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Safe -Harbor Provisions
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Legal or regulatory conditions, the compliance with which insulates a taxpayer from unfavorable tax consequences.
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Salvage
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Property in a loss saved from further loss.
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Schedule
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1)The plan or formula applied to arrive at a fire insurance rate.
2)A list of insured properties, and the amount of insurance on each, which is attached to a "schedule" policy, as distinguished from a "blanket" policy. In the latter, one amount of insurance applies to the total of all insured properties.
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Seasonal Risk
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An insured risk which is occupied for part of the year only, such as a summer dwelling. In the case of a manufacturer, it may be a plant which is operated only a part of a year according to the season, such as cannery.
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Self-Insurance
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The retention of sufficient exposure units by an entity to permit the operation of the law of large numbers. Self insurance is a term often mistakenly used to describe the situation when an entity decides to retain its own risks. The mistake arises when the exposure units are too few in number to permit the application of the law of large numbers. When the exposure units are too few a better and less misleading term of such a practice is "self-assumption of risk."
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Selling Price Clause
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An endorsement which can be added to a fire policy covering a stock of merchandise, which extends the policy to cover beyond the actual value of the stock. One form, covering only stock already sold, is available to both mercantile and manufacturing risks and pays the price for which the stock has been sold. The other form, covering unsold stock is available for manufacturers only and pays the price for which the owner expected to sell the stock.
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Sexual Harassment
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When one employee is subjected to unsolcited, unwarranted, and unwanted physical or verbal advances, innuendoes, comments, or conditions from either the employer or another employee.
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Sexual Harassment Defense Coverage
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An insurance coverage providing claims-made coverage for the legal defense and costs for alleged charges of sexual harassment. Sexual harassment is when one employee is subjected to unsolicited, unwarranted, and unwanted physical or verbal advances, innuendoes, comments, or conditions from either the employer or another employee.
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Shock Loss
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A much larger loss than anticipated. Usually a loss large enough to have an impact on a company's underwriting results in any given territory.
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Shock Loss
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A much larger loss than anticipated. Usually a loss large enough to have an impact on a company's underwriting results in any given territory.
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Sidetract Agreement
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An agreement between the owners of a premises and a railroad with respect to a railroad sidetrack (transfer or access track) on the premises of the insured. The railroad will allow use of the sidetrack as long as the property owner guarantees access by the railroad to the sidetrack and agrees to certain conditions of property maintenance. It may also contain specified conditions of hold-harmless between the railroad and property owner.
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Single Interest Cover (Or Insurance)
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Used in connection with property sold on the installment plan, it protects the lender of money advanced to purchase a property, but does not protect the borrower or purchaser directly.
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Smoke Damage
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Damage caused by smoke other than smoke which accompanies a hostile fire. One of the extended coverage endorsement perils, but subject to certain restrictions.
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Soft Market
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The capacity and availability of insurance is said to progress in cycles of hard market and soft market. The soft market period is the portion of the cycle in which capacity is high, and coverage is readily available at affordable, competitive and even artifically low prices.
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Softwear
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All documents, manuals, and written instructions which guide a computer operation.
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Special Form
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A property coverage form protecting insureds from all causes of physical damage loss unless otherwise limited or excluded.
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Special Hazard
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A hazardous risk, or more generally, a risk with manufacturing occupancy.
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Special Multi-Peril Policy (SMP)
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A package policy for commercial accounts containing four principal sections of coverage: property, liability, crime and boiler and machinery. The basic policy contains declarations, general provisions and definitions applicable to these sections. The specific coverage requirements for each section are handled by separate forms. The types of accounts eligible for this policy can be grouped in eight categories: motel/hotel, apartment house, office, mercantile, service, industrial and processing, institution and contractors. This policy is rarely used., it has been replaced in most jurisdictions by the commercial package policy (CPP).
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Specified Perils
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An insurance contract that covers only those causes of loss (otherwise known as perils) that are specifically indicated as being covered.
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Split Limits
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A limits concept used in general liability and automobile liability policies whereby separate limits are set for each coverage. The most common example is one limit for bodily injury and another for physical damage, with still another for medical payments.
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Stamping Bureau
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An office which checks rates and forms of issued policies for accuracy of rates and rules. Sometimes called audit bureau because the daily report is stamped with a rubber stamp if correctly prepared.
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State Funds
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An amount of money assessed certain insurers in a given state to reimburse policyholders and calimants of an insolvent insurer in that state. The fund may be created before an insolvency occurs (pre-assessment, as in New York) or afterward (post-assessment), and virtually all states now have such protection. Also called insolvency funds and guaranty associations.
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Stated Amount
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When the value of property, either real or personal, is agreed upon at the issuance of the contract and, therefore, coinsurance and any other valuation clauses will not apply at the time of a loss.
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Statement of Values
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When a risk is rated with a blanket rate which is when a single rate is to cover more than one item or building, the policyholder is asked to give the amount of value in each separate risk and usually in the contents of each, so that a correct average may be determined. The information required is a "statement of values".
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Statue of Limitations
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A statute limiting the time within which a legal action may be brought.
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Stop Loss Excess Aggregate
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A company wishing to protect itself in the event aggregate losses exceed an agreed upon amount of self-retention in any one year, may purchase this type of coverage or reinsurance for the excess. This type of approach is most often used in the liability lines.
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Stranding
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Running aground, such as a vessel may do in shallow water.
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Subrogation
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In insurance, the substitution of one party (insurer) for another party (insured) to pursue any rights the insured may have against a third party liable for a loss paid by the insurer.
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Sue And Labor Clause
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Language in marine and inland marine policies requiring the policyholder in event of loss, to take all necessary means to save the property from further loss and recover from others who caused the loss. The insurer agrees to pay the costs, even if they exceed the policy's limit of liability.
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Suit
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A civil proceeding alleging damages for injuries or offenses committed by one party against another.
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Superintendent of Insurance
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The official of a state charged with the duty of enforcing its insurance laws. Called the superintendent of insurance (in three states) and director of insurance (in eight states). The official is elected in 11 states, appointed by a governor or state agency in 38 states, and is a civil service apointee in Colorado.
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Surety
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1)The guarantee given for the fulfillment of an obligation.
2)The person or organization guaranteeing the fulfillment of an obligation.
3)The underwriter who guarantees something under a bond.
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Surety Bond
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A written agreement wherein one party (the surety) obligates itself to a second party (the obligee or beneficiary) to answer for the default of a third party (the principal) in failing to perform specified acts within a stated time. Such obligations include payment of debts and responsibility for defaults.
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Surplus
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The remainder after a company's liabilities are deducted from its assets.
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Surplus Line
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A line of insurance provided by insurers not licensed in the states where the risks are located and placed under the surplus line laws of the various states. Before such placements can be made through specially licensed surplus line agents and brokers, state laws generally require evidence that placements could not be readily made in licensed insurers. Broadly referred to as being all lines of insurance placed with nonadmitted insurers.
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Surplus Lines Insurance
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Insurance written by insurers not licensed in the states where the risks are located and placed with such insurers under the surplus line laws of the various states. Before such placements can be made through specailly licensed surplus line agents and brokers, state laws generally require evidence reported before some predetermined future date ("sunset").
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Surplus Lines Tax
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The tax levied on a surplus lines placement,payable by the licensed surplus lines producer placing the risk under the law of a particular state, and charged to the insured. Not to be confused with the direct placement tax, which is applicable in approximately half the states in taxing the insured directly for placement of insurance with a nonadmitted insurer where no surplus lines tax is paid.
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Survey
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The description of a subject of insurance made for the information of the insurer by an inspector or surveyor.
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Surveyor
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One who determines either the condition of insured marine property or the amount of loss or damage in ocean marine practice.
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Services