Also called coordination of benefits. A clause found in certain policies stating that benefits will not cover losses already being covered by another party.

Pain, suffering, inconvenience, loss of consortium, physical impairment, disfigurement, and other nonpecuniary damages.

A failure to act, e.g., to repair a defective pathway.

A pension plan benefit that belongs to the insured and cannot be lost.

The parts of a policy that cannot be denied to the policyholder, even if he or she stops paying the premiums. The policyholder may choose either the paid up surrender value, the cash surrender value, the loan value, and the extended term insurance value. If he or she does not choose one of these, there is one specified in the contract that will take effect.

A risk that cannot be insured, either because the probability of a loss is too high, or because it cannot be measured actuarially.

A total lack of financial preparation for potential losses.

A policy written without the insured submitting to a medical examination. The insured’s statement of health is deemed sufficient.

This term signifies an auto that is neither owned, hired, nor borrowed by the insured under a commercial auto policy. Employees’ cars used in company business are commonly classified this way. In a personal auto policy under the physical damage section, a nonowned auto is a private passenger auto, pickup, van or trailer not owned by or furnished or available for the regular use of the insured or family members, or any auto or trailer used as a temporary substitute for the covered auto that is out of use due to breakdown, repair, servicing, loss or destruction.