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Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.
Commission
That portion of the premium paid to the agent as compensation for his or her services.
Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.
Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.
Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.
Nonrenewal
The termination of an insurance policy at its normal expiration date.
Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.
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