Accident Terms and Definitions

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

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.

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.

Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.

Policy
Written contract of insurance.

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

Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

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.