Insurance and Claims Administration Glossary
- Actual cash value
- The value of property, less any depreciation.
- Actuary
- A person who projects losses based on exposure and previous loss history.
- Appraised value
- Value placed on property by a qualified expert.
- Auto physical damage
- Damage to university-owned vehicles. Automobile Insurance Coverage Page
- Bond
- Guarantee to pay if specific conditions are met.
- Business interruption
- Coverage for lost revenue due to a covered occurrence. Property Insurance Coverage Page
- Captive insurance company
- A subsidiary company providing insurance to its parent.
- Certificates of insurance
- Form that evidences insurance including insurer, coverage and limits. Certificates of Insurance Page
- Collision
- A type of physical damage to automobiles resulting from collision with another vehicle or other object. Automobile Insurance Coverage Page
- Comprehensive
- A type of physical damage to automobiles not resulting from collision. Automobile Insurance Coverage Page
- Directors & Officers
- Provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties. Also known as Educators Legal Liability.
- Disability management
- Assistance provided to employees to minimize the effects of illness and injuries while encouraging a safe and expedient return to work. WorkConnections website
- Excess insurance
- A layer of insurance coverage that is second to the primary insurance.
- Experience
- The loss record of a department or line of insurance coverage. Classified statistics showing what has happened in the past.
- Fine arts
- Assets whose value increases over time due to their rarity or intrinsic value. Fine Arts Insurance Coverage Page
- Hold Harmless
- Agreement not to hold the university responsible for claims.
- Indemnification
- Agreement wherein one party agrees to pay for the loss or damage it causes to another.
- Liability
- Legal obligation to reimburse for damages to third parties.
- Liquor Liability
- Amounts the university is legally obligated to pay to reimburse for damages to third parties arising out of the serving of alcohol. Alcohol and Liquor Liability Page
- MIOSHA injury log
- A record of employee or contractor work-related injuries and illnesses. MIOSHA page
- Occurrence
- An adverse accident or event neither expected nor intended.
- Personal Injury Protection (PIP)
- Benefits provided under the Michigan No-Fault Act for accidental bodily injury sustained while in a university vehicle or from an injury sustained arising out of the operation, use or maintenance of a vehicle. Automobile Insurance Coverage Page
- Premiums
- Amounts charged for insurance coverage. Premium factors include loss experience and exposure. Calculation methodology varies by coverage. Premium Recharges page
- Primary insurance
- The first layer of insurance coverage.
- Replacement cost
- The cost incurred to replace property with like, kind, and quality.
- Reserve
- The amount estimated to be paid to resolve a claim.
- Restitution
- Proceeds recovered from a third party as recovery for damages or losses incurred by the university.
- Retention
- The deductible amount of an insurance policy.
- Risks
- A term used to denote the exposure to damages involving human or physical assets.
- Salvage
- Any proceeds from the repaired, recovered, or scrapped property.
- Self-insurance
- Funds the university sets aside to pay for its losses.
- Subrogation
- Any proceeds of negotiations or legal action taken against negligent third parties.
- Time element
- Coverage for lost revenue due to a covered occurrence. Property Insurance Coverage Page
- Total incurred
- The sum of amounts and reserved for a claim.
- Umbrella coverage
- A layer of insurance coverage that is second to more than one layer of primary insurance.
- Veritas Insurance Corporation
- The university's wholly-owned captive insurance corporation.
- Volunteers
- A person providing authorized services to the university without compensation.