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Accident Benefits: This coverage provides compensation, regardless of fault, if you, your passengers, or pedestrians suffer injury or death in an automobile collision. Accident benefits coverage is compulsory in all provinces except Newfoundland and Labrador.
Actual Cash Value or Current Value (ACV): A method used to determine the value of an item. ACV equals the cost to replace the item minus depreciation. See Replacement Cost.
Additional Living Expenses (ALE): Any necessary additional living expenses you incur to maintain your usual standard of living if your home is unfit to live in as a result of a covered loss, or you are required to leave while repairs are being made. Your claims service advisor will help to make the necessary arrangements.
Administration Fee: A fee that may be applied to your policy pre-authorized bank payments.
Appraisers: Our staff appraisers that assess damages caused to your vehicle as a result of an accident. For example, after an auto accident, our claims service advisor assigns an appraiser to view the damages and determine if the vehicle is repairable. If it is repairable, our appraiser and the auto body shop will agree on a price to complete the repairs. If the vehicle is a total loss, our appraiser will negotiate a cash settlement directly with you.
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Blanket Limit Home Coverage: Complete protection for your home or condominium unit up to $2 million to use in the event of a total loss to replace your building, contents, outbuilding and any additional living expenses with no individual limits. For Condominium unit owners, certain conditions apply. Tenants polices are not eligible for this Coverage.
Broad Form: A type of coverage that insures your personal property against perils or situations that are specifically listed in the policy (subject to certain exclusions) and insures your building/dwelling against all risks of direct physical loss or damage, except those that are specifically excluded.
Canadian Loss Experience Automobile Rating System (CLEAR): A system designed to remove unfairness in auto insurance pricing (which still relies heavily on manufacturers' suggested retail price). It rates cars for insurance purposes based on road performance rather than on initial cost. Safety features such as air bags, premium tires, and anti-theft devices, which can add substantially to the price of the vehicle, may lead to reductions in insurance premiums, since their use will reduce insurers' claim costs. Visit http://www.ibc.ca/en/car_insurance/introduction/clear.asp.
Claims Service Advisor (CSA): An individual appointed to investigate and settle your claim. He or she may be employed by us or working on our behalf for an independent adjuster.
Collision Coverage: An optional coverage, designed to provide protection for your vehicle when damage occurs as a result of a collision with another object. This coverage may be purchased in addition to the mandatory coverage(s) required by law, and is subject to a deductible.
Comprehensive Coverage: An optional coverage, designed to provide protection for your vehicle for causes other than collision or upset. The comprehensive portion of your policy covers losses caused by things such as hail, flood, theft, fire, glass breakage, falling objects, missiles, explosions, earthquakes, windstorms, vandalism or malicious mischief, and riot or civil commotion. This coverage is also subject to a deductible.
Comprehensive Form: A type of coverage that insures your property against all risks of direct physical loss or damage to the building and contents, except those that are specifically excluded.
Condo Insurance: Coverage for people who own a condominium. It includes liability coverage, personal possessions coverage, as well as coverage for fixtures within the unit such as carpets or kitchen cabinets.
Credit Inquiry: A credit inquiry is a notation on an individual’s credit report to identify that a company requested to utilize your credit information.
Credit Report: Along with the credit histories of millions of other people, your credit history is recorded in files maintained by at least one of Canada’s two major credit reporting agencies: Equifax and TransUnion. These files are called credit reports. A credit report is a “snapshot” of your credit history, including available credit and payment history.
Credit Score: A credit score is a number used by lenders as an indicator of how likely you are to repay your loans. Your credit score is generated by using a mathematical formula utilizing data from your credit report. Lenders have been using credit scores as part of the lending decision for many years. The Co-operators will be using TransUnion to obtain credit scores (but not credit reports).
Deductible: The portion of a loss that you are required to pay before your insurance coverage starts to pay. For example, if your policy has a $500 deductible and you suffered a loss totaling $1,000, you would pay the first $500 and we would pay the remaining $500.
Depreciation: Most consumer goods decrease in value over time as a result of deterioration, usage or wear and tear. When settling a loss, depreciation is charged based on the age and condition of the item at the time of loss.
Direct Compensation: The portion of the auto policy that covers damage to your vehicle, its contents, equipment and loss of use. Direct compensation is based on the degree of fault assessed against the other party, when the accident occurs in Ontario. There is no deductible unless you elected to have one for a reduction in your premium.
Endorsements: Optional coverages that you can purchase and add to your policy to provide you with additional coverage or limits of coverage.
Extended Water Coverage: Optional coverage for damage caused by water or sewage which enters a building through drains, sump systems, etc.
Fault Determination Rules: Charts or rules are used to determine fault or responsibility in an auto accident. For example, in Ontario the Fault Determination Rules contain examples of common types of collisions and describe how fault is assigned for insurance purposes. In some other jurisdictions, insurers use inter-company "settlement" charts; these are not legally binding on the policyholder.
Identity Theft Coverage: Coverage included when you purchase a home, condo or tenant insurance. You'll be reimbursed up to $10,000 for expenses associated with someone stealing and using your personal information for fraudulent transactions.
Inflation Protection: Coverage that's increased automatically at each renewal in the same ratio that residential construction costs increase. The amount of coverage you have in your home, tenant, condo, or residential policies keeps pace with any changes in building costs in Canada. The Inflation Protection factor — based on the Consumer Price Index as published by Statistics Canada — is updated once a year.
Liability Limits: Limits to the value of your insurance. If you have a loss that has a value greater than your limit, you will be responsible for any costs over that limit.
Licensed Insurance Representative (LIR): The person you will speak with when you call 1-800-387-1963. They are licensed professionals who have been trained to understand auto and home insurance products and find the coverage that best suits your needs.
Premium in Advance: A one-month advanced premium payment system to protect you against additional premium charged in the event that your policy is cancelled. Premium in advance will only occur one time during the lifetime of your policy.
Proof of Loss: A claim form you present to an insurance company to support your claim. This allows us to determine our liability as required under your policy.
Re-inspection: Another inspection an appraiser will perform if your vehicle is not repaired to your satisfaction. If it is determined that the repairs were completed improperly, we'll ensure that repairs are made properly at the shop's or contractor's expense. We also conduct re-inspections to spot-check the work in progress at body shops.
Replacement Cost: The cost of replacing an item of similar kind and quality, without taking into account depreciation. To be entitled to replacement cost, the item must be replaced. See Actual Cash Value or Current Value.
SABS: Statutory Accidents Benefits Schedule (in Ontario only), as set out in the Insurance Act, outlines the benefits that you or any other injured person may be entitled to if you are injured or killed in an auto accident. The benefits include: income replacement benefit, caregiver benefit, non-earner benefit, medical benefit, rehabilitation benefit, attendant care benefit, death benefit, and funeral expenses.
Salvage: The financial recovery made by your insurance company through the sale of property taken over from you as part of the loss settlement. For example, if your car is totalled and we pay you the ACV, the car becomes our property to sell to an auto salvage dealer. See Actual Cash Value or Current Value.
Service Partners: Provide claims service to you in the event of a loss and include body shops, contractors and rental companies. Parameters have been established to determine with whom we do business. We research and meet with our Service Providers to ensure they share our business objectives — quality and customer service that exceed your expectations.
Soft Inquiry: A "soft" inquiry may be obtained when the purpose is not to make a lending decision, such as when an insurance quote is requested. "Soft" inquiries are visible only to you, require your permission to be obtained, do not apply when your score is evaluated, and do not affect your credit score.
Standard Form: A type of coverage that insures your property against perils or situations that are specifically listed in the policy, and is also subject to certain exclusions outlined in your policy.
Tenants Insurance: Coverage for people who rent their home. It includes liability coverage as well as coverage for their personal possessions.
Third Party: An insurance contract is a two-party agreement between you and your insurance company. If you and another individual are involved in an accident, or that person makes a claim against you, he or she is referred to as a third party.
Time on Risk (TOR): The period of time that we insure your property or automobile.
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Uninsured Motorist: Coverage for damage to your auto, its contents and loss of use where a third party who is responsible for the accident is identified and uninsured. This coverage is subject to a deductible.
Without Prejudice: A term used in correspondence or settlement discussions that makes such correspondence or offers incapable of being used as evidence in a court proceeding.