Accident Terms and Definitions

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

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

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

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.

Scrapped
Vehicles that have been dismantled and/or crushed and should not return to the road.

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

Nonrenewal
The termination of an insurance policy at its normal expiration date.

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.

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.