Five Percent Rule
Definition of "Five percent rule"
Coinsurance requirement such that if a loss is less than $10,000 and also less than 5% of the total of insurance to cover a loss, then the insurance company will not require that the property not damaged by the peril be inventoried or appraised.
Popular Insurance Terms
Payments made to the insured by the insurance company before the settlement date. For example, a claim is scheduled to be settled on June 1, 2000, but the insurance company pays the ...
Percentage of first year's premium paid to compensate an insurance agent. This is known as the "First Years" to show how much new business the agent is generating, compared with renewal ...
Coverage for negligent acts or omissions of an operator of a motel or hotel resulting in bodily injury to guests and damage or destruction of a guest's property. ...
Representative of an insured, not of an insurance company. Acts of a broker are not the responsibility of the company, and notice given by an insured to a broker is not the same as notice ...
In insurance, debit agents list of total premiums to be collected. This also applies to the geographical area in which an agent collects the premiums. ...
Same as term Yield on Assets: annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be ...
Individual or entity who enters into a contract or other legal proceeding, such as a lawsuit. ...
Attachment to a property insurance policy to protect the interest of the mortgagee in the mortgaged property. If the property is damaged or destroyed, the mortgagee is indemnified up to his ...
Amount in a cash value life insurance policy that a policy owner will receive upon surrender of the policy, minus any outstanding loan and accrued interest. A table in the policy shows the ...
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