Accident Terms and Definitions

Policy
Written contract of insurance.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

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

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.

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

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

Cancellation
The termination of an insurance policy before its normal expiration date.

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