A civil wrong that causes harm and gives the injured party the right to sue for damages.

Failing to use the care a reasonable person would, which can create legal liability.

A rule that reduces a damage award by the injured party's own share of the fault.

The primary, unbroken cause that sets off the chain of events leading to a loss.

Legal responsibility for injury or damage you cause to another person or their property.

An auto system where each driver's own insurer pays their injury costs regardless of who was at fault.

Coverage that pays when an at-fault driver has no insurance, or not enough to cover your injuries.

An insurer's right to recover a claim payment from the party who actually caused the loss.

Restoring an insured to the same financial position they had before a loss — no better, no worse.

A financial stake in a person or property that must exist for insurance to be valid.

The actual cause of a loss, such as fire, theft, or windstorm.

A condition that increases the chance or severity of a loss.

The amount an insured pays out of pocket on a claim before the insurer starts paying.

A clause requiring property to be insured to a set percentage of value, or claims are penalized.

Replacement cost minus depreciation — what property is worth at the time of loss.

The cost to repair or replace damaged property with no deduction for depreciation.

The loss in value of property over time due to age, wear, and obsolescence.

A written change that adds, removes, or modifies coverage in a policy.

A policy provision that removes certain causes, property, or situations from coverage.

The process of evaluating risk to decide whether to insure it and at what price.

The amount paid to the insurer to keep coverage in force.

Temporary proof of coverage that is in effect until the formal policy is issued.

The person or entity who receives the death benefit from a life insurance policy.

A contract that converts money into a stream of income, often used for retirement.

What happens when a policy ends for nonpayment, and how it can be restored to force.

Rules that decide which health plan pays first when a person is covered by more than one.