Residential Insurance Home-Renters

Residential Insurance: Homeowners and Renters 28 Actual Cash Value (ACV) — The measure of the actual cash value recovery shall be determined as follows: (1) in case of total loss to the structure, the policy limit or the fair market value of the structure, whichever is less, or (2) in case of a partial loss to the structure, or loss to its contents, the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation, as specified, based upon its condition at the time of the injury or the policy limit, whichever is less. Agent — A licensed individual or organization authorized to sell and service insurance policies for an insurance company. Ambiguous — Terms or words that are unclear or uncertain; being open to more than one interpretation. Application — A written request for insurance coverage containing statements made by the applicant. Binder — A short-term agreement that provides temporary insurance coverage until the policy can be issued or delivered. Broker — A licensed individual or organization who transacts insurance on your behalf. Broker-Agent — A licensed individual who can act as an agent representing one or more insurance companies and also as a broker dealing with one or more insurance companies representing your interests. Broker Fee — An amount of money charged by a broker to obtain insurance for an insured. This fee is usually earned and usually not refundable. It must be disclosed to and agreed upon by the insured. This fee is not part of the insurance premium. It is a contractual agreement between the broker and the client. Glossary of Terms