Severability
A provision that insurance applies separately to each insured under the policy.
Shock Loss
Name given to any large loss that impacts an otherwise profitable book of business.
Split Limits
As in auto insurance, where rather than one liability amount applying on a per-accident basis, separate amounts apply to bodily injury and property damage liability.
Solvency
Having sufficient assets--capital, surplus, reserves--and being able to satisfy financial requirements--investments, annual reports, examinations--to be eligible to transact insurance business and meet liabilities.
State Amount
Amends the valuation clause on a policy to include an amount that is "stated" as the value of the item(s) being insured. Usually, these policies pay the lesser of the ACV of the damaged property, the cost of repairing or replacing the property, or the stated amount.
State of Domicile
The state in which the company is incorporated or chartered. The company also is licensed (admitted) under the state's insurance statutes for those lines of business for which it qualifies.
Subrogation
The right of an insurer who has taken over another's loss also to take over the other person's right to pursue remedies against a third party. |
