Small Business Guide To Commercial Insurance

39 Premium The monetary payment that an insured makes to an insurance com- pany in exchange for the contract indemnifying the insured against potential loss. Simply put this is the payment made by the insured to keep an insurance policy in effect. Producer A term used by the insurance industry to refer to agent, brokers, bro- ker-agents, and solicitors. Pro Rata Cancellation A cancellation of a policy by an insurance company that returns the unearned premium to the policyholder (the portion of the premium for the remaining time period that the policy will not be in force). Provisions The statement of policy conditions in an insurance policy. Public Adjuster A licensed person or organization that represents the policyholder by contract in property damage claims negotiations with an insurance company. Quotation An estimate of the cost of insurance based on the information sup- plied to the agent, broker, broker-agent, or the insurance company. Recision The cancellation of an insurance policy back to its effective date result- ing in a return of all premium charged. Regulations Requirements developed by the CDI that implement laws passed by the legislature. Regulations go through a public comment process and must be approved by the state Office of Administrative Law.