ABANDONMENT - The relinquishment of ownership of property that has been lost or damaged to the insurance company for the purpose of claiming a total loss.

ABSOLUTE ASSIGNMENT - The assignment by the policy owner of all control and rights under a policy to a third party.

ACCIDENT- An event that takes place without foresight or expectation.  An unintended sudden and unexpected happening.

ACCOMMODATION LINE - tems accepted by an insurer to insure which, under the company's underwriting rules, would not normally qualify for insurance. This happens when and insured has an account and insurance needs that otherwise meet the insurer's guidelines, the account is otherwise satisfactory and the insurer does not want to lose the insured to its competition.

ACCOUNTS RECEIVABLE POLICY - An inland marine policy which is written to help someone who has had a financial loss and is unable to collect from those who owe him because of his records being destroyed.

ACT OF GOD - An event without any human intervention that could not have been prevented by reasonable care or foresight.  An example might be a flood, an earthquake or other such accident or event that is the result of natural causes.

ACTION - In law, this is the formal means or method of going after and recovering one's rights in a court of law.

ACTIONABLE - That which can legally be made the grounds of a law suit.

ACTUAL CASH VALUE - The present value of an item of property measured in cash. This figure is determined by taking the replacement cost and deducting for depreciation brought about by physical wear and tear and obsolescence.

ADDITIONAL INSURED - A person other than the original policy purchaser or the one named in the contract, who is also protected under the insurance contract.

ADDITIONAL LIVING EXPENSE - A form of coverage which may be included in a policy, providing funds to pay for increased living costs which result from damage covered by the policy.

ADULT - One who is of full age, by statute usually twenty-one years of age.

ADJUSTER - An individual representing the insurance company and acting for the company in working on agreements as to the amount of a loss and the liability of the company in same.

ADJUSTMENT - Determining the cause and amount of a loss, the indemnity recoverable by the insured and amount to be paid under the terms of the policy.

ADMITTED COMPANY - An insurance company that is licensed to do business in that state.

AGENT - The individual appointed by an insurance company to solicit, negotiate, effect or countersign insurance contracts on its behalf.

AGENT'S AUTHORITY OR POWER - The authority and power given to an agent by his contract. Also the power of agency that the public assumes an agent has.

ALLIED LINES - Various insurance coverages for additional types of losses, and against loss by additional perils, which are closely associated with and usually sold with fire insurance. The fire insurance field consists of coverages for "fire and allied lines."

ALL RISK - Insurance against loss or damage to property arising from any fortuitous cause, except such as may be specifically excluded.

AMERICAN AGENCY SYSTEM - The method of sales, service and distribution of insurance through agents who own their "renewals" and are compensated on a commission basis, in contrast to the system of selling insurance through salaried company representatives.

THE AMERICAN INSTITUTE OF PROPERTY AND LIABILITY UNDERWRITERS - This is an institute that is supported by the property-liability insurance industry.  They provide examinations that lead to the CPCU.

AMERICAN INSURANCE ASSOCIATION - The organization of the stock insurance companies in education, technical and legislative.

AMOUNT SUBJECT - The amount or value which can be lost in a casualty such as a fire.

APPARENT AGENCY - The power of the agency that the public assumes an agent has whether or not his contract gives him that power.

APP - Abbreviated general trade name for application.

APPLICATION - A form used to gather information to aid the insurance company in making the decision of whether or not they will accept the risk, modify the coverage offered, or decline the risk.

APPORTIONMENT - When two or more insurance companies cover the same loss the division of this loss is called apportionment.

APPRAISAL - The survey that is made to determine the value or amount of loss.

APPURTENANT STRUCTURES - A structure pertaining or belonging to the insured structure, such as a tool shed.  Appurtenant structures are provided for in the Homeowners policy and other dwelling forms.

ARSON - The willful and malicious burning of property, sometimes with intent of defrauding insurance companies.

ASSETS - The funds, property goods, securities, rights of action, or resources of any kind owned by an insurance company, less such items as are declared non-admissable by state laws. These non-admissable items include deferred or overdue premiums among other types of property usually reported as assets by other types of.

ASSIGNED RISK- A risk which underwriters do not care to insure, but because of state law or otherwise, the insured must be protected and the insurance is therefore handled through the state and assigned to companies.

ASSIGNEE - The person to whom policy rights are assigned in whole or in part by the original policy owner.

ASSIGNMENT - Transfer of rights in a policy to other than the policy owner.  Assignments prior to a loss must be approved by the insurer after a loss.

ASSOCIATION GROUP - Insurance that is given to a group as opposed to an employer.

ASSURANCE - Same as "insurance"

ASSURED - Same as "insured"

ASSURER - Same as "insurer" (insurance company)

ATTRACTIVE NUISANCE - A dangerous place, or thing such as a machine, which is attractive to children; the owner of such has the legal duty of taking extra care to protect them from injury.

AUDIT - A survey of the insured's books, made to determine the premiums which should be paid the insurance company for protection furnished where the premium is based on the insured's payroll, gross receipts, values on hand or units handled or sold.

AUTOMATIC COVER - A provision in many forms of property-liability insurance to cover increasing values, newly acquired and changing interests, usually for a specified period and limited in amount.

AUTOMATIC REINSTATEMENT - A clause providing for automatic reinstatement of the full value of the policy after payment of a loss.

AUTOMATIC FLEET POLICY - This is a commercial auto policy that covers five or more automobiles.

AVERAGE RATE - A rate for a policy established by multiplying the rate for each location by the value at that location and dividing the sum of the results by the total value.