Accident Terms and Definitions

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

Negligence
The absence of ordinary care.

Insured
The person(s) entitled to coverage in case of an accident or loss.

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

Insurer
The insurance company providing the insurance.

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

Vehicle ID No. (VIN)
This 17 character number is unique to each vehicle. It identifies characteristics of the vehicle, including manufacturer, year, model, body, engine specifications, and serial number.

Nonrenewal
The termination of an insurance policy at its normal expiration date.

Summons
Document or writ directing the sheriff or other officer to notify a person that an action has been commenced against him in court and that he is required to appear, on a certain day, and answer the complaint in such action.

Commission
That portion of the premium paid to the agent as compensation for his or her services.