NV Property & Casualty key terms

A license issued by the Nevada Division of Insurance that authorizes an insurer to transact specified lines of insurance in the state and subjects it to state supervision.

An insurance company that holds a Nevada certificate of authority, is regulated by the state, and participates in the state guaranty fund protection for policyholders.

Coverage written by a nonadmitted insurer for a risk that admitted insurers have declined; the placing broker must hold a surplus lines license and follow Nevada eligibility and disclosure rules.

The principle that insurance should restore an insured to roughly the same financial position held before a loss, without creating a profit from the loss.

A financial stake in the property or person insured such that the insured would suffer a real economic loss if the insured event occurred; it supports enforceability of the contract.

The mutual duty of the insurer and applicant to deal honestly and disclose all facts material to the risk; concealment or material misrepresentation may allow the insurer to void coverage.

The specific cause of a loss, such as fire, windstorm, theft, or collision. Property policies insure against named perils or, more broadly, open perils.

A condition that increases the chance or severity of a loss from a peril, such as defective wiring, icy steps, or storing flammables near a furnace.

The portion of a covered loss that the insured pays before the insurer responds; choosing a higher deductible lowers the premium and reduces small claims.

A property valuation method equal to replacement cost minus depreciation, reflecting the used or depreciated value of the damaged item at the time of loss.

A valuation method that pays the cost to repair or replace damaged property with new property of comparable kind and quality, with no deduction for depreciation.

A property provision requiring the insured to carry at least a stated percentage of the property's value; if underinsured at loss time, the insured shares the loss.

Coverage that pays extra costs to rebuild or repair in compliance with current building codes or zoning laws after a covered loss, often limited to a percentage.

Failure to use the degree of care that a reasonable person would use under similar circumstances, resulting in unintended injury to another person or damage to property.

Legal responsibility for injury or damage caused to another person or their property, along with the obligation to pay damages; casualty policies fund that obligation.

Physical harm, sickness, disease, or death sustained by a person, as the term is defined in liability and automobile policies.

In liability insurance, harm other than bodily injury, such as libel, slander, invasion of privacy, false arrest, or wrongful eviction.

An accident, including continuous or repeated exposure to substantially the same harmful conditions, that causes injury or damage during the policy period.

A fault-sharing rule that reduces a claimant's recovery by their percentage of responsibility; Nevada bars recovery when the claimant is 51 percent or more at fault.

A property policy for a dwelling and its contents that provides no personal liability coverage and is used for rental dwellings, secondary homes, or risks ineligible for homeowners coverage.

The rental income lost when a rented dwelling or other structure cannot be used because of a covered loss, less expenses that do not continue during the repair period.

Coverage B of a dwelling or homeowners policy, insuring detached structures on the residence premises that are not used for business, such as garages, fences, and sheds.

A package policy for an owner-occupied residence that combines dwelling and contents property coverage with personal liability and medical payments to others.

Coverage that pays additional living expenses or fair rental value when a covered loss makes the residence premises uninhabitable while repairs are made.

Homeowners coverage that pays reasonable medical expenses for nonresident guests injured on the insured premises, regardless of who was at fault.

Homeowners Coverage E, which pays amounts the insured becomes legally obligated to pay because of bodily injury or property damage to others.

A policy for private passenger autos that combines liability, medical payments, uninsured motorist, and physical damage coverage for the named insured and family members.

Coverage that pays the insured's damages for injury caused by a driver who has no liability insurance or by a hit-and-run driver.

Coverage that pays the insured's damages when the at-fault driver has liability insurance, but its limits are too low to cover the loss.

Physical damage coverage for loss to the insured auto from striking another vehicle or object, or from overturning, regardless of fault.

Physical damage coverage for auto losses such as fire, theft, vandalism, glass breakage, hail, flood, or hitting an animal.

A policy that combines two or more commercial coverage parts, such as property and general liability, under one set of declarations and conditions.

Coverage for a business's legal liability for bodily injury, property damage, and personal or advertising injury arising from its premises, operations, products, or completed work.

A package policy for eligible small and medium businesses that combines commercial property, business income, and liability coverage in simplified form.

Coverage for the net income a business loses and the normal operating expenses it continues to incur while operations are suspended by a covered property loss.

Coverage for reasonable additional costs a business spends to keep operating or resume operations quickly after a covered loss, reducing business income loss.

Coverage that pays benefits required by state law to employees injured or made ill by their work, regardless of fault, and protects the employer against related claims.

The rule that statutory workers' compensation benefits are an employee's only remedy against the employer for a work-related injury, replacing most negligence lawsuits.

Part Two of a workers' compensation policy, covering the employer's liability for work injury claims that fall outside the exclusive remedy system, such as certain third-party actions.

A workers' compensation premium adjustment comparing an employer's past losses with the average for similar businesses; a factor below 1.00 lowers premium.