Threshold Level
Minimum degree of injury or loss for which an injured party can sue, even though covered by no fault automobile insurance. Traditionally, an accident victim had to prove the other driver was at fault in order to collect damages from that driver's insurance company. Today, more than 20 states have some type of automobile no-fault law designed to eliminate long and costly legal action, and to assure quick payment for medical and hospital costs, loss of income, and other unavoidable costs stemming from automobile accidents. An injured person can collect from his or her insurance company up to the threshold level, or specified limit, no matter who is at fault. For expenses above these limits, the injured person is still allowed to sue. There are three types of thresholds: a specific dollar amount, a specific period of disability, or specified injuries such as loss of a leg.
Popular Insurance Terms
Items, equipment, or systems used to increase, improve, or maintain the capabilities of people with disabilities. These devices range from simple, such as penholders or cup holders, to ...
Partial payment of medical service expenses required in group health insurance, in addition to the membership fee. For example, for each visit of a physician a member may be required to pay ...
Payments in a defined benefit plan. Benefits are allocated to the pension plan participants as premiums are received by the insurance company. Since the benefits purchased are paid up, the ...
Frequency of illness, sickness, and diseases contracted. ...
Indemnifies an insured whose property is stolen, damaged, or destroyed by a covered peril. The term property insurance encompasses numerous lines of available insurance. ...
Negligent acts and/or omissions, other than breach of contract, normally independent of moral obligations for which a remedy can be provided in a court of law. For example, a person injured ...
Coverage usually provided under the commercial general liability insurance (CGL); it can also be purchased separately. ...
Policy under which the insurer will pay the actual cash value of the property at the time the property was damaged or destroyed provided the loss falls within the limitations of the policy. ...
Provision of a reinsurance contract that states that the reinsurance company remains liable for its predetermined share of a claim submitted by an insured, even though the primary insurance ...
Have a question or comment?
We're here to help.