Insured Loss: A Comprehensive Guide to Its Legal Definition
Definition & meaning
Insured loss refers to any financial loss that results from an act of terrorism and is covered by property and casualty insurance. This includes losses that occur within the United States or to specific entities like air carriers and United States flag vessels, regardless of where the loss happens. In addition, it encompasses reasonable expenses incurred by insurers in managing these claims, but it excludes punitive damages, extra contractual damages, and payments exceeding policy limits.
Table of content
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The term "insured loss" is primarily used in the context of insurance law, particularly within the framework of the Terrorism Risk Insurance Program. It is relevant in civil law cases involving claims for damages due to acts of terrorism. Users may need to complete specific forms or follow procedures to claim these losses, which can be facilitated through resources like US Legal Forms.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
(Hypothetical example) A business in New York suffers damage due to a terrorist attack. If the damage is covered by their property insurance, the financial loss would be considered an insured loss. Conversely, if punitive damages are awarded in a lawsuit related to the attack, those damages would not be classified as an insured loss.
Relevant Laws & Statutes
Insured loss is defined under 31 CFR 50.5, which outlines the Terrorism Risk Insurance Program. This regulation provides the framework for what constitutes an insured loss in the context of terrorism-related claims.
Comparison with Related Terms
Term
Definition
Difference
Insured Loss
Loss covered by insurance due to terrorism.
Specific to acts of terrorism and insurance coverage.
Property Damage
Physical damage to property.
Can include non-terrorism related incidents.
Casualty Loss
Losses due to accidents or injuries.
Not limited to acts of terrorism or insurance coverage.
Common Misunderstandings
What to Do If This Term Applies to You
If you believe you have incurred an insured loss due to a terrorist act, first review your insurance policy to confirm coverage. Gather all relevant documentation and consider using US Legal Forms for templates that can assist you in filing a claim. If the situation is complex, seeking professional legal advice may be beneficial.
Quick Facts
Insured losses must result from acts of terrorism.
Coverage is provided by property and casualty insurance.
Punitive damages are not included.
Claims may involve reasonable adjustment expenses.
Key Takeaways
FAQs
An insured loss qualifies if it results from an act of terrorism and is covered under your property and casualty insurance policy.
No, punitive damages are specifically excluded from the definition of insured loss.
Review your insurance policy, gather necessary documentation, and consider using legal templates to assist in filing your claim.
