Wayne State University

Glossary of Terms

Actual cash value
The value of property, less deductions for appreciation.
Actuary
A person who projects losses based on exposure and previous loss history.
Appraised value
Value placed on property by a qualified expert.
Auto physical damage
Damage to university-owned vehicles.
Bond
Guarantee to pay if specific conditions are met.
Business interruption
Coverage for lost revenue due to a covered occurrence.
Captive insurance company
A subsidiary company providing insurance to its parent.
Certificates of insurance
Form that evidences insurance including insurer, coverage and limits.
Collision
A type of physical damages resulting from collision with another vehicle or other object.
Comprehensive
A type of physical damage not resulting from collision.
Disability management
Assistance provided to employees to minimize the effects of illness and injuries while encouraging a safe and expedient return to work.
Excess insurance
A layer of insurance coverage that is second to the primary insurance.
Experience
The loss record of a department or line of insurance coverage. Classified statistics showing what has happened in the past.
Fine art
Assets whose value increases over time due to their rarity or intrinsic value.
Indemnification
Agreement wherein one party agrees to pay for the loss or damage it causes to another.
Liability
Legal obligation to reimburse for damages to third parties.
Liquor Liability
Amounts the university is legally obligated to pay to reimburse for damages to third parties arising out of the serving of alcohol.
MIOSHA injury log
A record of employee or contractor work-related injuries and illnesses.
Occurrence
An adverse accident or event neither expected nor intended.
Personal Injury Protection
Benefits provided under the Michigan No-Fault Act for accidental bodily injury sustained while in a university vehicle or from an injury sustained arising out of the operation, use or maintenance of a vehicle.
Premiums
Amounts charged for insurance coverage.  Premium factors include loss experience and exposure.  Calculation methodology varies by coverage.
Primary insurance
The first layer of insurance coverage.
Replacement cost
The cost incurred to replace property with like, kind and quality.
Reserve
The amount estimated to be paid to resolve a claim.
Restitution
Proceeds recovered from a third party as recovery for damages or losses incurred by the university.
Retention
The deductible amount of an insurance policy.
Risks
A term used to denote the exposure to damages involving human or physical assets.
Salvage
Any proceeds from the repaired, recovered, or scrapped property.
Self-insurance
University funds set aside to meet losses it retains.
Subrogation
Any proceeds of negotiations or legal action taken against negligent third parties.
Time element
Coverage for lost revenue due to a covered occurrence.
Total incurred
The sum of amounts and reserved for a claim.
Umbrella coverage
A layer of insurance coverage that is second to more than one layer of primary insurance.
Volunteers
A person providing authorized work/assistance to the university without compensation.