Insurance Terms
Safe Driver Insurance Plan: An Automobile insurance rating program which applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.
Salvage: Damaged property that may be retrieved, reconditioned, and sold to reduce an insured loss.
Schedule: A list of individual items covered under one policy with specific amounts of insurance applicable to each.
Scheduled Personal Property Endorsement: An endorsement to the Homeowners policy that schedules specific amounts of coverage for one or more of several categories of personal property on an all risks basis.
Self-Insurance: Financial preparation, in accordance with law, for meeting an insured’s own risks by appropriating sufficient funds, in advance. Self-insurance does not mean “no insurance”.
Self-Insurance Bond: A Surety bond that can be provided as evidence of compliance with an insurance requirement.
Settlement: An adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.
Severability Clause: A standard Liability insurance clause which means that insurance applies separately to each insured.
Short Rate: The method of calculating the return premium on policies cancelled by the insured, providing a penalty because of the cancellation.
Signs Coverage Form: A Commercial Inland Marine Coverage form that provides all risk coverage for neon, fluorescent, automatic or mechanical electrical signs.
Single Limits: In Auto Liability, policy limits that apply to all bodily injury and property damage arising from a single accident.
Small Business Boiler And Machinery Broad Form: A Boiler and Machinery Coverage form for small businesses that provides somewhat broader coverage than the standard Small Business Boiler and Machinery.
Solicitor: An individual appointed and authorized by an agent to solicit and receive applications for insurance as a representative of such agent.
Sound Receiving And Transmitting Equipment Endorsement: An endorsement that can be added to an Auto policy for such equipment permanently installed in the auto.
Specialty Company: An insurance company writing limited lines of coverage, not a broad across-the-board book of business.
Specific Insurance: Property specifically listed and covered for a specific amount. Also called Scheduled coverage.
Specified Perils Policy: A policy which names the specific perils insured against.
Split Limits: In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident. Split limits are usually written without zeros and separated by slashes, for example, 15/30/10. Also called dual limits.
SR-22 Filing: A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.
Straight Deductible: A deductible that specifies the deduction of a flat amount.
Subdivision Bond: A Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other required improvements will be installed.
Subrogation: The assignment of rights of recovery from the insured to his insurer.
Sue And Labor Clause: A clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss or to minimize a loss which has occurred.
Supplementary Payments: Found in most liability contracts. Supplementary Payments provide “extra” coverage over and above the insured’s limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.
Supply Contract Bond: A form of Contract bond which guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation. See Contract bond.
Surety Bonds: Bonds which guarantee that someone will perform faithfully whatever he or she agrees to do or that someone will make an agreed upon payment to another party.
Surgical Expense Insurance: A type of Health insurance that covers fees of physicians for performing surgery, with a maximum amount payable for each procedure.
Syndicate: A group of insurers or underwriters who join to insure property that may otherwise be to high of a hazard.
Special Causes of Loss Form: This form provides what is commonly referred to as “all risk” coverage: coverage for loss from all causes not specifically excluded.
