Double Recovery
Definition of "Double recovery"
Payments in excess of the value of the loss a prohibited practice. When an insured has more than one policy covering a risk, the full value cannot be collected from each policy if a loss occurs. The most that can be collected is each policy's pro rata share of the loss. For example, a home is insured under two policies of $100,000 each. If there is a fire loss of $100,000, the most that can be collected from each policy is $50,000.
Popular Insurance Terms
Extension of coverage available under the Standard Fire Policy. The standard policy only covers the perils of fire and lightning. The endorsement covers riot, riot attending a strike, civil ...
In insurance, combination of the loss ratio and the expense ratio. The combined ratio is important to an insurance company since it indicates whether or not the company is earning a profit ...
Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few ...
Trust under which grantor retains income from the assets that have been transferred to the trust. This trust permits the avoidance of probate, protects the assets from creditors, and leads ...
Individual who has the right to the use of assets while the usufruct is in force. ...
Regulation named after a former Superintendent of Insurance of New York State, and instituted in the early 1900s. It requires every insurer admitted to New York to comply with the New York ...
Amount of reinsurance accepted by a second reinsurer which is in excess of the original insurer's retention limit and the first reinsurer's first surplus treaty's limit. ...
Section describing coverages under a policy. Elsewhere in the policy other sections may restrict or exclude coverages. ...
Creation of a demand for a company's products, its distribution, and services for customers who purchase that product. Actuarial research and development, underwriting efficiency, and claim ...
Have a question or comment?
We're here to help.