Insurance Terms Glossary – VWX
Whole Life: A Life policy that runs for the insured’s whole life – that is, until death or the ultimate age on the mortality table being used (usually age 100). Absolute Liability: Liability that arises from an extremely dangerous situation. Absolute Liability is often found in cases involving explosives. Also known as “strict” liability. For example, you are absolutely liable if you keep a wild animal as a pet.
Vacancy: The absence of people and personal property from a building, not expected to return. Property coverage is often restricted when there are long periods of vacancy, especially for the Perils of Vandalism and Glass Breakage.
Vandalism And Malicious Mischief (VMM): Protects property against damage caused by vandals. May be added by Endorsement to the DP-I Basic Form; included coverage in many other Property forms.
Warranty: 1) A statement that is guaranteed to be true in all respects. Statements on insurance applications are, in the absence of fraud, not warranties, but representations (statements true to the best of the applicant’s knowledge). 2) A sworn statement by the insured attesting to the presence of certain safeguards, such as a sprinkler or burglar alarm system. Breach of this type of warranty may void coverage.
Workers’ Compensation Insurance: Insurance that covers an employer’s obligations under Workers’ Compensation laws, which make the employer responsible for stated damages in the event of a work related injury or illness. Workers’ Compensation coverage also includes separate coverage for Employers Liability.