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Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.
Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.
Dismantled Title
The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value.
Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.
Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.
Underinsured Motorist Coverage
Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).
Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
Cancellation
The termination of an insurance policy before its normal expiration date.
Nonrenewal
The termination of an insurance policy at its normal expiration date.
Producer
A term applied to an agent, solicitor or other person who sells insurance.
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