An additional insured is a person or entity not automatically included as an insured under an insurance policy, but included or added as an insured under a policy at the request of a named insured. The named insured person’s incentive to grant additional insured status to others may be a desire to protect the other party because of a close relationship with that party (for example, a desire to protect church members who minister to the insured church) or to comply with a contractual agreement. requiring named insurers to do so (for example, project owners, clients, or owners of property leased by said insurers). In liability insurance, co-insured status is usually used in conjunction with an indemnity agreement between the named insured (the indemnifier) and the party requesting the co-insured status (the indemnifier). The existence of the insured’s rights under a commercial liability indemnifier (CGL) policy is seen by most policyholders as a way of confirming the promise of indemnification. If the indemnity agreement is found to be unenforceable for any reason, the indemnifier may still be able to obtain coverage of their liability by filing a claim directly as an additional insured under the indemnifier’s CGL policy. In property insurance, the status of an additional insured is most often used in conjunction with a lease of premises between the specified insured as a tenant and the owner of the leased building, in which the insured tenant is obliged to purchase insurance for the leased building and name the building owner as an additional insured under the insurance policy in respect of the leased building. building.
An additional insured approval is a policy approval used to add coverage for additional policyholders by name, such as mortgage holders or landlords. There are a number of different forms designed to address different situations, some of which provide very restrictive coverage for co-insureds. (Instead of naming each additional insured, a general additional insured confirmation is sometimes available.)
Supplemental Living Coverage (ALE) is a type of insurance included with homeowners’ policies. ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living after a covered loss that exceeds the insured’s normal expenses before the loss. For example, ALE insurance will cover the insured’s motel bill while the home is being repaired or replaced by a fire, or until the insured moves into permanent residence. ALE coverage is limited to 30 percent of the housing allowance for the Homeowner (HO) 2, HO 3, and HO 5 forms. For Form HO 8, ALE is 10 percent of the housing allowance. Under the Tenant Policy (HO 4), ALE is 30 percent of the personal property limit, while under the Condominium Owner Policy (HO 6), the ALE limit is 50 percent of the personal property limit.
The Additional Medical program provides medical benefits to an insured worker in excess of those provided by state-specific compensation laws. Most state regulations provide for unlimited health coverage for injured workers; however, in the few states where the restriction remains in place, the workers’ compensation administrator may grant a waiver to lift the restriction.
An additional named insured is (1) a person or entity, other than the first named insured, identified as the insured on policy statements or in an appendix to policy statements. (2) A person or entity added to a policy after the policy is written with the status of a named insured. This legal entity will have the same rights and obligations as the legal entity indicated as the insured in the policy applications (except for those rights and obligations that are assigned to the first named insured). In this sense, the term can be contrasted with an additional insured, a person or entity added to a policy as an insured but not as a named insured. The term has not acquired a uniform agreed upon meaning in the insurance industry, and the use of the term in the two different meanings defined above often leads to confusion in requests for supplementary insured status between contracting parties.
The Supplemental Term Insurance Option is an option available under participating life insurance policies whereby the policyholder can ask the insurance company to use policy dividends as a net one-time premium to purchase a 1-year life insurance policy for the life of the policyholder. Also known as the fifth dividend option. There are other ways to add term insurance to a permanent insurance policy, usually by adding riders for additional term coverage.
An adhesion contract is a contract (also known as an adhesion contract) between two parties in which the terms and conditions are drafted by the party with greater bargaining power (usually the business) and the other party (usually the consumer) has little or no opportunity to negotiate more favorable terms. conditions, and as a result, the consumer finds himself in a “take it or not take it” position. Courts scrutinize adhesion contracts and sometimes strike out certain provisions on the grounds that they are in bad faith or are the result of unequal bargaining power.
An adjustable feature is a value change clause found in some reinsurance contracts. The parties agree to adjust the final premium rate or the final assignment fee retrospectively in accordance with the experience of losses according to the formulas set out in the agreement.
Adjusted net worth is the estimated book value and unrealized capital gains (net of potential income tax on the gains), plus capital surplus and voluntary provisions of the insurer. Other adjustments are often made as well.