NY Property & Casualty key terms

A license issued by the New York Department of Financial Services that authorizes an insurer to transact specified lines of insurance business in the state. Selling insurance without one is illegal.

A window of time after a policy is delivered during which the policyholder may cancel for a full premium refund without penalty. The number of days depends on the line of insurance and state rules.

Prohibited claim-handling behaviors, such as misrepresenting policy provisions, unreasonable delay, or failing to settle where liability is clear, that can expose an insurer to regulatory penalties under New York law.

Coverage placed with a nonadmitted insurer when admitted carriers decline the risk, arranged through a specially licensed surplus lines broker. Policyholders generally get no state guaranty fund protection.

A state-created residual market pool providing basic property insurance to New York owners who cannot obtain coverage in the voluntary market, often in urban or high-risk areas.

A financial stake in the person or property insured such that the insured would suffer genuine economic loss from a covered event. It must exist at policy inception for property insurance.

The concept that insurance should restore an insured to roughly the same financial position held before a loss, no better and no worse, which is why most property claims are capped at the actual loss amount.

An insurer's right, after paying a claim, to step into the insured's shoes and pursue the party that caused the loss, recovering those payments and preventing the insured from collecting twice.

The high standard of honesty owed by both applicant and insurer during underwriting, requiring full disclosure of material facts because the insurer relies heavily on information supplied by the applicant.

An insurance policy drafted by the insurer and offered on a take-it-or-leave-it basis. Because the insured has no bargaining power over wording, ambiguities are generally construed against the insurer.

A property provision requiring the insured to carry limits of at least a stated percentage of the property's value. If the limit falls short, the claim is reduced in proportion to the shortfall.

A valuation method that pays replacement cost minus depreciation, reflecting what the damaged property was worth in the marketplace immediately before the loss occurred.

A valuation method that pays what it costs today to repair or replace damaged property with new property of like kind and quality, with no deduction for depreciation.

A policy provision protecting a lender's interest in insured property. The lender receives loss payments up to its remaining loan balance and must be notified of cancellation or material policy changes.

A formal, often sworn statement the insured submits detailing the date, cause, and amount of a loss, usually due within a stated number of days after the insurer requests it.

The homeowners section insuring household contents and personal belongings, both at and away from the residence, subject to special dollar limits on categories such as jewelry, cash, and silverware.

Homeowners Section II coverage paying sums the insured becomes legally obligated to pay because of bodily injury or property damage to others caused by an occurrence.

The most widely used homeowners form, insuring the dwelling and other structures against risks of direct physical loss unless excluded, while personal property is covered for listed perils only.

A homeowners-style policy for renters that insures personal property and personal liability but provides no coverage for the building itself, since the landlord insures the structure.

A policy for condominium owners covering personal property, personal liability, and limited building items such as fixtures and interior improvements not insured by the association's master policy.

Coverage that pays the extra cost of temporary housing, meals, and similar necessities when a covered loss makes the residence uninhabitable, usually for a stated time period after the loss.

Commercial property coverage that replaces lost net income and continuing normal operating expenses while a covered loss interrupts the business, lasting until operations resume.

An extension that continues business income payments after the damaged property is repaired, for a limited period, while the business rebuilds customer traffic back to its normal level.

A single limit of insurance applying to two or more items of property or locations, rather than a separate limit for each, letting the insured apply the amount where it is most needed.

Coverage on a building under construction, including materials, supplies, and equipment intended to become part of the structure, typically written until the project is completed and accepted.

A person or business that holds property belonging to others, such as a repair shop, cleaner, or warehouse. Inland marine forms often insure the bailee's exposure for damage to that property.

Failure to use the degree of care a reasonable person would exercise in similar circumstances. A claim requires four elements: duty, breach of duty, proximate cause, and actual damages.

A rule reducing an injured party's recovery in proportion to that party's own share of fault. New York follows a pure form, so a claimant may still recover even when mostly at fault.

Legal responsibility imposed on one party for the acts of another, such as an employer being held liable for an employee's negligent acts committed within the scope of employment.

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

The maximum amount an insurer will pay for all covered claims combined during a single policy period, sitting on top of the per-occurrence limit that applies to each individual loss.

A New York auto system in which each driver's own insurer pays medical and lost-wage costs after an accident regardless of fault, with only limited rights to sue for serious injuries.

New York auto coverage paying an insured injured by a driver who has no insurance or limits too low to cover the damages, up to the SUM limits the insured purchased.

A liability limit structure shown as three figures, such as 25/50/10, meaning the maximum per person for bodily injury, per accident for bodily injury, and per accident for property damage.

A commercial auto form that uses numbered symbols to designate which autos are covered, ranging from any auto to only specifically scheduled vehicles, so a business can tailor its exposure.

A liability form covering claims first made against the insured during the policy period, regardless of when the injury or damage happened, and typically limited by a retroactive date.

The date on a claims-made policy before which no covered acts or occurrences are insured, even if the related claim is first reported during the current policy period.

A policy providing limits above underlying auto, general liability, or employers liability coverage and sometimes dropping down to fill gaps when underlying coverage is exhausted or missing.

Crime coverage reimbursing an employer for money, securities, or other property stolen by employees through theft, forgery, or similar dishonest acts, often replacing older fidelity bonds.

The principle that workers' compensation benefits are an injured employee's only recovery from the employer for a work-related injury, barring most negligence lawsuits in exchange for no-fault benefits.