OH P&C key terms

The state agency that licenses insurers and producers, reviews market conduct, investigates complaints, and enforces Ohio insurance laws. It does not sell insurance or set most rates.

Ohio's chief insurance regulator, appointed to lead the Department of Insurance. The Superintendent issues licenses, adopts rules, conducts examinations, and may take enforcement action against insurers or producers.

A license issued by the Ohio Department of Insurance that authorizes an insurer to transact specified insurance business in Ohio. Insurers generally must hold one before issuing Ohio policies.

Ohio's authorization for an individual or business to solicit, negotiate, or sell insurance. The license states the lines of authority and must be renewed and maintained under state requirements.

Ongoing coursework Ohio-licensed producers must complete to renew a license. It keeps producers current on insurance rules, products, and ethics, and credits must be documented.

An insurer or producer action prohibited by Ohio law, such as misrepresentation, unfair claims settlement, rebating, or illegal inducement. Regulators may investigate and impose penalties.

A producer's legal obligation to handle money held for insurers or insureds honestly and promptly. Premiums and returned funds must be accounted for and not commingled improperly.

An intentional deception to obtain insurance benefits or lower premiums unlawfully, such as false claims or application misstatements. Ohio prohibits it and may impose criminal and civil penalties.

A temporary written or oral agreement that provides insurance before the policy is issued, subject to its terms. It gives immediate coverage and is later replaced by the policy.

A financial stake in preserving property or in another person's life or health. Insurance cannot lawfully be used to profit from loss where no genuine interest exists.

The principle that insurance restores an insured to approximately the same financial position after a loss, not better. It limits recovery to the actual loss, subject to policy terms.

An insurer's right to pursue a responsible third party after paying an insured's covered loss. Any recovery helps reimburse the insurer and may reduce the insured's loss.

The amount an insured must pay toward a covered loss before the insurer pays its share. Higher deductibles usually lower premium, while lower deductibles usually raise it.

The maximum amount an insurer will pay for a covered loss under a policy or coverage part. Limits may apply per occurrence, per person, or in the aggregate.

A written amendment that changes a policy's terms, coverages, or limits. It becomes part of the policy and can add, restrict, or clarify coverage.

A policy provision that states what is not covered. Exclusions narrow coverage and often require a separate endorsement or policy to insure the described loss.

A property loss valuation method equal to replacement cost minus depreciation, often limited by the policy. It pays the depreciated value of damaged property rather than new-for-old cost.

A property valuation method that pays what it costs to repair or replace damaged property with new property of similar kind and quality, without deducting depreciation, subject to policy limits.

A property policy condition requiring the insured to carry insurance equal to a stated percentage of the property's value. If underinsured, a penalty reduces the loss payment.

A property policy provision protecting a lender with an interest in insured real property. The lender may receive loss payments and notice, and can pay premium to keep coverage.

A property policy designed for owner-occupied dwellings and certain rented units, often with named-peril coverage. It differs from a homeowners policy and may exclude liability.

A package policy for owner-occupied homes that combines property and personal liability coverages. Forms vary by covered perils and may include replacement cost or actual cash value.

A homeowners form insuring the dwelling and other structures on an open-peril basis, while personal property is covered for named perils. It is common for owner-occupied homes.

An auto physical damage coverage for losses caused by events other than collision, such as theft, fire, vandalism, or weather. It usually carries a deductible.

Auto physical damage coverage for damage to the insured vehicle caused by impact with another object or vehicle, or by overturn. A deductible typically applies.

Failure to use the degree of care a reasonable person would use under similar circumstances, resulting in foreseeable harm. It is a common basis for liability claims.

Legal responsibility for harm caused to another person or their property. Liability insurance pays covered damages the insured is legally obligated to pay.

Physical harm, sickness, disease, or death sustained by a person. Liability policies often define it and then specify which damages and persons are covered.

Physical injury to or destruction of tangible property, including loss of use of that property. Liability and auto policies often cover resulting damages.

An accident, including continuous or repeated exposure to substantially the same harmful conditions, that results in injury or damage. Liability policies often use occurrence-based triggers.

A liability policy covering claims first made against the insured during the policy period, often with a retroactive date. It differs from occurrence coverage, which responds to incidents during the policy period.

The maximum total amount an insurer will pay for all covered claims during a policy period, in addition to any per-occurrence limits. Once exhausted, no further coverage applies.

In liability insurance, harm other than bodily injury, such as libel, slander, invasion of privacy, or false arrest. It is often covered by a separate personal injury endorsement or coverage.

A rule that reduces a claimant's damages by their share of fault and, in Ohio, bars recovery when the claimant is more than 50 percent at fault.

Auto coverage for injuries caused by a driver who has no liability insurance or too little to pay the insured's damages. Ohio requires insurers to offer it, but insureds may reject it in writing.

Auto or liability coverage that pays reasonable medical and funeral expenses for covered persons injured in an accident, regardless of fault, up to stated limits.

A person or organization added to another's liability policy by endorsement, gaining coverage for liability arising from the named insured's operations or relationship.

A policy provision or agreement in which an insurer gives up its right to recover a paid loss from a responsible party. It is often required in construction or lease contracts.