Chapter 4 - Virginia Licensing

Designed to minimize small nuisance claims

Deductible

Insuring property at more than one location, for more than one type of property

Blanket Limit

The coverage that will pay for the medical bills, lost wages, pain and suffering when the 1st party caused the injury to the 3rd party

Bodily Injury

Damages that indemnify

Compensatory

Replacement cost minus depreciation

Actual Cost Value (ACV)

Damages that pay for economic loses

Special Compensatory

This can never be intentional

Negligence

Liability regardless of negligence for high-risk circumstances

Strict / Absolute

The policy that pays for the other parties injures or damages

Liability / Casualty

All liability policies come with this; in most cases there is no specific limit

Supplemental Payments

Requires an appraisal; pays the agreed upon value

Agreed Value

Parent/ Child and Employer/ Employee relationship

Vicarious Liability

Coverage that pays when you damage someone's car

Property Damage

Single item of property for a single limit of insurance

Specific Limit

Damages that punish

Punitive

Damages that pay for pain and suffering or disfiguration

General Compensatory

Today's price with no depreciation

Replacement Cost

Coverage for libel/ slander

Personal Injury

What does your premium do when your deductible increases

Decreases

One set dollar amount that will pay out for both the property that you damage and injuries that you have caused to a 3rd party

Combined Single Limit

A claim may be settled by:

Repairing or replacing the damaged property or paying appraisal value

The insurer paying the limit on both accidents the insured had on the same day is an example of

Restoration / nonreduction of limits