» Common Terms and Definitions
|54 Terms found - Page: 1 » 2 |
|advertising claim  |
A statement or claim made in advertising about the benefits, characteristics, and/or performance of a product or service designed to persuade the customer to make a purchase.
|ALAE  |
Allocated Loss Adjustment Expenses - expenses assigned to a specific claim such as legal fees
|augmented estate  |
A deceased person's augmented estate consists of property left by the will plus certain property transferred outside of the will by such devices as gifts, joint tenancies and living trusts . The value of the augmented estate is calculated only if the surviving spouse declines whatever he or she was left by will and instead claims a share of the estate. (This is called taking against the will .) The amount of this "statutory share" depends on state law. A surviving spouse can generally claim one-third to one-half of the augmented estate.
|Betterment  |
A reduction in an insurance claim payment arising out of the replacement of a partial worn part with a new part. An insurer applies betterment when a damaged vehicle part that has finite life span, such as a tire, is replaced by a new part. For example, if a new tire replaces a tire with 50% wear, the insurer will reduce the amount paid for the new tire by 50%.
|bifurcate  |
To separate the issues in a case so that one issue or set of issues can be tried and resolved before the others. For example, death penalty cases are always bifurcated. The court or juryfirst hears the evidence of guilt and reaches a verdict, and then hears evidence about and decides upon which punishment to impose (death or life in prison without parole). Bifurcated trials are also common in product liability class action lawsuits in which many people claim that they were injured by the same defective product -- the issue of liability is tried first, followed by the question of damages. Bifurcation is authorized by Rule 42(b) of the Federal Rules of Civil Procedure.
|Bonus-malus contracts  |
Increases in subsequent premiums whenever an insurance claim is presented
|cause of action  |
A specific legal claim -- such as for negligence, breach of contract or medical malpractice -- for which a plaintiff seeks compensation. Each cause of action is divided into discrete elements, all of which must be proved to present a winning case.
|Claimant  |
One who makes a liability claim against another person's insurance policy.
|Claims Made Coverage  |
A policy providing liability coverage only if a written claim is made during the policy period or any applicable extended reporting period.
|Claims-made trigger  |
A limitation on claims to those made during the time when a policy is in effect, regardless of when the event causing the claim occurred.
|cloud on title  |
A claim or other type of encumbrance that might invalidate a title to a property.
|Coverage Trigger  |
Determines whether a policy covers a particular claim for loss.
|demurrer  |
A request made to a court, asking it to dismiss a lawsuit on the grounds that no legal claim is asserted. For example, you might file a demurrer if your neighbor sued you for parking on the street in front of her house. Your parking habits may annoy your neighbor, but the curb is public property and parking there doesn't cause any harm recognized by the law. After a demurrer is filed, the judge holds a hearing at which both sides can make their arguments about the matter. The judge may dismiss all or part of the lawsuit, or may allow the party who filed the lawsuit to amend its complaint. In some states and in federal court, the term demurrer has been replaced by "motion to dismiss for failure to state a claim" (called a "12(b)(6) motion" in federal court) or similar term.
|discharge of lien  |
The removal of a lien on real property after the claim has been satisfied.
|disclaim  |
(1) To refuse or give away a claim or a right to something. For example, if your aunt leaves you a white elephant in her will and you don't want it, you can refuse the gift by disclaiming your ownership rights. (2) To deny responsibility for a claim or act. For example, a merchant that sells goods second-hand may disclaim responsibility for a product?s defects by selling it "as is."
|disclaimer  |
(1) A refusal or renunciation of a claim or right. (2) A refusal or denial of responsibility for a claim or an act. (3) The written clause or document that sets out the disclaimer. See also disclaim.
|Discovery Period  |
In insurance, under the terms of a claims made policy, the discovery period is the time during which a claim must be reported
In legal cases, the discovery period is the time when lawyers on both sides are gathering information and getting ready for trial.
|disinherit  |
To deliberately prevent someone from inheriting something. This is usually done by a provision in a will stating that someone who would ordinarily inherit property -- a close family member, for example -- should not receive it. In most states, you cannot completely disinherit your spouse; a surviving spouse has the right to claim a portion (usually one-third to one-half) of the deceased spouse's estate. With a few exceptions, however, you can expressly disinherit children.
|ECO Clause  |
In a reinsurance treaty, the clause that protects the ceding company against all or part of its liability from claim settlement activities that are outside of policy provisions.
|elements (of a case)  |
The component parts of a legal claim or cause of action. To win a lawsuit, a plaintiff must prove every element of a legal claim. For example, here are the elements of a breach of contract claim:
1.There was a valid contract.
2.The plaintiff performed as specified by the contract.
3.The defendant failed to perform as specified by the contract.
4.The plaintiff suffered an economic loss as a result of the defendant's breach of contract.
|Estoppel  |
An equitable principal to the effect that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally prohibited from asserting that fact does not exist. For example, if an insurance company accepts coverage and makes an offer to settle and later decides that it was unwise, the insurance company may be stopped from denying the claim at that point.
|Excess Losses  |
In the Experience Modification Factor, the amount of any single claim that exceeds $5,000.
|Fiduciary  |
A person or institution which occupies a position of special trust and has responsibility for the money, property or financial affairs of another. A claim representative is a fiduciary agent of the insurance company.
|First-party claim  |
Damage you do to your own property. You make the claim against your own policy.
|Franchise Deductible  |
No claim is paid unless it exceeds the stated amount (or percentage of the amount) of insurance. If the loss exceeds the stated amount, the entire loss is paid.
|homestead declaration  |
A form filed with the county recorder's office to put on record your right to a homestead exemption. In most states, the homestead exemption is automatic--that is, you are not required to record a homestead declaration in order to claim the homestead exemption. A few states do require such a recording, however.
|householder  |
A person who supports and maintains a household, with or without other people. In bankruptcy law, a householder, housekeeper or head of household can claim a homestead exemption and possibly other exemptions relating to the maintenance of the household.
|Insurable Interest  |
Any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance from loss, destruction or pecuniary damage or impairment. Relationship or condition such that loss or destruction of life or property would cause a financial loss. A claim may be paid only when an insurable interest exists.
|Joint Loss Agreement  |
The division of an insurance claim payment among policies in the proportion that each policy bears to the total.
|Loss  |
In insurance, the term means the amount the insurer is required to pay because of a happening against which it has insured. Also, a happening that causes the company to pay. Also refers to the overall financial result of some operation, as opposed to "profit." The basis for a claim for indemnity or damage under the terms of an insurance policy. Any diminution of quality, quantity or value of property.