Accident Terms and Definitions

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

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.

Policy
Written contract of insurance.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

Cancellation
The termination of an insurance policy before its normal expiration date.

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.