All-Risk Insurance

A term used to describe a policy which covers the Insured property against any fortuitous cause including acts of God (such as flood, cyclone, storm, earthquake), accident, disease, fire, theft and pilferages. It excludes those perils defined in the policy and inevitabilities such as wear and tear and depreciation. The term is misleading because no property policy is truly an all-risk coverage. There is a concerted effort to eliminate use of this term and to replace it with the term open peril coverage.

Alliance

1. Health insurance purchasing entity (public or private) that enrolls subscribers or members within a given region, collects premiums, enforces rules that manage health plans, and purchases subscribers’ or members’ insurance from participating health plans. 2. Organization or group of employers that pools resources to buy health care goods and services. Also known as a purchasing group . See consumer health alliances. 3. Formal, mutual arrangement of companies, providers, or institutions, established to further common goals.

Alliance of American Insurers (AAI)

An association of insurance companies working together in areas of common interests such as (1) Government affairs affecting insurance (02) education of the employees of member companies (03) loss prevention, and (04) other insurance activities.

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A group of insurers that work together in areas of common interest. For example, government affairs, education of employees, and loss prevention.

 

 

Allied Lines

Type of property insurance that may be purchased with a fire insurance policy.

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A term that has been adopted to refer to the lines of insurance that are allied with property insurance, these coverage provide protection against perils traditionally written by fire insurance policies such as sprinkler leakage, water damage and earthquake.

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Allied lines coverage is a form of insurance that is normally written with fire insurance. It covers additional perils not usually covered by the basic fire insurance policy. Examples of allied lines insurance include wind and hail insurance, vandalism and malicious mischief insurance, data processing insurance, demolition insurance, earthquake insurance, water damage insurance (but not flood), sprinkler leakage insurance, radioactive contamination insurance, and standing timber insurance. (See Extended Coverage).

 

 

Allied Lines (Fire and Extended Coverage)

Property Insurance against perils which are ‘allied’ to Fire Insurance in that they all cause relatively infrequent losses, are rated similarly to Fire Insurance, and often are covered through one or more endorsements to a Fire Insurance Policy. One such endorsement, the extended coverage endorsement, provides protection against wind, hall, falling aircraft, riot and civil commotion, vehicles striking the insured property, explosion (except boiler explosion), and smoke. Other allied lines include earthquakes, sprinkler leakage and business interruption Insurance.

Allied perils

Group of perils commonly added to a standard fire policy. They are otherwise called additional perils, defined perils or special perils. They embrace dry perils (aircraft, explosion, riot, etc.), wet perils (storm, flood, burst pipes, etc;) and miscellaneous perils (impact, subsidence, etc).