An abuse and molestation exclusion bars coverage for claims arising from sexual abuse or molestation, often including negligent supervision theories.

An additional insured is a party other than the named insured who receives coverage under a policy, usually through an endorsement required by contract.

An aggregate limit caps the insurer's total payments for all covered claims during the policy period, regardless of the number of occurrences.

All sums allocation permits a policyholder to select any triggered policy to pay the entire loss, leaving that insurer to seek contribution from others.

Allocation is the method for dividing a loss among multiple triggered policies, policy periods, or insurers when injury or damage spans several years.

An assault and battery exclusion bars coverage for claims arising from assault or battery, including negligent security claims premised on such conduct.

An assignment of a bad faith claim transfers the insured's claim against its insurer to the underlying claimant, usually as part of a settlement.

The auto exclusion removes coverage under a general liability policy for injury arising from the ownership, use, or operation of an automobile.

Auto liability coverage insures against bodily injury and property damage arising from the ownership, use, or operation of a covered vehicle.

Insurance bad faith is an insurer's unreasonable handling of a claim, which can expose it to damages beyond the policy limits.

Billing guidelines are an insurer's rules governing how defense counsel bills, covering rates, task coding, prohibited entries, and invoice submission...

The broader duty to defend principle holds that an insurer must defend whenever any claim is potentially covered, even if most claims clearly are not.

A bulk reserve is an actuarially determined amount set across a group of claims rather than on individual files.

A case reserve is the insurer's estimate of the ultimate cost of a specific claim, set and revised as the claim develops.

Claim closure is the administrative conclusion of a claim file after resolution, payment, and satisfaction of remaining obligations.

The claim file is the insurer's complete record of a claim, including investigation materials, notes, evaluations, reserves, and communications.

Claim investigation is the insurer's factual inquiry into how a loss occurred, who is responsible, and what damages resulted.

Claims handling is the process by which an insurer investigates, evaluates, reserves, negotiates, and resolves a claim under a policy.

A claims-made policy covers claims first made against the insured during the policy period, regardless of when the underlying conduct occurred.

Commercial general liability insurance covers a business against third-party claims for bodily injury, property damage, and personal and advertising injury.

This arrangement combines an agreed judgment against the insured with a promise not to collect from it, paired with an assignment of claims against the...

The continuous trigger theory activates every policy in force from first exposure through manifestation of a progressive injury.

Contribution between insurers is a carrier's claim to recover a share of a loss from other insurers covering the same risk.

A coverage denial is the insurer's determination that a claim falls outside the policy, communicated in writing with the grounds stated.

Coverage investigation is the insurer's inquiry into whether the policy responds to a claim, conducted separately from the liability investigation.

Coverage litigation is a dispute between an insurer and its policyholder, or among insurers, over whether and to what extent a policy responds to a claim.

A coverage trigger is the event that activates a policy, determining which policy period responds to a loss that develops over time.

Cyber liability coverage addresses losses from data breaches, network intrusions, and related events, including response costs and third-party claims.

The declarations page is the summary page of an insurance policy identifying the named insured, policy period, coverage parts, limits, deductibles, and...

A declaratory judgment action is a lawsuit asking a court to determine the parties' coverage rights and obligations before or alongside the underlying...

A deductible is the amount the insured bears on each claim before the insurer's payment obligation begins.

Defense within limits means the insurer's payment of defense costs reduces the policy limit available for indemnity, rather than being paid in addition to it.

A diary entry is an adjuster's dated note in the claim file recording activity, analysis, and next steps.

Directors and officers coverage protects corporate leadership and the company against claims alleging wrongful acts in their management capacity.

A disclaimer of coverage is the insurer's notice that it will not provide coverage, required promptly in some states to preserve certain defenses.

The duty to defend is an insurer's obligation to provide and pay for a legal defense whenever a lawsuit alleges facts that could potentially fall within...

The duty to indemnify is an insurer's obligation to pay a settlement or judgment for claims actually covered by the policy, which is narrower than the...

The eight corners rule determines an insurer's duty to defend by comparing only the four corners of the complaint to the four corners of the insurance policy.

The employer's liability exclusion removes coverage under a general liability policy for injuries to the insured's own employees.

Employment practices liability insurance covers claims by employees alleging discrimination, harassment, wrongful termination, and related workplace wrongs.

An endorsement is a document attached to a policy that adds, removes, or modifies coverage, and it controls over conflicting language in the base policy form.

Equitable subrogation allows an insurer that paid a loss to step into the insured's position and pursue the party responsible.

An eroding limits policy is one in which defense costs reduce the available policy limits, leaving less money to pay a settlement or judgment as the...

Errors and omissions coverage protects professionals against claims alleging negligent performance of professional services, filling a gap general...

An examination under oath is a formal sworn interview of an insured conducted by the insurer as a condition of the policy during claim investigation.

Excess judgment exposure is the risk that a verdict will exceed available policy limits, leaving the insured personally responsible and the insurer facing...

An excess policy provides additional limits above underlying coverage and generally follows the underlying policy's terms rather than expanding them.

The expected or intended injury exclusion bars coverage for harm the insured expected or intended, preserving the fortuity principle underlying insurance.

The exposure trigger activates policies in force during the period of exposure to the harmful condition, regardless of when disease appears.

An extended reporting period allows claims arising from prior conduct to be reported after a claims-made policy expires.

Extracontractual damages are amounts recoverable against an insurer beyond the policy limits, arising from bad faith rather than the contract.

The extrinsic evidence exception permits consideration of facts beyond the complaint and policy when determining the duty to defend.

Failure to settle is an insurer's unreasonable rejection of a within-limits settlement opportunity, exposing it to liability for the resulting excess...

First notice of loss is the initial report of a claim or incident to the insurer, which starts the claims handling process and the insurer's response...

First-party bad faith is an insurer's unreasonable handling of its own policyholder's claim for benefits under the policy.

Horizontal exhaustion requires all primary policies across triggered years to be exhausted before any excess coverage responds.

Incurred but not reported reserves cover losses that have occurred but have not yet been reported to the insurer.

Institutional bad faith alleges that an insurer's policies and practices, rather than an individual adjuster's error, produced unreasonable claim handling.

An insurance policy is the contract between an insurer and a policyholder that defines what losses are covered, what is excluded, how much the insurer...

The insuring agreement is the section of a policy that states what the insurer promises to cover, defining the scope of coverage before exclusions narrow it.

The late notice defense allows an insurer to deny coverage when the insured failed to report a claim as the policy requires, though most states require a...

Litigation guidelines are the rules an insurer imposes on defense counsel governing staffing, reporting, approvals, budgets, and permitted activities in...

Long-term care facility coverage combines general and professional liability for nursing homes and assisted living operators.

A loss run is a report of an insured's claims history with a carrier, showing dates, descriptions, payments, and reserves.

The manifestation trigger activates only the policy in force when injury or damage first became apparent or was discovered.

Medical payments coverage pays medical expenses for injured persons regardless of fault, up to a modest limit.

Misrepresentation in application is a false statement or omission in the insurance application that may support rescission or denial.

The named insured is the person or entity identified on the declarations page as the primary party covered by the policy.

The number of occurrences question determines how many per-occurrence limits and retentions apply to a loss involving multiple injuries or repeated events.

An occurrence is an accident, including continuous or repeated exposure to substantially the same harmful conditions, that triggers coverage under a...

An occurrence policy covers injury or damage that takes place during the policy period, no matter when the resulting claim is made.

An other insurance clause specifies how a policy responds when other coverage applies to the same loss.

A per-occurrence limit caps the insurer's payment for any single covered event, regardless of the number of claimants involved.

A policy condition is a requirement the insured must satisfy for coverage to apply, such as notice, cooperation, or submission to examination.

A policy exclusion is a provision removing specified risks from coverage that would otherwise fall within the insuring agreement.

Policy limits are the maximum amounts an insurer will pay under a policy, typically expressed as a per-occurrence limit and a separate aggregate limit.

The policy period is the span during which coverage is in force, defining which occurrences or claims the policy addresses.

The pollution exclusion bars coverage for bodily injury or property damage arising from the discharge, dispersal, or release of pollutants, irritants, or...

The prejudice requirement obligates an insurer to show it was actually harmed by an insured's breach of a condition before coverage is forfeited.

A primary policy is the coverage that responds first to a loss, before any excess or umbrella coverage attaches.

Pro rata allocation divides a long-tail loss among triggered policy periods, typically by years on the risk, with uninsured years borne by the policyholder.

Products-completed operations coverage addresses injury arising from a product after it leaves the insured's control or from work after completion.

A professional liability policy covers claims arising from the rendering of or failure to render professional services.

A professional services exclusion removes coverage under a general liability policy for claims arising from the rendering of professional services.

A proof of loss is a sworn statement by the insured detailing the claimed loss, required as a condition of first-party coverage.

Punitive exposure in bad faith is the risk of an award punishing an insurer's claim handling, available in jurisdictions treating bad faith as a tort.

A recorded statement is an audio-recorded account taken by an insurer from an insured, claimant, or witness during claim investigation.

Rescission voids a policy from inception based on material misrepresentation in the application, treating it as though it never existed.

A reservation of rights is a written notice from an insurer stating that it will defend a claim while reserving its right to later deny coverage for some...

Reserve adequacy is whether an insurer's reserves are sufficient to cover the ultimate cost of its claims obligations.

Reserves are the funds an insurer sets aside to pay the estimated ultimate cost of a claim, including indemnity and defense expense.

A retroactive date in a claims-made policy excludes coverage for acts occurring before that date, regardless of when the claim is made.

A self-insured retention is an amount the insured must pay out of pocket, including defense costs in many forms, before the insurer's obligations begin.

A set-up demand is a settlement demand structured with conditions designed to be difficult to satisfy, intended to create a bad faith claim rather than...

The Stowers doctrine holds that an insurer may be liable for the full amount of an excess judgment if it unreasonably rejects a settlement demand within...

A sublimit caps payment for a specific category of loss at an amount lower than the policy's overall limit.

Tail coverage is the purchased extension allowing claims to be reported after a claims-made policy ends, protecting against later-arriving claims.

Targeted tender permits an insured with multiple applicable policies to select which insurer will defend and indemnify, overriding other insurance clauses.

Third-party bad faith arises when a liability insurer unreasonably fails to settle a claim within policy limits and its insured is then hit with an excess...

A time-limited demand response is the insurer's documented answer to a settlement demand carrying an expiration date, and its adequacy often determines...

An umbrella policy provides liability limits above underlying policies and may also cover some claims the underlying policies exclude, subject to a...

Underinsured motorist coverage pays the gap between an at-fault driver's inadequate liability limits and the insured's actual damages, up to the UIM limit.

Unfair claims settlement practices acts are state statutes listing prohibited insurer claim handling conduct, such as unreasonable delay and failure to...

Uninsured motorist coverage pays an insured's damages caused by an at-fault driver who has no liability insurance or who cannot be identified.

Vertical exhaustion permits an insured to access excess coverage in a selected policy year once that year's underlying limits are exhausted.

A workers' compensation and employers liability policy provides statutory benefits under Part One and covers employer liability claims outside the comp...