Page 8 - MPRC Collateral (8.5 × 11 in) October 12 2022_Neat

Glossary

ACV Actual Cash Value - Valued policies pre-agree upon an amount of insurance for your dwelling/building,
contents and equipment. In the event of a Total Loss of your dwelling/building, this is the amount you
would receive (less any applicable deductions). On an ACV policy, claims are subject to an adjusted
settlement based upon the age and condition of the damaged item or dwelling/building.

Addition Living Expenses coverage allows you to maintain a comparable quality of life while living outside your
ALE home during repairs and rebuilding. It is designed to keep you from struggling to find accommodation while

your home is unlivable. With ALE coverage, you will not have to stay with family or suffer undue financial
hardship to rent temporary accommodations.

Section 128 of the Insurance Act, RSO 1990, c I.8 (the “Act”), applies to an insurance policy containing a
condition, statutory or otherwise, providing for an appraisal to determine specific matters – typically, the
Appraisal
value of insured property – in the event of a disagreement between the insurer and the insured. More
specifically, s. 128(5) of the Act, authorizes the court to appoint an appraiser where a party fails to do so
within seven days of being served with notice to do so.

Type of insurance in which the insured pays a share of the payment made against a claim.
Co-Insurance
X Amount of Loss = Payout
Amount of Insurance Carried
Value of Property X Co-Insurance %

GRC – Guaranteed Replacement Cost – provides the peace of mind in knowing that, in the event of a
GRC catastrophic loss, your home will be rebuilt to the same standard of construction, with materials of like
kind and quality, regardless of the value declared on your policy, subject to the insurers' terms and
conditions.

Indemnity The period of indemnity is the length of time for which benefits are payable under an

Period/ insurance policy. 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
Restoration Period
period will have a time limit stated within the policy, such as 12, 24, or 36 months.

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.