Accident Terms and Definitions

Insurer
The insurance company providing the 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.

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

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

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

Salvage
Property taken over by an insurer to reduce its loss.