Glossary Flashcards
(5 cards)
Absolute Liability
Liability that arises from an extremely dangerous situation. Absolute liability is often found in cases involving explosives. For example, you are absolutely liable if you keep a wild animal as a pet. Also known as strict liability.
Accident
A sudden and unforeseen event occurring for a specific time and place.
Actual Cash Value (ACV)
The cost to replace a property item at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a cost (replacement cost minus depreciation).
Additional Insured
A person, firm, or corporation other than the named insured on a policy, or a lender named in a mortgage clause, which is protected against loss by the terms of the policy.
Additional Living Expenses
A coverage designed to reimburse the insured for an increase in living expenses necessitated by loss to the dwelling. This indirect loss must be the result of direct loss by a covered peril.
