Insurance Glossary L-O

Below is an Insurance Glossary of terms and definitions related to various coverages

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Legal Liability Coverage Form... Commercial property coverage form that covers the insured for liability arising out of negligent damage to the property of others while it is in the insured's care, custody or control.

Liability Insurance... type of insurance that protects an insured from financial loss arising out of liability claims transferring the burden of financial loss from the insured to the insurance company.

Life Insurance... insurance that pays a stipulated sum to a designated beneficiary upon the death of the insured. Protects the insured's beneficiary against financial consequences of the insured's premature death.

Liquor Liability Coverage Form... a form that provides coverage for liquor liability excluded by standard Commercial General Liability (CGL) policies for those who are in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.

Longshore And Harbor Workers Compensation Act Coverage Endorsement... Endorsement with the Workers Compensation And Employers Liability policy that covers the additional benefits required by federal law for maritime workers injured while working on navigable waters or shoresite areas.

Loss Sustained During Prior Insurance Condition... condition found in loss sustained version of the Commercial Crime forms that allow losses that occurred during a prior policy period to be covered under the current policy if certain conditions are meet.

Loss Sustained Form... Commercial Crime form that covers losses that are sustained during the policy period and discovered either during the policy period or up to one year after the policy expires.

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Mail Coverage Form... Filed Commercial Inland Marine form that covers property in transport by registered mail, first class mail, certified mail, or express mail.

Malpractice Insurance... term used to describe Professional Liability insurance issued to medical professionals or institutions.

Messenger... as defined in Crime insurance forms, an insured, partner or employee who has care and custody of insured property outside the premises.

Miscellaneous Type Vehicle Endorsement... Personal Auto policy endorsement that provides coverage for vehicles that are usually excluded by the policy, such as motorcycles, motor homes, golf carts, mopeds, and other recreational vehicles.

Misrepresentation... written or verbal mistatement of a material fact involved in the contract on which the insurer relies.

Mobile Agricultural Machinery And Equipment Coverage Form... farm coverage form that provides seperate coverage for a farmer's mobile agricultural machinery and equipment.

Mobile Equipment Endorsement... Commercial Auto endorsement that makes mobile equipment considered a covered auto for coverage purposes.

Mobile Home Insurance... coverage that protects both a mobile home structure and its contents. Some companies have Mobile Home package policies that provide Property and Liability insurance for owners of mobile homes.

Moral Hazard... hazard created by an individual who would be willing to create a loss situation on purpose just to collect from the insurance company.

Morale Hazard... hazard created by an individual's tendency to contribute to a loss through his or her own irresponsible actions or carelessness.

Morgage Rights... rights granted to a mortgagee under a Property contract issued to a mortgagor by virtue of the mortgagee's financial interest in the property.

Motor Carrier Coverage Form... Commercial Auto coverage form that is an alternate to the Truckers Coverage form. It can be used to cover anyone who transports property by auto in a commercial enterprise.

Motor Truck Cargo Policy... Nonfiled Commercial Inland Marine policy that protects a carrier against its liability for damages to domestic shipments in its custody.

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Named Schedule Bond... type of Fidelity bond that covers loss only from named employees.

Named Insured... person, business or other entity named in the Declarations to whom the policy is issued.

Named Non-Owner Coverage Endorsement... Personal Auto policy endorsement that provides coverage for the use of nonowned autos to individuals who do not own a car.

National Flood Insurance Program... program run by the federal government that maked flood insurance available to eligible communities at subsidized rates. Includes coverage for both buildings and personal property.

Negligence... the lack of reasonable care that is required to protect others from the unreasonable chance of harm.

No-Fault Insurance... form of Automobile insurance where each insurance company pays the damages of its own insureds, regardless of who was at fault for the accident. No-fault insurance has been enacted in several states.

Nonconcurrency... situation that exist when the same property is covered by more than one policy, but the policies are not identical as to the extent of coverage provided.

Nonfiled Form... type of Commercial Inland Marine form that is not standardized and cannot be included in the Commercial Inland Marine coverage part of the Commercial Package Policy.

Nonrenewal... decision made by the insured or insurance company to not continue coverage for another policy period after the current policy period expires.

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Obligee... inbonds, the party to whom the principal makes the promise, and for whose protection the bond is written.

Occurrence Form... Commercial General Liability coverage form that covers bodily injury or property damage that occurs during the policy period, regardless of when the claim is made.

Ocean Marine Insurance... insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, Freight insurance, and Protection And Indemnity insurance.

Open Peril Policy... insurance policy that protects the insured from losses caused by any peril that is not specfically excluded by the policy. Also called all risk and special coverage.

Outboard Motor And Boat Insurance... insurance against physical damage to boats. Usually provided by Inland Marine forms.

Owners And Contractors Protective Liability Coverage Form... Commercial General Liability coverage form that covers claims caused by the negligence of a contractor or subcontractor hired by the insured.

Insurance Glossary P-W