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
Length of time insurance policy is in force. ...
One of four SEC divisions charged with regulating investment companies, investment advisers, and variable insurance products. The SEC requires variable insurance products to register with ...
Action (s) that the insured must take, or continue to take, for the insurance policy to remain in force and the insurance company to process a claim. For example, the insured must pay the ...
Same as term Contingent Business Income Coverage Form: coverage for loss in the net earnings of a business if a supplier business, subcontractor, key customer, or manufacturer doing ...
Same as term Annuity: contract sold by insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (the annuitant), for the lives ...
Percentage of total assets set aside by an insurance company to provide for unexpected losses. In general, a minimum of a 5% surplus ratio (5 cents in reserve for each $1 of assets) is ...
Home office underwriter who evaluates risk based on probability, statistics, and medical knowledge. ...
Property valued according to its earnings potential. However, property insurance contracts generally indemnify an insured on a replacement cost less physical depreciation and obsolescence ...
Ordinary life insurance that generates a first year cash value from the payment of the first year premium. Using this cash value, loans could be made to finance premiums due in the future, ...
Have a question or comment?
We're here to help.