Accident Terms and Definitions

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

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

Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.

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

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

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.

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.

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.

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

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