Alabama - Property and Casualty | 309 Questions and Answers(A+ Solution guide)

Abandonment - an attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property. Absolute Liability - A tort law concept in which an individual can be found legally responsible without being negligent. Acceptance - An element of contract law under which one party accepts the offer of another party. Accident - An unexpected and unintended chance happening occurring at a known time and place. Actual Cash Value (ACV) - A method of valuing loss under which the insurance company will pay the Replacement Cost Value of an item minus depreciation. Additional Coverages - Additional coverages are provided without additional cost in property contracts. Examples would include payment for Debris Removal and for a Fire Department Service Charge. The coverages may pay an amount in addition to the stated limits of the policy. Additional Living Expenses - An indirect loss coverage designed to offset the additional costs of living in temporary quarters while a dwelling is being rebuilt or repaired. Found in Homeowners and Dwelling policies. Admitted Company - (authorized company) A company that has sought admission and been approved to conduct the business of insurance within a particular state. Adverse Selection - In insurance, Adverse Selection can best be described as the likelihood of the worst possible risks seeking the best possible coverage. For example, a person who seeks to buy insurance for his home following a TV broadcast that a wildfire is three miles away and blowing his direction.Advertising Injury Liability - Liability resulting from damage caused to a business by the misrepresentations of another. Also can include theft of a copyrighted trademark