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We offer a variety of payment options to make paying for your insurance easy and convenient. You are welcome to pay at our office by cash, cheque or Interac! Many companies we represent have direct payment options. Contact your customer service broker to discuss the best payment option for you. A few of the companies we represent have the option for payment directly online or by telephone using your credit card:


Insurance company Accepted credit cards Pay online Pay by phone
Aviva Visa & Mastercard www.aviva.ca/en/payment-broker 1-800-360-5009
Economical / Economial Select
Perth / Western General
Visa, Mastercard &
American Express
www.economical.com/en/make-a-payment 1-866-858-4040
Gore Visa & Mastercard www.goremutual.ca/pay-by-cc/ 1-800-265-8600
Hagerty Visa & Mastercard https://login.hagerty.com/TemporaryAccess?purpose=PayBill1-888-348-9369
Halwell Visa & Mastercard www.halwellmutual.com/pay-credit-card/ 1-519-836-2860
INTACT Visa & Mastercard https://apps.intactinsurance.com/on/secure/payment-ontario.html 1-416-440-8703
Travellers Visa & Mastercard www.travelers.com/pay-your-bill 1-800-268-4543
Wawanesa Visa & Mastercard www.wawanesa.com/canada/payments/myaccount.html 1-844-929-2637
Privacy Act

Effective January 1, 2004 the Personal Information Protection and Electronic Documents Act (PIPEDA) and similar provincial legislation will govern the collection, use and disclosure of your personal information.
Donovan Insurance Brokers Inc. is committed to respecting your right to privacy along with safeguarding your personal information.


We are responsible for all personal information under our control and will designate one or more individuals who will be accountable for the organization's compliance with the policies and procedures described in this Handbook.


We will identify the purposes for which we collect personal information at or before the time the information is collected.


We will obtain the appropriate consent from individuals for the collection, use, or disclosure of their personal information, except where the law provides an exemption.


The personal information we collect will be limited to that which is necessary for the purposes we have identified.


Personal information will not be used or disclosed for purposes other than those for which it was collected, except with the consent of the individual or as required by law. We will only retain personal information as long as necessary for the fulfillment of those purposes.


The personal information we collect will be as accurate, complete and up-to-date as is necessary for the purposes for which it is to be used.


We will safeguard the security of personal information under our control in a manner that is appropriate to the sensitivity of the information.


We will make readily available to individuals specific information about our policies and procedures relating to the management of personal information which is under our control.


Upon request, an individual will be informed of the existence, use, and disclosure of his or her personal information which is under our control, and may be given access to, and challenge the accuracy and completeness of that information.


An individual may address a challenge concerning compliance with the above policies and procedures to our Privacy Officer.

Insurance Terms Index

ABANDONMENT Relinquishing ownership of a property that has been damaged or lost and "abandoned" to the insurance company for the purpose of claiming a total loss.
ABSOLUTE LIABILITY Liability for damages even in the case when fault or negligence can not be verified.
ACCIDENT An unexpected and undesirable event, especially one resulting in damage or harm, which happens by chance and is not expected in the normal circumstances.
ACTUAL CASH VALUE The current cost of replacing an article with a similar one of the same condition and quality. Actual cash value takes depreciation into consideration. Any article has three values: original cost, actual cash value, and replacement value. For example, if you paid $1000 for your fridge originally (original cost), its actual cash value might be $500, but if it's destroyed in a fire, replacing it may cost you $2000 (replacement value).
ADDITIONAL INSURED OR ADDITIONAL INTEREST INSURED A person or corporation, other than the named insured or covered person, in the insurance policy who may be liable for an accident involving an insured or an insured vehicle and who is protected by the terms of the policy by being named as an Additional Interest Insured. For example, in an automobile policy this may include anyone driving with the insured's consent.
ADDITIONAL LIVING EXPENSE INSURANCE Coverage for when an insured's dwelling has been so damaged by an insured peril that it is not possible to the insured to live in the dwelling until it has been repaired. This coverage will cover the cost of living in a hotel or elsewhere until the insured's dwelling is repaired.
ADDITIONAL PREMIUM An extra charge for an adjustment during the policy period which increases the risk or liability of the Company.
ADJUSTER (INSURANCE ADJUSTER) A representative of an insurer who investigates insurers liability for loss and settlement of claims. The insurer may employ its own salaried adjuster or hire an independent adjuster.
AGGREGATE LIMIT The amount of coverage that the insured has under the contract for the contract period regardless of how many separate accidents might take place.
ALARM SYSTEM Premises protection via a monitoring system guarding against intrusion, sprinkler activation and/or rising water levels.
ALL PERILS (AUTOMOBILES) An optional coverage that can be purchased in addition to the mandatory coverages, that is designed to provide most complete protection for insured's vehicle for all types of losses and damage except those specifically excluded in the policy.
AMORTIZATION Paying back a debt by spreading the payments over a period of time in order to reduce the value of an asset to zero.
AMOUNT OF INSURANCE The maximum value of payment for which an insurer is liable under a policy.
APPLICANT A person or corporation requesting insurance.
APPLICATION (APP) A form used by an insurance company to collect facts from a person or corporation requesting insurance based on which the insurance company decides whether to offer, modify or decline the coverage to the applicant.
APPRAISE To evaluate property in order to determine its insurable value or the amount of loss sustained.
ARBITRATION CLAUSE A clause included in an insurance policy that provides arbitration in the event of a dispute.
ARSON The deliberate burning of property by its owner or another party.
ASSETS What an individual or a corporation owns, and that has a monetary value.
AUTHORIZATION The permission or power to act on behalf of another party.
AUTOMOBILE A land motor vehicle, trailer or semi trailer that is required by law to be insured under a motor vehicle liability policy.
AUTOMOBILE FLEET A group of five or more vehicles under the same ownership or management. Fleets may be eligible for insurance premium discounts due to the larger number of vehicles in the fleet.
AUTOMOBILE INSURANCE Insurance that protects against losses involving owning or driving an automobile. Some of the coverages provided by the automobile insurance policy are: collision and comprehensive coverage for physical damage to the insured's vehicle, bodily injury liability, property damage liability, and medical coverage.
AVOIDANCE OF RISK Acting to remove a risk or eliminate exposure.
BAILEE (DEPOSITORY) A person entrusted by property or goods for exchange for payment or otherwise.
BALANCE SHEET An accounting term referring to a quantitative summary of a company's assets, liabilities and net worth at a specific point in time.
BASIC LIMITS OF LIABILITY The least amount of liability coverage an insured can purchase as required by law. If the insured wants higher coverage, a new premium for the increased coverage needs to be calculated by the insurance company.
BENEFICIARY Anyone benefiting from a contractual or fiduciary relationship, including trusts and proceeds of a will or life insurance.
BI/PD Bodily Injury / Property Damage.
BINDER A temporary or preliminary proof of insurance of property, that provides coverage until issuance of a policy. The binder has the same value as the policy, and if terminated, all the same rules apply as for an issued policy.
BODILY INJURY Term used in Auto and Casualty policies referring to physical injury, including disease, mental injury, shock or death.
BODILY INJURY LIABILITY Legal liability that pays when physical injury or death is caused to another. This coverage also pays for legal defense in case of a lawsuit.
BREAK-AND-ENTER THEFT (B & E) Forced entry into a building or property and wrongful taking of property, without the consent of its owner.
BROAD FORM PROPERTY RIDER Insurance that covers all loss or damage to insured property that is the result of any risk that is not specifically excluded from the policy.
BROKER (INSURANCE) An independent, commission compensated person or firm who acts on behalf of the insured in placing business with an insurance company, by searching the marketplace to maximize protection and minimize cost to the insured. Broker is responsible for collecting premiums from insured, but does not have authority to give coverage on the insurance company's behalf without the insurer's specific agreement.
BURGLARY Unlawful act of forced entry into a building or other premises with the intent to remove property from premises.
BUSINESS INTERRUPTION Insurance against business expenses and loss of income resulting from fire, flood or other insured risk.
CANCELLATION A voluntary act of termination of an insurance contract in force by the insurance company or insured in accordance with provisions in the contract or by mutual agreement.
CAPITAL Capital consists of all assets used by an individual or a company to generate income. Insurance company's capital consists of shareholders equity and represents the difference between company's assets and liabilities. With this value, the interests of the company's policy owners are protected in case the company has financial problems. The amount of capital owned by a company shows its wealth and demonstrates its ability to earn profit.
CASUALTY Liability or loss that results from an accident.
CASUALTY INSURANCE The type of insurance that is primarily concerned with losses and legal liability caused by injury to others or damage to property of others.
CATASTROPHE A sudden disaster resulting in great loss and misfortune.
CERTIFICATION Compliance with criteria defined by safe standards.
CLAIM A request made by the insured, or the insured's beneficiary, for payment of the benefits to recover a loss as covered by an insurance policy.
CLAUSE A term used to identify a particular part of a policy or endorsement.
CO-INSURANCE CLAUSE A clause in an insurance policy that states that the policyholder must maintain insurance equal to or greater than a specified minimum percentage of the total property values stated in the policy. In case of failing to do so, the policyholder must bear, in addition to the deductible amount, a proportionate amount of any partial loss.
COLLATERAL Assets which are pledged by a borrower as insurance against the default of payment of a debt and which are subject to seizure in the event of default on the debt.
COLLISION An accident involving impact of a vehicle against another vehicle or an object.
COLLISION COVERAGE Protection against loss resulting from damage to the policyholders vehicle that occurs as a result of a collision with another car or object. This is an optional coverage that may be purchased in addition to the mandatory coverages required by law.
COMBINED SINGLE LIMIT One single amount of coverage consisting of Bodily Injury and Property Damage coverages.
COMMERCIAL LINES Insurance for businesses, professionals and commercial institutions.
COMMERCIAL OCCUPANCY The portion of a building used for a transaction of business.
COMMISSION A portion of the premium charged by a broker or agent as compensation for their services in facilitating insurance and financial transactions.
COMPENSATORY DAMAGES Damages awarded for injury or economical loss (excluding punitive or exemplary damages).
COMPREHENSIVE INSURANCE Protection against loss resulting from damage to the insured vehicle, other than by a collision or overturning, such as fire, hail, earthquakes, windstorms, theft, vandalism, explosions, falling objects and collisions with an animal.
COMPULSORY INSURANCE Any form of insurance that is required by law.
CONSEQUENTIAL DAMAGE An indirect loss which is a result of a covered peril, such as when a windstorm causes a cut in electricity used to power a freezer and the food in the freezer spoils.
CONTINUOUS COVERAGE OR CONTINUOUS LIABILITY INSURANCE The length of time an insured has maintained insurance.
CONVICTION Infraction under the Highway Safety Act or any other legislation governing vehicular traffic.
COVER To insure.
COVERAGE (PROTECTION) Protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, coverage lists living and death benefits.
COVERED PERSON(S) Individuals, such as named insured, spouse, resident relatives, etc., who are insured under a policy contract.
CUSTOMIZED EQUIPMENT (SPECIAL EQUIPMENT) Items not included in standard insurance options available for vehicles, such as additional electronic equipment, special paint or exterior items, or amenities added to the inside of a vehicle.
DAMAGE Any material or bodily loss or harm, resulting in loss of value or the impairment of usefulness.
DEATH BENEFIT The amount stated in policy to be paid by the insurance company to the beneficiary upon proof of death of the insured.
DEBRIS REMOVAL A provision of property insurance providing coverage for the cost of removal of the debris after a loss.
DECLARATIONS (DEC SHEET) The part of the insurance policy that provides detailed information about the insured, the insurer, and the coverages. This information includes the name and address of the insured, the property insured, its location and description, the policy period, the amount, types, limit and cost for each coverage, the vehicles covered by the policy, applicable premiums, and supplemental representations by the insured.
DEDUCTIBLE The portion of loss that the policyholder must pay before a claim is paid out by the insurance company.
DEFENSIVE DRIVER COURSE (DRIVER EDUCATION) Classes approved by Department of Motor Vehicles to enhance driving skills. Upon completing these classes, drivers may become eligible for discounts on their insurance premiums.
DEPRECIATION Reduction in value of property over a period of time through aging, use, deterioration and obsolescence.
DIRECT LOSS (OR DAMAGE) A loss, which is a direct consequence of a particular peril. Fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss.
DIRECT LOSS A loss that arises when insured property or goods are damaged or lost as a result of a specific peril. Direct loss does not include other losses or expenses incurred as an indirect result of the damage, e.g. spoiled food in freezer as a result of the fire damage to the freezer.
DIRECT WRITER An insurance company whose policies are sold through it own licensed agents who represent it exclusively, rather than through independent agents, who represent several insurance companies.
DISMEMBERMENT A loss of, or loss of use of a body part resulting from accidental bodily injury.
DRIVER EDUCATION (DEFENSIVE DRIVER COURSE) Classes approved by Department of Motor Vehicles to enhance driving skills. Upon completing these classes, drivers may become eligible for discounts on their insurance premiums.
DRIVER'S LICENCE (DRIVER'S PERMIT) Official written authorization permitting the bearer to operate a motor vehicle.
DRIVING CLASS A specific category used for rating automobile insurance that indicates age and sex of the operator, and vehicle use.
DRIVING RECORD Each driver is given a record based on the experience, prior accidents, traffic tickets and driver training. Drivers with better driving record are lower risk and thus may be eligible for a lower auto insurance premium.
DWELLING A residential building that can be owned or rented.
EARNED PREMIUM The portion of a premium that has been used up during a policy term.
EARTHQUAKE A phenomenon involving sudden shaking and vibrations of the earth's crust that may be violent enough to cause damage to property.
EARTHQUAKE INSURANCE Coverage for damage caused by an earthquake.
EFFECTIVE DATE The date on which a coverage begins on an insurance policy or a transaction goes into force, and from which protection is provided.
ENDORSEMENT (RIDER) An amendment added to a written document, such as an insurance policy, used to amend coverage.
EMBEZZLEMENT A fraudulent appropriation of funds or property that is entrusted to ones care but actually owned by someone else.
EMPLOYERS LIABILITY INSURANCE Coverage by employers against their liability to employees for injuries arising from accidents or disease in the course of their employment, as distinguished from liability imposed by a workers' compensation law. ENDORSEMENT (RIDER) - An amendment added to a written document, such as an insurance policy, used to amend coverage.
EXCLUSIONS Risks, perils, conditions or properties listed in the policy as not covered.
EXPIRATION End of insurance policy coverage.
EXPIRATION DATE The date and time insured's coverage ends. For example, an expiration date of 1/1/2006 at 12:01 a.m. shows that coverage ends after midnight on the date listed.
EXPOSURE The condition of being subjected to a source of risk, measured as a vulnerability to loss, expressed in dollars or units.
EXTENDED COVERAGE (EC) An extension of property insurance beyond coverage for fire and lightning. Additional perils covered are windstorm, hail, explosion, riot, attending a strike, civil commotion, and aircraft, vehicle and smoke damage.
FINANCIAL RISK A risk that an investment or loan will not be able to bring a return to an investor and may result in a loss.
FIRE A hostile burning that produces a spark, flame, or glow and that is not friendly as a fire in a fireplace.
FIRE INSURANCE Insurance for loss or a damage of a building and/or contents due to fire, usually supplemented by Extended Coverage Insurance.
FIRE RESISTIVE CONSTRUCTION A building whose exterior walls, floors, and roof are constructed of fire-resistant materials.
FLOATER POLICY Insurance policy that covers a loss of a property which is moved from place to place, regardless of where it may be moved.
FLOOD INSURANCE Coverage that protects property owners from loss due to the defined peril of flood.
FORGERY An illegal modification or reproduction of a document with intent to defraud.
FORM An insurance policy, including any riders and endorsements that may be attached to it.
FORTUITOUS EVENT An unexpected and unforeseen occurrence.
FRAUD Intentional deception and dishonesty carried out in order to deceive, mislead and obtain advantage, to which one is not entitled.
GENERAL LIABILITY INSURANCE Coverage that protects business owners and operators from a wide range of liability exposures for injuries or damage caused by the insured's ownership of premises, operations completed by the insured, sale and distribution of products, contractual liability and professional services.
GENERAL PROVISIONS Part of an insurance policy that identifies the obligations of the insurer and insured.
GLASS INSURANCE Coverage for breaking windows in a vehicle or building.
GRACE PERIOD An additional period after the premium due date with which an insurer provides an insured to pay an overdue premium without penalty, with the policy remaining in force.
GUARANTEED REPLACEMENT COST Coverage that pays the full cost of replacing or repairing damage, even if the cost exceeds the policy limit.
HAZARD A specific circumstance that increases the probability of incurring a loss arising from a peril, or that may influence the extent of the loss.
HIGH RISK AUTO (NONSTANDARD AUTO, SUBSTANDARD AUTO) Insurance for vehicle operators with poor driving record, and/or a history of canceled or refused insurance, whose premium will be higher than standard auto premium due to the additional risks.
HIT-AND-RUN The failure of the driver of a vehicle to stop to assist and provide information when he or she is the direct or indirect cause of an accident.
HOMEOWNER INSURANCE A combination of coverages that provides protection against the risks of owning a home.
HOUSEKEEPING The general maintenance of an insured property.
IMPROVEMENTS AND BETTERMENTS Additions or alterations that a lessee makes at his/her own cost to a building that he/she is occupying and which enhance the buildings value. As improvements and betterments become part of the building, they require special insurance consideration.
INCREASE IN PREMIUM Increase in premium amount due to changes or renewal of a policy.
INDEMNIFY Pay out a compensation to the victim for a loss incurred.
INDEMNITY Amount paid out as compensation for a loss incurred, the intent being to return a policy holder to the same financial position as they had before the loss.
INDIRECT LOSS (OR DAMAGE) Loss resulting from a peril, but not caused directly by the peril, such as a loss of food in the freezer due to a fire that destroyed the freezer.
INFRACTION (VIOLATION) Breaking a law or regulation.
IN-FORCE Insurance in effect on which the premiums are paid. In life insurance, it refers to insurance by face amount. In health insurance, it refers to total premium volume being paid to insurance companies.
INLAND MARINE INSURANCE An insurance business which developed from the insuring of items which did not involve ocean voyages, such as bridges, tunnels, jewelry and furs.
INSPECTION Independent examination of facts about an applicant or claimant to confirm that the standards of a contract are met.
INSURABILITY Insurance company's acceptance of an applicant for insurance.
INSURANCE An instrument that reduces risk of individual entities by transferring the risk to an insurer. The insurer promises to reimburse the insured in the case of a covered loss in return for premium payments to the insurer.
INSURANCE ADJUSTER (ADJUSTER) A representative of an insurer who investigates insurer's liability for loss and settlement of claims. The insurer may employ its own salaried adjuster or hire an independent adjuster.
INSURANCE ATTORNEY An attorney practicing the law as it relates to insurance matters.
INSURANCE CERTIFICATE A document that an insurance company or broker issue to the insured to confirm that a particular piece of property is insured.
INSURANCE LIMITS The amount of coverage limited to a set amount according to category of property.
INSURANCE POLICY A legal document issued to the insured that outlines the terms of the insurance contract.
INSURANCE TO VALUE An amount of insurance coverage approximate to the value of the property insured.
INSURED A corporation, partnership or individual protected by an insurance policy against perils that could damage their assets, life, and health.
INSURED PERILS (RISKS COVERED) Perils covered in the insurance contract.
INSURER An insurance company providing insurance coverage.
ISSUE DATE Date on which an insurance contract comes into effect.
LAPSE IN COVERAGE (POLICY LAPSE) Cancellation or termination of insurance policy due to insured's failure to pay the premium, or termination of the policy for other reasons.
LEASEHOLD IMPROVEMENTS Physical improvements, beyond regular maintenance or repairs, that increase the value of a property.
LEGAL LIABILITY Legal responsibility imposed by law for a payment for material damage or physical injuries done to others.
LESSEE (TENANT) One who leases a property from its owner.
LESSOR One granting a lease of a property, also known as the landlord, to whom the lessee (tenant) makes lease payments.
LIABILITY Legally enforceable obligation or responsibility.
LIABILITY INSURANCE Insurance covering the insured's legal liability resulting from injuries to other persons or damage to their property, including coverage for insured's cost of legal defense.
LIBEL A false and malicious written statement about an individual, which defames that individual.
LIEN HOLDER (LOSS PAYEE) A person or entity holding a legally secured claim on another's property as security for a debt. In an event of a loss, the loss payments will be made to the insured and to the loss payee on the insured's policy.
LIMIT OF LIABILITY The maximum amount up to which an insurance company protects an insured and agrees to pay out in case of loss.
LOSS In insurance, loss refers to a reduction in the value of an insured's property caused by an insured peril, an amount requested through an insured's claim, or an amount paid by the insurer to the insured under the terms of the insurance policy. In investment sense, loss refers to a reduction in the value of an investment, or a condition in which a company's expenses exceed its revenues.
LOSS ADJUSTMENT EXPENSES Expenses incurred to investigate and settle losses.
LOSS AND LOSS-ADJUSTMENT RESERVES TO POLICYHOLDER SURPLUS RATIO A company's solvency is dependent upon having and maintaining reserve adequacy when multiple of loss reserves to surplus is high.
LOSSES AND LOSS-ADJUSTMENT EXPENSES The total reserves for unpaid losses and loss-adjustment expenses, including reserves for any incurred but not reported losses, and supplemental reserves established by the company. It includes the total for all lines of business and all accident years.
LOSS CONTROL Any combination of actions taken to reduce the frequency or severity of losses including exposure avoidance, loss prevention, loss reduction, segregation of exposure units and noninsurance transfer of risk.
LOSS FREQUENCY Number of consecutive times a loss occurs over a specific period of time.
LOSS OF USE INSURANCE Coverage that covers an insured for the inability to use property due to a damage by a peril covered by the policy.
LOSS OF USE Inability to use property due to a damage by peril covered by the policy.
LOSS PAYEE (LIEN HOLDER) A person or entity holding a legally secured claim on another's property as security for a debt. In an event of a loss, the loss payments will be made to the insured and to the loss payee on the insured's policy.
LOSS RATIO The ratio of losses incurred to premiums earned, used to measure the company's profitability or loss on its total book of business.
MATERIAL MISREPRESENTATION A false statement of any material fact on an application.
MEDICAL PAYMENTS Coverage for medical and funeral expenses incurred in an auto accident, regardless of fault. Coverage is also provided for injuries incurred by passengers in the insured's vehicle, or while the insured is operating someone else's vehicle, as well as for injuries that the insured and his/her family members incur as pedestrians.
MISREPRESENTATION Providing false information to an insurer by an insured when informing of loss.
MORAL HAZARD A risk to an insurance company resulting from an insured's habits that increase the probability of a loss from a peril.
MORALE HAZARD An insured's attitude that increases the probability of loss from a peril.
MORTGAGE A debt secured by property.
MORTGAGE BOND A bond that has a property as security for payment.
MORTGAGE INSURANCE POLICY In life and health insurance, a policy covering a beneficiary with enough benefits to pay off the balance due on a mortgage or to continue mortgage payments upon the insured's death or disability.
MORTGAGEE A creditor to whom a mortgage is given and who lends money based on the security of the property mortgaged.
MORTGAGOR The debtor who receives money and in turn grants a mortgage on his property as security for a loan.
MVR (MOTOR VEHICLE RECORD) A record containing information obtained from an individual's driver license, abstracts of convictions and accidents.
NAMED INSURED Any person or corporation in whose name the insurance policy is issued.
NAMED PERILS Specific perils covered or listed in the insurance policy.
NEGLIGENCE Failure to act with the prudence expected from a reasonable person under the specific circumstances.
NET PREMIUM The total amount of premium less the broker's commission. Also, the premium needed to cover anticipated losses, before loading to cover other expenses.
NET WORTH Amount by which total assets exceed total liabilities.
NO-FAULT INSURANCE A type of auto insurance where an insurer pays for insured's losses such as medical expenses and lost wages that are a result of an accident, regardless of who is at fault. No-fault insurance speeds up claims payouts and reduces the number of lawsuits for minor claims, thus lowering the cost of auto insurance.
NONSTANDARD AUTO (HIGH RISK AUTO, SUBSTANDARD AUTO) Insurance for vehicle operators with poor driving record, and/or a history of canceled or refused insurance, whose premium will be higher than standard auto premium due to the additional risks.
OCCASIONAL DRIVER An operator of the vehicle who is not the primary or principal driver of the vehicle, but operates the vehicle occasionally.
OCCUPANCY The type and nature of the use of property.
OCCURRENCE An event that results in an insured loss. In liability insurance, occurrence is distinguished from accident in that the loss does not have to be sudden and can result from continuous exposure which results in bodily injury or property damage that is neither expected nor intended by the insured.
PARTIAL LOSS A loss covered by an insurance policy which does not completely destroy or render worthless the insured property.
PER OCCURRENCE LIMIT The maximum amount an insurance company will pay for all claims arising from a single occurrence.
PERIL An event that is a cause of a possible loss.
PERSONAL ARTICLES FLOATER Insurance that covers a loss of a property which is moved from place to place, subject to reasonable exclusions for valuable items such as jewelry, furs, silverware, fine arts, etc.
PERSONAL EFFECTS FLOATER An inland marine policy covering personal articles of travelers world-wide, except in the insured's domicile.
PERSONAL INJURY Injury other than bodily injury arising from false arrest or detention, wrongful entry or eviction, malicious prosecution, libel or slander, or violation of a person's right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting.
PERSONAL LIABILITY A form of liability insurance, other than auto liability, in the event that insured becomes liable for loss or injury caused to others.
PERSONAL LINES Insurance for individuals and families, such as private-passenger vehicle insurance and homeowners insurance.
PERSONAL PROPERTY Any property of an insured, excluding real property.
PERSONAL PROPERTY FLOATER Insurance covering all personal property world-wide, including insured's domicile.
PHYSICAL DAMAGE Actual damage to a property.
PHYSICAL HAZARD The material, structural, or operational risk.
POLICY Legal contract between the insured and the insurer setting out the terms and conditions of the insurance contract and specifying the rights and obligations of each party.
POLICY LAPSE (LAPSE IN COVERAGE) Cancellation or termination of insurance policy due to insured's failure to pay the premium, or termination of the policy for other reasons.
POLICY LIMIT The maximum amount a policy will pay.
POLICY PERIOD (POLICY TERM) The time period during which the insurance policy is in effect and provides protection.
POLICYHOLDER The policy owner who pays insurance premiums or those protected under the policy.
PORTFOLIO Combined holdings of a set of stocks, bonds, real estate, commodities and other assets by individuals or institutions.
POWER OF ATTORNEY A legal instrument authorizing a person to execute legal documents and manage affairs indicated in the instrument on behalf of another person.
PREFERRED RISK A risk that is superior to the standard risk on which the premium rate has been calculated and as such is eligible for a reduction in the premium rate.
PREMISES The particular location of property or a portion of the property insured in a policy.
PREMIUM (RATE) The price of insurance protection an insured person pays to an insurance company for coverage of a specified risk for a specified period of time.
PRINCIPAL OPERATOR (PRINCIPAL DRIVER) The person who drives the vehicle most often, usually the named insured.
PRIMARY RESIDENCE The place where an insured lives for the majority of a policy term.
PRIVATE PASSENGER AUTOMOBILE A motor vehicle operated for personal use that is subject to motor vehicle registration.
PROFESSIONAL LIABILITY INSURANCE Liability insurance that protects professionals such as doctors, lawyers, and architects against loss resulting from claims due to bodily injuries resulting from actions performed as part of the practice of a profession such as malpractice, error, or mistake committed or alleged to have been committed by the insured.
PROPERTY OF EVERY DESCRIPTION Coverage for buildings and contents shown as one inclusive limit.
PRO RATA CANCELLATION A cancellation of an insurance policy before its expiration date that returns a portion of the premium to the insured in an amount equal to the daily earned premium multiplied by the days the policy was in effect.
PROHIBITED RISK Any risk which an insurance company will not insure under any circumstances.
PROOF OF LOSS A formal statement made by the insured providing information required by an insurance company to determine that a valid claim exists.
PROPERTY DAMAGE UNINSURED (UNDERINSURED) MOTORIST Coverage through an insured's policy that protects the insured against loss resulting from the insured's vehicle being damaged by another driver who doesn't have adequate insurance and is not able pay for the losses.
PROPERTY INSURANCE Coverage that protects an insured against direct and indirect losses when the insured's property is stolen, damaged, or destroyed by a covered peril.
PROTECTION (COVERAGE) Coverage provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, coverage lists living and death benefits.
PUBLIC ADJUSTER A claims adjuster who represents the policy holder as opposed to a "company" or "independent" adjuster who represents the insurance company.
PUBLIC LIABILITY Legal obligation to cover damages caused to other individuals or companies.
QUOTE Estimate of the insurance premium or the current price of a security, based on information supplied by the applicant
RATE (PREMIUM) The price of insurance protection an insured person pays to an insurance company for coverage of a specified risk for a specified period of time.
RATED A policy issued with an extra premium charge, as pertaining to life insurance.
REAL RATE OF RETURN The rate of return adjusted for inflation.
RECONSTRUCTION COST Appraisal of the replacement cost of a dwelling.
REFUND Repayment of a portion of the insurance premium.
REIMBURSEMENT Payment of a claim to or on behalf of the insured in the event of a defined loss.
REINSTATEMENT The resumption of coverage under a policy which has lapsed and restoration of insurance following lay-up.
REINSURANCE Placing a part of the insurance risk with another insurance company, the reinsurer, which assumes the part of responsibility in return for a portion of the premium paid by the insured.
RENEWAL The continuation of an insurance policy upon payment of a premium.
REPLACEMENT COST The cost of replacing or repairing a property without deduction for depreciation.
REPRESENTATION Statements made by a person on his/her insurance application, which are considered true to the best of his/her knowledge.
RESERVE An amount representing actual or potential liabilities that an insurance company needs to keep in order to be able to cover debts to policyholders.
RIDER (ENDORSEMENT) An amendment added to a written document, such as an insurance policy, used to amend coverage.
RIOT Disturbance of the peace by an unruly mob.
RISK A chance of loss. In insurance risk is referred to as the possibility of certain perils occurring or as the person or item insured. In investing, it is a possibility that an investments original value will partially or totally decrease.
RISK MANAGEMENT Management of risks through identification, measurement and minimization of all exposures to the possibility of loss.
RISK PREMIUM Additional rate of return that risky assets offer in order to compensate investors for higher risk.
ROBBERY The taking, or attempting to take the personal property of another either by force or by fear of force.
SALVAGE The remaining value of property or goods saved after severe damage or destruction by fire or other peril.
SETTLEMENT A claim payment or a policy benefit payment as agreed by all parties in terms of an insurance contract.
SEVERITY Size of a loss.
SHARE One unit of ownership in a corporation.
SHAREHOLDER (STOCKHOLDER) Owner of one or more shares of corporations stock or owner of one or more units in a mutual fund.
SHORT RATE CANCELLATION The cancellation of the policy by the insured before its expiration date, which results in higher payments by the insured for each day of coverage as a penalty due to the fixed expenses incurred by the insurance company.
SOLVENCY Having sufficient assets to satisfy financial obligations on time.
SPECIAL CONDITIONS Specific criteria of a policy that determine the purpose of the insurance, the terms of coverage, and the amount of premium.
SPECIFIC INSURANCE Coverage for items individually or specifically listed in the policy.
SPECIFIED PERILS An optional coverage for loss or damage on insured's vehicle due to specific incidents stated in the policy.
STACKING OF LIMITS Applying more than one policy limit to the same loss.
STANDARD CONDITIONS Basic conditions applicable to all policyholders holding the same type of policy.
STANDARD DEVIATION A statistical measure of spread or variability. In finance, standard deviation measures the spread of returns of an asset over a period of time. Higher standard deviation results from a wider spread of returns and thus indicates higher investment volatility (risk).
STATED AMOUNT CO-INSURANCE Allows for the standard co-insurance clause to be deleted in favour of a instated amount of insurance - subject to the acceptance by the insurer of a completed and signed Statement of Values.
STATEMENT OF CLAIM A written statement where a plaintiff alleges the facts that support the claim against the defendant and outlines the compensation sought.
SUBROGATION Process by which an insurance company tries to recover the cost of settling an insured's claim by suing a third party responsible for the loss.
SUBSTANDARD AUTO (HIGH RISK AUTO, NONSTANDARD AUTO) Insurance for vehicle operators with poor driving record, and/or a history of canceled or refused insurance, whose premium will be higher than standard auto premium due to the additional risks.
SURCHARGE An increase in premium amount imposed on an insured according to perils.
TAX DEFERRAL Delaying, but not eliminating the payment of taxes until a later date through various legal means.
TENANT (LESSEE) One who leases a property from its owner.
TENANTS POLICY A Homeowners policy specifically designed for people who rent property.
TERM The time period during which a policy or bond is in effect.
TERM LIFE INSURANCE Life insurance that provides coverage for a defined period of time, and which pays the stated benefit if the holders death occurs within the term of the policy. The policy doesn't build up any cash or surrender value.
THEFT The act of unlawful taking of property without the consent of its owner or any act of stealing including robbery, burglary and larceny.
THIRD PARTY Person other than the insurance company who has a claim against the insured and the insured who is involved in a loss.
THIRD PARTY INSURANCE Coverage of the insured for liability for damage or destruction of the property or bodily injury of others.
THRESHOLD LEVEL The level of injury expressed verbally and/or as dollar amount a claimant must establish before suing the negligent party.
TORT An intentional or accidental private injury against a person or property, other than a breach of contract, resulting in legal liability. Liability insurance protects against unintentional torts.
TORT FEASOR A person committing a tort.
TOTAL ADMITTED ASSETS The sum of all admitted assets reported by the company in its financial statements, valued according to applicable laws and regulations.
TOTAL DISABILITY Complete loss of physical ability which prevents an insured from performing the essential and material duties of his/her occupation.
TOTAL LOSS The total destruction of the property which leaves nothing of value or the loss which requires the maximum policy payout.
TOWING AND LABOR COSTS Coverage that provides reimbursement for towing of an insured's vehicle and labor costs involved, up to a specified limit.
TRAILER FEE A percentage fee that mutual fund companies pay to the sales representative that sold the funds to investors.
TRANSFER OF RISK Transferring all or part of the risk of loss to another party, as in insurance, which is the most common way of risk transfer.
UMBRELLA LIABILITY POLICY A policy that pays for liability losses in excess of those covered under a primary liability insurance policy.
UNDERINSURANCE Insurance amount that is less than the full value of the item insured, and thus wouldn't be able to properly reimburse the loss of the insured item.
UNDERWRITER An individual evaluating risks for insurance and determining the rates and coverages of those risks.
UNDERWRITING The process of evaluating risks for insurance and determining the rates and coverages of those risks or rejecting of the risks that do not qualify.
UNEARNED PREMIUMS That portion of the premium remaining on the unexpired part of the policy term.
UNINSURED (UNDERINSURED) MOTORIST COVERAGE Insurance that pays the insured and passengers in his/her vehicle for bodily injury caused by the owner or operator of an uninsured or underinsured vehicle.
UNOCCUPIED BUILDING A building with contents, but no occupant, where the occupant intends to return to the building.
USAGE The primary function for which an insured operates a vehicle.
UTMOST GOOD FAITH A standard of an insurance contract by which all parties to the contract agree to exercise good faith by fully disclosing all information pertinent to the contract.
VACANT Status of a building whose occupants have left the building and do not intend to return. Also a status of a newly built building before the first occupants move in.
VACANT BUILDING A building with no occupants or contents.
VALUABLES Personal property items that have a great value.
VANDALISM Deliberate destruction or damaging of a property.
VALUATION Appraisal or calculation of the value of items such as policy reserve in life insurance, financial condition of a pension plan or value or securities.
VIN (VEHICLE IDENTIFICATION NUMBER) A 17-digit alpha-numeric code that provides the vehicle's serial number, make, model, options, and year in official records.
VIOLATION (INFRACTION) Breaking a law or regulation.
VOLUNTARY MEDICAL PAYMENTS Coverage to the insured for medical expenses resulting from bodily injury suffered by a third party.
VOLUNTARY PROPERTY DAMAGE PAYMENT Coverage to the insured for expenses resulting from repair or replacement of the third party's property.
WAIVER Deliberate surrender of a right or claim, such as liability for an accident or premium payment during disability period.
WINDSTORM Very strong winds capable of damaging insured property.
"YOU" AND "YOUR" "You" or 'Your" refers to insured parties named in the insurance contract.

Ontario Automobile Insurance Reforms

Effective September 1, 2010 As part of the 5-year auto insurance review, the Ontario Government has issued a number of automobile insurance reforms that will become effective on September 1, 2010. The intent of the reforms is "to streamline a number of processes for insurers and health care providers, create a less complex auto insurance system, and protect consumers while giving them more choice to buy coverage that best meets their protection needs and budget…" Changes to the Ontario Automobile Insurance Gives You More Choice Additional accident benefit choices will allow you to customize your policy to suit your needs. These choices will give you greater influence over the price you pay for insurance. Pricing will vary based on the benefits you purchase. For a list of key terms related to these benefits, review the list of definitions. Your policy will remain unchanged until your next renewal. At that time, you will be provided with more information on the changes and your options.
For general information about changes to automobile insurance in Ontario, contact:

Insurance Bureau of Canada Consumer Information Center www.ibc.ca Telephone (416)-362-9528 Toll-free 1-800-387-2880 Financial Service Commission of Ontario www.fsco.gov.on.ca Telephone (416)-250-7250 Toll-free 1-800-668-0128 TTY 416-590-7108, 1-800-387-0584

Automobile Insurance Reforms Definitions

To understand the new terminology better, review this list of Automobile Insurance Reform Definitions.

Pays for an aide or attendant to look after you if you have been seriously injured in an accident.

If you are providing full-time care to dependants and can no longer provide that care as the result of an auto accident, you may be eligible fro caregiver benefits to reimburse you or your expenses to hire someone to care for your dependents.

If you suffer from an injury in an accident, you can apply for a determination of whether your injury qualifies as "catastrophic" (e.g. loss of a limb, paraplegia). If the injury qualifies as “catastrophic”, you are eligible for an increased level of benefits.

Pays for losses caused when your vehicle is involved in a collision with another object, including another vehicle, or rolls over.

Pays for losses for certain perils, such as falling or flying objects, and vandalism.

If you die as a result of an auto accident, the death benefit provides a lump sum payout to your spouse and your dependant; the funeral benefit provides a lump sum payout to cover the cost of your funeral expenses.

Covers damage to your vehicle or its contents if another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer. The accident must also occur in Ontario and both drivers must be insured by an insurance company licensed in the province.

If you are unable to perform your usual duties due to your injuries, this benefit pays for reasonable and necessary additional expenses for someone to complete your usual duties.

IF you cannot work as the result of an auto accident, you may be eligible for basic weekly income replacement benefits of up to $400. This benefit commences after one week.

The automatic adjustment of the income replacement benefit, non-earner benefit, attendant care benefit or medical and rehabilitation benefit according to the Consumer Price Index for Canada to compensate for inflation.

Covers the cost of reasonable and necessary medical and rehabilitation expenses (e.g. physiotherapy, prescriptions) that are not covered by OHIP or your disability insurance plan.

Minor injuries, with respect to an auto accident, are sprains, strains, dislocations, lacerations, contusions, abrasions and whiplash injuries without nerve damage or fracture. Sprain means an injury to one or more tendons or ligaments, or both, including a partial but not a complete tear. Strain means an injury to one or more muscles, including a partial by not a complete tear.

Claims made by a driver against another driver who causes an accident.

Protects you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by identified uninsured driver.

Code of Conduct

Principles of Conduct for Insurance Intermediaries

Fact Sheet About Your Registered Insurance Broker

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