Accident Terms and Definitions

Producer
A term applied to an agent, solicitor or other person who sells insurance.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.

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.

Policy
Written contract of insurance.

Commission
That portion of the premium paid to the agent as compensation for his or her services.

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.

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Broker
A person who for payment of a fee procures insurance on your behalf.