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Legal

Legal terminology in everyday language.

Terms

Privately Held Corporation

A Privately Held Corporation is a type of business entity that is owned by private individuals or groups of private individuals, rather than by the government or the public at...

Aleatory Contract

A Aleatory Contract is a type of contract in which one or more parties assume a risk based on uncertain future events. It is a legal agreement between two or...

Trade Secrets

Trade Secrets, as a term surrounding intellectual property and business strategy, encapsulates a broad range of confidential information that a business may leverage to obtain a competitive edge. The definition...

Limit of Liability

The term Limit of Liability may refer to the maximum amount of money an insurer is willing to pay out for a particular claim. This limit is typically outlined in...

Reasonable Prospects of Success

Reasonable Prospects of Success may refer to a concept in insurance that is used to determine whether or not a claim is worth pursuing. This concept is used to determine...

Senior Executive Officer

The term Senior Executive Officer (SEO) may refer to a high-ranking executive in a company, organization, or government body who oversees the overall operations of the entity. It is a...

Third-party Retaliation

The term "Liability Insurance" may refer to a type of insurance coverage that is designed to protect an individual or business from being held legally responsible for certain losses or...

Antitrust

The term Antitrust may refer to laws and regulations that are designed to promote competitive markets, prevent practices that reduce competition, and promote economic efficiency. Antitrust is also known as...

Claims Control Under Contractual Agreement

Claims Control Under Contractual Agreement may refer to a process of controlling the claims process and costs that arise from a contractual agreement between two parties. This process is important...

Associated Company

Associated Company is a term that may refer to any two companies that are linked by a common corporate ownership. This type of association is typically seen in large corporations...

Codefendant

Codefendant is a term which may refer to two or more persons or entities who are named as defendants in the same lawsuit. In some cases, the codefendants may be...

Contract Attorney

Contract Attorney is a term used to describe a lawyer who specializes in the interpretation and drafting of contracts. A contract attorney may refer to a lawyer who helps parties...

Personal Injury

Personal Injury may refer to an injury that is inflicted on an individual’s body, mind or emotions, as opposed to an injury that is inflicted on property. Personal Injury is...

Monopolistic States

Monopolistic States may refer to states that limit competition in the insurance industry to a single insurer. This means that instead of having multiple companies offering insurance in a given...

Indemnity Bond

An Indemnity Bond is a legal agreement that is used to protect an individual or entity from any potential losses or expenses that may arise from another party’s actions or...

Third-Party Liability

Third-Party Liability may refer to a legal situation in which one party is held responsible for the damages or losses caused by another. In the insurance world, third-party liability is...

Breach of Warranty

Breach of Warranty is a legal term that may refer to an individual or organization who has failed to fulfill a warranty obligation as stated in a contract. A warranty...

Agent of Record

Agent of Record is a term used in the insurance industry to refer to an individual or entity that has been designated to service and manage the insurance policy of...

Unilateral Contract

A Unilateral Contract is a legally binding contract between two parties, where only one party is required to fulfill its obligations. In this type of contract, one party promises to...

Covered Damages

Covered Damages refers to the losses, costs or expenses that are covered by an insurance policy. It is an important term in insurance terminology and may refer to the losses...

Counterclaim

Counterclaim may refer to a legal claim that is made in response to a claim that was initially brought forward by another party. In other words, it is a defendant's...

Franchise

Franchise is a term that may refer to an exclusive right or privilege granted to an individual or organization. In the business world, a franchise is a form of business...

Tolling a Statute of Limitations

Tolling a Statute of Limitations may refer to a legal principle that allows the suspension of certain time limits for filing a lawsuit. The ‘statute of limitations’ is a legal...

Principle of Indemnification

The Principle of Indemnification is the legal concept that is used to determine the amount of compensation that an insured party may receive from an insurance provider when they suffer...

Claims Manager

The term Claims Manager may refer to a person responsible for managing the processing of insurance claims within an organization. A Claims Manager is typically responsible for overseeing the entire...

Subrogation

Subrogation is a fundamental concept in insurance law, playing a pivotal role in the claims process. The definition of 'Subrogation' involves an insurance company stepping into the shoes of the...

Contempt of Court

"Contempt of Court" is a term of significant legal importance, particularly in the context of legal proceedings and judicial authority. The definition of Contempt of Court refers to acts or...

Circumstance

In the realm of insurance, the term "Circumstance" holds a significant place and its understanding is essential for both policyholders and insurers. The definition of 'Circumstance' in insurance refers to...

Waiver of Subrogation

Waiver of Subrogation is a significant term in insurance contracts, impacting the rights and recovery options of insurers. The definition of 'Waiver of Subrogation' refers to an agreement within an...

Public Adjustor

"Public Adjuster" is a licensed individual or firm that agrees to work on behalf of a policyholder for a percentage fee to help adjust the claim with an insurance claims...

Third Party

In the context of insurance, the term "Third Party" plays a crucial role in defining the relationships and responsibilities among different entities involved in insurance agreements. The definition of 'Third...

Claim

In the field of insurance, the term "Claim" is central to the functioning and purpose of the industry. The definition of a 'Claim' refers to a formal request made by...

Dispute Resolution

Dispute Resolution is a critical concept in the insurance sector, referring to the various methods employed to resolve disagreements between parties, typically between the insurer and the insured, or among...

Loss Ratio

"Loss Ratio" is a formula to determine profitability of an underwriting business. Generally, it compares premium received and claims dollars paid out plus reserved for future payout, usually measured annually....

License and Permit Bond

A License and Permit Bond is a type of surety bond that guarantees that a business or individual will comply with the applicable laws, regulations, and/or ordinances in order to...

Legal Malpractice

Legal Malpractice, also known as professional negligence, is a term that may refer to an attorney’s failure to provide competent representation, or to provide services with a reasonable degree of...

Regulatory Proceedings

Regulatory Proceedings may refer to legal, administrative, or disciplinary proceedings conducted by a regulatory body, such as a government agency, to enforce laws, regulations, and standards for an industry or...

Contingent Bodily Injury

Contingent Bodily Injury may refer to a type of insurance coverage that provides protection for an individual or business in the event of injury that is caused by someone else....

Obfuscate Source Code

Obfuscate Source Code may refer to the process of concealing or obscuring the meaning of source code in order to prevent others from understanding the code. This can be done...

Professional Negligence Law

Professional Negligence Law may refer to a field of law that deals with the legal consequences of professional negligence or malpractice. It is a specialized area of tort law that...

Negligence in Contract Law

Within the legal sphere, the term "Negligence in Contract Law" may refer to the failure of a party to uphold a duty of care, which they implicitly or explicitly agreed...

LLC Taxes

LLC Taxes may refer to taxes that are associated with Limited Liability Companies, or LLCs. An LLC is a business structure created by state statute that provides limited liability to...

Medical Malpractice

Medical Malpractice may refer to any act or omission by a healthcare professional that deviates from accepted standards of practice in the medical community and causes harm to a patient....

Advertising Injury

Advertising Injury may refer to an area of insurance coverage that is part of most general liability policies. It covers injury to a third party arising out of a business's...

Malpractice

Malpractice is a term that may refer to negligence, or failure to provide a reasonable standard of care, in either professional or medical services. In the legal sense, malpractice is...

Errors and Omissions

"Errors and omissions" is a term commonly encountered within the context of Directors and Officers (D&O) terminology. By definition, "errors and omissions" denote the mistakes, oversights, or negligence that might...

Ex Gratia Payment

An ex gratia payment refers to a voluntary payment made by an insurance company to an insured party, even though it may not be legally obligated to do so. It...

Mineral Lease

A mineral lease refers to a legal agreement between the owner of mineral rights (the lessor) and a third party (the lessee). In the lease, the lessor grants the lessee...

Open Peril

Open peril, in the realm of commercial insurance, refers to a coverage approach that provides protection against all perils or risks except those specifically excluded in the insurance policy. It...

Discovery Rule

The discovery rule, in the realm of commercial insurance, refers to a legal principle that determines the timeframe within which an insured party must discover and report an occurrence or...

Reservation of Rights

Reservation of rights, in the realm of commercial insurance, refers to a legal notice provided by an insurance company to an insured party when there is uncertainty or potential coverage...

Nonforfeiture Values

Nonforfeiture values, in the realm of commercial insurance, refer to the benefits or values that policyholders are entitled to retain even if they choose to surrender or lapse their insurance...

Incurred But Not Reported

Incurred but not reported (IBNR) is a term used by insurance companies to describe potential claims they may pay in the future. IBNR refers to covered incidents or perils that...

Retroactive Date

Retroactive date, in insurance terminology, is the specific date mentioned in an insurance policy that marks the beginning of the coverage period for the policy. A retroactive date is often...

Permanent Partial Disability

Permanent partial disability, in the realm of commercial insurance, refers to a long-term impairment or loss of bodily function that affects an individual's ability to perform certain tasks or activities....

Rebating

Rebating, in the realm of commercial insurance, refers to the practice of offering an individual or entity a financial incentive, such as a rebate or refund, in exchange for purchasing...

Physical Impairment

Physical impairment, in the realm of commercial insurance, refers to a condition that affects an individual's physical abilities, functions, or mobility. It refers to a limitation or loss of bodily...

Exclusive Remedy

Exclusive remedy is a legal concept that limits the compensation available to an injured party to only those benefits defined in the insurance policy. It states that when an individual...

Settlement Options

Settlement options, in the realm of commercial insurance, refer to the choices available to policyholders when it comes to receiving the proceeds from an insurance claim. When a covered loss...

Means and Methods of Construction

Means and methods of construction refer to the techniques, procedures, and materials used during the construction process. In the insurance industry, means and methods of construction are important because they...

IP Litigation

IP litigation refers to legal disputes and court proceedings related to intellectual property (IP) rights, such as patents, trademarks, copyrights, and trade secrets. These disputes can arise when one party...

Notice of Claims Provision

A notice of claim provision is a crucial aspect of an insurance policy that specifies the requirements for policyholders to notify their insurer of a claim. The provision may refer...

Defamation

Defamation, in the context of commercial insurance, refers to the act of making false statements or spreading damaging information about a person or entity that harms their reputation. It is...

Examination Under Oath

Examination Under Oath (EUO) is a formal process in which an insurance company can investigate an insurance claim. During an EUO, the claimant, or anyone with knowledge of the claim,...

indemnitee

An indemnitee is a person or entity that receives indemnification (compensation for harm or loss) under an insurance policy or contract. The term refers to the party who is protected...

Intellectual Property

Intellectual property refers to a valuable and intangible asset that arises from original creations of the mind, such as inventions, artistic works, trademarks, and confidential business information. It encompasses a...

Indemnity Payments

Indemnity payments, in the realm of commercial insurance, refer to financial compensation provided by an insurance company to a policyholder or a third party as a means of restoring the...

Construction Defect

A construction defect refers to a flaw or deficiency in the design, materials, or workmanship of a building or structure. It is a term used in insurance and construction industry...

Express Authority

Express authority, within the realm of insurance, refers to a legal concept that may refer to the explicit powers and permissions granted by an insurer to an agent or representative....

Equitable Estoppel

Equitable estoppel is a legal doctrine that may refer to a principle used in insurance law and other areas of legal practice. It is a concept rooted in fairness and...

Guaranteed Replacement Cost

Guaranteed Replacement Cost, in the realm of insurance, refers to a coverage provision that may refer to a specific type of property insurance policy. It is an important concept designed...

Contract of Adhesion

A contract of adhesion, a term often encountered in insurance and legal contexts, refers to a type of agreement in which one party, typically the one with greater bargaining power,...

Loss adjustment expense

Loss adjustment expense (LAE) is a term commonly used in the insurance industry, which holds significant importance when it comes to understanding the financial aspects of managing insurance claims. The...

Protection Classes

Protection classes, an essential aspect of property insurance underwriting, pertain to the evaluation and rating of a property's risk exposure based on its location and proximity to fire protection services....

Hold Harmless Agreement

A hold harmless or indemnity agreement is a legal contract frequently employed in the insurance and business sectors. The definition of a hold harmless agreement refers to a contractual arrangement...

Indemnitor

Indemnitor is a term used in insurance and legal contexts, and may refer to a person or entity that agrees to indemnify or compensate another party for any losses, damages,...

Wrongful Act

A wrongful act, also known as a wrongful act exclusion or wrongful conduct exclusion, is commonly used in the insurance industry. It may refer to an act or omission of...

Causes of Loss

Causes of loss may refer to losses that occur when something has been damaged, destroyed, or stolen. Causes of loss generally refer to the direct physical loss or property damage...

Insurable Risk

An insurable risk may refer to the potential of any loss that an insurance policy can cover. It is a type of financial risk that is considered to be acceptable...

Third-Party Claims

Third-party claims may refer to a situation in which an individual or organization brings a legal claim against a third party who is not directly involved in the incident or...

Claims Audit

Claims audit may refer to reviewing the claims submitted by a policyholder to an insurance company to verify their accuracy and completeness. During a claims audit, the insurer will review...

Actual Loss Sustained

The actual loss sustained may refer to the total economic damage sustained due to an incident or event. It is the complete and total amount of a loss as opposed...