What are more Public Adjusting Insurance Terms You Should Know?

Common Public Adjusting Insurance Terminology Terms for M to W defined by a SWAT Public Adjusting Firm. Like any other field of insurance, public adjusters have a very large variety and/or a vast amount of their own unique terms. It’s important when going to any insurance company about a claim or dealing with an insurance claim – you should know the basic terminology to more effectively communicate in an insurance office.

Don’t worry, at SWAT Public Adjusting Firm will take time to explain and re-explain things about your insurance claim to you. Also, thank you for reading this blog article “What are more Public Adjusting Insurance Terms You Should Know?” the team at the SWAT Public Adjusting Firm, which is a Great 5 Star Rated Team of Public Adjusters was happy to write it for you.

But like many other medical terminologies, some insurance terms are best learned by breaking them down into their component parts. Here is a large number of terms you might hear when visiting our insurance office, on the phone with an insurance agent, speaking with an attorney, and/or talking with an insurance adjuster. So let’s get started on the terms for M to W.

M – What are more Public Adjusting Insurance Terms You Should Know?

• MACHINE (COMPUTER) ISSUANCE The preparation of policies and endorsements by computer printout. (See Data Processing.)
• MAGNETIC-INK CHARACTER RECOGNITION (MICR) A computer technique used in reading numbers of a specific size and configuration which are printed in an ink mixed with finely ground iron powder which can be magnetized and read by special reading devices. This method is used primarily by the sorting and recording of the millions of checks processed daily, a job which would be totally impossible if left to manual handling. (See also Optical-Character Recognition–“OCR”.)
• MALFEASANCE See Malpractice.
• MALICIOUS MISCHIEF Willful damage to or destruction of property with malice. Vandalism results in the same damage, but the malicious intent is somehow absent, or unproved. Although the definitions are historically different (“Vandalism” at one time referred to damage done to works of art, for example), the two terms are used almost interchangeably today.
• MALPRACTICE Failure to exercise the degree of skill which could normally and reasonably be expected of a professional person. Improper or illegal treatment, as in medicine or surgery, including omission of indicated treatment. Malfeasance (mal-feez’-ance): Unlawful or wrongful action, especially by a public official. Misfeasance (mis-f eez’-ance): Failure to perform an act required by law; improper performance of a lawful act.
• MANDATORY INSURANCE A type of insurance required by statute but more in the vein of pointing to an imposed rule. Stops short of definite implication that severe penalties for non-compliance will result. Example: some states “require’ automobile liability insurance, but do not require a policy or other evidence of financial responsibility to be on file with the state motor vehicle department. In this case it is possible for an individual to operate a motor vehicle without insurance–that is unless he becomes involved in an accident or is charged with a violation. If it happens, the penalties range (depending on the state) anywhere from a small fine and a slap on the wrist to a heavy fine and a requirement to file evidence of financial responsibility. In states with “mandatory” laws, some risk categories (repair garages, public or livery services, taxi and other similar services) which require special licenses to operate, must show evidence of insurance or financial responsibility with the motor vehicle department in order to obtain and maintain their licenses to operate. (See also Compulsory Insurance, Financial Responsibility.)
• MANUAL A book containing rules and rates covering a particular field of insurance (Fire, Plate Glass, Inland Marine, etc.). It is usually published by a rating bureau having jurisdiction, an insurance company to cover a special program, or a private publisher such as SIMPLA-FAX, which publishes digests of rules and pre-figured premiums and rates.
• MANUAL RATES Rates set forth as the basic cost of units of insurance as shown in the particular manual(s), promulgated by Rating Organizations having jurisdiction, or by a company itself. These rates (or premiums) are usually subject to modification by surcharges or credits for increased amounts or limits, or above or below average exposure to loss. Contrast to Judgment or Experience Rates.
• MANUFACTURERS’ AND CONTRACTORS’ LIABILITY (“M. & C.”) A form of insurance covering liability of insureds for bodily injury or property damage (except to insured’s employees) on or away from the insured’s business premises or shop operations.
• This form is generally used for an insured whose operations away from owned or rented premises are substantial, such as a heating, plumbing or electrical contractor. Premium is usually based on payroll, although in come cases receipts.
• Coverage is not provided for damage to property which is owned by, rented to, or in the care, custody or control of the insured. For example: If an installer of Venetian blinds should accidentally knock over a lamp belonging to a customer when bringing the blind into the room to install it, there would be coverage, for the simple reason that the lamp was not owned, rented to, or in the care, custody or control of the insured. Completed Operations Coverage is also excluded. (See Completed Operations.)
• MARINE EXTENSION CLAUSE Provision in Ocean Marine policies which provides automatic continuation of coverage at no additional premium when transit is interrupted, delayed or suspended because of circumstances beyond the control of the insured.
• MARINE INSURANCE See Ocean Marine, Inland Marine.
• MARINE PROTECTION AND INDEMNITY INSURANCE See Protection and Indemnity.
• MARINE SURVEY See Survey.
• MARKET VALUE The amount of money a seller may expect to receive from the sale of real or personal property, service or securities at any given time.
• MARKET VALUE CLAUSE An agreement (not permitted in all states) providing that, in the event of a covered loss, stock (merchandise) is to be valued at its selling price (whether sold or not). Clause is limited to stock the value of which may at any date be determined when it is of a kind which is traded on an established exchange.
• MARKETING REPRESENTATIVE See Special Agent.
• MASS MERCHANDISING A plan of insurance covering certain lines of insurance which is offered under the auspices of a large employer or other homogeneous group, such as a labor union or fraternal organization, where a large number of persons are covered by one insurance company with the idea of convenience (principally payroll deduction and economy).
• Although this marketing concept has been used for many years in the Life and Accident and Health fields, it has been applied to automobile and homeowners since 1968.
• The employer’s willingness to allow solicitation on company premises and time, and to make the necessary payroll deductions are naturally important to the success of any such plan.
• There has been a natural antipathy toward such plans by independent agents, most of whom predict that the insured will suffer by loss of counseling service and assistance, particularly at the time of a loss; and also, that the company which engages in mass merchandising, supposedly for the benefit of a large group, should accept all those who wish to participate in the program, “dogs” and all, and forego the traditional risk selection.
• MASTER POLICY A single policy issued to cover a large number of risks under identical coverage, certificates being issued as needed for individual risks, with reference to the “master policy.”
• MATERIAL FACT See Concealment, Perjury.
• MECHANIC’S LIEN See Lien.
• MEDIA MARKETING Direct solicitation by an insurance company, using media other than agents—television, radio, direct mail, etc.–to sell insurance.
• MEDICAL EXPENSES Term (also sometimes known as “allowable expenses”) means reasonable charges incurred, for reasonably needed products, services and accommodations, including, but not limited to, those for medical, surgical, dental and hospital care, nursing services, ambulance services, X-ray, prosthetic devices, laboratory fees and drugs, rehabilitation, treatment and care. “Medical Payment” generally refers to benefits provided under Automobile and Premises Liability policies, plus Section II of the Homeowners Policy. See Medical Payments.
• MEDICAL PAYMENTS 1) Automobile: Pays for medical payments up to the limit specified for injuries sustained in connection with an owned motor vehicle by the -insured, members of his family and/or others, regardless of negligence on the part of the insured or any operator of the motor vehicle. Covers any person while riding in, getting into or out of the insured’s automobile. Coverage also extends to all members of the insured’s family who reside in his household with regard to any non-owned motor vehicle, or being struck as a pedestrian by any non-owned automobile. 2) Premises: Pays for medical expenses up to the limit specified for injuries sustained on, and in connection with premises owned by (or rented to) the insured, by persons other than the insured, resident members of his family, his employees, (including domestic or resident) who are covered or required to be covered under Worker’s Compensation or tenants (or employees of tenants). As in Automobile Medical Payments, negligence on the part of the insured need not be shown. (Ed. Note: As in other sections of this work, the information given above on Medical Payments is to be used simply as a guide, and in no way intended to be considered technically or legally exact or complete.)
• MEDICAL/SURGICAL PAYMENTS, IMMEDIATE See Immediate Medical/Surgical Expenses.
• MEMORANDUM OF INSURANCE See Certificate of Insurance.
• MENU A display of the various programs contained in a computer.
• MERCANTILE OPEN STOCK POLICY See Open Stock Burglary Policy.
• MERCANTILE REPORT See Credit Report.
• MERCANTILE SAFE BURGLARY This policy covers loss of money and securities (excluding manuscripts, records and accounts) for burglary or attempted burglary, and when all doors of the safe and vault are locked by all combinations and time locks, at all hours, whether the premises are open for business or not. (See Money and Securities Broad Form, Open Stock Burglary Policy.)
• MERCHANDISE Finished goods held for sale.
• MERIT RATING A system of determining a rate based on the known past experience of the individual risk, or of a large group of similar risks.
• MEXICAN AUTOMOBILE INSURANCE Mexico does not recognize an automobile policy written by any U.S. Insurance Company in satisfying Mexican Financial Responsibility laws. Visitors to Mexico would be well advised to purchase at the border special short-term policies issued by Mexican insurance companies so as to avoid difficulties with the local authorities and detainment following an accident or violation.
• MINIMUM PREMIUM See Premium.
• MINIMUM RATES Also known as Class Rates, minimum rates are used in fire insurance to cover those classes of risks which fall into general categories, such as dwellings and contents and small apartment buildings and their contents. On larger risks, such as mercantile, manufacturing and larger apartment buildings and many dwellings in congested areas, the Rating Bureau having jurisdiction promulgates a Specific Rate for the building and contents with particular regard for construction, housekeeping, use, grade of protection, etc. (See also discussion on Rates.)
• MINIMUM RETENTION The minimum amount of premium kept by the insurance company in the event of short rate cancellation.
• MISDEMEANOR A crime or offense not usually characterized as “vicious’ and therefore not a (see) Felony.
• MISFEASANCE See Malpractice.
• MISREPRESENTATION Representing a material fact affecting a policy or a claim as true, when in reality it is not true; lying. (See also Concealment.)
• MONEY As used in insurance, “Money” means domestic or foreign currency, coin, bank notes and bullion. Can also mean unissued registered checks, cashier’s checks, money orders and travelers checks.
• MONEY AND SECURITIES BROAD FORM Basically a policy including premises and outside messenger coverage on an all-risk basis on money and securities with limited protection on other types of property. Among the exclusions are dishonesty of insured or employees, accounting or bookkeeping errors and loss of books, manuscripts and records of account. After a loss, it is often possible to recover some of the stolen or lost property from individuals who caused the loss or from others. The Money and Securities Broad Form Policy provides that any recovery shall be applied to indemnify the insured to the degree of recovery. The Company is entitled to deduct any expenses involved in the recovery of such salvage.
• MOPED A Moped is defined as a two-wheeled cycle with a power-assisting engine, with a piston displacement of 50cc or less (or if -electrically powered, with rating of not more than two braking horsepower). Some states require registration, but most do not. All mopeds are subject to motor vehicle laws of the states and are prohibited from use on limited access highways. Homeowners and personal liability policies specifically exclude coverage for mopeds. A number of companies do write moped coverage under motorcycle forms, rating them as 100cc or less. Other sources are specialty-line writers with specially designed moped policies.
• MORAL HAZARD A condition of the character of the insured, the circumstances in which he finds himself, or a combination of the two resulting in a increase in the possibility of loss constitutes a Moral Hazard. Carelessness or untidiness on the part of the insured, for example, creates a moral hazard, as would pressure from creditors. If the possibility exists that the insured, in the event of a loss, could receive payment in excess of the value of the property destroyed, moral hazard has entered the picture. Insurance rates and premiums are determined on the basis of Physical Hazards which for the most part can be measured or appraised. Since a moral hazard cannot be measured or appraised, no insurance company would insure a risk with the knowledge it contained such an exposure to loss.
• MORTGAGE A legal claim against real property (as opposed to personal property) guaranteeing satisfaction of financial obligation. A Mortgagee is the lien holder to whom the Mortgagor (the owner of the property) has the obligation. (See also Lien.)
• MORTGAGE(S) CLAUSE A clause which is attached to an insurance policy protecting the interest of the mortgagee in the event of a loss. The Mortgagee must be named on any check in payment of a loss (in addition to the insured) and must also be given advance notice of cancellation. The clause is attached to a policy covering real estate property (buildings).
• MORTGAGEE The lender of money to the owner of real property in exchange for a conditional lien on the property as security for repayment.
• MORTGAGOR The owner of mortgaged property.
• MOTOR VEHICLE (ACCIDENT) REPORT A detailed report of an accident required to be submitted to the motor vehicle department where the accident occurred by any operator involved. State requirements vary as to the extent of property damage involved, but when bodily injury to any extent results, virtually all states require a motor vehicle accident report to be made within a specified time limit.
• MOTOR VEHICLE RECORD (MVR) A detailed account of violations, fines and accidents of an individual operator kept by the motor vehicle department; a driving record history or a transcript thereof.
• MULIT-CAR DISCOUNT Most insurance companies writing automobile insurance allow a discount (usually 15 to 20%) if two or more private passenger automobiles (generally excluding those used for business purposes or operated by young drivers) owned by an individual or by husband and wife resident in the same household are insured in the same policy. Also known as “Two or More Automobiles Discount.”
• MULTI-PERIL POLICY See Special Multi-Peril Policy.
• MUTUAL INSURANCE COMPANY An insurance company owned by its policyholders who share in its profits, if any, through dividends. The dividends are based on a percentage of premiums paid by the policyholder, and can never be guaranteed in advance. In former years, the policyholders of a mutual company were also liable to share in its losses through assessment. These were holders of so-called Assessable Policies. Today, most mutual insurance companies have enough reserves so that they are in a position to issue Non-Assessable policies.
• MYSTERIOUS DISAPPEARANCE The loss of an item or items which cannot be explained or presumed to be caused by fire, theft or any other insured peril; an unexplainable disappearance.

N – What are more Public Adjusting Insurance Terms You Should Know?

• NAMED (SPECIFIED) PERILS The specific exposures to loss listed in the policy for which, if determined to be the proximate cause of the loss, the -company agrees to indemnify the insured. (See All-Risk)
• NAMED INSURED The person or the (see) entity specifically named in the policy (as opposed to a party having an interest, such as a mortgagee) as the insured. Depending on the type of insurance, “named insured” may be extended to spouse (automobile) resident in the same household, and even to all relatives in the insured’s household without age restriction, and even to non-related persons under age 21. (See Automobile, Comprehensive Personal Liability and Homeowners Policy Section II)
• NAMED NON-OWNER POLICY A form of automobile liability insurance written for an individual who does not own an automobile. It covers the named insured and spouse (if resident in the same household) for liability for accidents occurring while driving any automobile not owned by either party or by a member of his or her household. The named non-owner policy is excess over any other insurance available to the insured.
• NEGLIGENCE The law imposes a duty on every person to exercise reasonable care with respect to his own acts and to the maintenance of his own property so as not to cause injury to other persons or damage their property. Failure to exercise such reasonable care constitutes Negligence. The burden of proof of negligence lies with the injured party with few exceptions. In theory, one who charges another of being guilty of negligence must himself be completely free of blame. Any degree of blame on the part of the injured party is called Contributory Negligence, which (again in theory) act to void his claim for recovery of damages. In actual practice, however, such is not the case. In some jurisdictions, the very harshness of the concept of Contributory Negligence, wherein the injured party receives no compensation for injuries or damages, the doctrine of Comparative Negligence has been introduced, wherein an attempt is made to determine the degree of negligence (blame) of both parties which allows partial recovery by the injured party. In all cases involving a charge of negligence, intent to harm must be absent. Where intent to harm is present, the action, if substantiated, then becomes a crime which is a wrong against the state and punishable by fine and/or imprisonment. The degree of reasonable and prudent care required to avoid a judgment on a charge of negligence varies as to the relationship between the parties involved: employer to employee; manufacturer and retailer to the general public; bailees to bailors; owners and tenants to the general public, etc. Volumes have been written on the subject of negligence and its ramifications. Some of the latter are determined by Common Law (based on the court decisions handed down by the years representing precedent) and Statutory Law covering certain situations (employer-employee relationships resulting in Worker’s Compensation, for example) which has been enacted into law by legislative bodies having jurisdiction. (See also Torts, Common Law, Statutory Law, Res Ipsa Loquitor.)
• NEGOTIABLE INSTRUMENT (Also known as “Commercial Paper”.) A document of value (meaning measurable in terms of money) which is transferable from one person to another by endorsement, assignment or delivery. Checks, drafts, bills of exchange, notes, and some bonds and securities. (See Stale Check, Draft.)
• NO-FAULT AUTOMOBILE INSURANCE A system of automobile insurance (patterned roughly after Worker’s Compensation) designed to eliminate the time-consuming, inexact, expensive and often impossible task of determining negligence (fault) in the event of an automobile accident. Ideally, No-Fault would work something like this: If you become involved in an accident, the determination of fault as a factor would be eliminated. Your own insurance company would pay for expenses incurred by you, and the other party’s insurance would pay for his injuries and/or damages. There would be no blame to fix, no investigation, no lawyers, no courts and no delays in receiving compensation. Total (“Pure”) No-Fault would pay all economic losses to all insured parties without regard to fault. There would be no limits to the total amount of benefits, and there would be no delays and no law suits. The standard tort liability system (meaning the one at fault has to pay for damages he caused) seems to be equitable enough, yet not only does the party to blame not pay (his insurance company and all who pay premiums pick up the tab), but the system has turned into a very expensive method of making settlements which is often slow and frequently unfair. In addition, it is expensive out of all proportion to the benefits paid. Figures show that under the present compensation system where an economic loss is $500 or less, four and one half times that amount is paid out in settlement. Conversely, where the economic loss is $25,000 or more, settlements amount to one third of the real economic loss. Only about forty-five cents out of each premium dollar is paid out in actual benefits. (Figures are from U.S. Department of Transportation study.) Objections put forward by opponents of No-Fault are directed mainly at the reduction or elimination of the injured party’s right to recovery in the courts, thereby violating his constitutional rights. Several judicial bodies have declared the system constitutional. A number of No-Fault plans have been enacted into law, or are about to be adopted by many states. All of these have set various limits (“thresholds”) of economic loss and other losses, providing that if these limits are reached or exceeded, injured parties may resort to courts. Most of these “thresholds” are quite low. In order to be effective, No-Fault state laws must eventually conform to the same general standards.
• NON-ADMITTED INSURANCE COMPANY An insurance company which is not licensed in a particular state or country, is termed “non-admitted” in that state or country. Insurance may be obtained from these companies however, under the following conditions: 1) when the needed coverage is not available from either the voluntary or the residual market (and the agent has done everything he can do to accomplish this, and) 2) the insurance is placed with the non-admitted company only through a state licensed “excess” or “surplus lines” broker.
• NON-ASSESSABLE POLICIES See Mutual Insurance Company.
• NON-CONCURRENCY See Concurrent Insurance.
• NON-IMPACT PRINTER See Printer.
• NON-OWNERSHIP LIABILITY-AUTOMOBILE The liability of persons or organizations by reason of the operation for their interest of automobiles which they do not own. For example, an employer who has salesmen who operate their own automobiles in pursuit of the company’s business may be held jointly or solely liable in the event of an accident during such pursuit. An Automobile Non-Ownership Liability Policy may be issued to cover the interest of the employer or organization for this exposure. (See also Named Non-Owner Policy and Hired Car Policy.)
• NON-WAIVER AGREEMENT An agreement between the insured and the insurance company after a loss, whereby it is agreed that the investigation or appraisal of damages shall not be construed as an admission of liability on the part of either party.
• NOTICE OF CANCELLATION See Cancellation.
• NOTICE OF LOSS See Loss Report.
• NOTICE OF NON-RENEWAL Written notice issued by company to insured (with copy to agent) of its intention not to renew a policy. Same notice may be issued by agent (with copy to company). When required, notice must be given a specified number of days in advance of expiration date.
• NUCLEAR HAZARDS CLAUSE Specifically excludes loss caused by nuclear hazards explosion (accidental or otherwise) from any source, except fire resulting from such an occurrence is covered.
• NUMISMATIC PROPERTY Coins and medals and collections thereof.

O – What are more Public Adjusting Insurance Terms You Should Know?

• OBLIGEE See Bond.
• OCCUPANCY The nature of the use of premises; description of the nature of the contents of premises.
• OCCURRENCE The commonly accepted definition: “An injurious exposure to conditions, which results, during the policy period, in bodily injury or property damage neither expected nor intended from the standpoint of the insured.” This wording eliminates the necessity of pinpointing the exact time of the loss.
• OCEAN (“WET”) MARINE That class of insurance covering ships, their equipment, cargoes and other liabilities. Often referred to as “Wet Marine” as opposed to “Inland Marine.” See also Cargo Policy, General Average, Hull Insurance, Longshoremen’s and Harborworker’s Compensation, etc.
• OFF PREMISES Refers to insurance applying away from the premises described in the policy. Personal activities (liability), personal property (homeowners and inland marine) are examples of such coverage. Often referred to as “away from the premises.”
• OFFICERS AND DIRECTORS LIABILITY INSURANCE See Directors and Officers Liability Insurance.
• OFF-LINE Not under control of the Central Processing Unit (CPU).
• OMNIBUS CLAUSE The term commonly used to refer to the section of the automobile policy which defines the word Insured wherever used in the policy. Originally the automobile policy covered only the person, persons or organization(s) specifically named in the policy, and a separate charge was made for each. Subsequently, when the National Standard Automobile Policy was adopted, the definition of insured was broadened to include his (or her) spouse, members of the insured’s family residing in his household, and any other person or organization operating the automobile with the expressed (or implied) permission of the named insured. “Implied Permission” means permission which would have been granted had the insured been present to give it. Insurance people refer to the Omnibus Clause, a term which you will not find in the policy. The concept, however, is contained in the section of the policy titled “Definition of Insured.” The term is also used in Marine Insurance.
• ONE-BANK HOLDING COMPANY A separate corporation formed by a commercial bank for the purpose of transacting business related to its usual operations, such as the selling and servicing of insurance (among other services) which it is prohibited from doing by reason of terms of its charter and other banking regulations. It is a means of permitting the bank to expand and diversify its related services.
• ON-LINE PROCESSING The technique used when date requires some form of immediate processing. For example, when a member of a medical insurance plan is admitted to an emergency room, the patient’s membership number may be entered through a terminal to the main computer which, in a matter of seconds, can locate the member’s file and return a complete printout of his medical history and make it available to the emergency room staff. (Compare to Batch and Real Time Processing.)
• OPEN LOT See Standard Open Lot.
• OPEN MARKET See Voluntary Market.
• OPEN POLICY A policy having no expiration date but continuing in force until cancelled. There is generally an annual premium deposit (with company retention of the minimum) and the policy is written more or less on a “reporting form” basis with adjustments in premium made at arranged periodic intervals. Usually a marine form (e.g. Parcel Post, Marine Cargo) where values exposed to loss at any given time fluctuate. The Fidelity Bond has an expiration date and is also therefore an “open” form.
• OPEN STOCK BURGLARY POLICY (Also known as the Mercantile Open Stock Policy.) Policy covers loss by burglary of merchandise, furniture, fixtures and equipment from within the insured’s premises when such premises are not open for business, provided there are visible signs of forcible entry. Coverage is also provided for robbery of a watchman when the premises are not open for business. The policy provides, in addition, some protection for damage done to contents and/or building during the burglary if the insured is owner of the premises or responsible for such damage under the terms of his lease. This policy does not cover money, manuscripts, securities, records or accounts. Theft, shoplifting, inventory shortages, etc. are also excluded, but day or night robbery and theft may be included by endorsement for an additional premium. (See Forcible Entry definition.)
• OPTICAL CHARACTER RECOGNITION (OCR) A computer operation which can “read” numbers and letters (typed, printed or handwritten)from a source document (anything that contains information needed for data processing) and converts them directly into electrical impulses for entry into the computer. This process eliminates the need for manual entry of data from terminal keyboard or key-punched cards. (See also Magnetic Ink Character Recognition–MICR).
• ORAL BINDER See Binder.
• ORDINANCE A law enacted by a municipality.
• OTHER INSURANCE CLAUSE A provision in the policy outlining the procedures to be followed in the event of a loss where (or when) other existing insurance may be applicable.
• OUTPUT DEVICE Any device which transfers processed data from computer storage and records it in whatever form is required (e.g. payroll, loss and claim summaries, account statements, printouts of any desired information, etc.)
• OVERKILL 1) Accomplishing more than your job description requires. Incurs wrath of fellow bureaucrats. 2) The act of killing someone more than once.
• OWNERS’ & CONTRACTORS’ PROTECTIVE LIABILITY See Contractor’s Protective Liability.
• OWNERS’, LANDLORDS’ AND TENANTS’ LIABILITY (O.L.&T.) Liability arising out of the ownership, occupancy or use of real estate, or of operations in connection therewith, including maintenance of premises. The scope of protection under the O.L.&T. policy covers the insured for liability described above, but is broader in protection than appears at first glance. In addition to premises, the policy provides coverage for “all operations necessary or incidental thereto,” a phrase which extends the liability protection for the insured beyond the limits of the premises as defined to cover accidents occurring away from the premises providing they result from the insured’s regular operations. Even though this extension may include delivery and installation, there are the usual expected exclusions (see Completed Operations, Loading and Unloading) such as Liability assumed under Contract, Vehicles, Aircraft and New Construction or Demolition, among others.

P – What are more Public Adjusting Insurance Terms You Should Know?

• PACKAGE POLICY A policy containing protection against a number of different exposures in a single contract such as fire, theft, burglary and liability. Other all-risk options such as scheduled items for all-risk coverage are available at the option of the insured. Personal Package Policies are usually of the Broad Form or Special Dwelling Policies, or, more frequently the Homeowners Policies. Commercial Package Policies are also now available under the Special Multi-Peril (SNP) Forms, and may be tailor made for particular businesses, such as Motels, Hotels, various Mercantile and Office Risks and others. Also known as “Combination Policy.”
• PAIR OR SET CLAUSE Clause found in inland marine policies which provides that in the event of covered loss of one item of a pair or one or more items of a set, the company is liable only as the value of the item(s) lost bears to the total value of the complete pair or set, and the loss of the item(s) shall not be construed as the total loss of the entire pair or set. For example, the loss of one of a pair of earrings would require the company to pay the reasonable and fair proportion of the total value of the pair, some consideration being given to the importance of the lost item. -Some years back, the settlement would have been half the value of the set, no questions asked. Today, however, adjustment is frequently made by replacing the set in exchange for the remaining piece for salvage. This practice does not usually hold, however, in matters of loss or damage of a part of a set which is made up of a number of parts, where the individual parts are not considered for their value as part of a complete set. For example, it two units of a twenty unit set, each unit being of equal value, are lost or damaged (2/20th or 1/10th), then the company would pay 10% (1/10th) of the total value of the set.
• PARTICIPATING POLICY A policy which entitles the policy holder in a stock insurance company to share in the underwriting and/or investment profit (if any), based on a percentage of the premium paid, in the form of dividends based on individual earned premiums. (See also Stock Participating Company.)
• PARTICULAR AVERAGE See General Average.
• PARTNERSHIP A legal entity created by combining the work, talents, money and other assets of two or more individuals in order to accomplish more than any one could do alone. A copy of the partnership agreement must be filed in the county (or equivalent) clerk’s office for notice to the public that a partnership exists. Many partnerships have been highly successful, but there are many dangers to the participants in this type of arrangement. Unlike a (see) Corporation, the liability of each partner is not limited to the extent of his investment. If the firm fails and its obligations exceed its assets, creditors may recover from assets of the individuals involved. In addition, all partners are bound by the acts of one of them. (See Corporation, Entity.)
• PARTY An individual or other legal entity (partnership, corporation, unincorporated association) who is or becomes principal in a contract or other legal action. An entity whose physical or financial condition may be altered as a result of the settlement of a claim or judgment in litigation is referred to as an “Interested Party” or as a “Party at Interest.” A “Disinterested Party” is one who has knowledge of a contract or an occurrence resulting in litigation, but who has no personal or financial interest in the parties involved. An “Uninterested Party” is one who doesn’t care one way or the other. And we can’t resist the story Bob Steele of WTIC, Hartford, Connecticut, tells about when he asked someone “What is the difference between ‘ignorance’ and ‘apathy?.’ The answer was, “I don’t know and I don’t care.” (See also Contract and Claim.)
• PARTY WALL A wall constructed on the building line dividing two pieces of property, the use and the responsibility of which is common to both owners of the adjoining property.
• PAYMENT BOND A bond guaranteeing the owner of a building under construction that the building will be turned over to him upon completion free and clear of any liens for unpaid labor or materials or other encumbrances. (See Bond.)
• PAYMENT PLAN Any of the various premium payment plans for the convenience of payment of premium.
• PAYROLL AUDIT When the premium for certain types of policies is based on payroll (Worker’s Compensation, for example) a “payroll audit” may be made by the insurance company in order to verify the figures supplies by the insured. (See Audit.)
• PENALTY The limit of liability or the maximum amount of insurance of the company (the Surety) writing a bond.
• PERFORMANCE BOND A bond guaranteeing the satisfactory performance of a contract (usually construction). This bond is sometimes erroneously referred to as a “Completion Bond.” See that term elsewhere for correct definition. (See also Payment Bond.)
• PERFORMANCE VEHICLE’ A private passenger automobile which is more highly powered, relative to its size and weight, than would be expected for the normal operation of private passenger vehicles. A “performance vehicle” is usually subject to a surcharge for liability and physical damage, and may be identified as such in the Symbol and Identification of the Private Passenger Automobile Manual.
• PERIL See Exposure.
• PERILS OF THE SEA The hazards insured against in an ocean marine policy which refer to unusual (but natural) action of heavy seas or high winds resulting directly in sinking, collision or stranding on reefs, rocks or shoals. The usual action of the winds, waves or tides does not come under the meaning of this term.
• PERILS ON THE SEA A reference to hazards in an ocean marine policy which are not the result of “Perils of the Sea,” but instead are losses or damage caused by such things as theft, pilferage, non-delivery, fire, breakage, shifting of cargo, condensation in the hold, contact with other cargo and other occurrences brought about by external causes. Excepted are losses which are described in certain warranties, such as -those resulting from capture, seizure, strikes, lockouts, riots, war risks, etc.
• PERIPHERAL DEVICES (PERIPHERALS) Equipment used primarily for the processing of punched cards (key punchers, sorters, reproducers, collators, etc.). These devices are not connected directly to the computer. They are not part of the computer system, but serve an important role in the operation of the data processing function by reducing the burden of card processing on the computer. (Punched cards have been for the most part replaced by other storage devices.)
• PERJURY The willful making of a false statement concerning a material fact under oath in a legal proceeding; false testimony.
• PERSONAL ARTICLES FLOATER A policy used to provide coverage for a variety of valuable personal articles, such as furs and jewelry, cameras and equipment, silverware, golfer’s equipment, musical instruments, fine arts, stamp collections and coin collections on an all-risk basis. The items to be covered are “scheduled” (described in detail and evaluated, and coverage is usually world-wide but may sometimes be limited to the United States and Canada), and, unlike the Personal Effects Floater, cover at the residence of the insured. The floater form may be attached to and made a part of the Homeowners policy.
• PERSONAL AUTOMOBILE POLICY (PAP) See Family Automobile Policy.
• PERSONAL EFFECTS FLOATER (Also known as “Tourist Floater.”) This form covers personal articles such as are usually carried by tourists or travelers belonging to, used by or worn by the insured and members of his immediate family residing together against practically all risks or loss or damage anywhere in the world except in the insured’s residence premises or in storage except that which might be incidental to travel. Property is not “scheduled” but does have limitations (jewelry and the like, for examples is limited to 10% of the policy amount or $100 on any one article, whichever amount is less) and exclusions such as borrowed or rented property, theft from unattended automobile, or from premises of schools, dormitories or fraternity or sorority houses. Coverage under the Personal Effects policy is now covered to a large degree by the Homeowners policy.
• PERSONAL INJURY Physical damage to the human body, as opposed to damage to property. (See also discussion under Injury.)
• PERSONAL INJURY PROTECTION (PIP) See No-Fault Auto Insurance.
• PERSONAL LINES Various forms of insurance written to cover the activities and movable property of individuals as opposed to those of business. (See Commercial Lines.)
• PERSONAL PROPERTY In insurance terms, Personal Property is movable property as opposed to Real Property (land and buildings).
• PERSONAL PROPERTY FLOATER (P.P.F.) A broad form inland marine type policy covering all types of personal and household property anywhere on an “all-risk” basis with certain exclusions. This form is now seldom written since much of the protection afforded is now covered under the Homeowners form, particularly under Homeowners HO-5 and “C” policies.
• PERSONAL PROPERTY REPLACEMENT COST ENDORSEMENT Except for such personal property as jewelry, silver, coin collections, etc., written on a “Stated Value” basis and scheduled on a (see) floater policy or endorsement, personal property has always been subject to depreciation, and loss adjustment subject to “Actual Cash Value.” The Replacement Cost Endorsement is now available in some states for attachment to homeowners policies. As expected, it has some restrictions. Ineligible property (which will be adjusted on an actual cash value basis) are such things as antiques, fine arts, paintings and similar articles of rarity or antiquity which are irreplaceable; memorabilia, collectibles and similar articles whose age or history contribute to their value; articles that are not maintained in good workable condition or that are outdated, obsolete or not being used. There are also limits, such as policy or special limits, beyond which the company will not pay. Consult manual for availability, additional charges and other specific limitation and conditions. (See Actual Cash Value and Valued Policy.)
• PERSONAL PROPERTY, UNATTENDED See Unattended Automobile.
• PHILATELIC PROPERTY Stamps and stamp collections.
• PHYSICAL DAMAGE (AUTOMOBILE) 1.) Refers to damage done to the insured automobile (not to be confused with “Property Damage” which is damage done by the insured automobile) such as fire, theft, collision or upset, windstorm, vandalism, malicious mischief, flood, falling objects, etc. 2.) That portion of automobile insurance other than liability (Bodily Injury, Medical Payments, etc.).
• PHYSICAL DAMAGE (TO PROPERTY OF OTHERS) Unlike Property Damage found in general liability policies, this coverage provides the insured protection for damage to property of others while in the care, custody or control of the insured, including intentional damage by a child of 12 or under. Covers for damage to property borrowed by the insured, but not to property owned or rented by the insured, any member of his family residing with him, nor to property owned by a tenant of the insured. This coverage is included in the standard Comprehensive Personal Liability Policy, and is incorporated in the Homeowners forms under Section II, Liability.
• PHYSICAL HAZARD The physical properties of characteristics of real or personal property, together with the physical conditions adjacent to such property, which might contribute to creating or increasing the possibility of loss. (See also Moral Hazard.)
• PICK-UP ENDORSEMENT An endorsement used when a package policy written to “pick up” certain lines already covered by policies which are still in force, allowing them to continue to expiration. This form is also know as the “Credit for Existing Insurance” endorsement, and allows the insured premium credit on a pro rata basis for the existing policies, and automatically picks up such coverages upon their expiration, contingent upon their remaining in force until that time. This presents the insured from being penalized for short rate cancellation, and also eliminates any suspicion that the agent may be guilty of “Twisting.”
• PILFERAGE Petty theft of personal property.
• PLAIN LANGUAGE LEGISLATION The move toward plainer language and away from the “fine print” has given rise to Federal and State legislation mandating that legal contracts be made more readable to lay persons (consumers) who are made parties to these contracts. The legislation affects the Insurance Industry which had made attempts in this direction long before the government decided to do something about the problem. Much of the legislation has required that rewritten contracts use as a yardstick for readability, the “Flesch Reading Ease Test” and obtain a minimum grade on a scale of 1 to 100 (1 being the most difficult; 100 being the easiest). The problem of writing contracts which must necessarily cover almost every conceivable contingency without resorting to litigation and with an absolute minimum of possibility of more than one interpretation for any of the conditions, is enormous. The aim is to use a minimum of simple words to spell out an agreement between two or more parties, each of which has, certain obligation and privileges. An uncountable number of situations could arise requiring this simple contract to be called upon to give an unequivical interpretation as to the proper application of its terms. That there is room for improvement, no one can doubt; archaic language must go. (See Flesch Reading Ease Test.)
• PLANT See Agency Plant.
• POLICY The written contract between the insurance company and the insured containing the details of an insurance agreement, including any modifying endorsements attached at the time of issue or thereafter.
• POLICY PERIOD The length of time, specified as to the start (effective date and time) and the finish (expiration date and time) insurance protection is afforded by an insurance policy. Also commonly referred to as “Term.” (Ed. note: See important discussion under Effective Date.)
• POLICY REGISTER A record of all policies (by number) kept by an insurance company to account for all policies issued and not yet issued. (i.e. those not yet used either by the company, or those in the possession of its agents not yet reported as having been issued.) Policies missing because of loss, damage, voided or flat-cancelled must be accounted for. If voided or flat-cancelled by agent, the policies must be returned to the company to be entered in the policy register as such. If lost or destroyed by fire or other cause, the agent must sign a statement releasing the company from all liability for policies which may have been issued but yet remain unaccounted for. The release must also be recorded in the policy register.
• POOL Companies joined together to write on a fixed share basis a certain (usually undesirable) class of business. (See Assigned Risk)
• POWER OF ATTORNEY A legal document authorizing another person or corporation to act on behalf of and obligate the giver of such Power Of Attorney within certain specified limitations. (See also Attorney-in-Fact.)
• PREFERRED RISK A risk that from the standpoint of exposure to loss is less likely than the average to result in a claim.
• PREMISES The location of the property insured, including the buildings(s) insured and/or containing the property insured, plus the insured property immediately adjacent thereto.
• PREMISES MEDICAL PAYMENTS See Medical Payments.
• PREMIUM The amount of money charged for a specific amount or limit of insurance for a specified length of time. Additional Premium: An additional amount charged above and beyond the original premium by reason of a corrected rate, a “published” -rate replacing a “subject” rate (see below), or an additional policy amount, limit or coverage requested by the insured. Earned Premium: The amount of total premium which has been used up at any given point during the policy period. (See also Unearned Premium below.) Estimated (Advanced, Initial or Deposit) Premium: a premium agreed upon when the exact actual premium cannot be determined until the end of the policy period. Used on policies the premiums of which are based on payroll, sales, receipts or other units, the exact amount or number of which cannot be known in advance. (See also Audit.) Gross Premium: The total premium paid by insured before any deduction for agent’s commission, reserve or reinsurance premium. Minimum Premium: The least amount for which an insurance company will insure a risk for a given period of time. Aside from the risk involved, an insurance company must take in at least enough money to cover the expenses of handling the necessary paperwork. Minimum Retained Premium: See Minimum Retention. Return Premium: That portion of the total premium due the insured by reason of cancellation of the policy; reduction in the coverage, rate, limit or amount; or upon determination on audit that the Advance or Deposit Premium is greater than the actual premium developed. “Subject “Premium: See Subject Rate. Unearned Premium: The portion of the total premium applicable to the unexpired (unused) portion of the policy period at any given point during its term. (See also Earned Premium above.)
• PREMIUM NOTICE A statement sent to a policyholder giving advance notice of a premium due.
• PRIMA FACIE Refers to the indiscriminate mixing of clients and companies’ funds by an agent or broker with his own funds. This is illegal under state law and can result in revocation of license and fines.
• PRIMARY CARRIER An insurance company which is first obligated to pay its limit of coverage before any other applicable insurance (“excess”) is required to pay.
• PRIMARY INSURANCE The applicable insurance which is called upon first to satisfy a covered loss. (See Excess Insurance and Reinsurance.)
• PRINCIPAL See Bond.
• PRINCIPAL AMOUNT See Face Amount.
• PRINTER One of many types of data processing output devices which can produce data from a computer that can be read by the human eye.
• PRIVATE CARRIER See Common Carrier.
• PRIVATE PASSENGER AUTOMOBILE The generally accepted insurance definition of this term is a four-wheeled motor vehicle of the private passenger, station wagon or jeep type, not used as a public or livery conveyance nor rented to others without a driver, owned or hired under long-term lease by an individual or by husband and wife residing in the same household, or by a corporation or co-partnership. Automobiles used in connection with business pursuits (sales calls, etc.) are included in this definition, providing they are not used for wholesale or retail delivery. Also included in the “private passenger” definition is a motor vehicle with a pick-up body, a delivery sedan or a panel truck (none of which has a load capacity in excess of 1,500 pounds), owned by an individual or by a husband and wife residing in the same household, and not used in the occupation, profession or business of the insured, other than driving to and from work or pleasure use. (See definition of Commercial Vehicle.)
• PRO RATA Literally “in proportion.” For example, if a one-year policy calls for a premium of $120, at the end of 3 months, the Pro Rata Earned Premium is $30, and the Pro Rata Unearned Premium (for the remaining nine months) is $90. See Premium, Apportionment, Short Rate and other Pro Rata headings.
• PRO RATA CANCELLATION See Cancellation.
• PRO RATA DISTRIBUTION CLAUSE (Sometimes called “Average Clause.”) A clause attached to blanket forms of policies covering various items or locations to enable the insurance to be distributed proportionately as to the value of each item or location and its relationship to the total value of the property insured at the time of the loss. An example of the benefit to the insured of this clause would be a man who had two or more warehouses in which the goods he manufactured would vary from time to time. If he carried enough total insurance, particularly with regard to any Reduced Rate Contribution Clause requirement (80% Coinsurance, for example), he would have no concern relative to variations of inventory between the warehouses.
• PROBABILITY, THEORY OF 1.) Statement of the observation that, in a large (“Significant”) number of situations, a predictable number of events of various types will occur as a result of pure chance. The degree of accuracy of prediction of the occurrences will be in direct proportion to the number of such situations. The concept of probability is the basis of insurance. See also Actual’,’, Insurance and Law of Large Numbers. 2.) The expression of the likelihood of the occurrence of a particular event, based on the relative frequency of events of the same kind having occurred in the known course of past experience.
• PRODUCER An agent, sub-agent, broker or salaried solicitor who sells insurance. (See also Agent and General Agent.)
• PRODUCT LIABILITY INSURANCE This coverage protects manufacturers and retailers (and all the people in between) of goods against claims for damages or injuries arising out of possession, use or consumption of such goods. Food poisoning is a good example of a claim under this type of insurance. (See also Completed Operations.)
• PROFESSIONAL LIABILITY The liability of those engaged in offering professional services is practically unlimited. The law has forced increasing responsibility for errors and omissions on Attorneys, Physicians and Surgeons, Dentist, Druggists, Nurses, Hospitals, Laboratories and many others who supply professional services and may be held liable for errors -and omissions, malpractice or malfeasance. The area of responsibility was even further expanded by legislation in the early 1970’s to hold Corporate Directors and Officers individually liable for civil claims made against them and caused by a negligent act or error or omission while acting in their official capacities.
• It is important to remember that this coverage is limited to protection against liability arising out of professional services, and is not designed to protect against exposure of claims arising from premises or other hazards which can properly be covered by other forms of liability insurance.
• PROFITS INSURANCE When a fire or other covered peril destroys merchandise which is covered under the policy, only the value of the damaged goods or destroyed merchandise is paid. Profit Insurance reimburses the insured for loss of profit that could have been realized had the goods been sold. Coverage can be provided for this exposure by adding (see) “Selling Price Clause” endorsement.
• PROGRAM A detailed set of instructions given to the computer telling it what kinds of input data it will receive, what operations it will perform on it and what form of output to produce.
• PROHIBITED LIST A list provided by the company to the agent outlining the classes of risks which it will not insure under any conditions. A Prohibited Risk is the same, except that it refers to a particular risk.
• PROMULGATE Determine and publish (make known) a rate.
• PROOF OF FINANCIAL RESPONSIBILITY See Financial Responsibility.
• PROOF OF LOSS A formal written affidavit accompanied by pertinent supporting data filed by the insured requesting payment from the insurance company of a “First Party” claim. (See Claim.)
• PROPERTY See Real Property and Personal Property.
• PROPERTY DAMAGE Damage to property of others as opposed to (see) Physical Damage for which the insured may be held legally liable.
• PROPERTY INSURANCE This type of insurance indemnifies the insured for the loss of property (real or personal) resulting from the direct physical damage or loss by a peril insured against (Fire, Explosion, Windstorm, etc.).
• PROSTHETIC DEVICE An artificial substitute for a missing part of the human body, such as a denture, an artificial eye, appendage (leg, arm, hand, etc.). Canes, walkers, wheelchairs and the like are not considered prosthetic devices, but supportive braces worn on and attached to the body are so considered.
• PROTECTION AND INDEMNITY INSURANCE (P. & I.) The ocean marine equivalent of Bodily Injury and Property Damage Liability Insurance. Since there are some differences inasmuch as P. & I. has its origins in maritime law, this definition is general in nature, and further study is recommended depending on interest and need.
• PROTECTION STATEMENT A description of the degree of fire protection in terms of proximity of available fire hydrants and fire stations. Term is used to define the exposure for minimum (as opposed to specific) rated risks. Protection Statements are numbered. For example, Protection Statement No.1 indicates that the risk is located within 500 feet of the nearest (acceptable) fire hydrant, and within 3 (road) miles of an available fire station. Notice the words “acceptable” and “available” (ours). If the hydrant is located on private property and cannot be used, it is obviously not “acceptable”; similarly, if a fire station is located within 3 miles of the risk, but is located in another municipality, and will not respond to a call for help, it cannot be considered available. Statements usually range from 1 to 4. When the distance requirements are met, but the hydrant and/or fire station are located in a different municipality, and there is a reciprocal agreement between the municipalities to respond without prior approval of an authority of either town, then the facilities are considered as “available.”
• PROTECTIVE LIABILITY INSURANCE See Contractors’ Protective Liability.
• PROXIMATE CAUSE Property: The hazard to which a loss can be directly attribute, such as wind, fire, lightning, flood, etc.
• Liability: The direct causal connection between a negligent act and an injury.
• PUBLIC ADJUSTER See Adjuster.
• PUBLIC AUTHORITY See Civil Authority.
• PUBLISHED RATE See Promulgate.
• PUNITIVE DAMAGES See Damages.

R – What are more Public Adjusting Insurance Terms You Should Know?

• RADIOACTIVE CONTAMINATION This exposure in Property Insurance is specifically excluded under the “Nuclear Hazard Clause,” meaning damage resulting from any nuclear reaction, radioactivity or radioactive contamination however caused, either directly or indirectly, except the direct loss by fire resulting from the nuclear hazard is covered. “Radioactive Contamination Assumption” endorsements have been developed for certain risks (hospitals, etc.) by associations and pools specializing in these exposures.
• Liability coverage is excluded under all policies, and those engaged in activities which might give rise to resulting damage or injury to others must obtain the coverage through one of the pools or associations. Information can be obtained from the Atomic Energy Commission. (AEC).
• RAIN INSURANCE A special form of insurance providing indemnity for loss of income, anticipated profits or expenses incurred because of rain, hail, snow or sleet. It is written for those who have a financial interest in any event which might be jeopardized in the event of inclement weather, such as a fair or a department store sale. The terms of the policy are quite specific as to the exact amount of precipitation, and the hours between which it must fall. United States Weather Bureau Figures are generally the criterion, although other mutually agreed upon authorities can be used.
• RANDOM ACCESS The process by which stored data may be retrieved without having to read all the records that precede it. Magnetic disks make this operation possible; magnetic tape or punch card systems do not.
• RATE In Fire and Marine (“Property”) insurance, the per unit (usually per $100 of value) charged for insurance coverage for a specified period of time, expressed in dollars and cents or a percentage of the amount of insurance desired. In Casualty insurance, the rate is the amount which is charged by the company per unit of exposure to loss. The “unit” may be location, classification, occupancy, each $100 of payroll or receipts, or other measurement of exposure. The rate multiplied by the unit used results in what is called the Premium. (See Premium.)
• RATE CARDS Rates on specifically rated risks are indexed by the Rating Bureau on “Rate Cards.” Also known as “Tariff Cards.”
• RATE, ADVISORY See File and Use Under Deviation and Rating Bureau.
• RATE, AVERAGE See Average Rate.
• RATE, BLANKET See Average Rate.
• RATE, CLASS See Minimum Rates.
• RATE, MINIMUM See Minimum Rates.
• RATE, PRO RATA A rate for a short term policy, based on the regular rate for the annual period, but Pro-Rated for the period in force. Usually used, for example, for a dwelling under construction when policy at the regular rate is to replace it on completion of construction. (See Pro Rata definition.)
• RATE, PUBLISHED See Promulgate.
• RATE, SCHEDULE(D) Also known as Specific Rate. See Promulgate and discussion under Minimum Rates.
• RATE, SUBJECT See Subject Rate.
• RATE, TERM See Term Rate.
• RATING The determination of the premium based on the classification of the risk, the amount or limit desired and other factors such as particular exposure to loss, experience of similar risks and other considerations. (See also Experience Rating, Merit Rating.)
• RATING BUREAU The determination of rates which will adequately measure exposure to loss requires person with highly developed technical skills who are able to collect and analyze data in order to make projections as to the relative exposure to loss of various classes of risks, They must be able to predict, with some degree of accuracy, the possibility of loss. These specialists (“actuaries”) have no crystal ball, and must base their predictions on what has happened in the past (the “experience”). Computers have made the collection and analysis of the available data much faster and more accurate.
• It stands to reason that such an operation as described above would be rather expensive for individual companies to support on their own. Central organizations to perform the function of rate-making were set up by groups of companies (“subscribers”) and are called Rating Bureaus.
• Rating Bureaus make available to individual subscribing companies (and to others for a fee) valuable information and services such as rate-making at far less expensive, and with the additional advantage that the collective experience of the member companies make possible much more predictable results. Rates promulgated by rating bureaus are not necessarily mandatory for all lines and all states. Most are now “Advisory” depending on state law, and are used as guides for companies filing rates schedules with regulatory agencies. The latter procedure is sometimes called “File and Use.”
• RATING OFFICE See Stamping Office.
• REACTION, NUCLEAR See Radioactive Contamination.
• REAL PROPERTY Real estate (land and/or buildings) as opposed to personal movable property.
• REAL-TIME PROCESSING The use of monitoring terminals feeding information to the computer which is used immediately to modify the programming. An example would be a process-control computer in a chemical plant. Not the same as On-Line Processing, which does not change the program, but immediately updates the file in accordance with the program.
• REASONABLY PRUDENT, REASONABLE CARE In cases of alleged negligence, these terms are used. For example, did the individual so charged fail to use the care that a reasonably prudent person would be expected to use under like circumstances, either by taking some action which would be expected of a reasonably prudent person, or did he fail to take action as such a person would be expected to take? The law imposes a duty on every person to exercise “reasonable care” to a degree relative to that individual’s age and experience, with a greater degree expected of a person deemed to have superior skill, knowledge and experience. (See Negligence.)
• REBATING The selling of an insurance policy for less than the established rate; the sharing of a commission with a person who is not a licensed agent; giving the insured or any other person anything of value in return for the opportunity of writing such a policy–all of these are acts of rebating, which is not only illegal but unethical. The term “Rebate” is sometimes erroneously used in place of “Return Premium.” See that definition under Premium.
• RECIPROCAL A group of individuals who get together to form an organization (sometimes called an “inter-Insurance Exchange”) to share losses and expenses. Best described as group self-insurance, since all members are both insureds and insurers, somewhat along the lines of a Mutual Company. Each member gives power of attorney to an Attorney-in-Fact who manages the exchange. (See also Self-Insurance, Mutual Company, Power of Attorney, and Attorney-in-Fact.)
• RECOVERY The amount of money received by an insurance company after paying a loss from subrogation, salvage or reinsurance.
• REDLINING The practice of insurance companies in designating certain geographical areas which, by experience have been shown to produce disproportionate loss frequency and/or severity relative to other comparable areas. The use of “redlining” is termed discriminatory.
• REDUCED RATE CONTRIBUTION See Coinsurance.
• REFERRAL RISK A risk of an exposure or limit beyond the underwriting authority of a branch or regional office which must be submitted to a higher level for consideration.
• REGISTERED MAIL This service of the U.S. Postal Service is used for valuable papers, etc. and is similar to treatment to (see) “Certified Mail,” except that a monetary value is placed on the contents (insurance), it travels with other Registered Mail under lock and key, and every postal station along the way must record its receipt. It is not handled with the regular First Class mail. The options for “Return Receipt Requested” and “Restricted Delivery” are open to the sender at additional charge as with “Certified Mail.” (See Certified Mail.)
• REIMBURSEMENT Payment as an equivalent for what has been spent or lost; refund; indemnity. For example, return premium paid by company to insured for cancellation of a policy or an endorsement reducing a. premium charge; also the insured’s share of recovery (minus expenses) as the result of (see) Subrogation.
• REINSTATEMENT, AUTOMATIC See Automatic Reinstatement.
• REINSTATEMENT, AUTOMOBILE See Suspension–Automobile.
• REINSURANCE A method by which an insurance company protects itself against unusually large losses. For a premium, such a company (the “Ceding carrier”) purchases reinsurance from another company (the “Assuming carrier”) which agrees either to pay the primary company the excess over an agreed amount in case of a large loss (“Excess Cover”), or to reimburse the primary company a fixed percentage (“Quota Share”) of every loss it has to pay, regardless of size. The reinsurance contract between the carriers is called a “Treaty.”
• REJECTION The refusal of an insurance company to write a policy for an applicant.
• RELEASE (OF ALL CLAIMS) A legal document executed by (or on behalf of) a person claiming injuries or damages, stating that, in consideration of a specified number of dollars, he agrees to accept that amount of money in full satisfaction of any claims he might have now or in the future, and to bring no further action for recovery in connection with that particular claim. An insurance company, even though it might supply the money and arrange for the execution of the release, is rarely, if ever, named in the release. Only the “First Party” (the insured) and the “Third Party” (the claimant) are named in the release.
• REMOVAL OF DEBRIS See Debris Removal.
• REMOVAL, AUTOMATIC See Automatic Removal.
• RENEWAL Continuation of insurance coverage for an additional specified period of time beyond the original (or previous) date of expiration by use of a renewal certificate or renewal policy.
• RENEWAL CERTIFICATE A certificate signed by an authorized agent as evidence that a policy is being extended for a specified period of time upon payment of the required premium.
• RENT INSURANCE Reimburses the landlord of a tenant-occupied building for loss of rental income when the building becomes partially or totally untenable because of a fire or other peril insured against. This is one of the so-called “Time-Element” coverages.
• RENTAL VALUE INSURANCE Same as “Rent Insurance” except for owner-occupied buildings. Reimburses the owner for the cost of renting elsewhere.
• REPARATIONS BENEFITS See No-Fault Auto Insurance.
• REPLACEMENT COST COVERAGE This guarantees the replacement cost new of any property destroyed by a covered hazard without allowances for depreciation, provided insurance to value or a specified percentage of value is carried.
• Depreciation Insurance provides the difference between what would be paid by an Actual Cash Value policy and full replacement cost. Replacement Cost coverage is automatically included in Homeowners forms, providing the building at the time of the loss is insured for 80% or more of the full replacement cost, but this feature applies to buildings only, unless replacement cost coverage is attached to the policy. (See Personal Property Replacement Cost.)
• REPORTING POLICY A policy generally used when the insured’s inventory fluctuates (seasonal, etc.). It requires the insured to report at certain specified intervals the actual value of stocks or goods or other types of property on hand. An initial deposit (estimated) premium is usually charged, and the final premium is determined at the end of the policy period when the actual values are known, at which time the premium adjustment is made. Some policies, such as a Bailee’s Customers policy, are based on gross receipts rather than values, and such receipts are “reported” periodically (usually monthly) also.
• REPRESENT An agent who is licensed by the state to act for an insurance company is said to “represent” that company.
• REPRESENTATION See Condition.
• RES IPSA LOQUITOR Although as pointed out in the section on “Negligence,” the burden of proof lies with the injured party, there are some accidents which occur under circumstances which make the question of burden of proof academic. When evidence of prudent and reasonable care is patently absent, but direct evidence to the contrary is not available (to establish the negligence of the defendant), and the injured person is without fault, the courts usually resort to the doctrine of “Res Ipsa Loquitor” (Res, ‘the thing’—lpsa, ‘for itself’—Loquitor, ‘speaks’) or “The thing speaks for itself.” In short, the circumstances of the accident itself leaves no room but for the inference of negligence of the defendant.
• RESERVE Monies received which are set aside for specific purposes. Principal among these in the insurance industry are (see) Loss Reserve and Unearned Premium Reserve.
• RESERVE, LOSS See Loss Reserve.
• RESERVE, UNEARNED PREMIUM See Unearned Premium Reserve.
• RESIDENCE EMPLOYEE An employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured’s business. The term “Residence” excludes premises used for commercial farming.
• RESIDENCE GLASS COVERAGE Although this coverage may be added to other policies by endorsement, it is most commonly found in the Dwelling Policy and Homeowners Forms, where it is automatically included. Residence glass is defined as that which is a permanent part of the building including storm doors and windows. The word “glass” includes safety glazing (e.g. Plexiglass, etc.), and when breakage of glass is required by ordinance or law to be replaced with safety glazing materials, the company will pay for such replacement. There is no coverage for glass if dwelling is vacant for 30 consecutive days immediately preceding the loss. A building under construction is not considered as being “vacant.” A “Scheduled Glass” endorsement is available for an additional premium if desired by the insured. In this case, each piece must be described as to its location, dimensions and replacement value. In addition, the standard Deductible, Loss Settlement conditions do not apply, and the company will pay for making necessary installations and for removing and replacing obstructions because of loss to glass. (See also Comprehensive Glass Policy.)
• RESIDUAL MARKET Those risks which by nature, history or high exposure are not generally accepted by insurance companies as desirable, constitute the “Residual Market,” e.g. (see) Assigned Risk or Fair Plan. These plans have been devised to provide needed insurance protection for risks unable to be secured in the “Open Market.” (See also Voluntary Market.)
• RESTORATION PREMIUM CHARGE The charge made to reinstate the original limit or face amount of a policy after a loss has been paid. (See Automatic Reinstatement.)
• RESTRICTION OF TRADE AGREEMENT An agreement usually incorporated in an employment or business (e.g. and Insurance Agency) sale contract, providing that the employee (or seller) upon leaving employment(or selling his business) is restrained from competing with his former employer (or with the purchaser of the business) within a specified geographical area and within a specified time. Such agreements cannot be made so as to keep an individual from making a living; the restrictions of area and time must be reasonable, or that portion of the contract may be declared invalid. Restriction of Trade Agreements are often included in contracts of employment or sale of insurance, real estate or travel or other personal service businesses.
• RETENTION That portion of a risk “retained” by the primary carrier (the “ceding carrier”) when there is reinsurance. (See Reinsurance.)
• RETENTION OF PREMIUM See Minimum Premium.
• RETENTION, FIFTY PERCENT (“50-50” POLICY) A Comprehensive Glass Policy written with the agreement that insured pays 50% of the annual premium, and pays no more if there are no losses during the policy period. The insured assumes losses up to the amount of the 50% “retention” (portion of the full premium he did not pay), and when and if he has losses in that amount, he pays no more and has full coverage for the remainder of the policy period.
• RETROACTIVE RESTORATION The clause in an insurance policy providing for automatic restoration of the original limit to cover future as well as prior undiscovered losses. Frequently used in bonding.
• RETROCESSION A “Layer Cake” operation. A reinsurance company may “chicken out” (it has a right to), feeling that it has taken (“assumed”) a greater portion of a risk than it should have, and may “cede” to another reinsurer a portion of its share, sort of “hedging the bet.” (See Reinsurance.)
• RETROSPECTIVE RATING A rating plan under which the final premium is determined by the loss experience during the policy period.
• RETURN COMMISSION See Commission.
• RETURN FOR NO CLAIM Certain marine policies contain a “return for no claim” clause providing a return premium (usually 20%) in the event of no claim during the policy period.
• RETURN PREMIUM See Premium.
• REUNDERWRITING A procedure similar to an IRS Audit used by a company to review the risks of a particular agent or class of business. -Usually employed to try to locate and “weed out” poor or marginal risks.
• RIDER See Endorsement.
• RIOT The legally accepted definition of a “riot” is a violent disturbance of the public peace by three or more persons acting in unison and with purpose, often resulting in widespread vandalism, looting and attacks on innocent bystanders.
• RISK The thing or person insured; the possibility of loss; the hazard insured against.
• RISK MANAGEMENT An organized service for large commercial, industrial, institutional and government risks which may serve a number of different functions, ranging from risk recognition to loss prevention and control. A risk management operation is usually management-oriented and, although overlapping to some degree the services provided by the insurance agent and broker, does not have as its main thrust the production of premium. Risk management can be part of management, an independent consulting service or a risk management company or individual on contract or retainer. Risk management analyzes all exposures, examines all options, recommends courses of action, implements approved programs and continuously monitors their operation, or any combination of these. Their suggestions may include, where indicated, the adoption of partial or total risk assumption on all or certain of the exposures, risk transfer to self insurance (with partial, selective or no reinsurance), an association mutual, a captive insurer or a composite of these options. Risk managers may assist in the placement of coverages or supply related supporting services such as claims handling, inspections, occupational health and industrial hygiene educational programs and compliance with government regulations.
• RISK, ASSIGNED See Assigned Risk.
• ROBBERY The forcible taking of property with felonious intent from the owner or custodian of such property by actual or threatened violence. (See also Burglary.)
• ROUNDING (OF PREMIUM) RULE See Whole Dollar (Premium) Rule.
• RUNNING DOWN CLAUSE A provision in the Ocean Marine Hull Policy which covers the insured for liability damage done to another vessel by collision. (See Hull Policy.)

S – What are more Public Adjusting Insurance Terms You Should Know?

• SAFE BURGLARY See Mercantile Safe Burglary.
• SAFE DRIVER RATING PLANS A variety of private passenger automo-bile risks designed to reward operators with clean driving records by affording them lower rates, and to penalize those who have (or develop) a history of accidents and/or violations. Often based on a “point system,” the point surcharges depend on the frequency and severity of accidents and/or violations during a specified period of time (usually three or five years) called the “Experience Period.” Sometimes called “Careful Driver” or “Merit Rating” plans.
• SAFETY ENGINEER An individual trained in the field of safety and loss prevention and control who inspects the property and operations of an insured and recommends elimination or reduction of hazardous condition or operations with the purpose of helping to reduce or eliminate the probability of injuries to employees or the public or damage to or loss of property.
• SALVAGE 1.) The residual value of property after it has suffered partial damage from fire or other covered peril; 2.) The act of saving and preserving endangered property so as to reduce or eliminate future loss or damage; 3.) Under fidelity, fiduciary, burglary, theft, etc.: the recovery made from the perpetrator or from others; 4.) Ocean Marine: Compensation given in Maritime Law for services and expenses incurred rescuing a vessel, its cargo and/or its passengers; 5.) The property saved.
• SALVOR One who saves or helps to save a vessel and/or cargo at sea; a vessel used in salvage operations. (See Salvage.)
• SCHEDULE A description of items to be specifically insured, including descriptions and values placed on each; the plan or formula which shows the various credit and surcharge factors used in arriving at a rate promulgation. Called “Schedule Rating.” (See Promulgate.)
• SCHEDULED PROPERTY Property covered under a policy which is listed and described item by item, with a specific amount of insurance placed on each item. (Contrast to Blanket insurance where a single amount applies to the total of all insured items as a group.)
• SEASONAL RISK A risk which is occupied for only a portion of the year (usually the same period every year) such as a summer cottage or a ski resort. These risks can also be mercantile, manufacturing or processing operations such as may be found in the produce or fishing industry.
• SEAWORTHINESS One of the two implied warranties in connection with ocean marine insurance (the other being that the undertaking must be legal). The “Seaworthiness” warrants that the vessel is of proper design and construction and ready for the voyage in every respect: properly manned, fueled, provisioned and otherwise it is equipped for the cargo it has contracted to carry.
• SECURITIES All negotiable instruments (excluding “money” as defined elsewhere) or contracts representing money or property, including stamps in current use, tokens representing specific value, and tickets. (See Negotiable Instruments, Money.)
• SECURITIES All negotiable instruments (excluding “money” as defined elsewhere) or contracts representing money or property, including stamps in current use, tokens representing specific value, and tickets. (See Negotiable Instruments, Money.)
• SELF-INSURANCE A system of self-protection whereby a large firm or organization deposits money in a fund in lieu of insurance premiums against any losses which may occur. The plan can work only if the self-insured has sufficient resources and geographical spread of risks so as to reduce the possibility of a single loss wiping out the fund (and possibly the business itself.)
• SELLING PRICE CLAUSE Endorsement which can be added to a fire policy reimbursing the insured for an amount exceeding the actual cash value of damaged or destroyed goods to include the profit included in the selling price, as opposed to the actual cash value. There are generally two types: one type, available to both mercantile and manufacturing risks, reimburses the insured for merchandise sold but not delivered based on the selling price (which would include actual cash value plus profit); the other form, available only to manufacturers, reimburses the insured for the amount of the loss based on the price for which the manufacturer expected to sell the goods.
• SET CLAUSE See Pair or Set Clause.
• SETTLEMENT An agreement whereby an agreed amount is accepted by the concerned parties as compensation for loss or damage. (See also Arbitration and Structured Settlement.)
• SHOCK LOSS An unusually heavy single loss which is much greater than that anticipated based on experience.
• SHORT RATE A method of weighting the charge for a policy more heavily early during its term as opposed to Pro Rata, where the premium charge is proportional to the period covered. In effect, it is a penalty against the insured for cancelling a policy. Such penalty is higher during the earlier part of the policy period. See Cancellation.
• SHORT RATE CANCELLATION See Cancellation.
• SHORT TERM POLICY Generally, a policy written for a term of less than one year. Seasonal risks, Rail Insurance, Wedding Presents Floater, for examples. In recent years, six-month automobile policies were in common use; but due to high inflation, they have, for the most part, returned to a one year term.
• SHORTFALL A marriage of two perfectly respectable words arranged by some unknown bureaucrat in order to impress his superiors. Term promptly adopted by the latter as their own. Real meaning: “They didn’t give us enough money, so we weren’t (or won’t be) able to finish the job.” Also can refer to a situation when an individual, descending stairs in the dark, thinks there are 12 steps when there are really 13.
• SIDETRACK AGREEMENT An agreement by the owner/operator of private property to hold a railroad harmless when it builds a sidetrack or spur on the property to facilitate receiving or shipping of materials. Under such an agreement, the insured (owner and/or tenant of the premises) assumes two risks of loss: one is loss or damage to the property; the other liability for loss or damage to any third party, either of which could be caused by the railroad in operating on the siding. Since he is holding the railroad harmless, he must protect himself. With regard to the first exposure (property), the applicable policy should include the “Railroad Subrogation Waiver Clause” as evidence that the insurance company is waiving its subrogation rights. The insured should also be protected by Sidetrack Liability insurance in orderto protect himself in the event of third party liability assumed by him under the Sidetrack Agreement. (See also Hold-Harmless Agreement.)
• SINGLE INTEREST POLICY A policy designed to cover the interest of the lender only. Used generally in connection with property sold on the installment plan. Also available to the finance company ordealerto cover loss due to wrongful conversion or illegal disposal by the purchaser, such exposures being excluded in the regular forms.
• SINGLE LIMIT POLICY A policy providing a blanket amount to cover Bodily Injury and Property Damage Liability losses with no limit per person and no separate Property Damage Limit. The Single Limit used puts Bodily Injury and Property Damage in one lump sum. (Used in Special Auto Policy and Comprehensive Personal Liability, among others.)
• SINKHOLE COLLAPSE Sudden settlement or collapse of the earth supporting property, resulting from subterranean voids created by the action of water on limestone or similar rock formations. This condition is found primarily in Florida and other southeastern and Gulf states. Resulting damage to buildings is now automatically included in the property policy without additional endorsement or premium in Florida and certain other states, but still may require an endorsement and additional premium in some remaining states.
• SLANDER See Libel.
• SMOKE DAMAGE Damage which is the direct result of sudden, unusual and faulty operation of a heating or cooking unit when the unit is connected to a chimney by a smoke pipe or vent, and only while in or on the premises described in the policy. To be covered, the smoke damage must satisfy all three descriptive terms: sudden, unusual and faulty.
• SOFTWARE A computer term referring to (see) Programs. Without “software,” computers would be useless. Refers to everything except the (see) hardware.
• SOLE PROPRLETORSHLP An individual who operates a business and who is the sole owner of all the assets. He may use a Trade Name, but that does not alter the fact that the individual and this very necessary operation are one and the same. They are not separate legal entities. (See Entity.)
• SOLICITOR See General Agent.
• SOUND VALUE The value of property for property insurance purposes. (See Actual Cash Value.)
• SOURCE DOCUMENT Anything that contains information concerning a transaction related to other transactions, written, printed, typed or checked on a form, which must be processed (added, subtracted, multiplied, divided, stored, etc.). Could be cash register tape, invoice, credit memo, return commission debit, items making up an account current or amounts set aside for loss reserves. In bookkeeping, these items are referred to as “Items of Original Entry.”
• SOUTHERN STANDARD BUILDING CODE See Beach Plans.
• SPECIAL (PACKAGE) AUTO POLICY A single limit automobile policy (written by different companies under various names), in the past written for a six month period (now mostly for a one year duration), in which all Casualty coverages, Bodily Injury, Property Damage, Medical Ex-penses, Accidental Death and Uninsured Motorist Protection, must be carried. Collision, Comprehensive and Towing and Labor Costs are optional coverages. The policy is somewhat more restrictive (Medical Expenses, for example, is excess over any other applicable insurance) than the Family Automobile policy.
• SPECIAL AGENT A salaried company employee who generally serves as the direct connection between the insurance company and its agents in a given territory. He may also perform other duties such as making adjustments or inspections. He is more frequently referred to in recent years as “Marketing Representative.”
• SPECIAL BUILDING FORM, DWELLING BUILDINGS See Dwelling Forms.
• SPECIAL HAZARD An exposure to loss not generally anticipated in the underwriting of a risk, such as “Hazardous Waste,” dangerous operations in an adjacent premises, etc.
• SPECIAL MULTI-PERIL POLICY (S.M.P.) A “package” policy, vaguely similar to the homeowners form, designed to cover commercial risks for damage to real and personal property (Section I) and Liability (Section II). Section III, Crime Coverage and Section IV, Boiler and Machinery Coverage are optional. Special Multi-Peril Coverage is divided into seven major categories: 1.) Motel-Hotel Program; 2.) Apartment House Program; 3.) Office Program; 4.) Mercantile Program; 5.) Institutional Program; 6.) Processing or Service Program and 7.) Industrial Program.
• SPECIAL RISK A risk containing special and unusual exposures not usually contemplated in its class. Requires careful underwriting and often is a candidate for (se) Non-Admitted Company consideration.
• SPECIFIC INSURANCE Insurance written to cover separate items, indicating description, location and amount of each, as opposed to “blanket” insurance, which would, for example show one amount to cover “building and contents.” The term Specific Insurance is sometimes erroneously used to mean Primary Insurance. Do not make this mis-take. (See Blanket Insurance, Schedule and Scheduled Property.)
• SPECIFIC RATES A property insurance term. Also known as “Schedule Rates,” “Published Rates” and “Tariff Rates.” (See discussion under Minimum Rates.)
• SPECIFIED PERILS See Named Perils.
• SPREAD OF RISK Related to (see) Law of Large Numbers. Concentration of a large number of property insurance risks in a given location or limited area invites the possibility of catastrophic losses. A geographic “spread of risk” can avoid such situations.
• STAFF ADJUSTER See Independent Adjuster.
• STALE CHECK Since a check is a “bill of exchange” and always payable on demand, it is expected to be cashed, deposited or otherwise negotiated within a reasonable time. There seems to be no hard and fast rule as to when a check becomes “stale.” As a general rule, however, a bank will routinely return a check unpaid if it was issued more than six months (some banks 90 days) prior to being presented for payment.
• STAMPING OFFICE A central regional office to which agents may send copies of policies (“dailies” or “daily reports”) or endorsements for approval or correction. On approval, the policies are “stamped” and sent on to the respective companies. If corrections are necessary, correction notices (“criticisms”) are sent back to the agent with or without the policy or endorsement for proper action. When a rate error on a daily report or endorsement results in an error in the total premium of $3.00 or less, a criticism will be sent and the rate corrected on the agent’s and company’s copy, but the premium difference is waived. The $3.00 amount more than likely is higher today.
• STAMPS AND STAMP COLLECTIONS See Philatelic Property.
• STANDARD FIRE POLICY (SFP) This usually refers to the “New York Standard Fire Policy” adopted July 1, 1943. This form, frequently referred to as the “165 line form,” covers the basic agreements in the contract, and is, with minor changes, used in almost all states. (See Fire Insurance.)
• STANDARD FORM (STANDARD POLICY) A policy form, with identical wording which is used by a large number of insurance companies and approved by many state regulatory agencies. Examples are (see above) the “Standard Fire Policy,” the “Basic Automobile Liability and Physical Damage Policy” and the so-called “76” or newer “84” Homeowners Policy Program.
• STANDARD OPEN LOT Under Commercial Automobile–Dealers’ Theft Coverage, a “Standard Open Lot” is defined as an open parking storage lot enclosed on all sides by a metal cyclone fence or equivalent fence not less than six feet in height; or bounded on one or more sides by the wall or walls of a building, with no unprotected openings, and with the exposed sides of the lot enclosed by a metal cyclone or equivalent fence not less than six feet in height, with openings securely locked when unattended. Broad Form Theft Coverage applies when lot qualifies as above. Non-Standard Open Lot and open lot which does not meet the above qualifications, and $50 (or higher) Deductible Theft Coverage applies.
• STANDARD PROVISIONS Clauses contained in insurance contracts in accordance with certain state statutory requirements; contract provisions in general use by a group of insurers, and approved by state regulatory agencies.
• STATE AGENT An insurance company salaried representative who deals with agents in a given state in the company’s interests. Usually senior to other special agents. (See also Agent, Broker, General Agent, Local Agent and SpecialAgent.)
• STATE EXCEPTIONS Most bureau manuals are designed to cover afield of insurance for a large number of states. Most of an individual manual is taken upwith General Rules: General Instructions, Scope of Coverage, Interests Insured, Definitions, Limits of Liability, Basis of Premium, Minimum Premiums, Classifications, etc. There are however, differences applicable in the different states where conditions warrant variations from the General Rules. These differences are called “Exceptions” and are found following the main section of the manual. Here will also be found Territorial Definitions, rates and premiums applicable to the particular state.
• STATED AMOUNT See Valued Policy.
• STATED VALUE See Valued Policy.
• STATEMENT A request for payment for merchandise sold or services rendered; an itemized summary of invoices charged, credits if any, and balance due. Usually prepared and forwarded at specified intervals.
• STATEMENT (INSURANCE) A written detailed description of an accident or other loss made by an insured, an involved person or witness. Signed statements are important in these cases and should be taken promptly while the facts are fresh in the mind of the maker. Statements are necessary to make a permanent record of events, and aid in the investigation of a loss.
• STATUTE A law enacted by a state legislative body.
• STATUTE OF LIMITATIONS A state law limiting the time within which legal actions of various types may be brought. These time limitations vary with the type of charges and also in different states.
• STATUTORY LAW See Common Law.
• STATUTORY VIOLATION Violation of a statute is prima facie evidence of negligence. Violation of an ordinance or law, even if resulting in bodily injury to another, does not always result in the violator being found negligent.
• STOCK Goods awaiting processing, in the process of manufacture or completed and held for sale, as opposed to (see) “Furniture and Fix-tures.”
• STOCK INSURANCE COMPANY An insurance company owned and controlled by stockholders for the purpose of making a profit. A portion of the earnings (after setting aside the reserves required by law) are distributed to the stockholders from time to time in the form of dividends. There is no requirement for a policyholder to be a shareholder, and vice versa. Also known as “Capital Stock Company.”
• STOCK PARTICIPATING COMPANY A stock insurance company as described above, but which distributes a portion of net earnings to policyholders as well as stockholders in the form of dividends on premiums paid. The stock in this type of company is not generally widely held.
• STOP LOSS REINSURANCE See Excess of Loss Reinsurance, Aggregate
• STOREKEEPERS BURGLARY AND ROBBERY POLICY A limited package burglary and robbery policy designed for the small retail establishment of mercantile risk which covers Burglary of Merchandise, Inside or Outside Robbery, Kidnapping, Safe Burglary, Theft of Night Depository and Damage to Property and Premises. The policy excludes loss by Dishonesty of Employees and by Fire.
• STOREKEEPERS LIABILITY POLICY A package liability policy designed for relatively small retail (not more than 50% of sales by mail order) store, providing, generally speaking, the following coverages: Premises and Operations, Products Completed Operations, Contractual Liability for “incidental contracts”: and Independent Contractor (protective) Liability. Elevator Liability and Elevator Collision may be added at the appropriate manual rates and rules.
• STRICT LIABILITY That liability imposed on an individual who deliberately takes an action (or fails to take an action) in a hazardous situation resulting in injury to another’s person or property.
• STRUCTURED SETTLEMENT A relatively new concept suggested to replace “Lump Sum” awards in cases involving large awards to victims of serious accidents which may entail lifetime disabilities, and require lifetime income. “Lump Sum” settlements may dissipate in a relatively short time due to inexperience of the victim in financial planning (not to mention inflation.) The alternative is a “Structured Settlement” tailored to the needs of the injured party. Such an arrangement could consist of an immediate cash settlement, in addition to monthly maintenance payments for a specified period, plus substantial amounts at intervals of five to ten years.
• SUB-AGENT A licensed agent who operates undeer an agency agreement within and under the jurisdiction of the agency.
• SUBJECT RATE A fire insurance risk, if not clearly qualified for Minimum Rating (a new commercial building, for example), may be bound or written pending specific rating by the bureau having jurisdiction, If a policy is written for such an unrated risk, the rate charged is usually $1.00 (per $100) “subject to revision and approval,” and a written application for a rating should accompany the daily report. When the risk has been rated, the promulgated rate shall apply as of the effective date of the policy. The same procedure must be followed when the property is transferred to a new unrated location. The temporary rate used is referred to as Subject Rate, and the premium developed is called the Subject Premium.
• SUBROGATION The right reserved by the insurance company to take (at its own option) action to recover a loss paid to a policyholder if the loss was caused by the negligence of a third party. Any recovery made, minus expenses, must be shared proportionately with the insured in the event a deductible is applied to the loss.
• SUE AND LABOR CLAUSE Inland Marine policies: This clause requires the insured to: 1.) Make every effort to preserve injured property from further loss; 2.) to assist in recovering the property. The insured is entitled to reimbursement for any expense he incurs in these efforts. Ocean Marine: The Sue and Labor expenses involved in preserving a ship or its cargo from further loss or damage from a covered peril can often run into a great amount of money. The extra expenses to save a ship and/or cargo and prevent further damage is provided for in the “Sue and Labor” clause. It must be mentioned that the captain of the ship is considered the agent of the owner and may take any measures he considers necessary to preserve property. Generally speaking, sue and labor expenses (providing they are incurred to preserve the property from a peril insured against) are reimbursed over and above the face amount of the policy.
• SUPERSEDED SURETYSHIP RIDER A form attached to a fidelity bond stating that it will cover a loss which occurred while the previous bond was in force, and which would have been covered had the loss come to light during the (see) Discovery Period.
• SUPERVISOR OF INSURANCE See Commissioner of Insurance.
• SURCHARGE An additional charge made to cover a risk with an exposure greater than that usually anticipated for the class. Usually expressed as a percentage of the rate or premium. (See also Factor and Increment.)
• SURETY An inspection report on the characteristics of an insurance risk for an insurance company for the purposes of underwriting or loss prevention or control. The term is also used to describe a detailed study and report of the exposures and insurance recommendations for an individual or organization. A “Marine Survey” is the report of a detailed examination of the condition, seaworthiness and sometimes the market or actual cash value of a yacht, or vessel or other watercraft.
• SURETY BOND A type of bond in which one party (the Surety) guarantees the satisfactory performance of a second party (the Principal) to a third party (the Obligee). (See Bond.)
• SURPLUS LINES See Excess and Surplus Lines.
• SUSPENSE (FILE) A file in which copies or correspondence are placed for checking at a later date to see if requested action has been taken or if correspondence has been answered. (Also known as Diary File.)
• SUSPENSION—AUTOMOBILE When an automobile is put out of operation, insurance coverage (except Comprehensive) may be suspended for all liability and physical damage for a period of not less than 30 consecutive days, and a pro rata return premium be allowed for the period of suspension. Portions of the liability (Medical Payments, Uninsured Motorist, etc.) may be continued in force during the period of suspension at the option of the insured. The reattachment of the suspended portions of insurance at the request of the insured is called Reinstatement. Suspension is not allowed where a certificate has been filed in compliance with any Financial Responsibility law.
• SYMBOL A letter or number assigned to a particular make, model, year, body style and power (usually indicated by cubic displacement and br horsepower) of a private passenger automobile to establish its relative value for the purposes of rating for physical damage insurance.
• SYNDICATE A group of insurers joined together to insure property or a certain category of risks. Lloyd’s of London is a good example of a syndicate.

T – What are more Public Adjusting Insurance Terms You Should Know?

• TAKE OUT An expression meaning to “arrange for the purchase of an insurance policy,” as in “I am going to ‘take out’ a policy on my wife’s jewelry.”
• TARGET RISK A large undesirable risk which is continually offered to many agents who attempt to place it with their companies because of its size. Strangely enough, the same term is used to describe a large account or prospect which is sought after by many competing agents.
• TARIFF 1.) A rate promulgated by a rating organization having jurisdiction. 2.) The rules and schedules of credits and surcharges used to arrive at a given rate.
• TARIFF CARDS See Rate Cards.
• TELECOMMUNICATIONS A system which makes possible the exchange of information (data) between terminals and computers. The transmission is by telephone line or microwave via satellite. Telecommunications requires that the data stored in the computer as magnetic (computer) codes on tapes or disk be converted into sound codes for transmission by phone lines. On the receiving end, this process must be reversed: the telephone (sound) code must be reconverted into computer code so as to be understood by the receiving unit. The data may be transmitted in either direction, from computer to terminal or from terminal to computer. The conversion from computer code to sound code (or the reverse) is accomplished by a device called a “modem” (modulator-demodulator) which is capable of encoding or decoding, depending on the direction of data flow. Two modem units are required, one at each end, one to convert computer code to sound code for transmission; the other to “decode” from sound code to computer code to be understood at the receiving end.
• TENANTS POLICY A form of Homeowners policy covering the interest of a tenant with regard to protection of his property and his liability. Also refers to an owner of a co-op apartment arrangement. (See Homeowners Policy)
• TERM See Policy Period.
• TERM POLICY A policy written for a term of more than one year. (Not to be confused with “Term Policy” as used in Life Insurance.)
• TERM RATES Rates for a policy which has a term of more than one year. In certain classes a discount is allowed. For example, a three year policy in some cases can be written at 2.7 times the annual rate. The trend of late has been toward “Annualization.” See discussion under Deferred Premium Payment.
• TERMINAL See Display Terminal.
• THEFT The wrongful appropriation of another’s property; the felonious removal of another’s property from premises without leaving visible signs of forcible entry or exit; any act of stealing. (See Burglar,’, Robber,’.)
• THIRD PARTY CLAIM See Claim.
• THIRD PARTY INSURANCE This is another term meaning “Liability” or “Casualty” insurance which provides that the insurer reimburse a third party for injuries or damages caused by the action or omission of the insured. (Compare Property Insurance.)
• THRESHOLD See No-Fault Insurance.
• TIME ELEMENT Term used to describe insurance which indemnifies the insured for an occurrence which results in loss of use of property. It is not to be confused with “Property Insurance” which is measured in terms of the actual damage to physical property. The amount of loss under time element forms is measured in terms of time lost, hence the name. Business Interruption, Extra Expense, Tuition Fees, Rents and Rental Value, Additional Living Expenses and Leasehold Interest are examples of “Time Element” forms.
• TIME SHARING The operator of a computer system may “rent” out its processing capacity to other businesses on the basis of time used. The developer of (see) Telecommunications, makes possible access to the main computer by remote terminals via telephone lines. The practice is known as “Time Sharing,” and enables smaller companies to utilize computer services while paying only for the services they need.
• TITLE INSURANCE A form of insurance which will indemnify the owner of real property in the event that prior legal faults are discovered which may affect the owner’s clear and valid title to the property.
• TORNADO A type of windstorm, funnel-shaped and of extreme violence, characterized by a very rapid drop in barometric pressure. The resulting relatively high pressure within buildings can cause them to appear to explode. Winds have been of so high a velocity that they have exceeded the capacity of the measuring devices. Tornadoes are included in the general category of “Windstorm” for insurance purposes, as are Cyclones. (See Windstorms.)
• TORT Any violation of another person’s rights; a wrong (the result of commission or omission) caused another person which is unintentional. An intentional wrong is not generally considered a tort, but rather a crime against the state, punishable by a fine and/or imprisonment. A tort, on the other hand, is ordinarily the result of negligence, and is subject to civil (as opposed to criminal) action, resulting, if proven, in judgement for damages payable to the aggrieved party. (See Negligence.)
• TORTFEASOR Wrongdoer; guilty party; one guilty of a tort (e.g. a trespasser, one who causes an automobile accident).
• TOTAL LOSS Total loss of or damage to the entire value of the property insured, real or personal; loss or damage requiring payment by the company of the full (see) face amount of the policy; loss or damage to be such that the cost to replace or repair exceeds the actual cash value or the agreed amount less slavage. (NOTE: The latter is called (see) Constructive Total Loss.)
• TOURIST FLOATER See Personal Effects Floater.
• TOWING AND LABOR COSTS An optional coverage available for Private Passenger automobiles only which pays for labor (at the site of the disablement) and towing of usually up to $25 per disablement. Premium charge is usually nominal.
• TOWN GRADES A system of grading cities and towns according to their ability to handle fires based on the availability of fire hydrants, personnel, equipment, water supply, communications and fire safety control. The grading determines the minimum fire rates of the municipality, and is a reflection on how close it measures up to the ideal standards as put forth by the (see) Insurance Services Office.
• TRADE NAME An individual or partnership may for business reasons adopt and use a name, not his or theirs, such as “Jay’s Dry Cleaning Service,” which in reality is John O’Dwyer doing business as (DBA) “Jay’s Dry Cleaning Service.” The trade name should be filed with the county. clerk’s office so as to (theoretically at least) let the world know that “Jay’s Dry Cleaning Service” is in reality John O’Dwyer. In the case of an individual, he is referred to as a “Sole Proprietorship” whether or not he uses a trade name. (See Sole Proprietorship.)
• TRANSMITTAL, LETTER OF See Letter of Transmittal.
• TREATY An agreement (contract) between an insurance and a reinsurance company. (See Reinsurance.)
• TRESPASSER One on premises without legal right (compare “Invitee” and “Licensee”). Premises-holder (owner, lessee) is free of negligence unless he is found to deliberately have allowed or constructed dangerous physical conditions (guard dogs, ditches, electrical fences–all without prominent warning signs or other indications) for the purposes of causing injury to trespassers.
• TRIP (TRANSIT) INSURANCE Insurance covering single shipments of various classes of personal property, merchandise, furniture, livestock, etc., for individuals or for firms which do not make regular shipments. Coverage of property in transit may be extended to cover for temporary storage and for theft. Premium depends on mode of transportation, distance and extent of carrier’s liability.
• TUITION FEES A “Time Element” coverage designed to protect schools which charge tuition, and who stand to lose if the physical plant is damaged, preventing the carrying on of normal educational activities. Since ordinary Business Interruption protection ceases to pay upon restoration of the property (which, in the case of schools, may be in mid-term), the school suffers for the balance of the term in loss of tuition fees. Additional interruption income (from athletic events, entertainment, con-sulting service, etc.) may also be covered. Policy may also be extended to cover seasonal camps (excluding hotels).
• TWISTING The illegal inducing of a policyholder to cancel an insurance policy by making incomplete or misleading comparisons and replacing it with another. This practice is against state insurance laws, and violation is generally classified as a misdemeanor. Life, accident and health fields hold more temptations for twisting than do others.
• TWO OR MORE AUTOMOBILES DISCOUNT See Multi-Car Discount.
• TWO-PLATE (RIDER) AGREEMENT An agreement by endorsement between the insured and the company in a Comprehensive Glass Polciy, that in the case of breakage of a single plate with a total area of 100 or more square feet, the insured agrees that it may be replaced by tow plates of the same total area. The company assumes all costs for any alterations necessary to make the replacement. The insured is allowed a discounted premium when he agrees to this endorsement. (See Comprehensive Glass Policy.)

U – What are more Public Adjusting Insurance Terms You Should Know?

• UMBRELLA LIABILITY Excess liability for individuals or corporations to protect them for liability losses which may exceed their primary liability limits. Also called Blanket Catastrophe.
• Excess Liability, the policy also provides primary coverage, subject to some limitations, for all other liability for which no provisions may be made in his basic coverage.
• UMPIRE See Arbitration
• UNATTENDED AUTOMOBILE An automobile which is unoccupied, unattended and unlocked. With respect to ‘Theft Away from Premises” coverage under the Homeowners form, an automobile which is broken into while all doors and windows are closed and locked, and which shows visible signs of forcible entry, is not considered “unattended.” Coverage is also afforded under the same conditions for theft from a fully enclosed and locked luggage compartment. There is no restriction in Homeowners Form HO-5 (Comprehensive Form) relative to unscheduled personal property. Where applicable, the above restrictions pertain also to “unattended” watercraft (boats).
• UNDERINSURED MOTORIST PROTECTION See Uninsured Motorist Protection.
• UNDERWRITER 1.) An insurance company. 2.) An employee of an insurance company whose duties consist of passing on the selection of risks, and determining the amounts and terms of insurance acceptable to the insurance company.
• UNDERWRITERS SALVAGE CORPORATION An organization supported by many insurance companies which reclaims and resells merchandise salvaged from the covered losses thereby reducing the participating companies’ net losses.
• UNDERWRITERS’ LABORATORIES A non-profit organization under the auspices of the National Board of Fire Underwriters which tests equipment (appliances, etc.) and materials against established safety standards. Those which meet or exceed these standards are entitled to use the “U.L. Approved” label.
• UNDERWRITING PROFIT OR LOSS The profit or loss resulting from the underwriting operations, based on earned premiums less losses, adjustment expenses and other incurred underwriting expenses, as contrasted to (see) “Investment Income.”
• UNEARNED PREMIUM See Premium.
• UNEARNED PREMIUM RESERVE Insurance companies are required to set aside (see) “Unearned Premiums” in a reserve fund. Last month’s premium on a policy has been “earned,” today’s is being “earned” and next month’s is yet to be “earned.” Since it would be highly impractical to attempt to determine the amount required for this reserve by calculating the unearned premium for each individual policy, a factor (fixed by law) is used. For example, it could be agreed that one half of the total of all premiums on all policies in force at any given time be used to represent the Unearned Premium Reserve required. Unearned Premium Reserves cannot be used to pay losses or any other operating expenses.
• UNINSURABLE PROPERTY See Excepted Property.
• UNINSURED MOTORIST PROTECTION Protects the insured in the event of injury by a motorist who does not carry automobile Bodily Injury Liability Insurance. No protection is afforded under this coverage for Property Damage sustained by the insured. The bodily injury limits available under this endorsement are the same as those required by the state financial responsibility laws. This limitation has been lifted in most states, and higher limits are now available for an additional premium. The insurance operates only when the Uninsured Motorist is found legally at fault, and the latter need not be proven insolvent in order for the insured to collect. This type of insurance is also known as “Family Protection.” “UNDERinsured Motorist” coverage. This insurance is excess, and provides the additional amount (up to the policy limit) needed to satisfy a judgement or settlement given the insured against a third party whose liability limits are not ;sufficient to satisfy the award.
• UNINSURED MOTORIST PROTECTION Protects the insured in the event of injury by a motorist who does not carry automobile Bodily Injury Liability Insurance. No protection is afforded under this coverage for Property Damage sustained by the insured. The bodily injury limits available under this endorsement are the same as those required by the state financial responsibility laws. This limitation has been lifted in most states, and higher limits are now available for an additional premium. The insurance operates only when the Uninsured Motorist is found legally at fault, and the latter need not be proven insolvent in order for the insured to collect. This type of insurance is also known as “Family Protection.” “UNDERinsured Motorist” coverage. This insurance is excess, and provides the additional amount (up to the policy limit) needed to satisfy a judgement or settlement given the insured against a third party whose liability limits are not sufficient to satisfy the award.
• UNOCCUPANCY This refers to a condition which exists when contents remain in the building, but no tenants. There is, however, the implied intention for tenancy to continue. (See Vacancy.)
• UNSATISFIED JUDGMENT FUND A state fund to reimburse persons injured in an automobile accident who are unable to collect damages awarded them by the court because the party who was responsible forthe injury is both uninsured and insolvent. A portion of the automobile registration fee is the usual method of financing the fund, which will pay unsatisfied judgements only up to the pre-established limits.
• USE AND OCCUPANCY See “Business Interruption.”

V – What are more Public Adjusting Insurance Terms You Should Know?

• VACANCY The condition of vacancy exists when neither contents nor tenants are present in the building. Care must be taken when “vacancy” exists, since most policies exclude certain coverages (e.g. freezing, vandalism and malicious mischief) if the building remains vacant after a specified period of days. (See Unoccupancy.)
• VALID CONTRACT See Contract.
• VALUED (STATED AMOUNT, STATED VALUE) POLICY A policy in which the company agrees to pay the fullface amount of insurance in the event of a total loss, with no allowance for depreciation. This type is most commonly used in all-risk inland marine forms covering items of particular values such as Jewelry, Furs, Silverware, Cameras and the like. The agreed value is determined by the Bill of Sale or by professional appraisal (at the insured’s expense) and (except for miscellaneous equipment such as camera lenses, tripods, etc. which may be covered by a blanket amount based on a percentage of the full schedule) must be specifically described in detail and a value given for each. The possibility of moral hazard cannot be overlooked in this class of insurance. Where personal articles are concerned, they may be added by endorsement to the Homeowners Policy.
• VALUED POLICY LAW Although practically all Standard Fire Policies limit recovery to the “actual cash value” of the property at the time of the loss, some states have special statutes which may modify or eliminate this limitation. The most common of these laws is one which requires the company to pay the full amount of insurance in the event of a total loss. In some states, the company can exercise its option “to rebuild or replace” the property instead of paying the policy amount. The effect of these laws is to discourage companies form “overinsuring” certain properties. In general, Valued Policy Laws pertain to real ratherthan personal property.
• VANDALISM See Malicious Mischief.
• VERIFICATION, VERIFYING One of various methods of checking the processed data recorded on any medium (punched card, magnetic tape or disk) for accuracy.
• VIABLE Literally, “capable of living and growing.” Once a perfectly legitimate word. Met slow death at the hands of government and executive types; poor word is no longer “viable.”
• VICE, INHERENT Not what you think. See Inherent Vice.
• VOLUNTARY MARKET Term used to describe those classes of risks which are generally acceptable to insurance companies. Sometimes called “Open Market.” (See Residual Market.)
• VOLUNTARY PROPERTY DAMAGE See Physical Damage to Property of Others.

W – What are more Public Adjusting Insurance Terms You Should Know?

• WAIVER 1.) An agreement in writing not to enforce a right or privilege. 2.) An agreement in writing by the company to change a particular provision or condition in the policy. (See Non-Waiver Agreement.)
• WAIVER OF (RESTORATION) PREMIUM An agreement contained in many insurance policies which provides that the company will restore the original amount of the policy after a loss without additional charge.
• WAR RISK EXCLUSION CLAUSE This clause serves to exclude damages or loss to property as the result of any act of war, with the exception of resulting fire.
• WARRANTY 1.) A statement made by the insured on the basis of which the company agrees to write a poicy at a given premium, such statement appearing on the policy. In order for the company to be able to void the policy, however, the warranty must contain material misstatements, such that the company would have declined or uprated the risk had the true facts been known. 2.) A condition of the policy with which the insured must strictly comply.
• WEDDING PRESENTS FLOATER An inland marine all-risk form de-signed to cover wedding presents in transit or at any location before the wedding and (usually) for a period of not more than 90 days after the wedding. No scheduling (detailed description of the items) is required. Exclusions are real estate, animals, travel conveyances of any description, money, deeds and similar documents, tickets and passports. Also excluded: wear and tear, deterioration, breakage of china and similar fragile articles (which may be covered for an additional premium), mechanical or electrical breakdown and other hazards usual to inland marine policies.
• WET MARINE See Ocean Marine.
• WHOLE DOLLAR (PREMIUM) RULE Rule stating that the premium for each exposure (coverage) shall be rounded to the nearest whole dollar (50 cents or more, use next higher whole dollar). Applies also to interim premium adjustments, endorsements and cancellations. Each “exposure” means each coverage for which a separate premium is charged.
• WINDSTORM For insurance purposes, “Wind Damage” by itself is not covered. “Windstorm,” defined as general atmospheric turbulence covering a relatively wide area, usually is indicated when resulting in a number of claims for damage to property. When isolated claims are made, there is no hard or fast rule. Usually a check with the nearest weather facility indicating gusts or winds to 40 MPH and over would justify payment of a claim. Gale, hurricane, cyclone, tornado and typhoon are all considered “windstorms” in insurance. (See ExtendedCoverage.)
• WITHOUT PREJUDICE An action designated as being taken “without prejudice” indicates that it is not to be construed as an admission of liability on the part of any party. Usually used in connection with claims or losses. (See Non-WaiverAgreement.)
• WORD PROCESSING A computerized system for the production of documents and other written communication. Information is entered by way of typewriter keyboard into a (see) Central Processing Unit where it can be edited and otherwise manipulated by viewing on a screen. (See Cathode Ray Tube.) When and as needed, it may be recalled from the storage unit and produced on paper in whatever form desired (letters, contracts, manuscripts, etc.) by a high speed printer.
• The system greatly reduces the use of paper, as the contents and form of the information may be viewed and changed in any way before it is produced by the printer. If necessary, proofs may be produced by the printer and returned for changes (insertions, deletions, corrections, format, etc.) which may be made directly on the CAT for final production by the printer.
• WORKER’S COMPENSATION INSURANCE Worker’s Compensation laws require the payment of certain benefits to injured employees or to the dependents of employees who are killed in the course of their employment, regardless of negligence. In return for this protection, the employee does not have the right to sue his employer at common law for injuries covered. Worker’s Compensation Insurance conforms to Worker’s Compensation laws of a given state, and the insurance company must comply with any requirements and pay any sums required by these laws. (See also discussion under Employer’s Liability.)
• WRITTEN PREMIUM The total amount of premiums in dollars written by a company in a given specified period of time (as opposed to, for example, Earned Premiums.)

Thanks for reading this blog article on Insurance Terminology for M to W prepared by the SWAT Public Adjusters

The SWAT Public Adjusting Firm wrote this article to help you better understand the Insurance Terminology you might see and hear when our caring staff members are caring for your insurance. Public adjusting solutions are possible with S.W.A.T., we work for you.

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