Glass Insurance
Insurance against the breakage of glass. The coverage is usually extended to certain other incidental expenses associated therewith. See Plate Glass.

Good Faith
Most ordinary contracts are good faith contracts. Insurance contracts are agreements made in the utmost good faith. This implies a standard of honesty greater than that usually required in most ordinary commercial contracts.

Gross Negligence
The degree of negligence somewhat greater than ordinary negligence. It may be a reckless wanton and willful misconduct causing bodily injury and/or property damage.

Guiding Principles
A loss may be covered by more than one policy. One policy may have a co-insurance clause and the other may not. How any loss in such circumstances should be apportioned between the various insurance companies involved creates a problem. To meet this problem, the majority of insurance companies have agreed to certain rules and principles. These principles override the actual wording of the policy so the insured is indemnified with least difficulty.

H

Habitation
Dwelling place; residence.

Hazard
1) A risk or probability that the event insured against might occur.
2) Condition which engenders or increases the chances of a loss.

Hazard, Moral
Hazard arising from character, interest, habits and lack of integrity of the insured or person concerned.

Hazard, Physical
Hazard arising from physical condition or characteristics of the object that is insured, e.g., using and storing volatile materials and substances on the premises.

Highway Traffic Act
The body or system of laws which govern the obligations of the provincial governments and users of roads. A breach or conviction of any of these
laws may be an offence but does not of itself impose legal liability, but it may be relied upon in any proceeding to establish or negate any liability.

Hit and Run Accident
Collision between motor vehicle and/or a motor vehicle and another object and/or a motor vehicle and a pedestrian where a driver leaves the scene of the accident without identifying him/herself. This is an offence under the Highway Traffic Act.

Homeowners Policy
A multi peril insurance policy for dwelling risks, combining coverages for fire, and extended coverages including theft, and liability.

Hostile Fire
A fire which occurs in or escapes to a place not anticipated, e.g., a fire in a fireplace becomes uncontrollable and ignites something externally. See Friendly Fire.

I

Improvements and Betterments
Additions or changes to a rented premises by a tenant at his own expense. Also called Tenant's Improvements.

Incendiary
Malicious setting on fire or preparing, providing and setting the means for fire to start.

Inception
The date and time on which coverage under an insurance policy takes effect.

Indemnify
To provide compensation for loss or expenses incurred.

Indemnity
A contract, expressed or implied, to repay in the event of a loss. Insured neither gains nor loses.

Indemnity Period
The policy period.

Independent Adjuster
One who adjusts losses on behalf of insurance companies, but is not employed by any one insurance company.

Inflammable
Easily set on fire.

In Force
Insurance policy which is in effect, and has not expired or been cancelled.

Inherent Vice
The quality that something has to deteriorate or damage itself without outside help, e.g., milk sours; coal combusts spontaneously.

Insurable Interest
An interest which the insured must have in the subject matter of the insurance he buys so that if the event insured against occurs, the insured will suffer a pecuniary loss.

Insurance
A contract in which one party, the insurer, for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defined subject caused by specified hazards or perils.

Insurance Bureau of Canada (IBC)
The trade association of the Property/Casualty insurance industry in Canada. It concerns itself with such matters as Public Relations, Collection of Statistics, Promulgation of forms etc. It has a substantial permanent staff but also many committees made up of volunteers from the senior ranks of insurance companies.

Insurance Crime Prevention Bureau (I.C.P.B.)
An organization supported by property and casualty insurers which investigates fraudulent insurance claims and provides a deterrent to such losses. Loss prevention information is maintained by the Bureau for use by member insurers, independent claims adjusters and government authorities across the country.

Insurance Institute of Canada (I.I.C.)
The educational body of the general insurance industry. It consists of an association of provincial institutes. Among other things, it conducts correspondence courses, holds annual examinations and grants diplomas.

Insurance Policy
A written contract of insurance.

Insured
The entity (individual or otherwise) whose risk of financial loss from an insured peril is protected by the insurance policy.

Insurer
The company providing the insurance coverage.

Insuring Clause
Describes the intent of the policy, just what insurance coverage is provided by the policy and in what limits.

Intermediary
1) The agent/broker negotiating insurance or re insurance contracts for another.
2) Any party representing another party, in negotiation with a third party.

Inventory
Itemized list of goods and property on hand.

Joint and Several Liability Clause
This exists when the situation is such that a creditor in the case can sue any one of the debtors individually, or any, several or all of them, at the creditor's option. This situation applies to tort-feasors as well as to commercial debtors. Persons who together commit a tort and injure another person generally would be jointly and severally liable for the damage. An injured person has the option of suing the entire group or of suing the one having the greatest financial strength.