Accident Terms and Definitions

Insured
The person(s) entitled to coverage in case of an accident or loss.

Broker
A person who for payment of a fee procures insurance on your behalf.

Loss Due To Fire Title
The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Policy
Written contract of insurance.

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.