Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.
Every industry has its own unique language – and insurance is no exception. Here are some key insurance definitions and terms you might come across as you consider insuring yourself or your stuff.
1. Actual Cash Value
An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss. For vehicles, this amount can be determined by local area private party sales and dealer quotations for comparable vehicles.
2. Admitted Company
An insurance company authorized to do business in California.
3. Agent
A licensed person or organization authorized to sell insurance by or on behalf of an insurance company.
4. Aircraft Insurance
Coverage for the insured in the event that the insured’s negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft.
5. Automobile Insurance
Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.
6. Aggrieved party
A party who has been wronged. A person who is a victim is said to be aggrieved.
7. Agreed Value
(Usually associated with motor vehicle insurance) A car’s agreed value is set at the beginning of each period of cover. It is based on the fair value given for the cars made and model in the motor trade’s most commonly accepted price handbook (Car Buyers Guide). The value doesn’t change for the period of cover.
8. Amount covered
The current amount covered is shown on the most recent of the insurance schedule and the renewal notice. It is the most the insurer will pay, less any excess, for a claim that is covered by the policy.
9. Arbitration
A system of deciding legal disputes between an insured and an insurer by use of a private tribunal outside of the court system.
10. Arson
Any unlawful setting fire to property.
11. Binder
An authority given by an insurer to an intermediary to enter into, as agent for the insurer, contracts of insurance on behalf of the insurer. Some binders give an intermediary authority to deal with and settle claims against the insurer, as agent for the insurer.
12. Broadform
A form of liability wording that extends the cover for personal injury beyond physical injury, disease or death to include other causes including mental injury or anguish, fright, false arrest, malicious prosecution, libel, slander, defamation, wrongful entry, eviction or other invasion of the right of private property, assault and battery which occurs during the period of the policy.
13. Broker
An intermediary, who acts on behalf of a person who is applying for insurance. They earn a commission from the insurer; however, they have a responsibility to obtain cover appropriate to the needs of the insured. In certain circumstances a broker can also act as an agent for the insurer in terms of issuing a policy or collecting a premium
14. Burglary
Theft following forcible and violent entry to the premises.
15. Business Combined Policy
A number of policies typically required by a business are combined into one policy or package—e.g. fire damage to property, burglary, liability, etc. Business packs are sometimes tailored to cover the risks of a particular industry or business—e.g. motor dealers, builders, etc.
16. Cancellation
The termination of a policy before the expiry date.
17. Captive Insurance Company
An insurance company that is wholly owned by one or more entities, the main purpose of which is to insure the risks of its parent companies.
18. Casualty Business
Refers to Liability Insurance Policy classes and is a North American form.
19. Catastrophe reinsurance
A form of reinsurance whereby the reinsured is protected against an accumulation of losses from the same event—e.g. a hurricane or major flooding etc.
20. Caveat emptor
Let the buyer beware. Insurance contracts are NOT Caveat emptor (buyer beware) contracts. They are Uberrima Fidei Utmost Good Faith) contracts.
21. Cedant
An insurer who transfers all or part of a risk to a reinsurer.
22. Cede
To transfer risk from an insurer to a reinsurer. A ‘cession’ is a particular reinsurance transaction. Normally, this refers to the proportional insurance of a risk.
23. Ceding Insurer
The original insurer. It is the company which deals with the client, and reinsures part or all of the risk.
24. Certificate of Insurance
A certificate that acts as proof that a policy has been issued.
25. Cession
The portion of the sum insured of a risk ceded to a reinsurer. A Cession is a particular reinsurance transaction.
26. Claim Notification
By or on behalf of a claimant that an event likely to be covered by a policy has occurred, or is likely to occur, and giving formal notice to the insurer accordingly. Usually a claim will be
accompanied by a request for indemnification under the policy.
27. Claimant
The party asserting a right of recovery under a contract of insurance.
28. Claims History
The history of losses suffered by an insured which have been covered by insurance. Some claims histories also record events notified to the insurer which did not result in actual claims pay-outs—e.g. events below the policy excess.
29. Claims Ratio
The ratio of the cost of claims to earned premiums.
30. Closing
The document sent by a broker to an insurer confirming and finalizing an insurance cover arranged by the broker.
31. Co-insurance (average)
An insured who has a sum insured which does not represent the full value of the insured property may be their own co-insurer and, therefore, sharing in the risk with the insurer. This can result in a reduced claim.
Collection or Set A group of items of sufficiently common type, appearance or nature that they reasonably belong together and that is devalued if one or more of the group is lost or damaged.
32. Commission
A fee usually included within the Insurer’s premium charged by a broker or agent for services in the sale of an insurance contract.
33. Common Law
The principles of law arising from court decisions.
34. Comprehensive Insurance
(Usually associated with motor vehicle insurance) Provides specified cover for damage to insured car as well as damage to the insured car may cause to the property of others.
35. Compulsory insurance
Insurance arranged in order to comply with the law—e.g. third party motor insurance or compulsory employers liability in the UK. Also referred to as Statutory Insurance.
36. Condition precedent to liability
Conditions which must be fulfilled if the insured’s claim is to be accepted. For example, a claims co-operation condition may require an insured to make its books of account available for inspection should a loss occur.
37. Conditions precedent to policy
Conditions which must be fulfilled in order for a policy to be valid— e.g. the Duty of Disclosure.
38. Conditions subsequent to policy
Conditions which must be fulfilled in order for a policy to continue. An insured may be required to meet certain conditions while the policy is in force—e.g. pay the premium, maintain the premises, have the burglar alarm regularly serviced, etc.
39. Consequential Loss
A loss of property may also result in a “loss of profits” and/or additional expenses. This is a loss which is a consequence of the property loss. Consequential loss insurance is usually referred to as business interruption’ insurance. It is available as an addition to a property policy.
40. Consideration
A simple contract requires consideration to be given by the parties to the contract. The consideration must be worth something. It may be in the form of money, goods or services.
41. Contra Proferentum Rule
The legal rule by which the words of an author are to be construed against the author. Therefore, any ambiguity in an insurer’s proposal form or policy wording will be construed against the insurer. Note that this rule will only be applied where there is a real ambiguity.
42. Contract
An agreement between two or more parties which is enforceable by law.
43. Contribution
Where an insured has two or more insurance policies which are covering the same interest against the same peril, the insured can make his/her claim in full against one or other of the insurers. The chosen insurer can then require the other insurers to make a proportional contribution towards that loss. (Given that the insurance policies are subject to the rule of indemnity, the insured is prevented from recovering from all the insurers and therefore making a profit from his/her claims).
44. Cooling off period
A period of not less than 14 days which must be provided to Retail Clients on Retail products. During this period a client may return the policy and receive a full refund of premium unless a claim has been made.
Cover and covers: Means the protection provided by the policy.
45. Cover Note
A contract of insurance intended by the insurer to provide temporary insurance cover and which is to be replaced by another contract of insurance. Cover notes are usually issued where further particulars are to be ascertained or where the insured has been requested to comply with additional risk acceptance conditions before a more permanent insurance contract is entered into. Coverage The scope of the protection provided under a contract of insurance.
46. Damage/Damages
Compensation for loss suffered, which is awarded by courts and endeavors to place a person in the position where they would have been had the loss not been suffered.
47. Decline/Declinature
For example, the insurer may decide not to accept a proposal for insurance or perhaps decline to accept a claim.
48. Deductible
The amount of loss that is to be born by the insured prior to being able to claim under a policy. Sometimes called an “excess”.
49. Defendant
Person or entity being sued by the plaintiff.
50. Deposit premium
Amount paid by a client as an initial premium under a policy. The deposit premium is subject to adjustment at the end of the policy period based on, for example, claims experience. After adjustment, the insured receives a refund or is required to pay extra premium, as the case may be.
51. Depreciation
A decrease in the value of any type of property over a period of time resulting from use, wear and tear, or obsolescence.
52. Direct Insurer
Is an insurer which deals directly with the consumer rather than through an intermediary or agent.
53. Disaster
A disaster is said to have occurred when the normal community and organizational arrangements cannot cope with a hazard impact.
54. Disclaimer
A person may make a statement to the effect that they will not accept any responsibility for certain things which may (or may not) happen. For example, disclaimers are used to try and avoid or limit a person’s liability for breach of duty of care.
55. Doctrine Of Precedent
Reliance by judges on previous judicial decisions when deciding similar cases before them.
56. Due date
The date a policy is in force to and by when a renewal premium must be paid.
57. Duty of Disclosure
The insured has a duty to disclose every matter known to be relevant to the insurer, or that a reasonable person in the circumstances could be expected to know to be relevant to the insurer. The duty applies up until a contract is entered into, and when it is renewed, varied, reinstated or extended. An intending insured must be advised of their duty to disclose material facts.
58. Earned premium
Insurance policies usually run for a period of 12 months. An insured can cancel a policy at any time and request a refund of premium. Therefore, insurers must only take into the books of account that portion of premium which corresponds to actual elapsed time on risk. That portion of premium which can be taken up in the accounts is called earned premium. That portion of premium yet to expire is termed unearned premium.
59. Effective date
The date on which the cover of an insurance policy commences.
60. Eighths system
A method of calculating unearned premium, usually under a proportional reinsurance treaty where premium details are provided quarterly. Risks are assumed to attach on average on the middle day of each quarter. Therefore, at the end of a calendar year, 7/8ths of premiums on policies accepted in the first quarter are assumed to be earned, with 1/8th unearned, and so on.
61. Endorsement
Any writing appearing on a policy, or additional documentation attaching to a policy, whereby the printed terms of the policy, the parties to it, or other particulars, are varied.
62. Event
An incident or situation, which occurs in a particular place during a particular interval of time.
63. Ex gratia payment
A payment made by an insurer to a claimant as an act of grace, where no contractual entitlement to the claim exists. The insurer will make an ex gratia payment in order to maintain good will, public relations, or as a matter of social justice or some other non contractual reason.
Excess An excess on a policy is the first amount that must be contributed by the insured towards each claim. When one or more excesses apply to a policy, they will be shown on the insurance schedule.
64. Expiry date
The date upon which a policy ends. Conventionally, 4.00 pm is the normal time of expiry, although this varies by type of policy and by insurer.
65. Earned premium
Insurance policies usually run for a period of 12 months. An insured can cancel a policy at any time and request a refund of premium. Therefore, insurers must only take into the books of account that portion of premium which corresponds to actual elapsed time on risk. That portion of premium which can be taken up in the accounts is called earned premium. That portion of premium yet to expire is termed unearned premium.
66. Effective date
The date on which the cover of an insurance policy commences.
67. Expiry date
The date upon which a policy end. Conventionally, 4.00 pm is the normal time of expiry, although this varies by type of policy and by insurer.
68. Facultative reinsurance
Reinsurance negotiated and placed on a case-by-case basis, as opposed to the automatic protection provided under a reinsurance treaty. Each facultative reinsurance arrangement is subject to a process of offer and acceptance between the parties.
69. Fidelity insurance
An insurance policy which covers the misappropriation of goods or money by employees.
70. First party
The first and second parties are simply the parties to an insurance contract. A third party is not a party to the contract but a party who seeks to be compensated for some injury or loss caused by the insured. A first party policy may also refer to insurance for the policyholder’s own property or person.
71. Flood
Means the inundation or covering of normally dry land by water which: escapes or overflows from, or cannot enter, because it is full or has overflowed, or is prevented from entering, because other water has already escaped or been released from it, the normal confines of any watercourse or lake, including any that may have been modified by human intervention, or reservoir, canal, dam or storm water channel. Flood does not mean storm water run off from areas surrounding the site or water escaping from any water main, pipe, street gutter, guttering or surface.
72. Fortuitous loss
An unforeseen loss is termed a fortuitous loss. Insurers will only insure fortuitous losses. Whilst an insurer knows that there will be motor accidents, it cannot predict which insureds will suffer a loss.
73. Franchise
A type of excess whereby claims under a certain amount are not paid. However, claims over the franchise amount are paid in full.
74. Fraud
The term “fraud or dishonesty” encompasses all those risks of loss that might arise through dishonest acts or omissions.
75. Fronting Arrangement
The issuance of a policy by one insurer on behalf of a second insurer because the second insurer is not licensed or admitted in the state of jurisdiction for the line of business being written. The first insurer actually issues the policy to the insured and retains legal responsibility for meeting claim payments under it, but reinsures 100% of its exposure to the second insurer.
76. General average (marine)
During a marine venture, certain cargo may be deliberately sacrificed so that the rest of the cargo may be saved. All those with cargo on board must share in the loss of those whose cargo was sacrificed.
77. Gross Premium
The net premium plus operating expenses, commissions and other expenses.
78. Hazard
A situation that increases the probability of the happening of loss arising from a peril, or that may influence the extent of the loss. For example, accidents, fire, flood, liability, burglary, and explosion are perils. Slippery floors, flammable liquids, unsanitary conditions, unlocked and unguarded premises and poor roads are hazards.
79. BASIC RATE
The standard charge for a given type of risk.
80. BINDER
A temporary or preliminary agreement, which provides coverage until a policy can be written or delivered.
81. BODILY INJURY
Term used in Auto and Casualty policies meaning physical injury, including sickness, disease, mental injury, shock, or death.
82. BODILY INJURY LIABILITY
Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued.
83. BROAD FORM
Any of the commercial or personal lines property forms that provide coverage on a named perils basis. This form normally adds the Extended Coverage and Vandalism and Malicious Mischief coverage. This form is generally used for coverage on a Homeowners Policy.
84. BROKER
An independent person or firm who acts on behalf of the insured in placing business with the insurance company. They are responsible for the collection of premiums, but do not have the authority to give coverage on the insurance company’s behalf without their specific agreement. Compensation is on a commission basis.
85. BUSINESS INTERRUPTION
Insurance against business expenses and loss of income resulting from fire or other insured peril.
86. CANCELLATION
Termination of an insurance coverage during the policy period by the voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.
87. CIVIL LIABILITY
Liability to other motorists, pedestrians, and property owners that you assume when operating your automobile on a public roadway.
88. CLAIM
Notice to an insurer that under the terms of a policy, a loss may be covered.
89. CLAUSE
A term used to identify a particular part of a policy or endorsement.
90. COINSURANCE
In property insurance, a clause under which the insured shares in losses to the extent that he or she is under insured at the time of loss.
91. COLLISION COVERAGE
An optional coverage designed to provide protection for your vehicle when damage occurs as a result of a collision with another object. This coverage is optional and may be purchased in addition to the mandatory coverage required by law, and it is subject to a deductible.
92. COMPREHENSIVE INSURANCE
Comprehensive insurance reimburses you for damage to your own car from causes other than collision or overturning. The comprehensive portion of your policy pays for loss due to perils like hail, flood, theft, fire, glass breakage, falling objects, missiles, explosions, earthquakes, windstorms, vandalism or malicious mischief, riot or civil commotion, and collision with a bird or an animal.
When examining a policy’s comprehensive coverage, check for exclusions or limitations. For example, if you have a special audio system installed in your car, you should ensure that your policy would cover the cost of the equipment if it were damaged or stolen.
It’s also important to know if the policy pays for the actual cash value of damaged or stolen property (its current value after depreciation has been subtracted or the full amount required to replace it today).
93. COMPULSORY INSURANCE
Any form of insurance that is required by law.
94. CONSEQUENTIAL DAMAGE
A loss that is an indirect result of an accident or fire (e.g. food spoiled through breakdown of a refrigerator).
95. DECLARATIONS (DEC SHEET)
A term used in insurance for the portion of the contract that contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured.
– The types of coverage you have elected
– The limit for each coverage
– The cost for each coverage
– The specified vehicles covered by the policy
– The types of coverage for each vehicle covered by the policy
– Other information applicable to the policy
96. DEDUCTIBLE
The portion of a loss that you are required to pay before your insurance coverage will respond. Deductibles can be used to reduce your physical damage premiums. For example, if you owned a policy with a $200 deductible and you suffered a covered loss totaling $1,000, you would pay the first $200 and the insurance company would pay the remaining $800. If the loss were only $200, you would pay the entire amount.
97. DEPRECIATION
Decrease in the value of property over a period of time due to use, wear, tear, and obsolescence. For example, if you paid $500 for a television set five years ago, its current value minus depreciation might be only $125.
98. DIRECT LOSS (OR DAMAGE)
A loss that is a direct consequence of a particular peril. Fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss.
99. DIRECT WRITER
An insurance company that sells its policies through salaried employees (licensed agents) who represent it exclusively, rather than through independent local agents, who represent several insurance companies.
100. DUE DILIGENCE
An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale. Generally, due diligence refers to the care a reasonable person should take before entering in an agreement or transaction with another party.
101. Lapse
A period of time when someone goes without insurance coverage.
102. Lease
A contract granting use or occupation of property during a specified period, in exchange for a specified rent.
103. Leaseholder
An individual who possesses or has use of property through a lease.
104. Lessee
An individual to whom a lease is granted.
105. Liability coverage
Coverage for bodily injury or property damage to others for which you are held liable (as provided by your policy and state law).
106. Lien
A creditor’s claim against an owner’s assets to secure an unpaid debt.
107. Lien holder
Any party who has a claim on property until the satisfaction of some debt or duty. For example, a bank is the lien holder of a car until the car loan is paid off by the owner.
108. Limits of insurance
The amount an insurance company will pay for a covered loss, as stated in the policy.
109. Loss
Direct and accidental damage to an insured property or automobile, which is the basis for filing a claim.
110. Loss assessment coverage
Coverage providing reimbursement for extra fees assessed by a condominium or homeowners association. It is subject to a deductible and the limit stated in the policy.
111. Loss history
A history of a person’s automobile or property losses.
112. Loss of use (property)
Coverage that pays additional expenses when a policyholder has to move out of their residence while repairs are made, as a result of damage caused by a covered loss.
113. Malicious mischief
Deliberate damage or destruction of another person’s property. For insurance purposes, it is typically covered under vandalism.
114. Market value
The value of property in terms of what it can be sold for in the open market.
115. Medical payments (auto)
Coverage for reasonable medical expenses to you and others in the event of an accident, regardless of who is at fault. In your policy, this may be referred to as medical expenses or medical benefits.
116. Medical payments to others (property)
This coverage may provide payment for medical expenses resulting from an accident on your property. “Med pay” is intended for the immediate medical treatment of guests on your premises, without determining fault. This coverage is subject to specific dollar limits per incident, and availability may vary.
117. Misrepresentation
False or misleading statements.
118. Mitigation
Steps taken to prevent or reduce the amount or likelihood of loss.
119. Motor vehicle report (MVR)
The record of a person’s driving history, including details of any accidents or violations, as reported to a state’s department of motor vehicles.
120. Named Insured
The person or entity listed on the policy declarations page.
121. National Insurance Crime Bureau (NICB)
A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receiv
The failure to exercise the care that is expected of a reasonable person in similar circumstances.
123. No-fault Insurance
May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.
124. Non-Renewal
When an insurer decides not to renew a policy at the end of its policy period.
125. Occurrence
An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.
126. Overseas Insurance
Auto and Property Insurance for those living abroad is available from American International Underwriters through GEICO’s subsidiary, International Insurance Underwriters.
127. Paperless Billing
An electronic version of your bill that you can review online. Everyone who has registered to use GEICO’s Policyholder Service Center can choose to receive a Paperless Bill.
128. Paperless Policy
GEICO’s electronic system that allows you to review your policy documents online.
129. Passive Restraint System
A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.
130. Payment Plans
Your auto insurance premium can be paid using one of our installment payment plans; you make several smaller payments but incur a service fee.
131. Payment Recovery
If your car is damaged because of another driver’s negligence and you ask GEICO to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.
132. Payment Recovery Examiner
The Payment Recovery Examiner is responsible for recovering your deductible from the other party’s insurance company.
133. Peril
A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.
134. Personal Injury Protection
May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.
135. Personal Property
Property that is not land or connected to land (real estate), such as furniture or jewelry.
136. Physical Damage
Damage to property.
137. Policy
A contract between you and the insurance company.
138. Policy Change
Any change made to your insurance policy during the period that the policy is in force.
139. Policyholder
The person or entity listed on the policy declarations page.
140. Pre-accident Condition
The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.
141. Premium
The price of the insurance policy that the insured pays in exchange for insurance coverage.
142. Primary Insurance
Insurance that must be maintained as a condition of the GEICO Personal Umbrella Policy (GPUP). Primary insurance acts as the first layer of coverage on common types of losses. This usually includes auto, motorcycle and homeowner insurance, but may also include boat insurance or some other policy. Please check your insurance policy documents for more detailed information.
143. Proof of Loss
A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.
144. Property Damage Liability Coverage
Pays for damage to someone else’s property resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.
145. Proximate Cause
An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.
146. Rate
Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium.
147. Rating Plan
The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt, insuring more than one car.
148. Reinspection
A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.
149. Release
Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.
150. Renewal Date
The date that your insurance policy expires and the date that your renewed policy will begin.
151. Rental Reimbursement
Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium. In Virginia, the term Rental Reimbursement is known as “Transportation Expense.”
152. Renters Insurance
Property Insurance provides coverage to an individual living in an apartment, condominium or single family home owned by someone else.
153. Replacement Parts
Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and recycled parts. New or after-market parts will be used if we can’t find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car. We guarantee the after-market parts used for these repairs for as long as you own the car.
154. Resident Adjuster
Staff adjuster who handles claims in remote areas of a region.
155. Retained Limit
In umbrella insurance, retained limit is similar to a deductible in other types of insurance. The retained limit is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.
156. Rider
In motorcycle insurance, a rider is someone who will operate the insured motorcycle. In life and health insurance, the term ‘rider’ is often used to refer to an endorsement to an insurance policy.
157. Risk
The chance of suffering a loss.
158. Salvage
Damaged property which is taken over by the insurance company after payment of a claim.
159. Select Repair Shop
Body shops chosen by GEICO that are authorized to handle the repair of insured vehicles without the need for an inspection by a staff adjuster. Vehicle owners always have the right to choose the body shop of their choice.
160. Subrogation
If your car is damaged because of another driver’s negligence and you ask GEICO to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.
161. Supplement/Supplemental Estimate
Used to cover damage not included in the original estimate.
162. Theft
The unlawful taking of another’s property with the intent to permanently deprive the owner of its use or possession.
163. Third Party
Person or entity not party to an agreement but with an interest in the agreement.
164. Third Party Claim
Claims for injury or damage to property of a third party alleged to have been caused by the insured.
165. Tort
A private or civil wrong or injury, other than breach of contract, which violates a person’s legally protected right(s), and for which the law may permit a remedy in the form of money damages.
166. Tortfeasor
One who commits a tort (see above).
167. Total Loss
Property that has sustained damage so extensive that repairing it is not reasonable. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical, or if state regulations require us to consider it a total loss.
168. Towing and Labor Coverage
Provides insurance if your auto needs to be towed or requires roadside assistance.
169. Umbrella Insurance
Provides high limits of additional liability coverage above the limits of your homeowners and auto policy. In addition, it provides coverage that may be excluded by other liability policies.
170. Underwriting
The process an insurer goes through to determine whether or not it will provide coverage for an applicant.
171. Uninsured Motorist Coverage
In some circumstances, may pay for your injuries or property damage caused by an uninsured motorist or, in some states, an unidentified driver. In some cases it also includes coverage for underinsured motorists and at-fault drivers with insufficient insurance to pay your claim. This coverage is subject to the terms, limits and conditions of your policy contract.
172. Vandalism
Destruction or defacement of property.
173. Vehicle Identification Number (VIN)
A 17-digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the vehicle.
174. Warranty
A written guarantee of the integrity of a product and of the manufacturer’s responsibility for the repair or replacement of defective parts.
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