CLEAR Canadian Loss Experience Automobile Rating System

EC Extended Coverage Endorsement

IBC Insurance Bureau of Canada

P & C Property and Casualty

PACICC Property and Casualty Insurance Compensation Corporation

Adjuster: the person responsible for investigating a claim to determine the facts relating to the occurrence and to the extent the claim is covered by insurance. The adjuster also attempts to reach an agreement with the people involved on the amount of the loss and extent of their responsibility.

All Perils Automobile Insurance: a combination of collision and comprehensive automobile insurance that has a common deductible.

Basic Fire Insurance Policy: a policy that is used as the starting point from which homeowner’s, tenant’s and other personal lines policies are developed.

Burglary: you are a victim of burglary if someone used force on the structure of your home to gain entry or exit.

Collision Insurance: covers the cost of repairs to the car when it is involved in a collision or tips over

Comprehensive Automobile Insurance: covers the cost of repairs to the car when is it damaged in circumstances other than by a collision, (e.g., fire, theft, vandalism, glass breakage, etc.). The car is insured for the actual cash value at the time of loss.

Deductible: the amount of a claim that you must pay yourself. The amount of the deductible affects the cost of the premiums; the lower the deductible, the higher the premium and vice versa.

Floater Policy: an insurance policy, or a rider on an insurance policy that provides insurance coverage for loss or damage to specific property. A floater policy covers specific property, specific risks or specific conditions such as location of the property.

General Insurance: a broad term for all types of insurance, other than life and health.

Indemnity: the amount to be collected by the insured to cover all or part of a loss. The insurance contract may specify a maximum amount payable for such a loss or a percentage of the amount of loss, which may be less than the actual amount of loss. The principle of indemnity is to provide protection from loss while preventing profit from it. In this sense, indemnity should not be confused with benefits.

Legal Liability: the responsibility for one’s conduct, which the courts recognize and will enforce between persons.

Liability Insurance: provides protection for the insured against loss arising out of his legal liability resulting from injuries to other persons or damage to their property.

Loss: that portion of the property insured, which is entirely destroyed or missing. As opposed to damage, which refers to the portion of the property that remains, but is unusable, after the occurrence.

Personal Liability: legal liability for unintentional bodily injury or property damage arising out of personal actions anywhere in the world.

Property and Casualty (P & C) Insurance: provides protection against loss or damage to personal property, as well as against personal liability.

Property Insurance: insurance that provides financial protection against loss or damage to the insured’s property caused by such perils as fire, windstorm, hail, explosion, aircraft, motor vehicles, vandalism, malicious mischief, riot, civil commotion and smoke.

Replacement Cost: insurance that pays the full value of damaged or destroyed property without taking depreciation into consideration.

Replacement Value: the value of an item of the same kind, quality and condition. It may be more or less than the original purchase price of the property.

Robbery: you have been robbed if someone used violence or the threat of violence to take your property from you.

Salvage: the value of the portion of the property not damaged when the rest of the property has been damage by an insured peril. This value is used to reduce the amount of any claims.

Theft: you are a victim of theft if someone steals your property without necessarily using force or violence.

Third-party Liability Insurance: protects you against claims made by other people for their injuries and damage to their property caused by someone operating the car with the insured’s consent.