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Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.
Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.
Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.
Commission
That portion of the premium paid to the agent as compensation for his or her services.
Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.
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