Prudent Brokers

Glossary of Insurance

TERM	THEFT	TIME ELEMENT	TORT LIABILITY
TOTAL LOSS	TREATY, REINSURANCE

	TERM
	The period of time for which a policy or bond is issued.

	THEFT
	The wrongful taking of the property of another.

	TIME ELEMENT
	A phrase used to describe a kind of insurance that reimburses the policyholder for the loss of use of property. The amount of loss depends on the length of time it will require to rebuild or repair or recover. Hence “time” element.

	TORT LIABILITY
	A "tort" is an injury to another person or to property, which is compensable under the law. Categories of torts include negligence, gross negligence, and intentional wrongdoing. To give rise to a legal claim in tort, an act (or inaction) must satisfy four elements: • There must be a legal duty of care to another person. • There must be a breach of that duty. • The claimant must have suffered damages, and • The damages must have been proximately caused by the breach of duty.

	TOTAL LOSS
	Loss of all the insured property. Also, a loss involving the maximum amount for which a policy is liable.

	TREATY, REINSURANCE
	Reinsurance treaties are agreements between companies whereby reinsurance is shared on terms set forth therein.