A glossary of commonly used general insurance and risk management terms.

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NAMED INSURED – The first person in whose name the insurance policy is issued.

NAMED PERILS – Named perils are the specific dangers a policy insures you against – such as fire, windstorm, and hail in a policy. These perils are “named” or listed in the policy.

NEGLIGENCE – Failure to use that degree of care, which an ordinary person of reasonable prudence would use under the given circumstances. Negligence may be constituted by acts of either omission or commission or both.

NON-OWNED AUTOMOBILE INSURANCE – A policy which protects the insured against third party claims arising out of some other person using their own vehicle in the business of the insured.

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