● Acquisition Cost
The the actual price paid.

● Actuarial Science
Actuarial Science branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for risks underwritten, and that adequate provision is made for future payments of benefits.⁴

● Adhesion Contract
Standardized insurance contract form offered to consumers of goods and services on essentially 'take it or leave it' basis without affording consumer realistic opportunity to bargain and under such conditions that consumer cannot obtain desired product or services except by acquiescing in form contract. Distinctive feature of adhesion contract is that weaker party has no realistic choice as to its terms.¹ Adhesion insurance contract agreement prepared by an insurance company and offered to prospective insureds on a take-it-or-leave-it basis. If the contracts are misinterpreted by insureds, courts have ruled in their favor since the insureds had no input into the contract. All insurance contracts have been deemed by courts to be contracts of adhesion.²

● Ad Valorem
(Latin) According to value. A tax on real or personal property based upon value.

● Agreed Value Policy
[insurance] Agreed Value, stipulated value, cash or Valued Policies - Value of property is agreed upon for purposes of compensation in the event of a loss.³⁷ Usually the value is determined by an appraisal. Other policies are called "Open Policies." ³

● Amicus Curiae
(Latin) Friend of the court. A brief filed with permission by the court by someone who has an interest in the case other than one of the parties to the action.

● Annulment
The process or end result of legally voiding a marriage.

● Ante-nuptial Agreement
See Prenuptial agreement.

● Answer
A defendant's response to a complaint. A pleading by which a defendant attempts to resist a plaintiff's demand by an allegation of facts, either denying allegations of the plaintiff's complaint or admitting them.

● Appeal
A proceeding by which a case is brought from a lower court to a higher court for reviewing the decision on the law.

● Appraisal
Valuation of property for damage resulting from an insured peril or for estimating the base amount of insurance coverage to be purchased.⁵

● Bifurcate Motion
A motion requesting a judge to pass judgment on an aspect of a case without trying all aspects of the case before reaching a judgment - for example, granting a divorce decree without judging the child custody aspect of the case.

● Brokers
Insurance broker means a person who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer.⁶

● Business
As used in this article, a "business" includes every kind of business, governmental activity, profession, occupation, calling, or operation of institutions, whether carried on for profit or not.⁵⁰

● Captive Agents
Representative of a single insurer or fleet of insurers who is obligated to submit business to only that company ...⁷

● Cash Value Policy
See Agreed Value.

● Cause of Action
Series of or a set of facts showing that there is a right possessed by a plaintiff to sue for monetary relief or requiring the defendant to do something. Ground upon which a lawsuit can be brought.

● Certiorari
(Latin) To be informed of. A writ issued by a higher court to a lower court or a body acting in a quasi judicial capacity to send a record from a proceeding, so it can review them.

● Chattel
Personal property.

● Codes
A set of published laws on a specific topic - such as the insurance code - that were enacted by the legislative process.

● Common Law
A traditional law of England which was adopted as the basis for American jurisprudence. In some states Common Law are applicable without being included as written code.

● Community Property
Marital property held by a husband and wife in community property states. It is not based on title but the concept that a husband and wife are equal partners in their marriage.

● Complaint
The initial pleading containing a caption, body, and demand (sometimes called a prayer), setting forth a cause of action.

● Concealment
Neglect to communicate that which a party knows, and ought to communicate, is concealment.⁸

● Constitution
The law of the land that guarantees certain rights and is the basis for all decisions by the U.S. Supreme Court on issues of constitutionality.

● Corpus Juris Civilis
Body of laws existing during the Roman Empire.

● Cross Complaint
A complaint filed by a defendant against either the plaintiff or a third party. A response pleading by one seeking affirmative relief against other parties to an action.

● Damages
Monetary relief or compensation.

● Default Judgement
Court orders a relief against one of the parties, because the other party failed to appear or to plead.

● Defendant
The party in a lawsuit that was sued or being prosecuted for a criminal act.

● Demurrer
Response to a complaint, stating that plaintiff didn't state enough facts in the complaint, there is no right, or because of facts being weak, the complaint is insufficient for legal action.

● Dissolution of Marriage
See divorce.

● Divorce
A legal termination of a marriage.

● Effective Date
The date of value.

● Equitable Distribution
In theory a division of marital property based on a equal split - 50-50. But usually a division of marital property that is not precisely 50-50 - but flexible based on the financial situation of each spouse. Factors reviewed by the court will be the earning power of the parties, separate property owned by each party, the contribution of a spouse, the effort at homemaking, the dissipation of funds by one spouse, abuse, age and health, length of the marriage, providing care for children and infidelity.

● Evidence
Evidence means testimony, writings, material objects, or other things presented to the senses that are offered to prove the existence or nonexistence of a fact.⁶⁵

● Ex Parte
Relating to one party only. Ex parte proceedings are for the benefit of one party only, without the knowledge or presence of the adverse party.

● Dicta
An authoritative statement by a judge in a case law which may be influential because of its sound reasoning, but not binding.

● Fair Market Value
The worth of a property based on what property would have realized if sold on a particular date in the prevailing open market for the property, with both the buyer and the seller knowing what they need to know to be willing and not under any duress. Various definitions exist - specific to a legal need.

● Floater
See Marine Insurance Policy.

● Form Attachments
Form attachment to an insurance policy to complete its coverage. For example, the Standard Fire Policy must have certain forms attached for it to provide the coverage desired.⁹

● Holding
Principle or rule of law derived from a case law.

● Home Owner's Policy
Homeowners Insurance Policy package policy that combines (1) coverage against the insured's property being destroyed or damaged by various perils, and (2) coverage for liability exposure of the insured. Homeowners' policies cover both individuals as well as property. In addition to the insured, those covered include his/her spouse, their relatives, and any others under 21 who are residents of the insured's household.¹⁰

● Home Owner's Policy Coverage A
Pertains to "... the structure of the home."¹¹

● Home Owner's Policy Coverage B
Pertains to "... structures not attached to or part of the house ..."¹²

● Home Owner's Policy Coverage C
Pertains to "... contents or personal property ..."¹³

● Home Owner's Policy Coverage D
Pertains to "... coverage if the home is damaged or destroyed and the insured must seek temporary lodging."¹⁴

● Home Owner's Policy Coverage E
Pertains to "... coverage in the event a suit is brought against the insured because of bodily injury and/or property damage resulting from the acts or non-acts of the insured."¹⁵

● Home Owner's Policy Coverage F
Pertains to "... coverage for reimbursement of reasonable medical expenses ..."¹⁶

● Independent Agents
Contractor who represents different insurance companies and who searches the market for the best price for a client's business.¹⁷

● Inherent Vice Exclusion
Provision of property policy which excludes construction that is likely to suffer a loss. For example, the roofing material used may not be able to withstand a wind force of more than 15 miles an hour.¹⁸

● Inflation Endorsement
Inflation endorsement attachment to a property insurance policy which automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property contract to maintain adequate coverage. Otherwise, it is advisable for a policy owner, at the time of renewal, to adjust the limits of coverage to reflect the increased cost of construction and the market value of the property.¹⁹

● Injunction
Form of judgement ordering a party to do something physical or not to do something.

● Inland-Marine Policy
See Marine Insurance Policy.

● In Pro Per
See In Propria Persona.

● In Propria Persona
(Latin) In one's own proper person. Where one acts as their own attorney in a lawsuit.

● In Re
(Latin) In the matter of. Used in cases which have no adversary party.

● Insurance
A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event and is applicable only to some contingency or act to occur in future.²⁰

● Insurance Agent
An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except life insurance.²¹

● Insured and Insurer
The person who undertakes to indemnify another by insurance is the insurer, and the person indemnified is the insured.²²

● Jewelers' Block Insurance Policy
Jewelers' Block Insurance Policy is a type of Inland Marine Insurance which provides coverage for jewels, watches, gold, silver, platinum, pearls, precious and semiprecious stones. Property can be owned by the insured jeweler, or can be customer's property in care, custody, and control of the jeweler. Coverage is on an all risks basis except specifically excluded perils such as wear and tear; war; decay; loss of market; flood; earthquake; loss or damage while jewelry is being worn by the insured or his/her representatives; loss resulting from the infidelity of any person under the care, custody, and control of the insured; damage or destruction of jewelry after it leaves the insured under an installment contract; mysterious disappearance; and shipments of jewelry not sent registered first class mail.²³

● Joint Tenancy
A type of real property ownership that allows each owner an undivided interest in the entire property and with right of survivorship - upon the death of one joint tenant, the other(s) has title to it all. Property cannot be inherited.

● Jurisdiction
A court-s legal authority to hear a case, based on locality, monetary amounts or subject matter. Also, a legal district - such as a state jurisdiction. The power given to a court by a constitution or a legislative body to make decisions over certain persons or property, that are legally binding.

● Latches
Neglect to enforce a right at a proper time under the law, even if within the statue of limitations, causing prejudice to the adverse party.

● Liquidation Value
Amount realized if property is sold in a distress, forced or foreclosure sale.

● Lloyd's Associations
Lloyd's of London insurance facility composed of many different syndicates, each specializing in a particular risk, for example, hull risks. Lloyd's provides coverage for primary jumbo risks as well as offering reinsurance and retrocessions. Membership in a syndicate is limited to individuals with a large personal net worth, and each member may belong to one or more syndicates depending upon his net worth. Although much of the publicity Lloyd's receives involves insuring exotic risks such as an actress' legs, this represents only a very small portion of its total business, most of which involves reinsurance and retrocessions.²⁴

● Marine Insurance Policy
Marine insurance includes insurance against any and all kinds of loss of or damage to: Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise.²⁵

● Marital Estate
See Marital property.

● Marital Property
Property, both real and personal, that is part of the marital estate and not classified as separate property.

● Market Value
See Fair Market Value.

● Mediation
A hearing in which a mediator strives to get a couple to settle issues in their divorce - such as property division.

● Mixed Insurance Companies
Mixed Insurance Company one that combines the two forms of ownership, stock and mutual. A stock insurance company is owned by stockholders whereas a mutual insurance company is owned by its policyholders. A mixed company is owned in part by stockholders and in part by policyholders. Most mixed companies issue participating and nonparticipating policies.²⁷

● Moral Hazard
Circumstance which increases the probability of loss because of an applicant's personal habits or morals, for example, if an applicant is a known criminal.²⁶

● Mutual Insurance Companies
Mutual Insurance Company owned by its policy-owners; no stock is available for purchase on the stock exchanges.²⁸

● Net Value
The value after encumbrances have been deducted from fair market value.

● Napoleonic Code
Originally the code of France - named after Napoleon Bonaparte, now called civil code.

● Open Policy
See Agreed Value.

● Original
Original means the writing itself or any counterpart intended to have the same effect by a person executing or issuing it. An "original" of a photograph includes the negative or any print therefrom. If data are stored in a computer or similar device, any printout or other output readable by sight, shown to reflect the data accurately, is an "original."⁴⁸

● Original Cost
Original Cost - actual price paid for property when it was acquired. The original cost might apply to a piece of jewelry, to a piece of equipment, or to a building. For insurance purposes, original cost is often different from replacement cost or actual cash value.²⁹ Also see Acquistion Cost.

● Palimony
A type of alimony, with an agreement that one party would support the other, used for a couple that were not married but lived together and ended their relationship.

● Per Curium
Opinion of the whole court, and not written by an individual judge.

● Personal Articles Insurance
See Personal Property Insurance.

● Personal Jewelry Insurance
Personal Jewelry Insurance coverage on jewelry and precious stones on an all risks basis at any location subject to exclusions of wear and tear, war, and nuclear disaster. Each item must be specifically listed in the policy. This coverage is of importance to insureds with valuable jewelry since most property insurance policies such as the homeowners insurance policy have relatively low limits of coverage for jewelry and precious stones.³⁰

● Personal Property
Property that is not attached to land that is moveable of a non-residence type - can include investments and rights.
Personal property includes money, goods, chattels, things in action, and evidences of debt. ⁴¹

● Personal Property Insurance
Special personal property form endorsement to the special multi-peril insurance (SMP) policy that provides all risks damage coverage for personal property. There are special limitations on amounts of coverage for furs, jewelry, precious stones and metals, patterns and dies, stamps, tickets and letters of credit. Certain electronic equipment and fragile materials are only covered for specific perils.³¹

● Plaintiff
The person who starts a lawsuit. The party who instigates the initial charge, claim, or allegation against another party.

● Pleading
A document filed in a court setting forth a party's position.

● Prenuptial Agreement
A written agreement (contract) between two people before they marry - agreeing as to how assets normally considered part of the marital estate will be dissolved in the event of a divorce.

● Production Cost
It is the amount which it is estimated it will cost to make or produce a property by assembly of components, manufacture, construction, fabrication, or the natural growth of living things. Similarly, the buyer's cost (or purchase cost) of an item of property of which duplicates are not available in the open market is not value.³²

● Proof
Proof is the establishment by evidence of a requisite degree of belief concerning a fact in the mind of the trier of factor the court.⁴⁰

● Property
Property includes both real and personal property.⁴²

● Quasi-community Property
Only applies in community property states - handling the marital property during a divorce proceeding as if it had been community property although it was acquired while under another state's jurisdiction.

● Real Property
Property that is land or attached to land such as structures and fixtures attached to structures or land.
Real property includes lands, tenements, and hereditaments. ⁴³
Reciprocal Exchange unincorporated association with each insured insuring the other insureds within the association. (Thus, each participant in this pool is both an insurer and an insured.) An attorney-in-fact administers the exchange to include paying losses experienced by the exchange, investing premium inflow into the exchange, recruiting new members, underwriting the inflow of new business, underwriting renewal business, receiving premiums, and exchanging reinsurance contracts. Members share profits and losses in the same proportion as the amount of insurance purchased from the exchange by that member.³³

● Regulation
Published rules or administrative codes by governmental agencies. They are not laws but enforced as if they were.

● Replacement Cost
Estimates of Replacement Cost (new, or used, depreciated) - "... is applicable to an existing, replaceable property. Replacement cost estimates are used for or in connection with: a) Determining the amount of property insurance to carry and the amount of the claim in an insured loss."³⁴

● Replacement Value
[Insurance] "Replacement, reconstruction, and reproduction cost option to an insurance company to replace, reconstruct (repair), or reproduce (rebuild) damaged or destroyed property covered by property insurance rather than indemnify an insured in cash. This is rarely done.³⁵

● Res Judicata
The matter having been adjudicated by a court of competent jurisdiction.

● Relevant Evidence
Relevant evidence means evidence, including evidence relevant to the credibility of a witness or hearsay declarant, having any tendency in reason to prove or disprove any disputed fact that is of consequence to the determination of the action.³⁴

● Stare Decisis
The concept that a lower court is mandated to follow the published decisions of a higher court with jurisdiction over it is called case law.

● Statements
Statements means (a) oral or written verbal expression or (b) nonverbal conduct of a person intended by him as a substitute for oral or written verbal expression. ⁴⁵

● Statute
Federal or state enacted laws.
Statute includes a treaty and a constitutional provision. ⁴⁶

● Stipulated Value Policy
See Agreed Value.

● Stipulation
Is an agreement, between parties to an action, usually through counsel.

● Stock Insurance Companies
Stock Insurance Company business owned by stockholders, as contrasted to a mutual insurance company that is owned by its policyholders. Many major life insurers are mutual companies whereas some leading property/casualty and multiline insurers are stock insurance companies.³⁶

● Subpoena
Writ or order compelling attendance of a person to testify. In court at an appointed time or for taking a deposition.

● Summary Dissolution
A dissolution of marriage granted for short lived marriages without significant assets.

● Tenancy in Entirety
An ownership by husband and wife, when upon the death of one, the remaining spouse has the right of survivorship - the right to the entire property and is somewhat like community property.

● Tenants in Common
Title to real or personal property held by two or more persons with what is called an undivided interest but without the right of survivorship. Each owned interest in a property can be sold, willed or even mortgaged.

● Title
Ownership of real or personal property.

● Tort
A civil wrong which does not involve a contractual relationship, involving personal injury or property damage.

● Trier of Fact
Trier of Fact includes the (a) the jury and (b) the court when the court is trying an issue of fact other than one relating to the admissibility of evidence. .⁴⁷

● Underwriters
An individual who works in the home office of an insurance company and performs the function of underwriting to determine if an applicant is insurable at standards rates, substandard rates, insurable at preferred rates, or is uninsurable.³⁷

● Valued Policy
See Agreed Value.

● Venue
Proper geographical area in which a court with jurisdiction may hear a case.

● Voir Dire
To speak the truth. It is a preliminary examination to determine competency of witness or a juror.

● Wear and Tear Exclusion
Wear and Tear Exclusion denial of coverage for damage, in inland marine insurance, stemming from routine use of the property. Property can be expected to deteriorate somewhat over time from normal use. This is not considered an insurable loss.³⁸

● Writing
Writing means handwriting, typewriting, printing, photo-stating, photo-graphing, and every other means of recording upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof.⁴⁹