Flashcards in Commercial Chp 2 Deck (7)
Proof of loss
A statement of facts about a loss for which the insured is making a claim
Actual cash value (ACV)
Cost to replace property with new property of like kind and quality less depreciation.
Agreed Value optional coverage
Optional coverage that suspends the Coinsurance condition if the insured carries the amount of insurance agreed to by the insurer and insured.
Inflation Gaurd optional coverage
Coverage for the effects of inflation that automatically increases the limit of insurance by the percentage of annual increase shown in the declarations.
Replacement Cost optional coverage
Coverage for losses to most types of property on a replacement cost basis (with no deduction for depreciation or obsolescence) instead of on actual cash value basis.
The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.