Accident Terms and Definitions

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

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

Nonrenewal
The termination of an insurance policy at its normal expiration date.

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

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

Insured
The person(s) entitled to coverage in case of an accident or loss.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

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

Policy
Written contract of insurance.