Insurance against damage to a vehicle itself. It includes automobile comprehensive, collision, fire and theft. Material damage and physical damage are terms that often are used inter- changeably.
Insurance Encyclopedia
Material damage insurance
The insurance of tangible property as distinct from the insurance of persons (life and limb), rights, pecuniary interests, and liability. Fire, theft, motor, cargo and hull policies are all policies that are entirely or partly of a material damage nature where the subject matter of insurance takes the form of tangible property. The property can usually be insured against named perils or on an ‘all risks’ or accidental damage basis.
Material Damage Policy
The policy covering damage to property (usually a commercial fire policy) as the result of which damage a business interruption claim may result. It is a condition of business interruption insurance that a material damage policy must be and remain in force.
Material damage proviso
Business interruption insurance proviso requiring that, before a claim can be allowed, a material damage claim must be admitted; the absence of such insurance would prolong the interruption. When the interruption results from damage at external premises, e.g. the supplier’s, the only requirement is that the damage should have been caused by an insured peril. See CUSTOMERS’ EXTENSION; SUPPLIERS’ EXTENSION; LOSS OF ATTRACTION; DENIAL OF ACCESS; EXTERNAL DEPENDENCIES.
Material Damage Warranty
Stating that before any benefits are paid in business interruption Insurance Policy/ies a material damage claim under the original property Insurance must have been admitted.
Material fact
UK: A fact that would influence the judgement of a prudent underwriter in deciding whether to accept a risk for insurance and on what terms. The proposer has a duty to disclose material facts at the inception, at renewal and in respect of mid-term alterations where there has been a change in risk. Examples: motor insurance – details of young drivers; industrial activities – heating processes and previous claims.
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UK: a fact which influences a prudent underwriter in deciding whether to accept or decline a risk, and in determining the rate of premium or the imposition of any special conditions.
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Materiality is a question of fact, to be decided in the circumstances which would influence the judgment of a prudent Insurer in fixing the premium or determining whether he will take the risk and, if so, at what premium and on what conditions.
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MEDICAL,USA: Statement of a situation that is of such importance that disclosure would alter an underwriting decision regarding issuance or rating of an insurance policy or loss settlement.
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This refers to any fact which would influence the judgment of a prudent underwriter in deciding whether to accept an insurance/reinsurance risk and the terms on which he would be willing to grant cover. See duty of disclosure.
Material fact (Legal Terminology)
For insurance purposes, this is a fact deemed so important that It would change the decision made by an insurer if it were kept hidden. Misrepresentation of a material fact can void a policy.
Material misrepresentation
Actions of an insured to provide false or misleading statements to the agent or insurer before coverage is placed. The discovery of material misrepresentation allows the carrier to void coverage if the carrier would not have provided coverage had the truth been told.
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The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged.
Material Property
Tangible property as distinct fro legal rights such as patents.
Material representation
A statement made to the underwriter before acceptance of risk that is material to the decision in accepting and rating the risk.
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A statement that is made to an underwriter during the negotiation of cover or the amendment or renewal of cover which would have influenced the judgment of a prudent underwriter in deciding whether to accept an insurance/reinsurance risk and the terms on which he would be willing to grant cover.