Most of the definitions below are provided courtesy of the Insurance Institute of Canada. Definitions provided by Insurance Bureau of Canada are indicated with an asterisk ("*").
The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. Insurance professionals with whom you may come into contact should be prepared to explain these terms. If you don't understand, ask!
This information is for educational purposes only and should not be relied upon to form professional opinions on coverage issues.
- Tenant's Policy
- A package policy specially designed to meet the normal insurance requirements of a private tenant covering personal belongings and liabilities.
- The period of time from the inception to the termination of an insurance policy or bond.
- An ideologically motivated unlawful act or acts, including but not limited to the use of violence or force or threat of violence or force, committed by or on behalf of any group(s), organization(s) or government(s) for the purpose of influencing any government and/or instilling fear in the public or a section of the public.
- The wrongful taking of the property of another. It is a broad term and includes larceny, pilfering, hold up, robbery and pick pocketing.
- Theft at or after Fire
- Generally considered as part of the fire risk. Sometimes, however, it is specifically excluded.
- Theft Claim Cost – CLEAR*
- The relative index based on the cost per vehicle for theft claims.
- Theft Claim Frequency – CLEAR*
- The relative index based on the frequency of theft claims (that is, the number of claims reported as a percentage of the number of vehicles with Comprehensive coverage).
- Third Party
- A claimant under a liability policy, so called because he is not one of the two parties (insured and insurer) who has entered into the insurance contract which pays his claim.
- Third-Party Liability (Auto) Insurance*
- Covers an insured if his or her car injures someone else or damages property and he or she is held legally responsible. In some parts of the country, this is referred to as “Section A.”
- The right to ownership of property. The owner of real property having just possession of his property.
- Title Insurance
- Insurance affording protection from loss arising out of a defect in a real estate title.
- A tort is a wrongful and harmful action addressable by some appropriate legal remedy.
- A wrongdoer, a party guilty of a tort.
- Total Loss
- Loss of all the insured property. Also a loss involving the maximum amount for which a policy is liable.
- An illegal act against another person's rights or property.
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