and requires assessment against all residents, not just one. The coverage is triggered at the time of the assessment, rather than of the incident that led to the assessment.
Expose Liquor Law Liability
Liquor Law Liability Technical Terms
Liquor Law Liability : Liability that arises as the result of serving or selling alcoholic beverages to third parties and that beverage consumption results in Bodily Injury or Property Damage to third parties.
Explain Liability
Liability Technical Terms
Liability : Liability arising from the law, from a contract, or from some other agreement. In insurance the term commonly refers to the liability that an individual has if he or she should negligently injure another party. Liability insurance protects the insured against claims from other parties for specified claims.
Expose Legal Liability
Legal Liability Technical Terms
Legal Liability : Liability arising from the law. See Liability.
Expose Leaseholder (Aka Shareholder)
Leaseholder (Aka Shareholder) Technical Terms
Leaseholder (Aka Shareholder) : In a cooperative the individual resident does not own his or her unit or apartment, but rather owns a share or shares in a corporation, shares that are represented with a lease that allows the leaseholder to occupy a designated apartment.
Explain Insurance Trustee
Insurance Trustee Technical Terms
Insurance Trustee : An individual or entity, often a bank, which acts on behalf of an insured party, usually the Association, to assure proper collection and management of claims payments.
Discover Insurable Interest
Insurable Interest Technical Terms
Insurable Interest : This is the condition of having a risk of financial loss if the insured property is damaged. Without it, recovery under an insurance policy can be voided. Careful examination of the insurable interest is important when master or blanket policies are being written on community associations.
Explain Inflation Coverage
Inflation Coverage Technical Terms
Inflation Coverage : A portion of a property policy, which adjusts the dollar limit of the policy to keep pace with inflation. An appropriately drafted endorsement will increase the policy limit periodically and reduce the potential of a building being underinsured.
Discover Indemnify
Indemnify Technical Terms
Indemnify : To compensate a party for an actual loss sustained and restore that party to the condition that existed before the loss occurred. That is the intent of an insurance policy. Replacement cost coverage is essential to assure that the property will be restored with "like, kind, and quality."
Remember Indemnification
Indemnification Technical Terms
Indemnification: A condition, usually contractual, of being protected against possible damage, loss, or suit.
Explain Increased Cost Of Construction
Increased Cost Of Construction Technical Terms
Increased Cost Of Construction : The incremental cost attendant to bringing a particular building element up to current building code when that code is different from a "like, kind, and quality" replacement of what existed at the time of a loss.
Explain Incidental Medical Malpractice
Incidental Medical Malpractice Technical Terms
Incidental Medical Malpractice : A portion of the CGL policy that is triggered if a covered party or the Association were to be sued because they tried to provide "Good Samaritan" help or other medical first aid type care and were not professionals in the medical field.
Explain Improvements And Betterments (Aka Additions And Alterations)
Improvements And Betterments (Aka Additions And Alterations) Technical Terms
Improvements And Betterments (Aka Additions And Alterations) : Normally refers to material changes made in a unit or residence beyond the developer’s standard. Such changes include addition of upgrades, special flooring, added paneling, etc. Clarifying what these items are and how they are insured is critical because CC&Rs and master policies vary considerably in how these are handled. These items are not to be confused with the term improvements when it refers to any additions to raw land. These normally would fall within the responsibility of the Association to insure, unless specified otherwise in the CC&Rs.
Remember Host Liquor Liability
Host Liquor Liability Technical Terms
Host Liquor Liability : The term referring to the coverage provided for that legal liability of the Association and relevant individuals, such as Directors, arising from bodily injury or property damages that result from the serving of liquor. Events or activities that involve exchanges of money or which may be subject to licensure normally fall outside of the scope of "host".
Expose Hold Harmless
Hold Harmless Technical Terms
Hold Harmless : An agreement form which shifts liability inherent in a situation; one party holds another free of liability for the consequences of a relationship.
Discover Hold Back
Hold Back Technical Terms
Hold Back : When a replacement cost policy is triggered due to a loss, most policies pay the actual cash value of the lost or damaged articles immediately and then the full replacement cost once the repair or replacement is done. The difference between these two limits is called a hold back.