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Glossary of Terms

Acts of God - Superhuman cause, such that no reasonable human foresight, prudence, diligence, and care can anticipate and/or prevent.

Actual Cash Value (ACV) - The replacement cost of property minus depreciation. (Actual cash value can also be determined by market value, if any).

ADA - Americans with Disabilities Act.

Aggregate Limit - A specific limit on the amount an insurer will pay for all covered losses during the policy period.

All Risks - A term use to indicate coverage for all direct causes of physical loss that are not specifically excluded. Also called "open perils" or "special form coverage".

Bailee - A person or business that has in its care, custody, or control property belonging to someone else.

Casual labor - Labor picked up at a truck stop or hiring hall for loading, unloading, etc.

Co-driver - Second van operator assigned to a single tractor-trailer.

Coinsurance clause - An insurance-to-value provision in many property insurance policies. If the property is underinsured, the coinsurance provision reduces the amount that an insurer will pay for a covered loss.

Collision - Coverage for damage to an insured motor vehicle caused by its impact with another vehicle or object or by its overturn or upset.

Comprehensive - Coverage for losses to a covered auto by fire, theft, vandalism, falling objects, flood, and various other perils.

Deductibles - A portion of a covered loss that is not paid by the insurer. The deductible is subtracted from the amount the insurer would otherwise be obligated to pay the insured.

Door-to-door - Shipment placed in a container at origin residence and delivered in the same container to destination residence.

DOT - Department of Transportation.

EEOC - Equal Employment Opportunity.

Endorsement - A document that amends an insurance policy by adding or deleting coverage or otherwise modifying the coverage.

EPA - Environmental Protection Agency.

Exclusions - Policy provisions that eliminate coverage for specified exposures.

Exposures - Any condition or situation that presents the possibility of a loss occurring.

Floater Policies - Policies that are designed to cover property that "floats," or moves from location to location.

Insuring Agreement - A statement in an insurance policy that the insurer will, under certain circumstances, make a payment or provide a service.

Liability - Financial obligations, or debts, owed by a company to another entity, usually the policyholder in the case of an insurance company.

Litigation - The process of carrying on a lawsuit.

Loss Ratios - The insurer's incurred losses (including loss settlement expenses) for a given period divided by its earned premiums for the same period.

Managed Care - A term used to describe medical insurance that provides coverage for cost-effective medical services to plan members.

Named Insured - The policyholder whose name(s) appears on the declarations page of an insurance policy.

OSHA - Occupational Safety & Hazard.

Perils - The actual means by which property is damaged or destroyed. Examples include fire, lightning, and theft.

Principal - The party that authorizes an agent to act on its behalf in an agency relationship.

Replacement Cost Value - The cost to repair or replace property using new materials of like kind and quality with no deduction for depreciation.

Securities - Written investment instruments representing either money or other property. Stocks and bonds are examples of securities.

Self Insured Retention - The amount the insured must pay if a loss covered by an umbrella policy is not covered by any of the underlying policies.

Storage in Transit (SIT) - Holding a shipment in a carrier's warehouse, pending further transportation. May be in SIT for a specified number of days before storage becomes "permanent".

Subrogation - The insurer's right to recover payment for a loss it has paid to an insured from a negligent third party who caused the loss.

Third Party - One who is not a party to the insurance policy but who could bring a claim against an insured.

Underlying Insurance - A term referring to basic policies that provide primary liability coverages and that an umbrella insured is required to maintain.

USD - United States Dollar.

Vanliner Insurance Representative - Your producer (insurance agent) or Vanliner Account Representative.