California Department of Insurance - Glossary of Insurance Terms (actual cash value, admitted company, binder, cancellation, deductible, endorsement, peril, replacement cost and others)

What this document is

California Department of Insurance - Glossary of Insurance Terms (actual cash value, admitted company, binder, cancellation, deductible, endorsement, peril, replacement cost and others) is a reference published by California Department of Insurance (www.insurance.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california personal lines, california claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• California Department of Insurance, Glossary of Insurance Terms, "Actual Cash Value"

  “An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss.”

• California Department of Insurance, Glossary of Insurance Terms, "Endorsement"

  “Amendment to the policy used to add or delete coverage. Also referred to as a "rider."”

• California Department of Insurance, Glossary of Insurance Terms, "Material Misrepresentation"

  “The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged.”

• California Department of Insurance, Glossary of Insurance Terms, "Short-Rate Cancellation"

  “When the policy is terminated prior to the expiration date at the policyholder's request. Earned premium charged would be more than the pro-rata earned premium.”

• California Department of Insurance, Glossary of Insurance Terms, "Peril"

  “Peril The cause of a possible loss. For example, fire, theft, or hail.”

• California Department of Insurance, Glossary of Insurance Terms, "Claim"

  “Claim Notice to an insurer that under the terms of a policy, a loss maybe covered.”

• California Department of Insurance, Glossary of Insurance Terms, "Underwriting"

  “Underwriting The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.”

• California Department of Insurance, Glossary of Insurance Terms, "Broker"

  “Broker A licensed person or organization paid by you to look for insurance on your behalf.”

• California Department of Insurance, Glossary of Insurance Terms, "Deductible"

  “Deductible The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.”

• California Department of Insurance, Glossary of Insurance Terms, "Pro-Rata Cancellation"

  “Pro-Rata Cancellation When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided.”

• California Department of Insurance, Glossary of Insurance Terms, "Catastrophe Model"

  “Catastrophe Model A catastrophe model is a computer-based process that simulates thousands of plausible catastrophic events based upon statistical, financial, economic, physical, engineering, other scientific concepts and equations, and insurance policy coverage information to derive aggregate...”

• California Department of Insurance, Glossary of Insurance Terms, "Collision Deductive Waiver"

  “Collision Deductive Waiver This coverage waves your collision deductible if you are hit by an negligent uninsured motorist.”

Practice this material

Questions about this source

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