Farson Wyoming Auto Insurance

Insurance Information
Cancellation
The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company.

Captive Agent
A licensed insurance agent who sells insurance for only one company.

Captive Insurance Company
A company owned solely or in large part by one or more non- insurance entities for the primary purpose of providing insurance coverage to the owner or owners.

Casualty Insurance
Insurance concerned with the insured's legal liability for injuries to others or damage to other persons' property; also encompasses such forms of insurance as plate glass, burglary, robbery and workers' compensation.

Catastrophe
Event which causes a loss of extraordinary magnitude, involving a large number of people, such as a hurricane or tornado.

Cede
To transfer all or part of a risk written by an insurer (the ceding, or primary company) to a reinsurer.

Certificate of Insurance
A statement of coverage issued to an individual insured under a group insurance contract, outlining the insurance benefits and principal provisions applicable to the member.

Cession
Amount of the insurance ceded to a reinsurer by the original insuring company in a reinsurance operation.

Claim
A request for payment of a loss which may come under the terms of an insurance contract.

Claimant Vehicle
Vehicle owned or driven by another party involved in a loss.

Claims Adjuster
Person who investigates and/or settles claims - an agent, company adjuster, independent adjuster, adjustment bureau, or public adjuster

Class Factor
Class factors (also referred to as driver class factors) are based on the age of the driver and the usage of the vehicle. It is one of the main components used in rating auto policies. The factor is applied to the base rate and specific coverages.

Collision
A form of insurance protecting the insured against loss resulting from any damage to the insured's vehicle caused by collision with any object whether or not it was the insured's fault. Requires comprehensive coverage.

Collision for Rental Vehicle
Collision coverage, which may be purchased on liability only policies to cover rented vehicles. Coverage only available in state of Alaska.

Collision Full Glass
No deductible for glass damage resulting from a collision. Deductible applies to all other damage.

Collision Liability Buy Back
Available in Michigan, this coverage will pay the $500 that a Michigan resident is responsible for if they damage the property of another in an at fault accident.

Collision Waiver Deduction
Collision deductible would be waived ONLY if vehicle is damaged by an AT-FAULT uninsured motorist. Requires CL and UMBI. Coverage only available in state of California

Combined Ratio
Basically, a measure of the relationship between dollars spent for claims and expenses and premium dollars taken in; more specifically, the sum of the ratio of losses incurred to premiums earned and the ratio of commissions and expenses incurred to premiums written. A ratio above 100 means that for every premium dollar taken in, more than a dollar went for losses, expenses, and commissions.

Combined Single Limit
Liability limits that specify a single dollar amount for combined Bodily Injury and Property damage, without showing specific limits for each indiviudal coverage. For instance the combined single limit for the policy is $100,000. The individual coverages are not given specific limits and limited only by the aggregate amount of coverage.

Commercial Auto Insurance
Provides coverage to a business for losses that arise out of vehicles which are owned or used by the business.

Commercial General Liability Policy
Commercial liability policy drafted by the Insurance Services Office containing two coverage forms-an occurrence form and a claims-made form.

Commercial Lines
A general term for any type of insurance (property, casualty, health, life, etc.) purchased by businesses, organizations, institutions, governmental agencies or other commercial establishments to protect risks associated with their operations.

Commission
The part of an insurance premium paid by the insurer to an agent or broker for his services in procuring and servicing the insurance.

Commissioner
A state officer who administers the state's insurance laws and regulations. In some states, this regulator is called the director or superintendent of insurance.

Comparative Negligence
Under this concept a plaintiff (the person bringing suit) may recover damages even though there is contributory negligence. His or her recovery, however, is reduced by the amount or percent of that negligence.

Comprehensive
Loss caused by factors other than collision: ex. Missiles or falling objects; fire; theft or larceny; explosion or earthquake; windstorm; hail; water or flood; malicious mischief or vandalism; riot or civil commotion; contact with a bird or animal; or breakage of glass.

Comprehensive Full Glass
Comprehensive with no deductible for glass damage only. Deductible does apply to other comprehensive losses. In FL, CPG applies to windshield ONLY. Coverage not available in every state.

Comprehensive Personal Liability Insurance
Protection against loss arising out of legal liability to pay money for damage or injury to others for which the insured is responsible. It does not include automobile or business operation liabilities. Refers to the general liability (not auto related) exposures that accompany a person's non-business activities. For example, your dog bites someone or you hit someone with a golf ball. This coverage is generally available to our Fulltimers as a form of coverage to replace their Homeowner's Liability that they lose when they sell their house and RV Fulltime.

Comprehensive Rental Vehicle
Comprehensive coverage, which may be purchased on a liability-only policy to cover rented vehicles. Available only in AK.

Compulsory Auto Liability Insurance
Insurance laws in some states require motorists to carry at least certain minimum auto coverages.

Concealment
Deliberate failure of an applicant for insurance to reveal a material fact to the insurer.

Concurrent Causation
Legal doctrine that states when a property loss is due to two causes, one that is excluded and one that is covered, the policy provides coverage.

Consideration
One of the elements for a binding contract. Consideration is acceptance by the insurance company of the payment of the premium and the statement made by the prospective policyholder in the application.

Consumer Report
A variety of information about the consumer including, prior loss reports (PLR), motor vehicle reports (MVR), and credit score.

Contract
A binding agreement between two or more parties for the doing or not doing of certain things. A contract of insurance is embodied in a written document called the policy.

Contractual Liability
Legal liability of another party that the business firm agrees to assume by a written or oral contract to a declared limit.

Contribution by Equal Shares
Type of other-insurance provision often found in liability insurance contracts that requires each company to share equally in the loss until the share of each insurer equals the lowest limit of liability under any policy or until the full amount of loss is paid.

Contributory Negligence
Any negligence on the part of the plaintiff which contributed to the cause of the accident may bar the plaintiff from recovery against a negligent defendant, even if the defendant was more negligent than the plaintiff.

Coverage
The scope of protection provided under a contract of insurance; any of several risks covered by a policy.

Credit Score
A number that is obtained from a credit bureau vendor. The number, which is also referred to as a score is the result of applying the consumers credit file information against a standard insurance industry model. The score does not enable anyone to determine specifically what information was in the consumer's credit file.