Page 9 - Lawyer Copy of Final Version MPRC COLLATERAL OPTION 4 (8.5 × 11 in)_Neat

Insured The person (or persons) whose risk of financial loss from an insured peril is protected by the policy.
Sometimes call the "policyholder".

Insurer The Insurance Company.

LOI Loss of Income, including Fair Rental Value and Business Interruption - Compensates you for your lost
income while your business operations have been interrupted due to an insured loss.

A Public Claims Adjuster is a professional, licensed by the department of insurance. They serve as an
PA
advocate for the policyholder against their own insurance company throughout a property damage claim
process.

POL PROOF OF LOSS – A formal statement made by the insured to the insurance company regarding a loss. The
purpose of the proof of loss is to place before the company sufficient information concerning the loss to
enable it to determine its liability under the policy.

PM Project Management – The knowledge and skills required to manage construction projects from
conception to conclusion.

PV Preferred Vendor – The insurance companies have signed vendor agreements with restoration
contractors. They are paid by adding Overhead and Profit (O&P) to their sub GC and sub trade invoices.

O&P Overhead and Profit.

RCV REPLACEMENT COST – The cost of replacing property without deduction for depreciation.

Restoration or The period of indemnity is the length of time for which benefits are payable under an insurance policy.

Indemnity The period of indemnity is also used to denote the time period for which compensation is payable under a
business interruption policy. Typically, an indemnity period will have a time limit stated within the policy,
Period
such as 12, 24, or 36 months.