(1) In property insurance, a clause under which the Insured shares in losses to the extent that he is underinsured at the time of loss; (2) Where two or more Insurers each have part of the risk under a single insurance policy.

The cause of a cause. A legal doctrine used in determining “proximate cause”.

Whether or not it affects a claim on the policy the Insured must comply with all warranties in the policy. In the event of breach of warranty by the Insured, the Insurer is automatically, discharged from all liability from the date of the breach, but the Insurer remains liable for Insured losses occurring prior to that date.

Same as “insurance”.

An actual total loss can occur in four ways: (1) Where the subject matter Insured is completely destroyed; (2) Where the subject matter Insured ceases to be a thing of the kind Insured (This is termed ‘loss of specie’); (3) Where the assured is irretrievably deprived of the subject matter Insured, although it has retained its specie; or (4) In marine insurance, where a missing ship is deemed an actual loss when it has been posted as “missing” at Lloyd’s.

A sudden, great disaster.

Where one of two parties to a contract breaks one of the conditions of the contract whereby the aggrieved party suffers a wrong or injury, the aggrieved party has the right to sue for damages for breach of contract.

Liability which would not rest upon a person except that he has accepted responsibility by contract, expressed or implied. This is also known as contractual liability.

The current cost of replacing an article with a similar one in the same condition. Any item has three basic values: original cost, actual cash value, and replacement value. For example, if you originally paid $400 for your living room couch, its actual cash value might be $175, but if it’s destroyed in a fire, replacing it will cost you $800.

The cost of replacing or restoring property to it’s condition prior to a loss, minus the depreciation.