Accident Terms and Definitions

Insured
The person(s) entitled to coverage in case of an accident or loss.

Policy
Written contract of insurance.

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

Cancellation
The termination of an insurance policy before its normal expiration date.

Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.

Commission
That portion of the premium paid to the agent as compensation for his or her services.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.