MVA and Motorcycle Vocab PDF

Vocabulary Words: Defination: Actual Cash Value (ACV) The value of damaged property at the time of loss, accounting for depreciation....

Vocabulary Words: Defination: Actual Cash Value (ACV) The value of damaged property at the time of loss, accounting for depreciation. Replacement parts for vehicles or other products that are made by third-party companies, rather than the original manufacturer (OEM) of the product. Aftermarket After Market - FROM 3RD PARTY VENDORS (CHINA, parts are designed to function in place of the original parts, often providing a more affordable or customized option for repairs, maintenance, or upgrades. TAIWAN, ETC.) Aftermarket parts are third-party alternatives that may offer cost savings, customization options, and variable quality, depending on the manufacturer. Appraisal Evaluation of a property’s value, often for insurance or repair cost purposes. Arbitration An alternative to trial where a neutral third party makes a decision. A contract between an individual (the policyholder) and an insurance company that provides financial protection in the event of accidents, theft, or other incidents involving the insured vehicle. The policy outlines the terms, conditions, and coverages provided, as well as the premium the policyholder must pay to maintain coverage. An auto policy helps cover costs related to bodily injuries, property damage, vehicle repairs, and legal liabilities, depending on the types of coverage Auto Policy selected. Backing-up Collision Occurs when a vehicle is reversing and collides with another vehicle, pedestrian, or object. Blind Spot Collision When a vehicle collides with another in its blind spot, often during lane changes. A type of liability insurance policy where the policy limit decreases as defense costs and claims are paid out. Unlike traditional policies where the coverage limit remains intact for claims, a burning policy’s limits "burn" or reduce with each payment toward legal fees, settlements, or judgments, ultimately decreasing the Burning Policy available funds to cover future claims as expenses accumulate. Catastrophic Injury Severe injuries that may lead to permanent disability, such as brain or spinal damage. Causation Disputes Cases where there is a disagreement over whether the accident directly caused the injuries claimed. Chain Reaction Collision A multi-vehicle collision where the initial impact leads to a series of subsequent collisions. Claim A demand for compensation due to injury or loss. Claimant A person filing for damages to their property. Collision Coverage Insurance that covers repair or replacement of a vehicle involved in a crash. A type of insurance policy limit that specifies a single dollar amount of coverage for all types of claims resulting from a single incident, rather than separating the limits for bodily injury and property damage. With a CSL, the insured has one overall limit that can be applied flexibly across bodily injury and property damage Combined Single Limits liabilities, allowing for more flexibility in claims payout compared to split limits. An insurance contract designed to protect businesses and their assets from financial losses due to various risks and liabilities associated with operating a Commerical Policy business. Examples: Walmart, Target, Amazon, Fedex, etc. - Commerical policies typically have high policy limits 500k+. Comparative Negligence A rule where damages are adjusted based on each party’s fault. Comprehensive Coverage Insurance that covers non-collision damage, like theft, vandalism, or natural disasters. Refers to multiple insurance policies that provide coverage for the same property, person, or risk, with the same or similar terms, conditions, and coverage limits. These policies are designed to work together seamlessly in covering a single loss or event, ensuring that each policy’s terms align to prevent coverage gaps or Concurrent Policy conflicts in claims. Coverage Limitations The claim exceeds policy limits, or the specific type of damage (e.g., flood or earthquake) is not covered under the policy. Refer to monetary compensation awarded to a plaintiff in a civil lawsuit to compensate for loss, injury, or harm caused by the defendant’s actions or negligence. Damages **See Non-Economic and Economic Damages are intended to make the injured party "whole" by restoring them, as much as possible, to the position they were in before the injury. In personal injury Damages** cases, damages cover a range of losses, including physical, financial, and emotional harm. Deductible The amount the claimant must pay out of pocket before insurance covers the damage. Defendant (At Fault Party) The person or party being sued or accused. An insurance company’s decision to refuse payment for a claim submitted by the policyholder. This denial means that the insurer has determined the claim does Denied Coverage or Coverage Denial not meet the terms, conditions, or exclusions of the policy and, therefore, will not provide coverage for the requested damages or losses. A situation where one party or their insurance company explicitly refuses to accept responsibility for an incident, accident, injury, or damage. This denial means they do not believe they are at fault or legally obligated to cover any claims or compensation related to the incident. Denied liability can lead to disputes, delays in Denied Liability settlement, and often requires the claimant to provide additional evidence or pursue legal action to challenge the denial. A disagreement between parties over who is responsible or at fault for damages or injuries in a legal case, insurance claim, or accident. When liability is disputed, each party may present different accounts or evidence to argue their case, leading to a need for further investigation or legal proceedings to determine Denied Liability or Dispute Liability responsibility. Depreciation Reduction in the value of property due to age, wear, or damage, factored into the claim. Diminished Value The decrease in a vehicle’s value after it has been damaged and repaired.  Vocabulary Words: Defination: When there is disagreement over who is responsible or at fault for causing an accident, injury, or damage. In cases of disputed liability, the involved parties (often through their insurance companies or legal representatives) cannot agree on who should be held accountable or to what extent each party contributed to the Disputed Liability incident. This can delay settlements or claims and may lead to further investigation or litigation to determine fault. Type of compensatory damages awarded to a plaintiff in a personal injury or civil case to cover the actual, quantifiable financial losses they suffered due to the defendant’s actions or negligence. Economic damages are intended to make the plaintiff financially whole by reimbursing them for out-of-pocket expenses and income lost as a direct result of the injury or harm. Examples: Medical expenses, lost wages, loss of future earnings, property damage, out of pocket Economic Damages expenses. The process of proving that one party (the defendant) is legally responsible for causing harm, injury, or damages to another party (the plaintiff). In personal injury Establishing Liability cases and other civil disputes, establishing liability is essential for determining who is at fault and should therefore compensate the injured party for their losses. Estimate or Repair Estimate The projected cost of repairs, provided by a body shop or adjuster. A type of insurance that provides additional coverage beyond the limits of an underlying primary insurance policy. It acts as a secondary layer of protection that kicks in only after the primary policy’s limits have been exhausted. Excess policies are designed to increase the total available coverage for significant claims, helping protect policyholders from large losses and financial liability. Excess policies strictly provide higher limits without expanding coverage types. Excess Policy Typically to qualify for an umbrella policy, the auto limits need to be at least 100/300-250/500. Refers to a situation where, instead of filing a formal Traffic Collision Report with law enforcement, the involved parties exchange relevant information directly after Exchange of Information a collision. This may include personal contact details, insurance information, and vehicle details. An individual specifically named in an auto insurance policy as someone who is not covered to drive the insured vehicle. If the excluded driver operates the vehicle and is involved in an accident, the insurance policy will typically not cover any resulting damages or liabilities, leaving both the driver and the policyholder Excluded Driver responsible for the costs. Failure to Comply with Policy Terms The policyholder may not have followed procedures required by the policy, such as reporting the incident within a certain time frame. An auto repair shop that has been vetted and approved by Farahi law Firm to handle vehicle repairs for our clients. Farahi Law Firm has an established relationship Friendly Body Shop with the shop and is handled by our BDR team. A type of car insurance coverage that helps cover the difference, or “gap,” between what a policyholder owes on their vehicle loan or lease and the vehicle’s actual Gap Insurance (AKA Guaranteed Asset Protection cash value (ACV) if the car is totaled or stolen. This is particularly useful for new vehicles, as they often depreciate quickly, leaving a gap between the loan balance Insurance) and the car’s market value. A formal request for compensation submitted to a government entity or agency for damages, injuries, or losses caused by the government’s actions or negligence. This type of claim is often necessary when the responsible party is a government agency, such as for accidents involving government vehicles, unsafe public Government Claim properties, or alleged misconduct by government employees. Any organization, agency, or department that operates as part of the federal, state, or local government. Government entities are responsible for carrying out public functions and services, such as law enforcement, education, public health, infrastructure, and regulatory oversight. Government immunity aims to allow officials and entities to perform their duties without fear of constant litigation. However, partial waivers and exceptions are in place to ensure that individuals have avenues Government Entity (Federal, State, Local) to seek justice when harmed by the government’s actions, especially in cases of negligence or misconduct. A legal doctrine that protects government entities and their employees from being sued for performing official duties, except in certain circumstances where the Government Immunity government has waived immunity. This immunity originates from the idea that the government cannot be sued without its consent. Head-On Collision Two vehicles collide front-to-front. These are among the most dangerous accidents due to the combined speed of both vehicles. Hit-and-Run An accident where one party leaves the scene without providing information or assistance. Intersection Collision Collisions that specifically occur at intersections due to failure to yield, running red lights, or making improper turns. Lapsed Policy The policy was not active at the time of the incident due to non-payment or expiration. Liability (Why a person is at fault) Legal responsibility for one’s actions or omissions. Liability Insurance Coverage that provides protection against claims. Coverage that steps in for not having use of your vehicle. Typically the price is comparable to the rental. **Please note, typically you cannot claim LOU if a rental Loss of Use was provided** Low-speed Collision Typically occurs at speeds under 10-15 mph, often in parking lots or neighborhoods. An in-depth analysis of a significant traffic collision. These teams, often comprising experts in accident reconstruction, traffic engineering, and automotive MAIT Report (Multidisciplinary Accident engineering, are tasked with investigating severe or complex accidents to determine causative factors and provide recommendations for preventing similar Investigation Team) incidents in the future. This will typically be requested if a polilce officer is involved. Merge Collision A crash that occurs when a vehicle attempts to merge into traffic and collides with another vehicle. Misrepresentation or Fraud The insurer believes the policyholder provided false or misleading information during the application or claims process. Multi-Vehicle Pile-up Involves multiple vehicles, typically in chain-reaction crashes on highways or in bad weather. Negligence Failure to take reasonable care to avoid causing injury or loss.  Vocabulary Words: Defination: A legal doctrine that holds one party (the entrustor) liable for negligently providing another party (the entrustee) with a dangerous item, such as a vehicle, firearm, or machinery, when they knew or should have known that the entrustee was likely to use it irresponsibly and cause harm to others. This concept is commonly applied in cases where someone knowingly allows an unfit or inexperienced person to operate something potentially hazardous. Example: Automobile Entrustment: A car owner allows a friend to borrow their car, knowing that the friend has a history of DUI convictions or reckless driving. If the friend causes an accident while driving intoxicated, the car owner may be held liable under negligent entrustment for knowingly putting others at risk by Negligence Entrustment lending the car to an unfit driver. type of compensatory damages awarded in a personal injury or civil case to compensate the plaintiff for intangible losses that do not have a specific monetary value. Unlike economic damages, which cover tangible financial losses, non-economic damages address the personal and emotional impact of an injury, such as pain, suffering, and loss of quality of life. Examples: Pain and suffering, emotional distress, loss of enjoyment of life, loss of consortium, disfigurement Non-Economic Damages and physical impairment. Notice The legal concept that the property owner or occupier must have known (or should have known) about a hazardous condition Notice of Loss Initial report to an insurance company that a loss has occurred. Objective Fact-based that is uninfluenced by personal feelings, opinions, or interpretations. OEMs supply original parts or products for brands to incorporate into their final goods or to offer as replacement parts. OEM parts are typically designed to meet the exact specifications of the original product and are usually considered high quality due to the compatibility and performance standards they maintain. Made by the original manufacturer of the product or by a designated supplier to meet the original specifications of the part used in the final product. OEM parts are identical OEM (AKA Original Equipment Manufacturer) - to the parts initially used and are often branded by the original company. OEM parts are original, high-quality replacements with a perfect fit and generally FROM DEALERSHIP higher cost. Refers to an insurance policy without a predetermined or fixed payout limit for claims related to personal injury. Instead, the payout is based on the actual damages incurred by the injured party, which can include medical expenses, lost wages, pain and suffering, and other compensable losses. Open Policy Refers to the process of reversing or challenging an existing determination of liability in a legal case, typically through an appeal or new evidence. In personal injury and other civil cases, if a party is found liable for damages or harm, that party may seek to "overturn" or change the liability ruling, aiming to reduce or eliminate Overturn Liability their responsibility for the claim. Pain and Suffering Physical and emotional distress caused by an injury. Parking Lot Accident Occurs at low speeds, often involving reversing vehicles or tight parking spaces. An individual, organization, or entity directly involved in a legal proceeding, contract, or insurance claim. Each party has specific rights, responsibilities, and a Party vested interest in the outcome of the case or agreement. Personal Injury Harm caused to a person’s body, mind, or emotions. Plaintiff (Our Client) The person bringing a lawsuit against another party. Policy Coverage Dispute Cases where insurers and claimants disagree on whether an insurance policy covers specific damages. Policy Exclusions The claim falls under an exclusion within the policy, such as intentional damage or specific risks not covered. Refers to the specific wording and terms used in an insurance policy document that outline the rights, responsibilities, coverages, limitations, and exclusions of the policy. The language in an insurance policy is carefully crafted to define the scope of coverage, clarify the obligations of both the insurer and the insured, and Policy Language specify the conditions under which claims may be accepted or denied. Policy Limits/Coverage Limit (AKA "Limits") The maximum amount an insurer will pay for a covered loss. An auto repair shop that has been vetted and approved by an insurance company to handle vehicle repairs for policyholders who file a claim. Preferred body shops are part of an insurer’s Direct Repair Program (DRP) network, which means the insurance company has an established relationship with the shop, often including Preferred Body Shop negotiated rates, streamlined claims processes, and standards for quality repairs. A California law that limits certain types of compensation in personal injury cases involving uninsured drivers. Under Prop 213, if an individual is injured in a car Prop 213 (AKA Proposition 213) **Please refer to accident but was not insured at the time of the incident, they are restricted from receiving "non-economic" damages, such as compensation for pain and suffering, Prop 213 exemptions sheet** emotional distress, or loss of enjoyment of life. Property Damage Harm or destruction to physical property due to an incident. A legal document in which a person or entity suffering property damage agrees to settle their claim with the responsible party (often the at-fault party's insurer) in exchange for compensation. By signing this release, the claimant accepts the settlement amount and agrees not to pursue any further legal claims or demands Property Damage Release related to the specific incident and property damage. Rear-end Collision An accident where one vehicle hits the back of another. This occurs when parties involved in an accident at an intersection disagree on whether a traffic signal, specifically a red light, was obeyed. In these cases, each Red Light Dispute party may claim that they had the right of way or that the other party ran the red light, causing the collision. Rental Reimbursement Insurance coverage that pays for a rental car while the damaged car is being repaired.  Vocabulary Words: Defination: Replacement Cost The cost to replace damaged property with a similar item at today’s prices, without depreciation. Rollover Accident A vehicle flips onto its side or roof, often involving SUVs or trucks due to a higher center of gravity. Salvage Value The remaining value of a vehicle deemed a total loss, often sold for parts. Settlement (Property Damage) Agreement on the amount paid by the insurer to cover the property damage. Sideswipe Two vehicles traveling parallel collide with each other on the side. Often occurs when one vehicle drifts into another lane. Soft Tissue Injury Damage to muscles, ligaments, or tendons, often difficult to quantify. Statement of Facts A concise, factual summary of the relevant events, circumstances, or details surrounding a particular case, issue, or dispute. Statute of Limitations The time limit for bringing a lawsuit after an injury occurs. Structural Damage Damage to the foundational or integral parts of a building or structure. Subjective Refers to a perspective, opinion, or assessment based on personal feelings, beliefs, interpretations, or experiences rather than on objective facts or universal truths Subrogation The process by which an insurance company seeks reimbursement from the responsible party after paying a claim. A broadside collision or side-impact collision, occurs when the front of one vehicle crashes into the side of another vehicle, forming a "T" shape. This type of T-bone Collision accident often happens at intersections when one vehicle fails to yield or runs a red light, hitting the side of another vehicle crossing its path. Involves formally requesting that another party (typically another insurer or a third party) assume responsibility for a claim or provide defense and indemnity in connection with the claim. This is common when multiple parties or insurers may share liability, or when a party believes that another is contractually or legally Tender of Claim (To another party) obligated to cover the costs associated with the claim. By tendering the policy limit, the insurer aims to resolve the claim entirely by paying out the maximum coverage available, potentially ending their involvement in Tender Policy Limit the claim. Third-Party Claim (3P) A claim filed against someone else’s insurance policy for damage to your property. Total Loss When the cost to repair a vehicle exceeds its actual cash value. Towing Towing services Traumatic Brain Injury A serious injury to the brain resulting from an impact. U-Turn Collision Occurs when one vehicle makes a U-turn and collides with an oncoming vehicle. Undercarriage Damage Damage to the underside of a vehicle, which may affect its structure or function. Underinsured Motorist (UIM) Applicable coverage when our client's limits are higher than the defendant's liability limits. Uninsured Motorist (UM) Applicable coverage when the Defendant has no insurance. Vehicle Inspection Insurance adjuster or independent inspector evaluating property damage. A legal principle under which one party (typically an employer) is held responsible for the actions or negligence of another party (such as an employee) when those actions occur within the course and scope of the relationship, particularly within employment. This doctrine allows an injured party (plaintiff) to seek compensation from a party other than the direct wrongdoer, usually because the indirectly liable party has a greater ability to pay damages or is in a position to prevent harm by Vicarious Liability managing the actions of those under their control. Vocabulary Words: Defination: Vocabulary Words: Defination: