Property and Casualty

HO-2 (Broad Form)

A named peril form on both dwelling structures and contents. The HO-2 is very similar to the DP-2 Broad Form dwelling fire policy, except theft is included. Not covered: 1. Inside building damage rain, snow, sand, and hail damage 2. Loss by falling object unless damages roof first 3. Fences, driveways, and walks for damage 4. Damage from water or steam

Third party (tercero)

A person or persons who are not a party to the insurance contract, or someone other than the insured or insurer.

Liberalization (Liberalización)

A property insurance clause that extends broader legislated or regulated coverage to current policies, as long as it does not result in a higher premium.

Retrospective Rating (calificación retrospectiva)

A self-rating plan under which the actual losses during the policy period determine the final premium (subject to a minimum and maximum premium).

Named Peril (Peligro designado)

A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils.

Indirect Loss (Pérdida indirecta)

Also known as consequential losses , are losses considered a result of direct loss. such losses usually result from the time it takes to repair or replace damaged property. For commercial risks, the primary type of indirect or consequential loss is the loss of profits a business may suffer because oh having to close down until the business is repaired.

Judgement Rating (calificación de juicio)

An approach used when credible statistics are lacking or when the exposure units are so varied that it is impossible to construct a class.

Coverage D - Fair Rental Value

Applies if property under Coverage A, B, or C becomes damaged or destroyed and unfit for normal use due to damage or destruction.

Hazards (peligro)

Are conditions or situations that increase the probability of an insured loss occurring. (Son condiciones o situaciones que aumentan la probabilidad de que ocurra una pérdida asegurada.)

Endorsements (Endosos)

Are printed addendum's to a contract that are used to change the policy's original terms, conditions, or coverage's.

Peril (peligro)

Are the causes of loss insured against in an insurance policy. (Las causas de pérdida están aseguradas en una póliza de seguro.)

Physical Hazards (Peligros físicos)

Are those arising from the material, structural, or operational features of the risk, apart from the persons owning or managing it. (Son aquellos que surgen de las características materiales, estructurales u operacionales del riesgo, además de las personas que lo poseen o lo gestionan.)

Indemnity (Indemnidad)

Compensation to the insured that restores them to the same financial position that they enjoyed prior to the loss.

Combined Ratios (razones combinadas)

Defined as the percentage of each premium dollar a property/casualty insurer spends on claims and expenses.

Dwelling Broad Form (DP-2 and DP 00 02) (vivienda de forma amplia)

Further expands coverage for the following perils: B.B.BICE-GOLF 1. Damage by burglars 2. Falling objects 3. Weight of ice, snow or sleet 4. Accidental discharge or overflow of water or steam 5. Sudden and accidental tearing apart, cracking, burning or bulging 6. Freezing 7. Sudden and accidental damage from artificially generated electrical current 8. Lawns, trees, shrubs, and plants 9. Breakage of glass 10. Collapse

Dwelling Basic Form (DP-1 and DP 00 01) (forma básica de vivienda)

Insurers against the following perils or causes of loss: W.C.SHAVER: 1. Fire or lightning and internal explosions 2. Windstorm or hail 3. Explosion 4. Riot or civil commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Volcanic eruption Extended Peril: 9. Vandalism or malicious mischief

Speculative Risk (riesgo especulativo)

Involves the opportunity for either loss or gain. An example of speculative risk is gambling. These types of risks are not insurable. (Implica la oportunidad de perder o ganar. Un ejemplo de riesgo especulativo es el juego. Este tipo de riesgos no son asegurables.)

Arbitration (Arbitraje)

Is a method of casualty claim settlement used when the insured and insurer cannot agree on how to settle a claim.

Extensions Coverage (Cobertura de extensiones)

Is a provision in some property policies that allows extension of a major coverage to apply to specific type of loss to property not specifically insured.

Loss Costs (costos de pérdida)

Is a rating method developed by ISO that provides an insurer with that portion of a rate that does not include provisions of expenses or profit and are based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time.

Exposure (exposición)

Is a unit of measurement used to determine rates charged for insurance coverage. (Es una unidad de medida utilizada para determinar las tarifas cobradas por la cobertura del seguro.)

Underwriting (suscripción)

Is the process of reviewing applications for insurance and the information on the application. More simply it is a risk selection process.

Assignment (Asignación)

Is the transfer of legal right or interest in an insurance company.

Tort (agravio)

It is a private, civil, non-contractual wrong for which a remedy through legal action maybe sought.

Direct Loss (Pérdida directa)

Meaning direct physical damage to buildings and or personal property. it also includes other damage where the insured peril was the proximate cause of loss.

Coverage E - Additional Living Expenses

Only available if broad or special form dwelling coverage is written. Pays for additional living expenses while their house is unfit for use or being repaired.

Dwelling Special Form (DP-3 and DP 00 03) (forma especial de vivienda)

Only covers the dwelling and other structures on an open peril basis. 1. Theft 2. Discharge or overflow of steam that occurs of the insureds premises 3. No exclusions for antennas, outdoor equipment, fences, or awnings from the peril of falling objects 4. Damage to a roof caused by freezing or thawing of water under roof shingles

Coverage B: Other Structures

Property covered: 1. Other structures on the described dwelling 2. Other structures rented to anyone, tenant as well only if used as private garage 3. Structures used for commercial, farming or manufacturing, gas stored in a tank and kept in structure Property not covered: 1. Land including land with other structures 2. Structures rented or held for rental rather than use as a private garage 3. Other structure used as business unless noted 4. Grave markers and mausoleums

Coverage C: Personal Property

Property covered: 1. Personal property, family guest, and or servants 2. Model or hobby aircraft and parts whether or not they are attached 3. Motor vehicles and other conveyances only to service premise or help handicapped 4. Row boats and canoes 5. Blank storage media and prepackaged comp software 6. Property moved for 30 days. Policy will not extend beyond policy expiration date Property not covered: 1. Coins, currency, securities, bills, accounts, bank notes, deeds, passports, manuscripts, and evidences of debt 2. Animals, birds, and fish 3. Aircraft used for flight 4. Hovercraft's and parts 5. Water craft other than noted above 6. Motor vehicles and other motorized land use 7. The cost to restore data store in different mediums 8. Credit cards, debit cards 9. Water or steam 10. Grave-markers and masoleums

Coverage A- Dwelling

Property covered: 1. The dwelling on the described premises listed 2. Any materials or supplies used to repair dwelling 3. Building and outdoor equipment on premises used to service location unless insured elsewhere Property not covered: 1. Land

Casualty or Liability Insurance (Seguro de responsabilidad civil o pasivo)

Provides compensation or indemnity for harm or wrong done to other that insured is legally obligated to pay.

Schedule Rating (clasificación del horario)

Rates are developed by applying a schedule of charges and credits to some base rate to determine the appropriate rate for an individual exposure.

Moral Hazards (riesgos morales)

Refer to those applicants that may lie on an application for insurance, or in the past, have submitted fraudulent claims against the insurer. (Consulte a los solicitantes que pueden estar en una solicitud de seguro, o en el pasado, han presentado reclamos fraudulentos contra la aseguradora.)

Morale Hazards (peligros morales)

Refers to an increase in the hazard presented by a risk, arising from the insured's indifference to loss because of the existence of insurance. (Se refiere a un aumento en el riesgo presentado por un riesgo, que surge de la indiferencia del asegurado a la pérdida debido a la existencia de un seguro.)

Pure Risk (riesgo puro)

Refers to situations that can only result in a loss or no change. There is no opportunity for financial gain. (Se refiere a situaciones que solo pueden dar como resultado una pérdida o ningún cambio. No hay oportunidad de obtener ganancias financieras.)

Class Rating (clasificación de la clase)

Refers to the practice of computing a price per unit of insurance that applies to all applicants possessing a given set of characteristics.

First Party (primera fiesta)

Risk protection is defined as insurance coverage that applies to the insured's own property or person.

Law of Large Numbers (LLN) (ley de grandes números)

States that the larger number of people with a similar exposure to loss, the more predictable actual loss will be. This law forms the basis for statistical prediction of loss upon which insurance rates are calculated. (Afirma que la mayor cantidad de personas con una exposición similar a la pérdida, la pérdida real más predecible será. Esta ley forma la base para la predicción estadística de la pérdida sobre la cual se calculan las tasas de seguro.)

Open Peril (Abierto peligro)

Term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against "any risk of loss" that is not specifically excluded.

Subrogation (Subrogación)

The acquisition by an insurer of an insured's rights against any third party for indemnification of loss or other payment, to the extent that the insurer pays the loss.

Merit Rating (calificación de mérito)

The insured's premium is based not on the actual loss record, but on other factors that indicate the probability that loss will occur.

Loss (pérdida)

The reduction, decrease, or disappearance of value of the person or property insured in a property, by a peril insured against. (La reducción, disminución o desaparición del valor de la persona o propiedad asegurada en una propiedad, por un peligro asegurado.)

Declarations (declaraciones)

The section of an insurance policy containing the basic underwriting information, such as the insured's name, address, amount of coverage and premiums, and a description of insured locations, as well as any supplemental representations by the insured.

Conditions (condiciones)

The section of an insurance policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy.

Liability (Responsabilidad)

This include insurance against loss resulting in liability for injury, fatal or nonfatal, suffered by any natural person, or resulting in liability for damage to property, or property interests of others but does not include workers compensation, common carrier liability, boiler and machinery, or team and vehicle insurance.