Glossary Flashcards
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.
