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
Aggregate of face amount of coverage paid up, or on which premiums are still being paid, as issued by a life insurance company. This is one measure used to rank life insurance companies by ...
Federal agency that researches injury and illness arising from workplace hazards and recommends standards for maximum exposures to hazardous substances. ...
Business owned by stockholders, as contrasted to a mutual insurance company, which is owned by its policyholders. Many major life insurers are mutual companies whereas some leading ...
Same as term Annual Statement: report that an insurance company must file annually with the State Insurance Commissioner in each state in which it does business. The statement shows the ...
Cost of the assets listed on the accounting records of the company. These assets include the following: real estate (to include any adjustments for depreciation), transportation equipment ...
Death without a will having been drawn. Under this circumstance, the court follows state law in deciding how the estate of the deceased is to be distributed. ...
Liability incurred by one insured as the result of his or her damaging another insured when both insureds are covered under the same liability insurance policy. Each insured must be treated ...
Life insurance on the life of a child. ...
Trust established under the Internal Revenue Service code that is used to provide accident and sickness benefits to member employees. ...
Have a question or comment?
We're here to help.