Glossary Of Terms
Table of Contents
Certificate of Insurance
A form verifying a policy has been written and outlining coverage in general. Often used as a proof of insurance for loans or other legal matters.
Claim
A demand made by the insured or a third party for payment of benefits provided by an insurance policy.
Compensatory Damages
Awarded for injury or loss sustained. Also may include amounts for expenses, loss of wages/salary, and pain and suffering.
Contractual Assumptions and Liability
Arises when an individual assumes liability under a written contract. May be found in many lease agreements.
Deductible
The portion of the insured loss to be borne by the insured rather than the insurance carrier.
Excess Liability
Coverage designed to be above and beyond the primary coverage provided under the insurance policy, and which does not go into effect until the claim amount exceeds a certain sum.
Hazard
Specific situation that increases the probability of an accident and the extent of the loss (e.g., broken handrail on staircase).
Host Liquor Liability
Liability arising from serving alcohol, or hosting a function where liquor is served/distributed. Does not cover liability for selling alcohol.
Intentional Acts Exclusion
Precludes the payment under the insurance policy of any damages or legal costs arising from actions that are expected or intended by an insured.
Liability
Often used to refer to the responsibility on party owes to another party whom they negligently injure.
Liquor Liability Exclusion
Is aimed at firms in the business of selling, serving or furnishing alcoholic beverages. Coverage may be precluded in the following instance

* Causing or contributing to the intoxication of any person.
* Furnishing alcoholic beverages to a person under legal age.
* Furnishing alcoholic beverages to a person under the influence of alcohol
* Violating any statute, ordinance or regulation relating to alcohol.

Loss Control/Prevention
Any combination of actions taken to reduce the frequency or severity of loss.
Negligence
Failure to use that degree of care that an ordinary person of reasonable prudence would exercise under similar circumstances.
Occurrence
Event that results in a insured loss.
Personal Injury
Injury other than bodily injury arising out of false arrest, malicious prosecution, wrongful entry or eviction, libel, slander or invasion of privacy.
Plaintiff
The party bringing legal action against a defendant.
Primary Insurance
Coverage that covers from the first dollar, or after a deductible, for a covered loss or claim.
Property Insurance
Insurance indemnifying a person with an interest in physical property for its loss or loss of its income producing capacity.
Punitive Damages
Damages awarded over and above compensatory damages to punish a negligent party because of wanton, reckless or malicious acts or omissions. Some states do not allow insurance companies to pay punitive damages.
Rape
An act of sexual penetration with a person against her/his will.
Risk Management
Involves analyzing all exposures to the possibility of loss and determining how to handle these exposures buy reducing, eliminating or transferal of risk.
Sexual Harassment
Unwelcome, unreciprocated imposition of sexual attention, usually in the context of a relationship of unequal power.
Vicarious Liability
Under certain circumstances, a person is liable for the action of someone else.
Wrongful Death
A civil court suit brought by survivors against someone believed responsible by negligence or intention for another’s death.

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