Now this is a good question. To indemnify means you agree to pay
some one back for a loss incurred that you are responsible for or
may not be responsible for. For example if you are a contractor
that is required to post a contract spectacle bond, you must
obtain the bond from an insurance carrier that will agree to
provide the bond. In the agreement with the bonding company you
must agree to indemnify the bonding company losses that occur.
Should you fail to accomplish the job a bond can be called in and be
required to finish or pay for someone else to accomplish the job. the
bonding company is required to furnish the money under the contact
for your default. Because you agreed to indemnify the bonding
company you are required to repay them for for the default. These
type of bonds are financial backed by you and all you assets. they
will not provide the bond until you have disclosed all assets and
often will require cash collateral to help back the bond. IF you
are married they normally require the spouse to also sign the
indemnity agreement. Be careful with these type of transactions.
Also when you sign a written agreement in a contract they often
contain an indemnity clause that requires you to hold them harmless
and indemnity them for losses they incur due to your operation.
These are normally backed by an insurance policy and if it is
determined that it is an insured contract the carrier will make
payment in you behalf with you not having to repay them. Keep in
mind you can agree in an indemnity agreement to indemnity someone
else for items that are not covered as an insured contract. in that
case you will be required to pay for the loss yourself.
This is a very very elaborate subject and is subject of massive case
law. If you are considering a contract with these type of
agreements you should seek legal advice from an attorney.
LAST WORD Be very careful about these and fully understand what you
What is the difference inbetween ‘indemnity’ and ‘expense incurred’ long term care insurance?
A “per diem” or “indemnity” long term care insurance policy willpay up to a immobile amount of benefits. An “expense-incurred” long term care insurance policy permits you tochoose the benefit amount when you buy the policy. It reimbursesyou for actual expenses incurred, up to a immobile amount per day, perweek, or per month. Note that no policy will pay unlimited benefits. Response: An indemnity long term care (LTC) insurance pays aspecific daily amount based on your policy, supposed you get anindemnity ltci with benefits amount of $300/daily for a benefitperiod of Trio years, and you require long term care later, let’s sayyour daily ltc expenses is $150, you will still get $300 regardlessof your daily ltc expense, you have the freedom to determine where youare going to spend the excess $150. This is motionless for Three years,depending on the benefit period you choose. So if after threeyears, you still need care, you will have to pay the cost out ofyour pocket An expense incurred ltci reimburesed you with exact amount for yourcare. Supposed you bought an expense incurred ltci with dailybenefit of $200 for Three years and your daily ltc expenses is $100,you will be reimbursed with $100 and the excess will be kept as asavings so you can extend your benefit period. If after three yearsyou still need long term care, since you saved $100 from yourbenefit amount, the insurance company will cntinue paying for yourexpenses even if you only bought a Trio year benefit period policy,until your savings are all spent.
What is professional indemnity insurance?
This insurance provides coverage for individuals who are in occupations that deal with the public ie lawyers, police, architects, contractors, etc. The insurance helps protect them from lawsuits and other claims of negligence or other claims pertaining to liability.
What is the difference inbetween Indemnity and Pay on Behalf of in an insurance policy?
Indemnity, indemnify (as I understand it) is protection from loss, and to make entire, after a loss has been sustained..
On Behalf of would be the person the sum is being paid for/in your stead/signifying you/in stead of you..
Your insurance company made payment to the injured/bruised property that you were responsible for, thus indemnifying them, on your behalf, (rather than you paying it yourself)..
What is the difference inbetween reimbursement and indemnity long term care insurance?
Reimbursement: you pay very first, company pays you after for properexpenses. Indemnity: Company pays very first of decent expenses.Indemnity is always better for the clientReaction: With Indemnity long term care insurance, you getthe total amount of your daily or monthly benefits regardless of thecost of care you receive. Supposed your daily benefit is $300 andyour daily long term care expenses is $175, you still get the fullamount of $300, therefore you can spend the excess money for thingsother than care. Reimbursement long term care insurance on theother forearm, the amount of benefits is used exclusively for ong termcare services, in the same situation above, your daily benefit is$300 and your long term care expenses is $175, you only get theexact amount of $175 for ltc expenses, the excess amount which is$125 is kept so your policy can still be used for an extendedperiod of time.
What does the term excess in travel insurance mean?
In the USA excess usually means that the benefits are over and above any other insurance that you might have in your primary policy, For example, a homeowners policy may provide a stated benefit for lost luggage while traveling. For an extra premium, you may be able to buy an excess travel policy that provides benefits for an extra amount of coverage for the same type of loss.
What do you mean by the term life insurance?
Term life insurance is a form of makeshift life insurance that provides coverage for a specific number of years..
Term life insurance is available for 1-40 years, depending on your health and age. Term life insurance is usually purchased for 1, 15, 20 or 30 years..
Term life insurance builds no cash value within the policy. Term life insurance is “Unspoiled Protection”. You pay only for the life insurance..
If you outlive your policy term, the coverage expires..
Level term life insurance is the most common form of term life insurance. Level term offers premiums and coverage amount that remain the same each year for the entire term of your policy.
What is indemnity health insurance plan what are the disadvantage?
An indemnity health insurance plan is traditional health plan thatpays all or part of a persons medical bills. A disadvantage of thistype of insurance plan is that it can be very expensive. Anotherdisadvantage is that the individual has to submit all the paperworkto the insurance company.
Why Life insurance contract is not a contract of indemnity?
is fire insurance or medi claim (health ins) or motor insurance or life insurancewhich of them is a contract of indemnity
What is the term unadmitted insurance company mean?
Admitted insurance is an insurance company that has been approvedby a state’s insurance department. Admitted insurance varies bystate.
What is the meaning of liquidated harm as an insurance term?
Liquidated damages refers to an amount of money designated and agreed to in advance for damages, before any loss takes place, so that the actual damages need not be calculated.
What does the insurance term made entire mean?
Made entire essentially means being restored to the same financial position or situation person was in prior to some loss that is insured. For example, if a car having a value of say $1000 is in an accident and it will cost $2000 to fix it, the insurance campany can proclaim it a total loss and give you only the $1000 it was worth instead of the money you need to fix it or substitute it. In the company’s eyes you lost an asset that was worth $1000 and it is providing you $1000 so now you have been made entire. Except you still have no car and not enough money to substitute the other one.
Difference inbetween Insurance reinstatement and indemnity?
Also known as the Reinstatement Cover and the Indemnity cover, the reinstatement cover means that the insurers will pay to substitute the item with a fresh one which is equal to but not better than the item lost or bruised. This is usually the basis of cover under the Event Assured “all risks” cover, provide the sum insured represent the utter replacement cost. Indemnity basis means that the insurance will only pay for the 2nd palm value of the item i.e. what you might get if you sold it. This is its market value, not the written down value, nor what it would cost to substitute, and so may be inadequate, particularly if the item is hired and the proprietor wants a replacement.
Do term insurance policies have a dual indemnity clause?
Some do, some do not, You just need to read your policy language or ask your insurance agent what kind of policy you bought.
What does indemnity mean in business insurance?
Restoring the person, group or company who suffers a loss to the financial condition it would be in had the loss not occurred.
What is prize indemnity insurance?
Prize Indemnity Insurance is a policy taken out against a certain unlikely prize being won. Most commonly it is used for $100,000 half-court shots, hole-in-one games etc.
The difference inbetween indemnity and non-indemnity insurance in insurance law?
When indemnity (often called short-term) insurance contracts are concluded the.
insured is entitled to recover the actual commercial value of what he has lost.
through the happening of the insured event, be such event harm to property,.
fire, theft, public liability or marine insurance..
In non-indemnity insurance the sum which the insured is entitled to receive from.
the insurer does not necessarily bear any relation to the actual loss, if any,.
suffered by the insured. Life insurance contracts, individual accident and.
sickness insurance are examples of non-indemnity insurance..
Is life insurance a contract of indemnity?
Most insurance contracts are indemnity contracts. Indemnity contracts apply to insurances where the loss suffered can be measured in terms of money.
What does fmo mean in insurance terms?
FMO stands for Field Marketing Organization. They are an extension of an insurance carrier designed to distribute their products and in some cases, other carriers products. FMO’s are marketing organizations possessed by the insurance carrier, as opposed to IMO which is Independent Marketing Organization or NMO National Marketing Organization. Generally speaking, the insurance carrier is behind the scenes but very involved in directing the activities of the FMO.
What does the insurance term ‘adjustment’ mean?
The word “adjustment” when used in the context of insurance means: The monetary amount an insurance “adjuster” has determined is the adequate payment to be made to an insured person for a claim that is covered under the insurance policy.
How do you use the term Dual Indemnity in a sentence?
My life insurance policy has dual indemnity and will pay my heirstwice the benefit value if I am killed in an accident.
What does substantial indemnity mean?
To imdemnify is to substitute something to its original status before something caused some negative status to said object/product. Sustantial means it will substitute said object product as near as is possible and reasonable to be done.
What does the term co-insurance mean on health insurance policies?
In health policies co-insurance is a percentage of covered expenses that insured is required to pay in addition to co-payment and deductibleFor example if you have an 80/20 plan, the insurance company pays 80% for covered services after you’ve met your deductible. You pay the remaining 20%, up to your out-of-pocket maximum.
What is contract liability insurance and indemnity insurance?
In many cases when you come in into a contract, whether it is a contract for work, a lease agreement or any other type of contract, there will be clauses covering insurance and indemnification, which is a fancy word for covering someone else’s financial loss. Liability insurance provides money to cover losses to others due to negligence on the part of the insured. In this case, the insurance company is indemnifying the insured. If there is an indemnification clause in the contract then the contractor must indemnify the contractee as specified. This is most usually done by adding the contractee as either an extra insured (in the case of liability insurance) or as a loss payee (in the case of property insurance) to their existing policy. If the person coming in the contract does not have insurance or does not have sufficient insurance, then those policies can usually be purchased. However, having the insurance or having the contractee named on your policy does not alleviate the indemnification.
What does the term ‘adjuster’ mean in insurance?
An insurance adjuster is an individual whose function it is to resolve claims that are asserted as being covered under an insurance policy. The claims can be asserted either by the person or entity insured under the policy, or by a third-party who claims benefits under the insurance policy, for example, due to the insured’s negligence. Stated otherwise, an adjuster makes the following determinations and performs the following acts: 1. Confirming that the policy was in force at the time of the occurrence; Two. Investigating the facts of the occurrence, including requesting and analyzing all paperwork; Trio. Determining whether the language of the policy, reasonably construed, applies or does not apply to the facts of the occurrence; Four. Assessing the damages or other amounts payable under the policy using the policy itself, applicable law, and other applicable reference materials as indicated. Related to this, the adjuster determines who/what are the decent payee(s) of the proceeds; Five. Compliance with all laws governing the adjuster functions in the jurisdiction. An insurance adjuster is a licensee of the state department of insurance. Inherent in that status is the requirement to pass a state examination to obtain a license, and to take continuing education courses as required by the by the state of licensure. An adjuster can be a “company adjuster”, meaning that he/she works for an insurance company, or an “independent adjuster”, meaning that he/she can be hired by an insured to act as an advocate for the insured with respect to the claim(s). The adjuster cannot act in both roles. An independent adjuster is usually compensated as a percentage of the amount recovered, and the engagement must usually be documented in writing from the outset.
What exactly does indemnity mean?
it is legal philosophy upon which the concept of most insurance policies rests. Stringently speaking, indemnity is protection from loss and harm claims filed by another person.
What is the meaning of indemnity in regards to insurance policies?
An insurance policy that aims to protect business owners and employees when they are found to be at fault for a specific event such as misjudgment. Typical examples of indemnity insurance include professional insurance policies such as malpractice insurance.
What does professional indemnity cover in liability insurance?
Professional indemnity insurance pays for the legal costs and any judgments up to the coverage limit. Also it may help with conducting an investigation to help with your case.
What is the benefit of professional indemnity insurance?
Professional Indemnity Insurance helps professionals from being legally responisible in a negligence lawsuit. It keeps lawsuits down saving companies from a lot of money.
Are there risks when having professional indemnity insurance?
The only risk of not having professional indemnity insurance is getting caught without it. This valuable coverage insures and covers petite to large business owners and their employees against lawsuits, damages,private injuries and much more.
What exactly is professional indemnity insurance?
Professional indemnity, or liability, insurance is a kind of insurance that helps to protect businesses and professionals who suggest advice and services in case they are sued by a client for negligence.
How much does professional indemnity insurance cost?
Professional indemnity insurance protects you and your company against instances like a client holding you liable for advice causing them financial loss.&Professional indemnity insurance rates range from 0.5% of your total cover to 1%.
What does crossover mean in medical insurance terms?
A crossover claim is the transfer of claim data from Medicare to those of another relevant insurer, private or public. The recipient of the information might be Medicaid, a state agency or a private insurance company. .
What does the Indemnity to Principals Clause mean?
Indemnity to Principals clause means that the cover is extended tothe principal in the event that he/she is sued. This is common formost insurance covers.
How far contract of insurance are contract of indemnity?
all types of insurance is not a contract of indemnity because life insurance cannot b measured in terms of money , that is why it is not a contract of indemnity
Which companies suggest professional indemnity insurance?
Hiscox provides excellent and secure indemnity insurance for all people. They are a secure and profession corporation and will provide you with good service.
What does closed without any indemnity mean?
It means you had an insurance claim of some sort for which the insurance company did not pay anything.
Get a quote for professional indemnity Insurance?
Yes, you can contact an insurer of your choice suggesting professional lines coverage to obtain a professional liability insurance quote.
What does indemnity mean in car insurance?
It means the purpose who was not at fault will be compensated for the harm the at-fault party caused.
When was the very first indemnity insurance model used?
The very first indemnity insurance model used was fee-for-service plan.This plan required insurers to pay for services only after theywere rendered.
What is professional indemnity insurance used for?
The purpose of this is to protect the advice given by individuals to others as to not deem them responsible for something they had nothing to do with originally.
What does it mean when your auto insurance company wants to put your policy under indemnity?
I don’t believe it was explained to you correctly. You very likely received a notice of cancellation from your insurance company and someone in the office told you they were going to put you in their indemnity company. Many direct writer insurance companies have a 2nd company that they either have a totally different name or it may have a similar name to the main company. Allstate for example has Allstate Insurance Company and Allstate Indemnity Insurance for people who have had too many claims or tickets and no longer fit the preferred companies guidelines.
What does term insurance mean?
Term life insurance is a risk management implement used to protect your assets and/or substitute your income should you die during a specific period of time. In exchange for a (modest) premium, assured for a specific number of years, the insurance company promises to pay your beneficiary an agreed upon sum. Term policies also generally include the right to convert to permanent plans even if your health has deteriorated. It is often referred to as “unspoiled” insurance because there is no cash value. In latest years, some carriers have begun to suggest a “come back of premium” term policy that permits you to recover all the premiums you’ve paid if you outlive the initial term of the contract.
What are the advantages of public indemnity insurance?
Public indemnity insurance covers you for any harm or legal issues attributed to you, to a member of the public. For example, this can cover legal costs in the case of an accident.
Where can professional indemnity insurance be purchased in the UK?
Many places in the UK suggest indemnity insurance like; hiscox, boothby Taylor Ltd, AXA, More Th>n, Quotezone, The Insure Group, Simply Business, and Crosby Insurance.
What does easement mean in insurance terms?
An easement is essentially the right granted to another person orentity to come in upon or to use all or a part of a parcel of realestate. For example, a utility may have an easement upon the landon which your house sits for power lines, water, lines, etc. In the context of insurance, easements come into play with regardto title insurance. Title insurance insures one’s right, title andinterest to real estate–in essence, it assures that the recordowner of the property is, in fact, the possessor. If someone elsestakes a claim to the property, the title insurer will defend yourright to the property. A title insurance policy gets issued subjectto easements of record. Stated otherwise, the easement is anexception to the total ownership of the property by the policyholderand will be recognized as such by the insurer.
What type of insurance cover is a professional indemnity?
The professional indemnity insurance covers businesses and individuals who specialize in providing services. Professional indemnity insurance helps those who are accused of negligence or malpractice.
What exactly is insurance indemnity?
Indemnity insurance is compensation for the beneficiaries of the policies for their actual economic losses. This is typically up to the limiting amount of the insurance policy. It generally requires the insured to prove the amount of its loss before it can recover.
What does the term ‘insurance collision’ mean?
Insurance collision is a form of automobile insurance that covers physical harm. In most situations the insurer pays for the insured injuries, harm to the vehicle of the insured, and if the insured is at fault it pays for the harm to the other vehicle, and the other driver.
What does the term title insurance mean?
The term title insurance means insurance that covers the loss of an interest in a property due to legal defectsand that is required if the property is under mortgage. Most title insurance is lender’s title insurance.
What is the meaning of the term entire life insurance?
Entire life insurance means the life insurance policy that: .
normally covers an individual until his or her death, unless it lapses due to non-payment of premium or is cancelled, .
builds up a cash value (called cash give up value), .
pays a stationary death benefit, and .
where (unlike in a term life insurance) the premium amount remains constant despite the advancing age of the insured. The insured or policyholder may obtain a loan (called policy loan) against the accumulated cash value. For more information refer to link below.