A clause in an insurance policy giving beneficial rights, under the policy, to a mortgagee or other lender of money, on the security of the property insured.

Occurs where the insured property is so damaged that it ceases to be a thing of the kind insured; that is, it changes its specie. An example would be bags of cement which have been immersed in water.

A contract for cargo insurance to cover all shipments from time to time as declared, a certificate of insurance or policy being issued in respect of each. The arrangement is subject to cancellation on notice by either party.

The creditor by whom a mortgage is given, and who lends money on the security of the value of the property mortgaged.

With this type of liability policy the Insurer is responsible for all losses that occur during the policy period even though they may come to light some years after the policy period has expired. Typical examples are in Employer’s Liability insurance where certain diseases in employees (e.g. asbestosis of the lungs) manifest themselves many years after the insurance policy period has passed.

An event that results in an Insured loss. In some lines of insurance, such as Liability, it is distinguished from accident in that the loss does not have to be sudden and fortuitous and can result from continuous or repeated exposure which results in bodily injury or property damage neither expected nor intended by the Insured.

An attitude that increases the probability of loss from a peril. The attitude of, “It’s Insured, so why worry?” is an example of a moral hazard.

Generally refers to (1) the amount of reduction in the value of an Insured’s property caused by an Insured peril; (2) the amount sought through an Insured’s claim; or (3) the amount paid on behalf of an Insured under an insurance contract.

In insurance this term refers to the type and character of the use of property in question.

The least amount of premium for which a policy or coverage may be issued or initiated.