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Impaired
property - A liability exclusion relating to the insured’s faulty
products or work that results in an "impairment" to the property
to which it is attached assuming the insured can salvage the situation
by replacing the property or redoing the work.
Improvements
and betterments - Anything that adds to the value of property. Commonly
used to describe a tenant’s use interest in fixtures added to the landlord’s
building. May also refer to permanent changes made by a condominium
unit-owner to his/her unit, such as the addition of new kitchen cabinets.
Increased
cost of construction - A damaged building may have to be upgraded
to be repaired under building codes in force at the time of reconstruction.
Building owners in such situations need guidance in buying insurance
to cover this added exposure.
Incurred
losses - The value of claim payments plus reserves.
Indemnity
- A fundamental concept governing insurance: compensation for loss or
injury sustained.
Independent
adjuster - An individual or member of a firm who contracts with
insurers to investigate claims and suggest appropriate settlements.
Contrast with Public adjuster.
Independent
agent - A "retailer" of insurance who, by contractual
arrangement with a number of insurance companies, sells and services
property and liability insurance. The independent agent "owns"
the policy information and expiration dates of his client’s coverage
and thus controls renewals and their placement.
Independent
Insurance Agents of America (IIAA) - An association of insurance
agents who are independent contractors, and represent one or more insurers.
Sometimes referred to as the "Big I."
Indirect
damage - Sometimes referred to as indirect loss, this is loss resulting
from a peril, but not directly caused by that peril. An example is fire
damaging a freezer (direct damage), with resultant food spoilage (indirect
damage).
Inflation
guard endorsement - An endorsement attached to an insurance policy
whereby the limits of liability on a piece of property are increased
on a regular basis by a certain percentage in order to offset increasing
building costs associated with inflation.
Inherent
vice - A flaw in an item of property that will, in time, reveal
itself and show the property as damaged. Property insurance does not
normally cover such damage.
Inland
marine insurance - Property insurance signaling broad coverage of
properties exposed to the transportation peril and those subject to
being used or kept at a location other than the insured’s customary
premises. Eligible property is identified in the Nationwide Definition
of Marine Insurance.
Innkeepers
legal liability - A bailee coverage purchased by innkeepers to cover
the property of their guests.
Insolvency
fund - See Guarantee funds.
Inspection
Report - A report prepared for an insurer by an outside organization.
It provides information about an applicant’s or insured’s physical,
financial, and moral attributes.
Insurable
interest - The potential for financial loss associated with damage
or destruction of property.
Insurable
risk - The exposure to significant, measurable accidental loss from
identifiable perils. The exposure, while not catastrophic, must be shared
by a sufficient number of potential insureds so that the cost of loss
for one can be measured and affordably shared throughout the market.
Insurance
- A mechanism whereby risk of financial loss is transferred from an
individual, company, organization, or other entity to an insurance company.
Insurance
contract - A legal document defining circumstances under which the
insurer will pay, and the amount to be paid. Also see Insurance policy.
Insurance
exchange - See Reciprocal exchange.
Insurance
Institute for Highway Safety - A not-for-profit research organization,
well known for its auto "crash tests."
Insurance
policy - The document containing the contract between the insured
and the insurer which defines the rights and duties of the contracting
parties.
Insurance
Services Office (ISO) - An organization providing statistical information,
actuarial analyses, policy language, and related services for the insurance
industry.
Insurance
to value - The concept of purchasing sufficient insurance coverage
so as to closely approximate the value of the property being insured.
Insured
- The party or parties whose interests are covered in a nonlife insurance
contract. The less common term Assured is sometimes used synonymously.
Insuring
agreement - In an insurance contract, the insurer’s promise to pay.
Integrated
risk financing - A type of risk financing designed to provide integrated
protection against catastrophic losses. It may incorporate both traditional
and non-traditional types of exposures, or it may include only traditional
property and casualty risks.
Interline
endorsements - Commercial endorsements that apply, or could apply,
to more than one coverage as part of a package policy.
